Parliament has ratified three Mining Leases in respect to the Ada Songor Salt Project. This follows the adoption of the report of the select committee on Mines and Energy on the said agreements in accordance with Article 268(1) of the constitution and section 5(4) of Minerals and Mining Act, 2006 (Act 703)
The Under-listed Mining Lease Agreements for the Ada Songor Salt Project were laid in Parliament for ratification on Wednesday, 4″ November, 2020 by the Hon. Minister for Parliamentary Affairs, Mr. Osei Kyei-Mensa Bonsu on behalf of the Hon. Minister for Lands and Natural Resources, Mr. Kwaku Asomah-Cheremeh in pursuant to the relevant laws of the land.
i. Mining Lease Agreement between the Government of the Republic of Ghana (represented by the Ministry of Lands and Natural Resources) and Electrochem Ghana Limited in respect of the Ada Songor Salt Project (Ada West Lease Area (Ada Songor).
ii. Mining Lease Agreement between the Government of the Republic of Ghana (represented by the Ministry of Lands and Natural Resources) and Electrochem Ghana Limited in respect of the Ada Songor Salt Project (Ada East Lease Area (Ada Songor B).
iii. Mining Lease Agreement between the Government of the Republic of Ghana (represented by the Ministry of Lands and Natural Resources) and Electrochem Ghana Limited in respect of the Ada Songor Salt Project (Ada East Lease Area (Ada Songor C).
The Leases were subsequently referred to the Committee on Mines and Energy by the Speaker, for consideration and report to the House in pursuant to Order 188 of the Standing Orders of Parliament.
By this, Electrochem Ghana Limited is granted the mineral rights to dig for, mine and produce salt in the areas specified in the agreement for a term period of 15 years and it may be renewed after the expiration of the term subject to minerals and mining laws of Ghana.
The Committee noted that the national potential production capacity for salt is estimated at 2,330,000 metric tonnes out of which the area under consideration, accounts for about 1.4 million metric tonnes.
It was further noted that the actual production currently is about 330,000 metric tonnes leaving a variance of 2,000,000 metric tonnes.
“Meanwhile, the demand by ECOWAS sub-region alone is about 3 million metric tonnes and that of Nigeria is about 500,000 metric tonnes for its refinery industry. There is therefore the need for Ghana to provide the requisite incentive to attract the private sector into the salt production industry”, Committee report noted.
Background and Rationale for the ratification of the Leases
In the early 1970s, some investors acquired lands in the Ada Songor area from various clans to produce salt. The investors subsequently acquired leases from Government in line with PNDCL 153 for their production operations.
However, due to conflict which erupted between the people of Ada and the investors, the Government had to intervene, and in 1992 cancelled the 30-year mining leases granted to two companies namely, Vacuum Salt Products Ltd. and Star Chemical Industries Ltd.
After the cancellation of the leases, the Government established an entity to utilize the facilities of the Vacuum Salt Products Ltd to continue to produce salt in the interim while a permanent solution was being sought for the establishment of a more sustainable salt industry in the area.
Almost thirty (30) years on, four of such entities, known variously as Task Force, Interim Management Committee and Caretaker Committee, respectively, have existed and the permanent solution has not yet been put in place. Salt production has rather fallen to the lowest level due to both technical and managerial factors and about 10% of the original Project area designated for salt production has been taken over by the community for artisanal salt production.
Story filed by Edzorna Francis Mensa
