Electrochem Ghana Limited, the country’s largest salt-mining company, has formally handed over concessions under its new outgrower scheme, marking a significant shift in its approach to community engagement and sustainable mining practices.
The handing-over ceremony for the scheme, which allocates 1,000 acres of the company’s 7,000-acre mineable concession to local miners and community groups, was attended by company officials and community leaders.
Abdul Razak Adam, Chief Executive Officer of Electrochem, explained the rationale behind the initiative.
He stated that the company understood that the existing community pan system, although valuable, was inadequate to address the scale of inclusive mining required in the area.
“There are individual businessmen who are not necessarily looking to do mining in a community pan concept. They have done their private businesses for so many years and they want to continue that way,” he explained.
The outgrower scheme comes in addition to the company’s existing community pans programme, where Electrochem constructs ponds at its own expense and provides free brine – salt water – to community members for salt production.
To participate in the outgrower scheme, businesses must be officially registered with the Minerals Commission, the sector’s regulatory body. Additionally, they must demonstrate local ownership, either fully or partially.
According to Mr. Adam, the decision to implement the outgrower scheme was accelerated by a recent parliamentary recommendation.
“It was accelerated because of the recent parliamentary recommendation that Electrochem should carve out part of the portion of the concession for the members of the community,” he stated.
Of the company’s 42,000-acre total concession, only about 7,000 acres are mineable due to the presence of mangroves, water bodies and settlements. The 2,000 acres allocated for the outgrower scheme and community pans – 1,000 acres each – represent approximately 29 percent of this mineable area.
Electrochem’s commitment comes at a significant cost, with Mr. Adam disclosing that the company has paid in excess of GH¢36million to the Mineral Commission over the past two years. This is in addition to land occupation rights paid to the traditional council and fees to the district assembly.
The scheme has already attracted considerable interest. “Right now, we have registered over 11 different types of businesses under the outgrower scheme,” Mr. Adam noted, despite the programme only being rolled out two months ago.
Bismark Nartey, Lead Engineer for Mines Service and Design at Electrochem, provided details on the allocations. “Today, we are allocating five communities in the west; five associations in the west, which is going to cover close to to 400 acres.”
The company is also preparing to expand operations to Ada East District. “We have already established an office there and mobilised equipment that is ready to move in,” Mr. Adam stated, indicating that work could begin within two weeks.
Electrochem emphasises sustainable mining practices as a key component of the outgrower scheme. The CEO explained: “We will be responsible for providing brine, that is a salt water, in order to produce the salt. And our state-of-the-art engineering designs are what is going to be used to supply the brine directly from the sea”.
The company also plans to provide training and guidance on sustainable mining practices to the outgrowers.
The scheme has been well-received by community leaders. Nene Dameh Sewu III, Chief of Togbloku Okor and Executive Secretary of Ada Community Chiefs Association, expressed optimism about the economic impact. “This initiative will create new employment opportunities for local residents, contributing to the overall economic vitality of our community. Additionally, by providing our citizens with additional resources, we can alleviate the financial burden of supporting those who may encounter challenges.”
Nene Sewu expressed optimism that the development will spark further dialogue and help resolve any outstanding concerns within the community.
“That is why it is crucial for us to gather together at the round table and maintain open and ongoing discussions,” he said.
The chief’s sentiments were echoed by an outgrower, Charles Anim, who expressed enthusiasm for the new opportunities presented by the scheme. Mr. Anim, a local salt miner with over two decades of experience, praised Electrochem’s approach to community engagement. “For years, we have been operating independently, often struggling with outdated methods and limited resources,” he said.
“This outgrower scheme not only provides us with access to modern technology and sustainable practices, but also offers a sense of security we have never had before. It is a game-changer for persons like myself,” he added.
Mr. Anim highlighted the potential for increased productivity and income, noting that the provision of brine and technical support from Electrochem could significantly boost their output. He also emphasised the importance of the ready market provided by the company.
“Knowing that we have a guaranteed buyer for our salt takes a huge burden off our shoulders. It allows us to focus on improving our production methods and quality, rather than worrying about where to sell our product,” he explained.
While the outgrower scheme represents a significant step toward community inclusion in salt mining operations, Electrochem maintains that its doors remain open for further dialogue and potential expansion of the programme.
“We anticipate that increased education and publicity will encourage more individuals who are not currently participating in the outgrower scheme to join. This will enable us to expand our programme and transition people away from unsustainable mining practices toward sustainable alternatives,” Mr. Adam added.
He believes the total concession is more than adequate to meet the demands of intending outgrowers.
