West Africa’s largest salt production firm, Elctrochem Ghana, has disclosed that the decision by the government to dissolve the board of the Securities and Exchange Commission has stalled its processes to list on the Ghana Stock Exchange.
Briefing the management of the Minerals Income and Investment Fund (MIIF), during a tour to the production site in Ada, Great Accra region, the Group Chief Executive of Electrochem Ghana Limited, Kwaku Amprofi disclosed that the company is ready and awaiting the composition of the new SEC board to finalise the process.
The 41,000 acres Ada Songhor salt mine developed by Electrochem is envisaged to produce to meet salt consumption demand for the African continent if given the needed capital support.
One of the conditions for MIIF to invest in Electrochem, is for the company to list on the Ghana Stock Exchange.
The company is seeking to raise US$25 million in additional capital by issuing cumulative preference shares which will convert into equity at the end of the Initial Public Offer.
Interacting with the MIIF delegation after a tour of the mining site, Mcdan’s Group Chief Executive Kwaku Ampromfi disclosed that the company is waiting for the government to constitute a new board for the SEC in order to resume the process.
“Our original plan to go public was scheduled for August 2024 but by June 2024, SEC board ended its term and there was no board. So we could not go ahead with the listing process.
“So we’ve decided to wait for the new board to be appointed and once that is done, we will continue through the process. The prospectus is ready so we are good to go from our side”, he added..
After touring the Electrochem enclave, Acting Chief Executive of MIIF, Justina Nelson was impressed about the investment and emphasised the government’s commitment to ensure the listing and all the necessary funding.
“This is a viable project for the country and this tour is timely because MIIF has a stake in Electrochem so having assumed office, it is just proper that I take this tour. We want to intensify our royalty collections in not only Electrochem but all the mineral resource companies we have a stake in so we had a lot of behind the scene discussions to ensure that they [Electrochem] list on the Ghana Stock Exchange to be able to generate dividend for the government and people of Ghana” she disclosed.
MIIF’s total investment in Electrochem amounts to GH¢363 million as of the end of 2024.
Electrochem is currently in need of about US$445 million to complete all engineering works, purchase vessels and construct a salt refinery to help add value to the salt before export.
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