Mining sector responsible for over 9,000 jobs in 2015 – Study

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Some 9,939 people have gained direct employment in Ghana’s mining industry last year alone, according to a new study.

The study by Steward Redqueen and the Africa Centre for Economic Transformation (ACET) shows that expatriate jobs in the sector accounted for 2%, or 177 jobs, of the total employment figures in the sector, in line with local content law.

The Steward Redqueen and ACET research report also suggests that for each $1 million of local procurement, about 105 jobs are supported in the local economy. It also suggests that a 25% increase in local procurement would culminate in the creation of 9,000 jobs and value addition of $50 million.

Some 28% of the over $3.3 billion mining revenue in 2015 was spent on purchases from local companies, the report revealed.

Also, the study found that the number of indirect and induced jobs created by mining is about fifteen times the number of direct employees.

The study further finds that the normal extended family support provided in Ghana by employees suggests that there are also 8 to10 family members supported by each direct employee.

Commenting the findings, the Ghana Chamber of Mines said the development in Ghana’s mining sector can be attributed to successful implementation of National Supplier Development Programme.

The Programme is meant to support local companies deliver selected inputs for the mining industry and serve as a catalyst for the local production of mining sector inputs that could be produced competitively in-country.

“Instead of using foreign exchange to import, now we will be in a position to produce locally and conserve the scarce foreign exchange which goes to strengthen the local currency. It was such an important exercise to do”, Chief Executive of the Chamber, Sulemana Konney, told Luv News at a stakeholder meeting in Kumasi.

In the fourth quarter of last year, eleven more items were added to the list by Minerals Commission expanding the procurement list to 19 items, a move Mr. Konney believes will enhance local manufacturing.

He said Ghana’s local content law provides a window for integrating the minerals sector into the larger economy through value added inputs and services from indigenous sources.

Beyond the headline contributions of mining, he notes, the significance of the sector can be magnified if there are well-defined linkages with the non-mineral economy.

He said Asanko Gold Mines, Ghana’s 13th mining company which is located in Manso-Nkran in the Amansie West District of the Ashanti region is a good example of how local businessmen and entrepreneurs are taking advantage the sector.

Story by Prince Appiah

Chamber of Mines to form Development Fund supervisory committee

CEO-Ghana Chamber of Mines
Sulemana Konney

The Ghana Chamber of Mines is due to set up two committees to oversee effective implementation of the Mining Development Fund Law, a special fund to be created in and for mining communities.

One of the key structures is a governance board which will oversee how the monies are going to be utilized.

“When the royalties are returned from the consolidated fund to the special fund which will be set up at the community level, these will ensure that these monies are used judiciously for the benefits of the community, not some few people,” Chief Executive of the Chamber, Sulemana Konney told LUV FM.

Parliament passed the law last year to allow mining communities to effectively and efficiently utilise mining royalties.

However, officials are expectant that once the legislation is outdoored, they will speed up with these structures to enable the realisation of the benefits of the act.

Mining firms are worried the poor conditions in operational communities paint a bad image of an industry contributing hugely to national development.

According to Ghana Revenue Authority Report, 485.6 million Ghana Cedis was paid as mining royalties to the state in 2015.

Nine per cent of the amount, some of which has been in arrears for three years, goes to mining communities.

Records reveal over GH¢160,792,149 was ploughed back into mining districts between 2011 and 2015.

But there are questions as to whether there are manifestations of commensurate development.

Authorities in host communities often blame irregular disbursement for the ineffective utilization of royalty funds for development.

Sulemana Konney says the initiative has the potential to address the developmental imbalance in mining communities.

Meanwhile, the Chamber of Mines continues to advocate mining royalties be increased from 9 to 30 percent with future payment  tied to specific projects to inure to the benefit of the people within the community.

Story by Prince Appiah

EITI Beneficial Ownership requirement; WILL GHANA COMPLY?

Oil-rich countries under the Extractive Industries Transparency Initiative (EITI) will have to come bare on ‘genuine’ owners of oil, gas and mining companies beginning 2016.

This is because of what is known as ‘beneficial ownership’, the new requirement to the international governing standards for countries with extractive industries.

EITI seeks to assist countries with extractive minerals to uphold best practices so to avoid what has become known as the ‘oil-curse’ in most oil discovering countries.

For two years (2012 to 2014), the EITI piloted the new requirement in some selected participating countries but the result is not enticing.

Democratic Republic of Congo 2013 report for instance showed that out of 16 countries, only one disclosed beneficial owners.

Nigeria’s 2012 report also showed none out of 41 oil and gas countries was disclosed.

So will a country like Ghana Comply?

Prince Appiah finds out in this report…

 

Prestea residents want surface mining halted

Impact of Surface Mining in Prestea

Residents of Prestea in the Prestea-Huni Valley District of the Western Region have kicked against the operations of surface mining in their communities.

They describe as devastating the environmental and health damages caused when mining companies engage in surface mining.

Large tracts of farm land and water bodies which are sources of drinking water have been destroyed.

