Glitteringfacade

Akabzaa T. M., Seyire J. S. & Afriyie K. Third World Network-Africa

THE GLITTERING FACADE

Effects of Mining Activities on Obuasi and Its Surrounding Communities

Akabzaa T. M., Seyire J. S. & Afriyie K

Published by Third World Network- Africa (TWN – Africa) Copyright © Third World Network – Africa (TWN – Africa) 2007 Third World Network – Africa (TWN – Africa) P.O. Box AN 19452, Accra – North, Ghana Tel : 233 21 500419 / 511189 / 503669 Fax : 233 21 511188 Email : communications@twnafrica.org Website : www.twnafrica.org

Design and layout by David Roy Quashie Printed by Royal Crown Press Ltd.

ISBN : 9988- 602-25-1

Table of Contents Preface ................................................................................................

Executive Summary ..........................................................................

Chapter One - Background to Study ................................................

Chapter Two - Mining and the National Economy .........................

Chapter Three - The Study Area .......................................................

Page

iii vi 1

7

13

Chapter Four - Ashanti Goldfields Company ..................................

21

Chapter Six - Health Impacts ...........................................................

43

Chapter Five - Heavy Metal Pollution in the Study Area ..............

31

Chapter Seven - Perceptions of Communities on Mining Activities ..................................................

56

References .........................................................................................

85

Chapter Eight - Conclusions and Recommendations .....................

80

Appendix One - Letter of Request for Information .......................

90

Questionnaire for the Local Communities ....................................................

102

Appendix Five - Validation Workshop Report ...............................

121

Appendix Two - Questionnaire for AGC ........................................

Appendix Three -

Appendix Four - Focus Group Discussion Questionnaire .............

91

114

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Preface

This book is based on findings from the second detailed research that Third World Network-Africa (TWN – Africa) has commissioned into the social and environmental impacts of gold mining in Ghana. The study focused on mining in Obuasi in the Adansi West district of the Ashanti Region. The choice of Obuasi is easily explained. Apart from Tarkwa it is Ghana’s best known mining town. For a century Obuasi has been the heart of the Ashanti Goldfields Company’s (AGC) imperium in imperio over 200km2. No Ghanaian town is under the sway of a mining company the way AGC dominates Obuasi which lies wholly within its concession.

TWN-Africa’s first study covered the area around Tarkwa in Ghana’s Wassa West district, the area with the longest tradition of industrial gold mining in the country. That study resulted in the seminal book ‘Boom and Dislocation’. It made a significant contribution to changing public perception, in a more critical direction, about the impact of Ghana’s gold mining industry on the people living in communities affected by mining, the natural ecology as well as the national economy.

For more than one hundred years the Ashanti Goldfields Company (AGC) mine at Obuasi, was the single most important gold mine in Ghana and one of the most profitable in the world. In the mid 1980s AGC, and at that time its single mine at Obuasi, led the inauguration of the current phase of Ghana’s mining industry based on a strategy of deregulation and privatisation of state owned assets and encouraging the expansion of foreign investment. From the injection of World Bank money in 1986 to revive and expand production at Obuasi AGC was launched on a course of expansion and diversification within Ghana and into other African countries. By the end of the 20th century it had developed into a transnational corporation listed on the Accra, London, New York, Sydney and Toronto stock exchanges. AGC’s growth and expansion was a central story in Ghana’s celebrated status as a model structural adjustment country in the 1990s. Obuasi’s contribution was key to the growth of gold exports which saw minerals overtake cocoa as Ghana’s main export earner in 1992.

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Was there another side to the glowing headlines about Obuasi’s contribution to the export recovery effort and the growing muscle of Ghana’s transnational mining company around the African continent? How were the benefits and costs of Obuasi’s operations being shared? One thing was striking by its absence from the narrative celebrating the AGC success story – what the people who lived in the villages in the shadow of the mine think of it all. One sad reality TWN-Africa has persistently encountered in its almost one decade of research and advocacy on mining issues is the way in which officialdom downplays the immense disruptions and sacrifices that Ghana’s gold mining boom has imposed on scores of communities and their inhabitants in the catchment area of the mines. Obuasi town shares one striking long term feature with Tarkwa – the startlingly wretched appearance of a town from where so much wealth has been extracted and the matching deprivation of the surrounding villages. With the current gold mining boom they came to share another feature- open cast mines and the qualitatively new ecological and social disruption they wreak.

This report offers important evidence about the negative ecological and health impacts of mining, especially surface gold mining on communities and inhabitants around AGC’s Obuasi mine.

Quite sometime has elapsed between the conclusion of the research in Obuasi and its publication in this form. TWN-Africa commissioned three researchers to investigate the impact of mining activities on Obuasi and its environs in 2003. The main body of the research was concluded in that year.

However, some information used in this report such as data on diseases (used in Chapter 6) was provided by members of the Obuasi District Health Management Team to the researchers in 2004. Validation of the research findings at the community level was also carried out in 2005. In the time that has elapsed a number of important changes have taken place at AGC. The company was swallowed by Anglogold in 2004 resulting in a change of name to Anglo Gold Ashanti. This change in the mining company’s corporate structure is not reflected in this publication. Other changes which are not reflected in this book because they took place after the conclusion of the main research work include the change of name of the Adansi West District to Adansi Municipal Council. However, changes in corporate ownership and administrative nomenclatures that have taken place since the conclusion of the research do not in any way detract from the research findings, particularly the projection of the harsh effects experienced by several communities in Obuasi and its environs as a result of mining activities, especially the surface mining variety.

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Between the completion of the research in 2005, and this publication, the research findings have been published and used in a variety of forms before this definitive publication. For example they have served as the basis for dialogue with the company’s management about the impact of its activities and what steps could be taken to deal with it. These findings are even more relevant today as the government has opened up protected forest reserves to mine for gold. Already, a number of communities and civil societies have protested about the effects of these mining activities. These effects, as shown by this research, can be calamitous for the environment and affected communities.

