Cement company to spend on environmental protection

Buipe(N/R), April 24, GNA - The Savanna Cement Company (SAVACEM) will spend over GHc 659.000 over a period of three years to protect the environment in its area of operations. The company plans to spend GHc 369,000 on reclamation, GHc 160,000 on the decommissioning phase and GHc 90,000 on environment related issues.

In accordance with current Environmental Protection Agency (EPA) mines and quarries decommissioning regulations, SAVACEM would negotiate with the EPA to make available the necessary funds in the form of bonds based on approved reclamation plans for the restoration projects as required by law.

Mr. Joseph Baffour Ofosu-Mensah, Coordinator of SAVACEM, said this at a public forum on the environmental impact assessment of the company in Buipe in the Central Gonja District on Thursday. The environmental impact assessment of the company covered water, air and noise pollution and the degradation of the land and forest. The SAVACEM was established in 1996 to promote the Buipe clinker and cement project by Amalgamated Investments Limited, a private investment company based in Accra.

It was however not until May 2007 that Diamond Cement (Ghana) Limited, a cement company based in Aflao, showed interest in the project and in June 2007 SAVACEM signed a joint venture agreement with Diamond Cement for the installation of a cement plant to start cement production.

Mr. Ofosu-Mensah said the company would begin full scale production by June next year and assured that management would operate an open door policy to receive complains from the community and give rapid attention to the complains.

He said the company would also collaborate with the district assembly and the community to identify their social responsibilities in order to assist them as much as possible.

He said the company needed about seven megawatts of power and was therefore funding the construction of a 20 magawatts sub-station at the cost of GHc 5.0 million by the Volta River Authority to make available additional power for it and the community.

Mr Ofosu-Mensah said about 500 workers would be employed by the company when it comes into full scale production and that indirect employment would also be created through setting up of cottage industries, businesses and transportation services. Mr. Stephen Sumani Nayina, Northern Regional Minister, suggested to SAVACEM to consider the possibility of floating the company's shares to the assembly and the general public to let them have a stake in its fortunes and also feel a sense of ownership of the company. He also urged the management of SAVACEM to ensure that the immediate beneficiaries of any employment would be people of the Central Gonja District and northerners in general.

Participants at the forum among other things expressed the fear that the amount of water the company might need for its operations could create water shortage in the area and also expressed concern over the destruction of shea trees. 24 April 09