Prestea and five other communities in the catchment area are noted for major mining areas in the country.

Before 2002, mining companies in the communities were doing underground mining which residents say came with little damage to property.

Prestea could boast of about seven spring water bodies in those days. Today, the situation has changed for the worse due to high pollution cause by surface mining.

Though two of the seven water sources, ‘Bronisuo’ and ‘Abodwise’ have been converted into hand-pump facilities, residents say they are fed up with the destruction.

To mitigate the situation, the Concerned Citizens Association of Prestea, a civil society group, was formed by

General Secretary of Concerned Citizen Association of Prestea-Dominic Nyame

residents to protect the land and rest of the environment.

General Secretary, Dominic Nyame, tells LUV News government should intervene to halt further destruction of the

environment.

“If surface mining comes to an area where there is a village, those village farmers will be displaced. Before it moves from one point to the other it has destroyed property. I think it should not be entertained in this country,” he said.

Mining is the major employer of most residents of Prestea and surrounding communities. Despite the negative impact of mining, the call of residents is not a stop to mining in general but a particular type of mining–surface.

Impact of Surface Mining in Prestea

“The underground mine does not affect the environment much, though they also use blasting. The fumes and dust are suppressed underground so there is little effect on the surface where people inhabit…but when it comes to the surface, the   smoke goes anywhere it likes. It is an open death to all of us,” Mr. Nyame emphasized.

This type of mining – underground – for them does not render the land unusable; farmers will not lose their livelihoods often accompanied by unsatisfactory compensation from mining companies.

Maame Adjoa is a petty trader whose husband works in the mines. Mining is key to their survival but she wants government to limit mining to underground operation.

“If it doesn’t stop, very soon most of the cocoa areas in the area will be deserted because he [farmer] will not suffer and later get it destroyed,” she said.

Meanwhile, Abakomahene of Prestea-Hemang Traditional Area, Nana Kwaw Nsowaah, bemoans government’s posture to preventing mining companies to desist from surface mining.

“What government is doing to us is not good. You know that our politicians today they come and say this, then the next day is different,” he lamented.

He added that, “because they [mining companies] are paying huge sums of money to the government, instead of them [government] coming to our aid, they are doing other things. We are suffering,” he summed up.

Anglogold Ashanti, for instance, after doing surface mining for many years, is also going underground.

It would be partnering Randgold Resources Limited under a joint venture where they will employ a technology expected to dig deeper for ore, reducing environmental damage in the process.

Story by Prince Appiah

PHOTOS: African journalists schooled on the Extractive Industry in Africa

African journalists selected from East and West African countries met in Accra for a media training progamme in Oil, Gas and Mining for a period of two weeks.

Tanzanian Veteran Journalists takes journalists on mining

Trainer takes journalists through Oil revenue management

After three days of taking lessons from trainers in the classroom, it was time for the field trip.

The group divided into two-Oil and Gas group and Mining group-for the field trip.

So after four days on the field (08-11 October), we resumed the classroom session.

Journalists from Uganda, Tanzania and Ghana were taken through the in and outs of the extractive industry not only from the African setting.

We were not limited to Africa alone, Operations and activities of Mining, Oil and Gas countries in the developed world were laid bare for journalists to appreciate.

In between the lessons, journalists were reminded of how to put to effective use the journalistic skills to produce standard stories and reports.

The journalists were also exposed to a new journalistic tool and style-Data Drive-to assist in analytical reporting especially for the extractive industry where a lot of figures and year to year comparison is critical.

Preparing for Field Trip- to Obuasi, Prestea, Tarkwa and Takoradi

Discussion time with Obuasi Municipal Chief Executive, Richard Ofori-Agyemang on the mining in Obuasi.

Journalists in a pose with Municipal Chief Executive of Obuasi-Richard Ofori Agyemang Boadi after a long discussion.

Journalists meet General Secretary of Small Scale Miners Association, Rufus Borry at Obuasi.- He talks about their challenges getting concession to mine.

Civil Society Organisation
at Obuasi briefing journalists

When the bones became tired on our drive to Prestea from Obuasi.

Then to the Palace of Paramount Chief of Prestea-hemang.

Interview with chiefs of Prestea-Hemang

The Group then Visits Small Scale Miners Site where Gold is separated from Sand-in Prestea

Small Scale Miners working close to the polluted Ankobra River.

Interview with General Secretary of Concerned Citizens Association of Prestea-Dominic Nyame

Then we got to Tarkwa-Goldfields for a briefing

General Manager of Goldfields Tarkwa speaks to Journalists

We had the opportunity to see a Gold Ore

Briefing continues At Goldfields Tarkwa

Driving from the Tarkwa Goldfields briefing room to the mining concession

Trucks on concession

tractor working on concession

Tarkwa-Goldfields visit ends with Launch.

Group photo with Trainers, Facilitators and Journalists.

Training ends in group discussions

Training ends in group discussions

Training ends in group discussions

Training ends in group discussions