Like was the case with our Tarkwa research some eight years ago TWNAfrica offers this research report as its contribution towards the emergence of a more balanced appreciation of the impacts of Ghana’s gold industry; that as the country’s rulers woo investors they remember the thousands of lives and the environment which are negatively affected but do not often make the headlines. We are grateful to Dr. Thomas Akabzaa, Ms. Seyire and Mr. Afriyie for their research which has improved our knowledge about mining impacts in Ghana.

Yao Graham, Ph.D Coordinator, TWN-Africa July 2007

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Executive Summary

Under the guidance of the World Bank and the International Monetary Fund (IMF), Ghana has carried out profound structural adjustment of its economy to attract Foreign Direct Investment (FDI) over the last two decades. As part of this adjustment exercise, the country introduced radical changes in the minerals sector including the progressive revision of investment codes. A major aspect of this revision was a significant increase in investment incentives to foreign investors in the mining sector These incentives have resulted in increased investment in the sector. From 1983 to 2002, foreign direct investment inflow to the sector amounted to over US$6 billion. The huge investment manifested in a flurry of mineral exploration activities, the development of new mines and increased minerals output, particularly in the gold sub sector. These developments have reflected positively on the gross value of minerals won, with gold output increasing more than four times between 1990 and 2002.

This boom notwithstanding, there is a growing dissension over the net benefits of these investments to the country as a whole, and to the communities directly impacted by mining in particular. The mining sector-related legal reforms focused disproportionately on promoting investment but paid little and belated attention to environmental protection. Thus, renewed mining activities have been accompanied by widespread adverse environmental impacts including physical environmental degradation, mining-related health problems and socio-cultural disruptions of communities. Not surprisingly, this has resulted in increasing the incidence of conflicts between affected communities and mining companies as well as serious violations of the rights of communities in specific mining areas.

This study investigated the environmental impacts of mining activities at Ashanti Goldfield's Obuasi mine on Obuasi and its satellite communities.

Obuasi, the capital of the Adansi West District, constitute a prime center of mining activity in Ghana and sub-Saharan Africa as a whole. The Obuasi project consists of an underground mine and a cluster of surface mines. The mine is the single largest contributor to Ghana's foreign exchange earnings, at least up to 2002.

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As part of the study, a systematic sampling of water sources in the study area including streams draining the affected communities, boreholes and hand-dug wells was undertaken to assess the quality of these sources. Heavy metals and other standard water quality parameters were analysed. In addition, stream sediment and orange fruit samples were collected and analysed for heavy metal concentrations. All analyses were carried out at the research laboratory of the Water Research Institute (WRI) of the Council for Scientific and Industrial Research (CSIR).

Also, a survey of disease prevalence within the communities studied, covering the period from 1989 to 2003, was conducted and integrated with communities' perceptions of possible causes of such diseases. A variety of participatory methods were employed to assess the socio-economic impacts of mining activities on the communities.

The study results have indicated that protracted period of historic mining and the more recent extensive surface mining operations have combined to damage the quality of water, especially surface water in the study area. The waters in the study area are acidic, falling outside Ghana's Environmental Protection Agency (EPA) and World Health Organisation (WHO) range of standards for potable water. The pH of the water averages 5.6 but ranged from 3.7 to 8.3. Total suspended solids far exceeded the EPA and WHO standards of 50mg/l and 5mg/l respectively. The most impacted communities were Kwabrafoso, Sansu, Anyinam, Dokyiwa and Binsere, which are all situated near sites of past and present mining activities.

The presence of heavy metals such as iron, arsenic and manganese is particularly high in most streams sampled. They ranged from < 0.002 to17.100mg/l, 0.001 to 6.318mg/l and <0.001 to 2.584mg/l respectively.

Augmented mercury values were observed in a few streams.

Arsenic values were between 10 to 38 times higher than levels permitted

by EPA general guidelines and over1800 times higher than the WHO maximum allowable values. The same pattern was observed for manganese, with values up to 26 times higher than EPA allowable limits. Iron values were between 1.7 and 15 times higher than levels allowed by EPA guidelines.

Generally, the concentration of metals in fruit (oranges) was higher than in the corresponding concentration of metals in water and lower than in sediments. Mercury values were up to 5 times more than EPA limits and 26 times more than WHO limits. Zinc concentrations were up to 5 and 8 times more than EPA and WHO limits. Arsenic values were 24 and 1,226 times more than the EPA and WHO limits respectively.

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Sediment samples generally exhibited the highest concentration of measured trace ions with values of arsenic and iron being extremely high in most samples. Arsenic and iron concentrations in sediments ranged from 0.247591.58mg/kg and 2210-50180mg/kg respectively; Manganese, 2.76 to 167.24 mg/kg; Copper from 3.65 to 80.46 mg/kg; Nickel, 3.28 to 23.11 mg/kg; and Zinc, 8.87 to 142.51mg/kg.

Temporal and spatial analysis of disease prevalence patterns showed that malaria, Acute Respiratory Infections (ARI), diarrhea, skin diseases, acute eye infections, and schistosomiasis (Schisto) constitute the top six causes of OPD attendance, with malaria exhibiting the highest annual incidence and consistently increasing from 1989 to 2003.

Figures at the Obuasi District Health Directorate showed an increasing trend for HIV/AIDS infections in the district. Reported HIV/AIDS cases rose from 215 in 1997, to 389 in 2003. Most diseases recorded annual peak values from 1997 to 2001, a period when surface mining was at its peak. In many cases, there were no significant variations in the numbers reported for the various diseases from 1989 to 1993, a period during which surface mine development was underway. The period from 2002 to 2003, the period following the closure of surface mining activities in the area, saw a drop in annual figures of the number of patients reporting these diseases.

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CHAPTER ONE

Background to Study A number of African countries are largely dependent on the extractive sector as a basis for their economic development. This is not surprising considering that African countries are naturally endowed with mineral resources.

According to estimations by Maponga (1999), the continent hosts 75% of cobalt and platinum, diamond (50%), phosphate (70%) chromite (75%), gold (30%), bauxite (26%), copper (14%), uranium (12%) and manganese (7%) of world reserves. On the whole, he estimates that the continent hosts over 14% of the world's total mineral reserve base.

