Electrochem’s outgrower scheme, community pans gaining traction – CEO

• as indigenes benefit
• more industrialisation planned
• seeks further stakeholder support

A News Desk Report

The Chief  Executive Officer (CEO) of Electrochem Ghana Limited – the largest salt mining company in West Africa, Razak Adam, has said  the company is witnessing increasing acceptance of its outgrower scheme and community pan initiatives.

The outgrower scheme, which was formally launched recently, is an initiative whereby Electrochem provides land concessions to local residents or community groups to engage in salt mining.

The company guarantees to purchase the salt produced by these outgrowers, ensuring a stable market for their product.

The company has also constructed community pans for salt mining and handed them over to local communities free of charge. These pans are designed to facilitate salt production on a smaller scale, providing additional income opportunities for residents.

Together, these initiatives form part of the company’s expansive salt mining project and aim to integrate local communities into the salt production value chain.

“The response to our community engagement efforts has been nothing short of overwhelming. We are witnessing wide-scale acceptance, as tangible results of our initiatives are being recorded across the region. From improved infrastructure to increased employment opportunities, the impact is visible and transformative. This groundswell of support reinforces our commitment to sustainable development in Ada,” Mr. Adams told B&FT during a site tour.

The outgrower scheme, covering 1,000 acres, has enrolled seven community groups to date. Concurrently, they constructed 70 community pans across seven project-affected communities – fully funded by Electrochem he further disclosed.

Proceeds from the community pans have funded renovations at the local school.

Naa Korley, a community leader speaking during a phone interview confirmed: “The improvements to our school’s infrastructure have had a positive impact on the learning environment”.

Economically, Electrochem’s presence has significantly influenced local employment. The company currently maintains a workforce of 560 permanent staff and over 5,000 temporary workers.

Mr. Adams noted, “90 percent of our workforce is indigenous to this area. We anticipate doubling our temporary workforce as operations expand”.

Process

Bernard Tetteh, Chief Operating Officer-Electrochem, provided insights into the company’s production process. “Our operations utilise the Songo Lagoon, spanning approximately 10,500 acres, as the primary evaporation zone,”  he explained.

“We have implemented a compartmentalised design with alternating gates to optimise brine travel time and mineral separation.”

The final stages of production occur in crystallisation pans spread across multiple sites covering 600 acres. Post-harvesting, the salt undergoes further purification in washing plants with a combined daily capacity of 6,000 tonnes.

“Our production process consistently yields 99.9 percent pure sodium chloride, meeting pharmaceutical-grade standards,” Mr. Tetteh stated. This high-purity output positions Electrochem competitively in both domestic and international markets.

Refining

Electrochem’s ambitions extend beyond raw salt production. Plans are underway for a salt refinery, which the CEO believes will significantly enhance Ghana’s industrial capabilities. “The refinery will enable us to produce value-added products, potentially increasing our economic contribution substantially,” he explained.

At full capacity, Electrochem aims to produce up to  two million metric tonnes of salt annually. Mr. Adams provided context for the economic potential. He noted that unrefined salt at US$200 per metric tonne could generate annual revenue of US$400million. Refined salt, at   US$600 per metric tonne, could yield $1.2billion annually. “These figures potentially surpass revenues from traditional exports like cocoa and rival those of gold,” he stated.

Not all smooth sailing

Despite this progress, the Electrochem CEO acknowledged that challenges remain. He explained that the concession covers both Ada East and Ada West districts: “And while operations in the western part have progressed, commencement of work in the eastern part is stalled due to community resistance – which has sometimes resulted in attempted physical attacks on our personnel in those areas”.

However, he expressed optimism about resolving the issues. “We are confident that the positive results from our community engagements in the west will eventually yield similar outcomes in the east. Our commitment to dialogue and community development remains unwavering,” he stated.

Environment

Environmental considerations are also at the forefront of Electrochem’s operations, given the project’s proximity to ecologically sensitive areas. Mr. Adams asserted: “Our activities have actually improved the local ecology, particularly in reviving the lagoon ecosystem”.

He stated that reviving the Songor Lagoon – which had been depleted by illegal salt mining, known as Atsiakpo – has resulted in an overwhelming return of migratory birds, with studies ongoing to show the full extent.

Looking ahead, Electrochem envisions creating an industrial hub centred around salt-related industries. “We are exploring the establishment of further research facilities. This could potentially transform the entire region into a thriving industrial ecosystem,” Mr. Adams revealed.

All hands needed

The realisation of these ambitious plans however hinges on continued support from all stakeholders, including government. Mr. Adams emphasised: “Recognition by government of this project’s national importance is crucial. We require enhanced security measures and infrastructure support to facilitate our expansion plans”.

He added that as Electrochem contributes to large-scale industrial development in Ghana, the project’s success could set a precedent for future endeavours.

“Our vision extends beyond salt production. We aim to create sustainable economic opportunities for Ada and Ghana as a whole. With continued collaboration and support, we believe this vision is attainable,” the Electrochem CEO stressed.

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