A Joint Committee on Mines and Energy and Lands and Forestry of Parliament has recommended that there is no legal basis to review the three salt mining leases of Electrochem Ghana Limited, which Parliament ratified in November 2020.
These leases, which permit ElectroChem to undertake salt mining in the Ada Songor Lagoon, are set to run for 15 years in accordance with Article 268(1) of the 1992 Constitution.
The Committee’s report followed an investigation into ElectroChem’s operations and underscored the significant economic benefits expected from the project.
The report said, “Considering the huge market of salt arising out of its multipurpose usage it is imperative to develop the salt production industry to serve as export diversification for reduction of perennial external shocks and trade deficit.”
While affirming the legality of the leases, the Committee urged ElectroChem to ensure local participation in the salt mining activities.
They recommended that the company continue to allocate spaces to local salt miners within the concession area in an arrangement that is mutually beneficial to the company and the indigenes.
The recommendations followed a statement by Sege MP Christian Corletey Otuteye in October 2023 regarding clashes between small-scale miners and ElectroChem officials, which resulted in the death of a salt miner.
The Committee’s report emphasized the need for peaceful coexistence and collaboration between the company and local communities.
Electrochem Ghana Limited has invested approximately $88 million in the first phase of the salt mining project covering a space of 41,000 acres.
The Committee noted that this investment is aligned with the government’s industrialization agenda and is expected to generate significant economic benefits for the country.
The report underscored the commercial benefits of salt, stressing its use in various industries, including glass and soap manufacturing, paper, plastics, pesticides, and more.
It stated, “The project is expected to accrue to the State direct benefit of an amount between $60 million and $75 million.”
The Committee addressed concerns about local resistance to the project and called for educational initiatives to help communities understand the benefits of the project and discourage lawlessness.
“The indigenes should be educated by their chiefs, stakeholders, and the police that the Nation Ghana has a stake in ElectroChem Ghana Limited,” the report stated.
The Committee also recommended that any disputes or survey challenges regarding the concession area be referred to the Minerals Commission for resolution.
The Committee urged the police to continue investigating the death of Numo Korletey Agormedah, a small-scale miner killed in November 2023, during a violent clash between the company security and indigenes and prosecute those responsible.
They also called for enhanced security measures to maintain order in the region.
The report also urged Electrochem to expand its social intervention activities to alleviate poverty in the communities as the company’s fortunes improve.