The CEO of Electrochem Ghana Limited, Abdul Razak Adam, has assured Parliament that no individuals or groups have been displaced due to the company’s operations in the Ada Songor enclave.
He emphasized that the living standards of local communities have significantly improved through the company’s corporate social investments.
Mr. Adam disclosed these when he appeared before Parliament’s Joint Committees on Energy, Mines, and Forestry.
He responded to allegations from interest groups such as the Dangbe East Salt Producers Association (DESPA) and Ada Songor Lagoon Association (ASLA), who claimed that Electrochem had taken over lands belonging to residents.
“There is no single person that has been displaced from their home… The communities that we came to meet, the communities are existing, they have not been displaced,” Mr. Adam stated.
He stressed the company’s efforts to enhance community welfare, mentioning the construction of toilet facilities, the provision of potable water, and the introduction of scholarship schemes and interest-free loans.
On November 6, 2023, a clash occurred between some youth of Toflokpo and security officers over Electrochem’s operations.
Subsequently, Sege MP Christian Otuteye called for legislative intervention to prevent future conflicts. First Deputy Speaker of Parliament, Joseph Osei-Owusu, directed an investigation into the leasehold agreement and parliamentary approval of Electrochem’s operations.
Mr. Adam also addressed claims that Indigenous salt miners had been displaced, explaining the company’s community pans concept.
He said, “The community pan concept is to ensure that in every community that we go into, we create parallel mining and provide them with quality brine,” he said.
He added that Electrochem had invested $10 million to supply brine directly from the sea to both its mine and local communities.
Mr. Adam accused ASLA of attempting to derail progress in Ada.
According to him, ASLA was a pressure group that was formed after Electrochem came into existence to make sure that they torpedo the progress that the people of Ada are seeing.
He noted that Electrochem employs over 4,000 people, with plans to double that number, and over 80% of employees are from Ada communities.
“We have also provided potable water to ensure that the people do not suffer from a lack of water. We have introduced a scholarship scheme, renovated schools, and increased interest-free loans for women from GH¢3,000,000 to GH¢10,000,000. If anything, Electrochem has emerged as a partner filling the gap left by the government, bringing to Ada what the government has not been able to provide,” Mr Adam stated.
He expressed optimism that Parliament would help find a lasting solution to the ongoing conflict.
The CEO revealed that the company is targeting a production capacity of four million metric tons of salt, a significant increase from the less than 300,000 metric tons produced annually over the past fifty years in the Songor enclave.
He indicated that in all the salt production done in the past 50 years, there has never been a year where production exceeded 300,000 metric tons at the old Songor.
Electrochem, he said, is aiming for a production target of four million metric tons, about four billion dollars worth of salt, which surpasses the revenue from cocoa. T
“This enterprise is poised to change the fortunes of this country, address forex issues, the depreciation of the cedi, and other economic challenges. Electrochem has already invested over US$114 million in this salt project,” Mr. Adam stated.
Naa Adiki Manyeyo Adi I, Divisional Queen of the Royal Adibiawe clan of Ada and President of the Ada Queen Mothers Consortium, expressed concern over the agitations against Electrochem’s investment.
She condemned the actions of illegal salt miners and stressed the potential economic benefits of Electrochem’s operations to the adjourning communities.
However, ASLA’s Public Relations Officer, Abraham Ahumah Tetteh, accused Electrochem of taking over lands and treating residents as trespassers.
He called for the reversal of the mining lease agreement to restore peace in Ada.
The Members of Parliament urged all parties to remain law-abiding and assured their commitment to resolving the conflict.
The Ada Songhor Salt Project, constructed in the 1970s and later vested in the government of Ghana in 1992, faced numerous challenges due to a lack of investment.
Following parliamentary approval in 2021, Electrochem Ghana Ltd. obtained a long-term lease to redevelop the Ada Songor enclave, with plans to significantly increase salt production and generate substantial revenue for Ghana.