African countries were made to believe that these mineral resources, if well harnessed, could play a key role in their development. Thus, as part of the global scheme for the economic restructuring of developing countries at the instance of the World Bank (WB) and the International Monetary Fund (IMF), structural adjustment programmes were prescribed for African countries. These programmes constituted necessary pre-conditions for accessing Foreign Direct Investment (FDI) funds, especially in the mining sector. The programmes obliged mineral-endowed African countries to introduce investment codes that allowed privatisation of the mining sector and ensured stable fiscal arrangement. According to proponents of these conditions, such measures will result in fair returns to investors and governments.

Ghana, like many mineral-endowed sub-Saharan African countries, has carried out profound structural adjustment of its economy, under the guidance of the World Bank and the International Monetary Found (IMF), over the last two decades. As part of this restructuring exercise, the country introduced radical changes in the minerals sector including the introduction and progressive revision of investment codes that ensured stable fiscal arrangement with a litany of investment incentives to foreign investors in the mining sector.

The incentives provided by these legislations have resulted in increased investment in the mining sector. Foreign direct investment inflow to the sector for exploration and mine development from 1983 to 2002, amounted to over US$6 billion. This has fuelled explosion in mineral exploration activities in the country, the modernisation and expansion of existing mines, development of new mines and increased minerals output in particularly the gold

1

sub-sector. These have reflected positively on mineral output and gross value of minerals won, with gold output increasing more than four times between 1990 and 2002.

The Ashanti Goldfields Company (AGC)'s Obuasi mining project, which has been in operation since its inception in 1897, became a pioneer and major beneficiary of these reforms. The project is regarded as the largest and richest single mine in Africa. Obuasi, the capital of the Adansi West District and its environs, constitute a prime centre of mining activity in Ghana and subSaharan Africa as a whole. The mine was the largest single contributor to Ghana's foreign exchange earnings up to 2000.

Historically, AGC (Obuasi) has concentrated on mining and processing of ore deposits solely accessible by underground methods. In 1989, in line with the Ashanti Mine Expansion Project, the Sansu Project, a mosaic of open pit mines and cyanide heap leach processing facilities was begun. These surface mines, unlike underground mines, interfere considerably with the livelihood activities of communities within the project concession area largely because of their aerial coverage. They have the potential to pollute extensive sections of drainage networks which supply water for the surrounding villages.

Processing chemicals used include sodium cyanide, lime, zinc oxide, lead nitrate, hydrochloric acid and various flotation reagents which have the potential to pollute both water and soil. In addition, the introduction of surface mining and the alienation of large tracks of land for mining activities constitute a source of conflict between the company and other land users especially farmers, loggers and small-scale miners. Recent media reports of increasing conflicts, including violent ones, between mining companies and inhabitants in mining areas appear to confirm this point.

The active mining concession lies within the Offin River Basin and, specifically the Jimi River sub-basin, which serves the domestic needs of Obuasi and some surrounding villages. Like most ores elsewhere in Ghana, the Obuasi ores have significant sulphide mineralisation, the oxidation of which leads to the generation of acidic waters and the mobilisation of toxic heavy metals into water sources.

Waste disposal from the processing of underground sulphide ores rich in arsenic has led to severe water pollution problems in the area. Historical cases of arsenic pollution from the plants that roast sulphide ores to facilitate gold removal are well documented. (Amonoo- Neizer and Busari, 1980; Jetuah, 1997; Carbo and Safo-Armah, 1997; Clement et al, 1997) .Although airborne sources of arsenic and related heavy metals has long been stopped, following

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the introduction of sulphur and arsenic oxides abatement technologies by the mine, water could still remain polluted for a long time. Ingestion or inhalation of arsenic could lead to arsenic poisoning, clinical symptoms of which have been reported in workers and residents alike in the area.

The project area, like any tropical rainforest, is considered a fragile ecology. Obuasi lies within the moist semi- deciduous belt, hosting the rich biodiversity associated with such habitats. Undoubtedly, the original ecosystem has seen significant changes due to the development of the mining industry with subsequent loss of biodiversity and agricultural farm lands.

Gold has long been panned from streams and mined from quartz reefs of Ashanti by local gold seekers. However, since 1897, the entire area of over 200km2 has fallen under the concession of AGC, making the activities of the traditional gold winners, illegal.

Secondly, before the liberalisation period, the project's operations were confined to the underground with minimal surface disturbance. However, after liberalisation and the introduction of surface mining, there have been increasing concerns about the environmental aspects of the project raised by communities living in and around the project areas. Unfortunately, these concerns have not been thoroughly investigated.

Objectives of Study

This study, therefore, assessed the impact of mining activities in the Obuasi Township and communities within the catchment area of the mines with the overall goal of promoting the interests of communities affected by the mining operations.

Specific objectives included the impact of mining on: • The level of pollution of streams in the area • The health of inhabitants in the mining communities • Bio- physical environment …

• The economies and livelihoods of the communities.

Activities

The following activities were undertaken to achieve the stated objectives: i. Sampling and analyses of water in streams, wells, boreholes and other sources used by the target communities.

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ii. Sampling and analyses of stream sediments and fruits for their heavy metal content. iii. Investigation of health impacts of mining through health records and field observation. iv. Examination of economic impacts of mining on communities through assessment of taxes and other resource rent from mining enjoyed by communities and the district assembly. v. Assessment of the communities' perception of mining. vi. Study of issues relating to communities displacement, resettlement, compensation and other related problems. viii.Documentation of land use conflicts and other social problems resulting from mining activities in the area.

Expected Output

The expected outputs of the study included: • First-hand information on the state of the mining environment in the study area.

• A matrix of problems identified and suggested solutions.

• Database for engagement of interest groups.

• A research publication for advocacy on mining and environmental issues.

