Small scale miners agree to relocate to end stand-off with Anglogold

Small scale miners or artisanal miners in Obuasi have agreed to relocate to a new site designated for them by the Minerals Commission.

It comes after last week’s demonstration by small scale miners who destroyed public and private property in protest of mode of executing the relocation plan.

There has been a long stand-off between the small scale miners and AngloGold Ashanti over illegal occupation of the company’s concession.

The situation  compelled AngloGold Ashanti to sue government of Ghana over security concerns within its concession.

Agreement was however reached after officials of Minerals Commission met with leadership of Small Scale Miners in Obuasi.

AngloGold Ashanti has released 60 per cent of its concession to the artisanal miners but officials are worried small scale miners continue to trespass into the remaining 40 per cent retained.

The small scale miners argue the relinquished area was not fully prepared for mining.

Minerals Commission then  drew a roadmap to facilitate the relocation of 3,734 registered small scale miners to occupy these areas.

The roadmap gives each specific date for which each location should have been vacated.

The affected areas include  Nyamebekyere, Kotopreso, Abedwam, Ademanu, Suhyenso, Juabeso, and Amponyase.

Pegs have been sunk into holes in the lands indicating the space given to each miner being relocated meant to ease the process.

The illegal miners embarked on a demonstration last week, accusing AngloGold Ashanti of acting contrary to the roadmap. Sustainability Manager, Nana Ampofo denies the claim.

The Minerals Commission had earlier on Wednesday, met with leadership of the miners who agreed to leave but they

Chief Saaha Naa Yahuza
Executive Member (deputy advisor) of Artisanal Miners Association in Obuasi

want AngloGold to further deepen mining pits  for them.

Executive Member of the Artisanal Miners Association, Chief Saaha-Naa Yahuza says the deposits at the new place are too deep in the ground.

Though they appreciate AngloGold’s effort, they therefore want AngloGold to help them further by digging deeper for them.

Nana Ampofo says the mine can only begin operation when they declare their remaining concession safe for work.

Nana Ampofo Sustainability Manager-AngloGold Ashanti

“I cannot put my finger on any specific date we have declared the area a no-go area for our employees, it only when security forces are able to secure the area and declare to us that it is now a go-area”.

After it has been declared, “That is when we can go back there and assess the extent of damage caused to our infrastructure and every other thing that is there,” he stressed.

According to him, the company is looking for an investor but it is after they have done all these things that we will be able to go out there and say that the mine is safe for business.

Meanwhile, the miners want authorities to allow them go for their equipments left on Anglo Gold Ashanti concessions for peace and cordiality to prevail between the two parties.

Story by Prince Appiah

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

Asantehene asks mining companies to engage more Ghanaian professionals

Asantehene, Otumfuo Osei Tutu the second is asking multi-national mining companies in Ghana to engage more local professionals.

Mining firms have often been criticized for engaging Ghanaians only for what is considered menial jobs.

Otumfuo is convinced the country has the requisite technical capacity for her citizens to be given equal opportunity.
He was speaking at the commissioning of the first phase of Asanko Gold Mines at Obotan in the Amansie West District.

The mine opens at a time when unstable gold prices have serious implication for operational projections, forcing some firms to either shut down or downsize.

The company has kicked-start its corporate social responsibility program in earnest as 200 indigenes of Obotan and Manso Nkran in the catchment area of the mine have been introduced to various empowerment initiatives.

Asanko Gold Mine has trained these locals in vocational and financial literacy programs.

Plumbing, Electric and Masonry produced handled the resettlement program for the affected communities.

Chief Executive Officer, Peter Breese explains this demonstrates the company’s commitment to supporting the livelihoods of its partnering communities.

“Even before the company produce its first gold bar or generate any revenues, we have implemented empowerment initiatives to demonstrate a long-term commitment to the host communities,” he said.

Minister for Lands and Natural Resources, Nii Osah Mills, reiterated the need for the company to adhere to the local content policy.

He says it is one of the measures to address Ghana’s unemployment challenges.

CEO Asanko Gold Inc-Peter Breese

The first phase has seen over $300 million investment with another $300 million expected to be injected into the second phase within the next two to three years.

