By Thomas-Moore ADINGO
Electrochem Ghana Limited, operators of the 41,000-acre salt concession at Ada in the Greater Accra Region, is on track to complete its US$500million integrated salt plan by 2027.
The plan includes the completion of salt works — the core infrastructure for producing raw salt — at a cost of around US$120million.
Additionally, the company will establish a US$40million refinery with a capacity of 100 metric tonnes per day, as well as chemical processing plants – caustic soda and bromine plants – estimated to cost US$85million. Construction works have already begun.
Electrochem’s vision also features the development of an industrial park to host manufacturing firms that rely on salt as a key raw material such as a P.O.P cement plant. There will also be a university focused on industry-related research and training.
“We are seeking to produce a minimum of three to five million tonnes of salt annually. To handle these kinds of volume, transporting by road is neither safe nor economical,” said Kwaku Ampromfi, Chief Executive Officer of the McDan Group, parent company of Electrochem Ghana Limited.
“So, the plan is to build a port, which will then be used to move these volumes. We expect this to cost about US$100million.
“Putting all of these together, we are looking at a total investment of US$500million. We expect all these projects, some of which have already commenced, to come on stream within two years,” he added.
The company, he noted, is confident of meeting this capital requirement — which does not include the US$120million it has already invested — through a combination of financing options.
This was revealed when the acting Chief Executive Officer of the Minerals Income Investment Fund (MIIF), Justina Nelson, together with her management team, paid a working visit to Electrochem.
MIIF has a GH¢365million equity investment in Electrochem.
Going public
Part of the conditions for MIIF’s investment is for Electrochem to be listed on the Ghana Stock Exchange within three years. However, this is yet to materialise due to the absence of a board of directors for the Securities and Exchange Commission (SEC) since August last year.
“Initially, we were planning to achieve this much earlier, but it has not happened. However, we are hoping to get it over the line as soon as the SEC gets a new board,” Mr. Ampromfi said.
It is worthy to add that MIIF’s participation in Electrochem officially began in March 2024.
Invasion
In the early hours of 10th January, 2025, armed thugs invaded the premises of Electrochem, following the change in government after the 2024 elections.
The attackers, described as brazen and organised, ransacked the premises, causing havoc and stealing essential office supplies, along with a substantial quantity of salt products from the warehouse.
According to Electrochem’s Chief Executive Officer, Abdul Razak Adam, the company suffered an estimated loss of US$20million from equipment damage, theft and downtime due to the attack.
MIIF
“This tour, to me, is timely because MIIF has a stake in Electrochem and having recently assumed office, I found it appropriate to come and see what is happening here,” MIIF’s acting CEO said after the visit.
She expressed satisfaction with Electrochem’s operations, stating: “So far, they have been able to utilise the available resources”.
She, however, ruled out the possibility of any further capital injection this year, either into Electrochem or other firms in which MIIF holds stakes.
This position, she explained, stems from the fact that the government has declared 2025 as a year to raise more revenue while simultaneously reducing expenditure.
“We have seen first-hand the security issues confronting the company and we will work with the relevant authorities to ensure that this investment is protected,” she assured.