Research Methods

The approach to the research was interdisciplinary, employing physical and social science tools. In order to assess the level of environmental pollution of water bodies and soils and their possible health implications, water, sediment and fruit sampling survey was undertaken. The results of the scientific study were integrated with socio- economic and health surveillance surveys to assess the impacts of mining activities on local communities. The approach also provided for the broad and maximum participation of major and key informants, in particular the local communities affected by the mine, the mining company operating in the study area, non-governmental organisations working in the area and officials and institutions of the local assemblies. To this end, a combination of participatory research tools and conventional survey methods were employed in order to maximise information generation.

The research tools included an inception workshop, before the start of the research; reconnaissance visit to plan logistics and field activities; and a validation workshop, after the draft report was prepared. The other tools included

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field sampling and laboratory analysis of water, sediment and fruit samples; focus group discussions organised in selected communities; semi-structured questionnaire for selected key informants; and structured questionnaire for individual members of selected communities. All these constitute primary sources of data for the study.

The inception multi-stakeholder workshop organised in Obuasi in 2002, brought together two representatives from each of the twenty-six communities in the study area, assembly members and chiefs in the area, relevant government agencies, non-governmental organisations and resource persons.

This workshop created a forum where the research team informed stakeholders about the research; solicited their input into the research design and related processes and for the development of key research questions. It also enabled the identification of key informants, key issues and the selection of communities for the survey. The company was invited to participate in this workshop but it failed to honour the invitation.

The second workshop was organised in Kumasi in 2005, upon completion of the draft report. It provided a forum for sharing, clarifying, verifying and deepening information gathered from the field. Ashanti Goldfields Company Limited was not invited for this workshop as it failed to participate in the research and could not therefore validate the preliminary findings.

Data Sources

Focus group discussions were held in six communities (New Bidiem, Sansu, Jimi, Dokyiwa, Anyinam and Adaasi) but with participation from six other communities. These discussions explored a range of issues from perceived benefits of Ashanti Goldfields mining activities to communities, environmental, health and social impacts of mining communities. They also discussed the role and effectiveness of environmental monitoring of mining activities in the area. These communities were selected because of their particular locational proximity to the mines and their long exposure to mining activities.

They were thus considered to have valuable and relevant information.

Semi-structured interviews were conducted with institutional responders (the District chief executives of Adansi West and Amansie East, the Planning officers of Adansi West and Amansie East, the police, environmental health officers from the two districts, chiefs and assemblymen and women, Care International, Water and Sanitation Health Team (WASHT), and the District Directorate of Medical Services). These are institutions responsible for various aspects of planning and development in the study area and would be in

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the position to offer information regarding how the activities of mining either contribute to or constraint development efforts in the area.

Structured questionnaire were administered to 200 people in 16 communities in both Adansi West and Amansie East districts. Between 10 and 20 people were selected and interviewed in each of the 16 communities. These key informants were purposely selected due to their experience and proximity to mining and processing facilities. Again, due to the homogeneous nature of key informants the 200 sample size was considered representative enough for the study measured against time and resource constraint.

The water, sediment, and fruit sampling study covered 12 of the 16 communities, covered in the socio-economic survey. The health surveillance however covered all the sixteen communities. How the samples were collected and analysed are presented in detail in Chapter 5. The reason for selecting 12 out of the 16 communities for water, sediment, and fruit analysis was informed by the location of certain mining and processing facilities.

These primary data sources were complemented by thorough secondary sources of data, which included review of books, articles and reports.

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CHAPTER TWO

Mining and the National Economy Introduction

The mining sector has been one of the important sectors in the economic and social development of the country. The main minerals which are mined in commercial quantities include gold, diamond, bauxite, manganese, kaolin, limestone, and sand. The Ghanaian gold mining industry has had a significant impact on the economy of the country. Since its discovery in commercial scale in early 19th century, gold has remained by far the most important commercial mineral in the mining sector contributing to employment generation, foreign exchange earnings, and government revenue through various taxes and royalties. In terms of foreign exchange earnings gold assumes a leading role. From the mid-1970s to 1982, the mining sector accounted for about 15% of export earnings, of which the gold sub-sector contributed over 80%. In 1994, gold exports amounted to $549 million, representing 45% of total export revenue ($1,215 million), beating cocoa (25% of total exports) down to second place for the third year running. (Akabzaa and Darimani, 2001).

Gold contributes more than 90% of the total value of minerals won in the country and has attracted the largest number of large and small-scale operators. By the close of July 2003, the Minerals Commission had granted 156 gold mining companies with mining leases as well as recognisance and prospecting licenses. Of the $612.9 million in total mineral export earnings in 1997, gold accounted for $579.2 million, or 94.5%, while the remaining 5.4% came from diamond, bauxite and manganese. Within the gold sub-sector Ashanti Goldfields has been the single largest contributor to the total gold output over the years. Table 1 gives the national comparative production figures of gold for Ashanti Goldfields for the period 1980 to 2002.

Apart from the fact that the extraction of gold went along with profound environmental and social disruptions that took on many shapes, the principal beneficiaries of the process of gold extraction have been colonial adventures and transnational mining companies. Prior to independence, British mining interest was a significant source of influence on the Colonial Office in London and its representatives in the Gold Coast territory and shaped the formulation and implementation of mineral policy in the colony (Tsikata, 1997 ).

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Table 1: Total Ashanti Goldfields and Ghanaâ&#x20AC;&#x2122;s Gold Output Compared Year

AGC

Total National Output

1981

252408

338042

1980 1982 1983

232036 268040

243194

337754

285292

1984

243352

282298

1986

247127

287124

1985 1987 1988 1989 1990

264308 279560 311721 337211

433240

299615 328926 373936 429476

541408

1991

621890

845908

1993

766001

1261424

1992

687665

998195

1994

853739

1426379

1996

1,034,554

1,586,095

1998

1,233,820

2,382,339

1995 1997 1999 2000 2001 2002

936791

1,039,967 1,213,134 1,560,428 998,150 964,845

Source: Minerals Commission

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342904

1680920

1,758,005 2,620,121 2,447,591 2,381,134 2,235,536

The thrust of policy in the sector was aimed, first at establishing a legal and administrative framework that would facilitate mining operations and secondly, ensuring the self-sufficiency of the British Empire. The period after independence witnessed aprofound increase in State participation in the gold industry. For instance, in 1972, the government of Ghana took majority shares (55%) in Ashanti Goldfields Corporation (AGC). All these point to the significance of the gold mining industry to the Ghanaian political economy.