Officials are optimistic this will increase production by 100 percent to over 400,000 ounces of Gold every year after the second phase.

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…

 

New EITI 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 by the end of 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.

Ghana joined the Extractive Industries Transparency Initiative in 2012 and therefore must comply with all requirements.

Benefits to countries

EITI requirement preaches transparency and good governance among participating countries.

Marie Lintzer, the Governance Officer at Natural Resource Governance Institute believes this will tackle corruption in countries.

“It is a very important thing. It will suddenly shed light on how companies’ structures are made in the country and expose some political officials who might be behind deals that may be disclosed”. She said.

Francis Wajah,  a Takoradi-based journalist is optimistic of the benefits if the beneficial ownership requirements are adhered by government.

“It excites me because the more transparent I know that the resources of the country are being managed, the more happy I am.”

As a journalist, he can easily track who is contributing what to avoid any conflict of interest situation.

The conducive and serene business atmosphere in a country is often the driver of investors.

Dr. Anthony Paul, the Principal Consultant at Association of Caribbean Energy Specialists limited, believes it (EITI) has the potential to increase investment if Ghana complies.

“EITI’s call affects your investment climate; the risk people put on your country is reduced”. He explained.

According to him, the requirement will not just get the country high marks but the question is what happens after that.

Not ascribing to an international body such as EITI requirements, he believes, “it takes away the attractiveness and tag as an investment destination”.

In an interview with Seth Twum-Akwaboah, the Chief Executive of the Association of Ghana Industries (AGI), he explained Ghana is losing the shine as the gate-way to West Africa.

This according to him is because the business environment (increase corruption, frequent power cuts etc) is compelling local businesses to be non-competitive.

“In the international oil business circles, transparency and accountability is key to boost the local industries,” he said.

Why Ghana might not comply

The ‘beneficial ownership’, requirement will encourage participating countries but not mandate them, failure to provide the information would be documented, but would not be a cause for non-compliance.

This is according to the EITI beneficial ownership pilot evaluation report issued October, 6, 2015.

Many experts are worried this gives space to developing countries to avoid it compliance.

Again, it does not met out stringent sanctions to countries that do not comply to its requirements apart from suspension.

This means, participating countries can choose to comply or not.

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

At the end, many of the reports published provided limited information when collecting the data, making it impossible to ascertain whether all companies complied with the disclosure requirement.

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.

Senior lecturer of the Petroleum Engineering Department at KNUST, Dr. Stephen Donyinah is therefore concerned with whether Ghana can be honest adhering to the new requirement.

“It is a laudable idea but I have misgivings about this, I don’t think there will be honesty in the disclosure”. He explained.

“Many people in high positions will be involved and they won’t like to be disclosed so most people with the expertise could be used to front”. Dr. Donyinah revealed.

The African Centre for Energy Policy and ISODEC are two civil society groups that have raised eyebrows severally on certain decisions in the extractive sector.

They have shared a common assertion that the EITI requirement is not a basis to determine a country’s compliance or not.

Did you know that there about 402 registered oil and gas companies in Ghana?

“We have awarded more contracts than the jubilee field, who are those and why did the EITI report not disclose that,” Executive director of ACEP, Dr. Mohammed Amin Adams quizzed in an interview with Luv Biz at an oil and gas workshop in Accra.

The way forward

In South Sudan, it is a requirement for oil companies to name real owners of oil companies before a company can be awarded oil contracts.

This is to avoid a situation where politicians will register their companies in secrecy and bring them back to be awarded oil contracts.

Dr. Mohammed Amin Adams prescribes the institution of a national law or policy instrument to ensure beneficial ownership is mandatory and disclosed.

“So that we know that some of our people are not taking advantage of our oil resources to benefit and deepen their vested interest at the expense of the rest of the Ghanaian”

Dr. Donyinah quizzed, “do they have detective means to identify independently who the true owners are?.

He is convinced this could be successful if such measures are in place.

As at present, it seems appropriate that the EITI Standard should mandate its participating countries to agree a definition of beneficial ownership that suits local circumstances.

Story by Prince Appiah

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

AngloGold Ashanti ex-miners wives challenged with ready market for vocation.

