Electrochem Ghana Limited (EGL), a McDan Group of Companies subsidiary, has launched a Community Outgrower Scheme aimed at empowering artisanal salt miners in its Songor Lagoon Salt Mine concession.
This new initiative, which cedes an additional 1,000 hectares of the salt-producing company’s concession to local miners after an earlier 1000 hectares, was unveiled by the CEO of Electrochem, Mr. Abdul Razak Adam, during a ceremony held on Monday, August 26, 2024.
A Commitment to Community Development
Mr. Adam emphasized the importance of socioeconomic development through direct community engagement. He highlighted the company’s dedication to supporting the well-being of local communities, saying, “At Electrochem, we recognize that our success is deeply intertwined with the well-being of the communities we operate in. We are not just a company that extracts salt; we are part of a larger ecosystem that includes you—our neighbours, partners, and future.”
The Community Outgrower Scheme will allow residents to pool their resources, form groups, and register as businesses. These groups will participate in salt mining in pans created by EGL, fostering entrepreneurship, job creation, and long-term economic benefits for the community.
Resolving Community Concerns
The launch follows previous tensions between EGL and residents, who had expressed concerns about the impact of the company’s salt mining operations on their livelihoods. A Parliamentary intervention led to this solution, aiming to integrate the community into the mining process. Mr. Adam reassured the community, stating, “This scheme is not just about mining salt; it’s about mining potential, inspiring innovation, and building a legacy of prosperity for generations to come.”
Sustainable mining and participation
Electrochem has also committed to eco-friendly mining practices, ensuring that the initiative promotes sustainability and environmental protection. To participate, community members are required to form groups of at least 50 people, register as a business, and complete training on responsible mining. Upon approval, they will be allocated land within the concession for salt mining.
Local leadership backs initiative
The Paramount Chief of the Ada Traditional Area, Dzetse Nene Kabu Abram Akuaku III, also addressed the gathering, urging Electrochem to follow through on its promises. He recalled that when EGL began its operations in Ada, the company committed to local involvement in salt production, job creation, and royalty payments. The chief acknowledged progress, including the creation of infrastructure and financial support, but emphasized the need for continuous dialogue to ensure the community fully benefits from the company’s operations.
Nene Dame Sowu III, Secretary to the Ada Community Chiefs Association, expressed the full support of local chiefs for the initiative. He remarked, “We are happy that the world will now know that our people are being allowed to be part of this business.”
Local groups endorse training initiative
Leaders of local salt producers and youth groups also voiced their support for the initiative. Alfred Nokobi Wuago, Chairman of the Kakipe Salt Producers Association, praised the training opportunities provided by EGL, noting that it would improve the quality of salt production in Ghana. “We are ready to undergo the necessary training to meet the standards required to produce quality salt for Ghana and the world at large,” Wuago stated.
Amos Martey Osabutey, Chairman of the Ada Youth for Development, expressed optimism about the job opportunities created for the local youth. He noted that earlier tensions had eased as land had been allocated to the youth, allowing them to participate in the business.
While some opposition remains, Electrochem’s new outgrower model has gained the support of many local groups, who see it as a pathway to prosperity and empowerment for the people of Ada. As the initiative unfolds, the company and the community will continue working together to ensure the scheme’s success.