As the world economy has liberalised and become financially more integrated foreign direct investment (FDI) has become a major influence on the changing sources of external resource flows to the Ghanaian gold mining sector during the last few decades. Since the early 1980s FDI has emerged as a predominant source of external finance for developing countries but focusing especially on mineral endowed countries. In the periods following post-independence, Ghana, like many developing countries was keen in maximizing government revenue, generating employment, and controlling natural resources through State participation in the mining industry. State participation was a key policy in controlling foreign influence on the mining industry.

However, during the last few decades Ghana and several other African countries have been falling over themselves to attract as much FDI as they can.

The enormous shift towards FDI is influenced by processes of liberalization accompanied by the prescriptive policies of the IMF/World Bank.

As part of its economic restructuring efforts in the early 1980s, the government of Ghana launched a programme of economic reforms in 1983.

Under this programme, the extractive industry, especially the mining sector, received considerable attention. A specific mining sector programme was put in place to ensure the eventual privatisation of the sector. The programme was aimed at attracting foreign investment and private capital into the sector for increased minerals exploration and the development of new mines.

Substantial financial resources were sourced from the World Bank to rehabilitate state-owned mines to make them attractive for investors. A new Minerals and Mining Law, PNDC Law 153, 1986, was also passed to provide the necessary conditions demanded by multinational mining companies for their participation in the country's mining sector.

The mineral sector in Ghana has been acknowledged as the biggest beneficiary of the Economic Recovery Programme (ERP), (Jonah, 1986). The new Minerals and Mining Law was crafted primarily to reduce risks to investors in the sector by providing them with generous incentives. The sector was deregulated and the state's roles redefined to those of promotion and regulation of mining investment through the Minerals Commission and the

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Environmental Protection Agency (EPA) respectively. These agencies were themselves products of the reforms. Since the introduction of the separate investment code for the mining sector in 1986, there have been a number of addendums1, revisions and amendments and full revision and rewriting of the code in 2001. The revised code, which is still in the form of a draft bill, is awaiting ratification by Ghana's Parliament to make the country more competitive, in the light of more liberal codes introduced by other African countries.

The incentives provided by these legislations have resulted in increased investment; explosion of minerals exploration companies in the country; development of new mines and increased minerals output, dominated by the gold sub sector. By the end of 2002, 156 and 83 mineral exploration licenses had been issued to local and foreign exploration companies respectively.

Twenty-three mining leases were issued to mainly foreign companies, including some major international companies in the gold industry for mine development. (Akabzaa and Darimani, 2001) Foreign direct investment inflow to the sector for exploration and mine development from 1983 to 1998 amounted to some US$4 billion (Aryee 2000). These have reflected positively on minerals output, with gold output experiencing a four-fold increase between 1990 and 2002 (Table 1). In recent times, the value of gold exports as a percentage of total exports rose to 38% and averaged 95% of all minerals export receipts (Bank of Ghana, 2002).

While there is absolute consensus with respect to the resurgence of the mining sector in Ghana following the policy reforms discussed above; there is no similar agreement on the impacts of this development on the national economy.

In praising the role of the mining sector in the national economy, the Ghana Minerals Commission, the World Bank and the Ghana Chamber of Mines have tended to quote statistics on mining's contribution to merchandise export, gross national foreign exchange earnings, gross domestic product, employment and government revenue to support their position. These organisations argue that the mining sector in Ghana is one of the major sources of foreign earnings, having overtaken cocoa as the leading foreign exchange earner since 1991. Mineral exports increased from 20% in the 1980s to 38% 1 These include the following: Minerals Commission Law (1986), Minerals (Royalties) Regulations Law 1987 (LI 1349), the Small Scale Mining Law 1989, Minerals ad Mining Amendment Law 1994 (Act 475), Mining Environmental Guidelines 1994, Environmental Assessment Regulations, 1999 (L.I 1652), among others.

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in 2002 of gross foreign exchange earning, with export earnings rising from $107.9 million in 1992 to $717.8 million in 1998 and further increased to 757 million dollars in 2002. They contend that the industry supports other economic sectors such as transport, catering and banking, resulting in significant economic spin-offs. (Jonah, 1987; Keatley, 1992; Adadey, 1997; Agra, 1997; Aryee and Aboagye, 1997, and Addy, 1999).

Arguments on the other side of the dichotomy say that mining in comparative terms does not significantly impact positively on the national economy. These critics contend that given the quantum of investment flows, number of mines and output and gross foreign exchange contribution from the sector, its contribution to the national economy is not significant. The contention is that the contribution of mining to GDP, employment and government revenue mobilisation from the sector are comparatively low. The critics question the real benefits and impacts of investments in the sector to the national economy, when very little is reflected on the balance of payment (BOP).

They argue that the level of mineral exports retained in offshore accounts, the enclave nature of the industry and the generous capital allowances, partly account for the minimal impacts of mining on the national economy. Besides the foreign exchange objective, the contribution of mining to economic development in Ghana is not significant, they point out. In spite of being the leading foreign exchange earner, mining has very minimal links to the rest of the domestic economy, as can be judged by its contribution to the GDP of between 2% and 5% since independence. Agriculture, on the other hand, contributes approximately 36% of GDP. (Finney,1996 ; Abugre & Akabzaa, 1998; Hormeku, 1999; Akabzaa, 2000; Bank of Ghana, 2001; and Peterson, 2002).

On the sector's impact on employment, (Hormeku, 1999), views the contribution of gold mining to employment as being at best, a mixed one. While the average real wages in the mines tend to be higher than the national average, the statistics are bloated by the very high salaries of the expatriate staff in the sector. The sector's employment represents only 5% of the turnover (total formal sector employment) and the situation is made even worse by the retrenchment policy almost uniformly adopted by most privatised mines (Akabzaa, 1995).