MRS. DORIS APPIAH-KUBI
(GEN. SECRETARY-MINE WORKERS WIVES ASSOCIATION)

The fall in gold prices on the international market saw over six thousand workers of AngloGold Ashanti losing their jobs last year.

To cushion families against the effects of the retrenchment, some non-governmental and civil society organizations have been supporting wives of the miners with training in vocational skills.

But the Mine Workers Wives Association off Ghana says members are challenged in accessing ready market for their non-traditional export products and horticultural produce.

General Secretary, Doris Appiah-Kubi complains the women have had to dispose off their products at cheap prices as they stay on shelves for too long.

“We are looking at a situation where we can extend our business outside Obuasi because when the redundant issue started, we are unable to sell our products.

She revealed, “It is only the local people who patronize our product but even on a low scale”.

Mrs. Appiah-Kubi explains members are excited at the vocational skills acquired by the many NGOs and Civil Society Organizations (CSO) but also need start-up capital.

“The help we want is in the area of set-up support”.

According to her, most participants from these vocational training workshops end up in their homes with their skills unused.

They want authorities to complement the skill training with support to access market for their products.

“When we get the training, we don’t get money to start our businesses, so in a way you end up redundant. So we are pleading with these organizations to give us funding in addition,” she added.

Even with those who manage to access loan facilities form the banks are challenged with the obvious high interest rates.

Mrs. Appiah-Kubi explains that paying back these loans has been very difficult for them affecting their business in the process.

Story by Prince Appiah

Chamber of Mines pats itself on the back despite difficult times in 2013.

 

CEO of Ghana Chamber of Mines
Dr. Toni Aubynn

The Ghana Chamber of Mines says the industry is still attractive to foreign investors in spite of a global turbulence it had to endure last year.

Chief Executive Officer, Dr. Toni Aubynn says mining firms in Ghana chalked a significant feat in 2013 despite the difficult times it had to go through.

High level of redundancies, drastic decline in gold prices, coupled with high cost of production and withdrawal of national security at mining sites struck the industry hard.

However, improved trade, labour regulations and proper employment agreements and enhanced mining expertise posited a positive picture.

A survey conducted last year by Canada’s Fraser Institute on mining companies around the world showed Ghana moved up from 54^th in 2012 to 43^rd in 2013 in the Policy Perception Index, PPI.

This makes Ghana a jurisdiction for favourable mining policies because PPI indicates to government how attractive or otherwise a country’s mining policy is for investment.

Mr. Aubynn says stakeholders must be applauded for their efforts.

“Generally the chamber of mines and its members did well, production of gold, bauxite and manganese all went up marginally.

“But the challenge was revenue because in spite of increase in production, gold prices went down significantly. Which was not good for industry and other stakeholders including government,” he said.

Though he acknowledged last year was the toughest in the history of Ghana’s mining industry, Mr. Aubynn is optimistic of a better outlook this year.

“We are hopeful in the year coming given that most of our members are restructuring their operations we believe they can manage cost which has been a major issue in the last few years. Once that happens, I am sure things will stabilize.

“We are also expecting new operations to come on board some companies are working hard to make sure that new mines are opened. Next year we are hoping that things will turn around so that people will get engaged.

“Times are not too okay but we are very optimistic,” he added.

In a related development, players in the mining industry are worried at heightened public perception the negatives of mining operations outweigh the benefits to host communities.

According to them, the perception is creating undue tension between industry, government and mining community.

Dr. Toni Aubynn fears the trend could inform and affect government’s policy on the industry.

The industry in recent times has come under scrutiny in allegations of short changing host communities in terms of accruing profits and contributions to development.

Not paying corporate taxes and fiscal returns, and its operations being inimical to the environment due to purported pollution and degradation of the environment are few of the worries.

A situation which mining companies say is largely caused by illegal miners.

Dr. Aubynn believes the industry contributes considerably to the socio-economic progress of the country despite the negative perceptions.

He was speaking at an extended stakeholder council meeting held in Kumasi.

Dr. Aubynn has called on stakeholders to join in the fight to minimize the impact of this misconception by supporting proper small-scale mining.