Most returns on capital investment and entrepreneurship flow out of the country while government retains only a fraction of the mineral wealth. This is due to the fact that, the country's Minerals and Mining Law is basically a framework of high capital allowances and incentives. These include huge

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capital allowances, which effectively ensure tax holidays of between five to ten years, tariff concessions, unregulated repatriation of profits, the retention of between 25 to 80% of export earnings for debt servicing and other foreign costs. (Akabzaa,2000; Hormeku, 1999).

Large-scale modern mineral projects have weak backward and forward linkages resulting in little or no spin-off effects on the wider national economy. Lower transport costs and cheap asset transfers make it possible for Transnational Corporations (TNCs) to import their inputs from elsewhere thereby making the effect on technology diffusion suspect. Most gold mining operations rely predominantly on heavy earth moving equipment, on innovative technology and minimally on labour. Such technologies, entrepreneurial and technical expertise are often available through TNCs only and not local suppliers who are normally unable to compete with such international companies (Jauch, 1996).

Processing is very minimal and most of the ores are exported in raw forms, therefore depriving the nation of value-added gains (derived from processing, refining and fabricating the minerals into finished and semi-finished goods) and associated industrial and technological development.

With regard to infrastructural facilities and development, the mining towns of Obuasi, Tarkwa, Prestea, Konongo, among others, provide a classic picture of typical mining towns in Ghana. These towns are far from affluent, an aberration of what communities endowed with mineral resources, are or should look like. The towns are very much unlike other gold mining towns such as Johannesburg in South Africa, Noranda city in Ontario, Canada, Reno in the USA or Perth in Australia where the scars of mining are sealed by the beauty and riches of these cities, built out of mining.

The issue becomes more complicated and less profitable when the environmental and social cost associated with large surface mining operations is considered. Surface mining is increasingly the only method of mining adopted by all the new mines.

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CHAPTER THREE

The Study Area

Obuasi, the Town with two Shades

Obuasi and its environs, which form the focus of this research, have a long mining history. The area is home to Ashanti Goldfields (Obuasi) Limited, a subsidiary of Ashanti Goldfields Company (AGC) which operates the Obuasi mine2. Until the general mining resurgence in the 1990s, this was the only mine operated by AGC. In 1985, AGC introduced surface mining operations at Obuasi in addition to its underground mining operations. The difference between underground mining and surface mining are not the only contrasting attributes of Obuasi. Indeed, Obuasi is a town that has more than one shade, in whatever perspective you view it.

The town has amazing scenery defined by a range of hills and spurs running contrastingly from northeast to southwest in a regular pattern. About two kilometers to the township within the plains to the right on the KumasiObuasi road, one can see a number of seemingly robotic structures rising to the challenge of the hills. These are shafts through which AGC hauls equipment and workers underground to bring out mined ore. There is an aerodrome which the Company uses to haul its bullion out of Obuasi. Management and valued guests of the company are also transported from the aerodrome in and out of the town.

At the immediate fringes of the town, the relative heights of the hills and the shafts become very clear. The heights of the shafts are reduced to the level of the scattered huge dunes of tailings and waste rock, left over from over one hundred years of mining and ore processing. The shafts and the dunes of mine wastes are indeed a rough measure of the amount of wealth that has been extracted from beneath the area in the last 107 years. The shafts are four in number and the deepest extend to about 3.5 kilometers. These shafts are connected by lateral drives giving rise to a mosaic of huge tunnels beneath the surface extending several kilometers laterally and vertically. Indeed, the entire 2 Until AGC's expansion programme in the mid 80s, the Obuasi underground mine was the

only mine operated by the company. The Name AGC (Obuasi) was created when AGC started developing and acquiring other mines in the early 1990s.

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township of Obuasi rests on a slab, which doubles as roof to these huge underground openings. The openings accommodate scores of gigantic dozers, loaders, compressors and dumper trucks. One testimony to the beauty of underground mining is that the people of Obuasi go about their daily activities without the slightest feeling that they are living on a platform that camouflages the mosaic of tunnels underneath.

In contrast, in areas like Sansu, Bidiem and Anyinam where surface mining began not too long ago, the landscape is very different. Huge craters of open pits, some over 50 meters below sea level, characterise the landscape.

Some of these pits, now abandoned, contain pools of water that represent a potential danger to the local communities. In addition, there are also huge tailings dumps and cyanide containment lakes that are potentially hazardous to local communities. This new generation of mines (surface mines) which have been operational only in the last fifteen years have generated far more waste and consumed far more land space than the over one hundred years of underground mining. One of the most visible legacies of these surface mining activities is the thick cloud of dust that hangs over the mining communities.

Also hard to miss is the setting of the modern accommodation facilities for management and middle-level staff of the mining company at the summits of some of the hills. These beautiful buildings contrast sharply with the shanty structures within the low-lying areas of the township, which host the peripheral businesses. Another noticeable feature of the township is the contrast in its road infrastructure. All asphalted roads lead to AGC's facilities such as the company's hospital, senior staff residences or the commercial centre hosting banks, the post office and prison service within the fringes of the mine. The dusty and pot-hole riddled roads in the township on the other hand, lead to public sector facilities including the public hospital, the office of the district assembly, private residential areas and local satellite communities.

Historical Importance of Obuasi

Obuasi is a household name in Ghana and is synonymous with gold not only because of the long history of gold mining associated with the township but also because of the quantity and quality of gold produced there. The Obuasi Mine, until recently, accounted for over sixty per cent of total gold production in Ghana and was undoubtedly the single largest gross foreign exchange earning industrial establishment in the country. Obuasi's underground mine is presumably the single richest mine in Africa. It has often been said that AGC is Obuasi and Obuasi is AGC, because the growth and development of Obuasi

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is intricately linked to the mine. Obuasi and its environs are part of AGC's extensive Obuasi prospecting concession, which covers an area of about 200km2 Apart from the operations of AGC, there are no other large-scale mining activities in the area, presumably because AGC's vast concession leaves no prospecting grounds for competitors. However, artisanal gold mining, which reportedly predates mechanised gold mining by over 500 years, still goes on, even though AGC has concessionary rights over the entire area. (Quashie et al, 1980; Junner, 1932) There have been constant conflicts between the small-scale illegal miners (galamsey) and AGC's security forces, who are often high-handed in their conflicts with the illegal miners. The presence of these two different categories of miners with differing mining and processing methods have resulted in a myriad of environmental, social, economic and health problems. These will be elaborated in the following chapters.

Location and Accessibility

The Obuasi Mine, situated on contiguous concessions of 160km2 and 40km2, is located about 56km south of Kumasi. The Ashanti Gold Company acquired a 25 sq. mile concession in the early 1980s as part of an expansion programme. The study area primarily lies within the Adansi West District which has Obuasi as its capital. It also includes limited areas in the adjoining Amansie East which has Bekwai as its capital. Before Ashanti's expansion and the introduction of surface mining activities, AGC's mining activities were limited to the Adansi West District.

The area is easily accessible by the main Kumasi-Obuasi-Dunkwa highway and the Yamoransa - Assin Fosu -Bekwai road which converges with the Kumasi-Obuasi highway. Additionally, there is a good network of interconnecting second and third class roads, exploration tracks and footpaths within the concession (Fig. 3.1)

Climate, Soils, Vegetative Cover and Land Use

The Adansi West district area lies within the Equatorial Climatic Zone of the country and is characterised by two rainfall maxima (April to June and October to November). Mean annual rainfall is between 1250 to 2000mm and averages 1588mm. Mean monthly temperature ranges from 24oC in August to 30oC between March and April and averages 27.9oC per annum. Average monthly relative humidity is highest (75-90%) during the two rainy seasons and lowest (70-80%) during the rest of the year. Annual mean relative humidity is 78%.

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The natural vegetation of the concession area has been modified significantly by timber extraction, mining and farming. As a result, the vegetation is not typical of Moist Semi- Deciduous Forest zone of the equatorial rain forests of West Africa. Primary forest is restricted to the most inaccessible areas. Historically, trees like teak, mahogany, kapok and wawa have been selectively felled for use as underground shoring timber and wood fuel. Seven soil associations occur on the concession and these vary in suitability for agriculture and forestry. Major land use is farming (staple and cash crops), although some firewood collection, logging and hunting are practiced on the concession.

Fig. 3.1: Map of southern Ghana showing Project Location

Topography and Drainage

The AGC concession area has a topography, which ranges from gently undulating to distinctly hilly and mountainous. Two main ranges of hills cut across the concession, giving rise to a series of low peaks, which are about 500m above sea level. Most of AGC's operations are nestled on the lower slopes of

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a prominent range of hills which trend to the southwest of Obuasi. Elsewhere on the concession, the topography is mostly gently undulating with scattered hills with elevations of between 180 to 210m above sea level.

The area has an extensive network of streams and rivers. Most of these streams take their sources from the ranges of hills, some of which are mined

by AGC and "galamsey" operators. These streams also serve as sources of domestic water for a number of communities in the area. Mining facilities including cyanide heap leach pads in the Sansu open pits area, tailings dumps and processing facilities near the underground mine either traverse the streams or are sited near their sources. The impacts of all these mineral processing facilities and the effluent they release into these streams are a major focus of this study.

The concession lies within the Jimi River catchments of the Offin River system. Two river systems, the Nyam and Jimi (the main tributaries of which are the Kwabrafo and Kaw rivers) drain the mine area and have their common watershed along the prominent range between Sansu and Obuasi, along which the open pits of the Sansu project were established.

Demographics and Economic Activity

The population of the Adansi West District is 220,000. About half of this number resides in Obuasi. Obuasi and its environs can be described as an "ethnocosmopolitan" area with people from diverse backgrounds and cultures (Population and Building Census, 2000). This is due to the fact that mining operations in the area originally depended on migrant workers from various parts of Ghana, especially the northern regions and neighboring countries, particularly Burkina Faso, Mali, Togo and Niger.

In the District, the mining sector forms the predominant and most financially rewarding form of economic activity. AGC is the largest single employer in the area though "galamsey" operators, as well as the supporting industries like transportation, financial institutions, catering services and security agencies also provide indirect employment. However, the greater percentage of the population in the informal sector are farmers, traders and artisans.

The Mining Industry

Gold is the major mineral produced in the area. However, silver is produced as a by-product of the gold mining operations at Obuasi but no other minerals are mined in the area. There are also no registered small-scale miners in

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the area although countless numbers of people engage in illegal small-scale mining or 'galamsey."

Mining has been ongoing since 1897 but mainly in the form of underground operations. However, surface (open pit) mining was introduced in 1989 and carried on up to 2001.

Geology and Mineralisation

The potential of a location for a specific mineral resource is usually dictated by the geology of the area since specific mineral resource occurrences are unique to specific rock suites or geological terrain Areas with similar geology would normally be expected to have the potential for specific mineral resources. The geology of the Obuasi mine is similar to that of most of the other major gold mining towns in southwestern Ghana, such as Prestea, Wassa -Akropong, Obuom, Asankragwa, Mansu-Nkwanta, Tokosea, Bibiani and Konongo.

The Obuasi deposits occur in over 2 billion years age rock units comprising volcanic and sedimentary materials which have both undergone considerable degree of changes. These rocks are locally called greenstones because of the apparent green colour of the rocks. In local geological parlance, they are said to occur within sheared zones in the Upper Birimian rocks in the vicinity of their contact with the Lower Birimian rocks (Fig. 3.2) These rocks, where they are not heavily weathered, form highly resistant ranges of ridges that run north-easterly (NE). The fluids of hot solutions which deposited the gold were believed to have been generated during major ground disturbance that created extensive faults, folds and other channels that permitted upward movement and deposition of the gold laden hot solutions.

This is consistent with most gold ores in the rest of Ghana and elsewhere where gold mineralisation is closely associated with Precambrian rocks that are extruded by igneous rocks.

The gold usually occurs in a variety of forms, which have various implications for mining, processing and environmental management. The gold in some places was deposited with quartz in the form of veins. Here, the gold is free and can easily be separated from the waste material through gravity separation upon grinding and washing with water or through cyanide leaching. In the second form, the gold was deposited in the body architecture of some sulphide minerals of heavy metals of copper, nickel, cobalt, antimony, arsenic, cadmium, zinc, lead and mercury. At Obuasi, this latter form of gold is invariably associated with arsenic or iron- rich sulphides (arsenopyrite and pyrite

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Fig. 3.2: Geological Map of the Obuasi Mine

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respectively), usually referred to as "fool's gold" because of their ubiquitously golden colour.

These sulphide-rich-gold-bearing rocks will usually have to be roasted to free the gold or be treated with some sulphur-consuming bacteria to free the gold from the architecture of the sulphur before being leached with cyanide.

In the past, roasting of ore accounted for considerable sulphide dioxide and arsenic pollution in Obuasi. The acquisition of the BIOX reactor (biological oxidation) by AGC was meant to significantly reduce the impacts of roasting and leaching.

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CHAPTER FOUR

Ashanti Goldfields Company History of AGC

The history of this single company that has dominated the mining sector in Ghana can be described as long and checkered. It evolved from a small operation owned by local merchants into a multinational company with properties in gold-endowed African countries. It has weathered some turbulent storms, from resistance of local people and the Ashanti Kingdom to European domination, to conflicts with local miners whose operations were rendered illegal by the colonial authorities and subsequently by the fact that the entire area became a private property following the official licensing of the area as an AGC prospect. It has also been buffeted by industrial action by workers, political interference and economic setbacks resulting from economic decisions by its management, notably its choice of hedging options.

Before the arrival of the Europeans, local people were engaged in mining of reefs, in addition to panning gold from the streams. Available records indicate that the first concession involving the present mine was obtained on 4th June, 1875, by Monsieur Marie Joseph Bonnat in the area (Junner, 1935; Quashie et. al, 1981; Ayensu, 1997). However, it was not until the end of the 19th century that the idea of an orderly commercial approach to gold mining in the Gold Coast began to gather momentum. Two Fante merchants from Cape Coast, Joseph E. Ellis and Joseph E. Biney, began the modern story of Ashanti Goldfields Company when in March 1890, they laid claim to a concession of land area totaling 256km2 (Minerals Commission, 1991). A mine named the Ellis Mine was subsequently developed but five years after running this, it became apparent that although this vast goldfield was very lucrative, it required a lot more capital and expertise.

As a result, on 16th August 1895, the concession was transferred to Edwin Arthur Cade in the presence of the chiefs of Bekwai and Adansi as the concession lay within both the Bekwai and Adansi kingdoms. The provisional agreement to the new mine, Cote d'Or Mining Company was signed on August 27,1895, at the Cape Coast Castle and the right of the company to the concession ratified by the British Government. Approval for mining, trading and agricultural rights was subsequently given in April 1896.

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A new company under the name Ashanti Goldfields Company Ltd. (AGC) was registered and on June 11, 1897, all assets and liabilities of Cote d'Or Mining Company were transferred to this new company. The same day marked the listing of the company on the London Stock Exchange.

In the 1890s, Ashanti resistance to the British rule affected the industry as ratification of the first concession had to wait for annexation of the Ashanti by the British Empire.

AGC survived the impacts of both the First and Second world wars, the effects of which led to the closure of most of the burgeoning mines in the Gold Coast. The general post-war impact on the metal mining sector was so serious that many of the mines had to close. Threats of closures intensified particularly in immediate-post independence period, fuelled in part by political uncertainties. This forced the government to take over some of the mines destined for closure. The newly independent government formed the State Gold Mining Corporation (SGMC) in 1961 to run all the mines with the exception of AGC and Konongo Gold Mines (Minerals Commission, 1989).

The structure of AGC was altered in 1966 when R. W. "Tiny" Rowland's London and Rhodesia Mining and Land Company (Lonrho), began the acquisition of AGC largely facilitated by the plotters of the 1966 coup d'etat.

Lonrho's acquisition of AGC resulted in its de-listing from the London Stock Exchange. As part of the takeover, the Government of Ghana received 20% shares in the company in return for granting a 50-year extension of land lease with an option to further acquire another 20% at the fixed price of ÂŁ1 a share.

However, after a second military coup in 1972, the state acquired 55% of all mining companies including AGC. The name of the company was changed to Ashanti Golfields Corporation and its head office transfered from London to Accra.

Government Divesture of AGC

Following a military coup in December 1981, the new regime was confronted with a seriously ailing economy. To revive the economy, the military regime accepted restructuring prescriptions from the World Bank and IMF. Consequently, the government launched a programme of economic reforms in 1983, dubbed the Economic Recovery Programme (ERP) or the Structural Adjustment Programmes (SAP). A major target of the reforms was the extractive industry, especially the mining sector. The reforms with particular reference to AGC were two tiered.

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First, under a five-year expansion and rehabilitation programme (19861993) AGC was provided with loans from multilateral and bilateral financial agencies to rehabilitate its equipment and expand its operations. The Company received a loan of $160 million in 1985 from a consortium of banks led by the International Finance Corporation (IFC) for the AGC Rehabilitation and Expansion Phase One programme. As part of the deal, the government passed a new Minerals and Mining Law in 1986 (PNDCL 153), which allowed AGC to retain 45% of its export earnings to enable it repay its loans and invest in future expansion.

Part of these developments included the appointment by the then government of Mr. Sam Jonah in 1986, making him the first Ghanaian Chief Executive of the Company.Under the expansion and rehabilitation programme, the company expanded its operation to surface mining, and by 1989, the first surface mine of Ashanti was opened at Sansu, a suburb of Obuasi.

This was later followed by a number of surface pits within the periphery of the underground mines.

The second tier of the reforms was the progressive privatisation of the state's shares in the company from 1993 onwards. This was also part of the requirements of the wider World Bank/IMF Structural Adjustment conditionalities. The government systematically disengaged from AGC by selling majority of its shares to the private sector. This resulted in a reduction of government shares in the company from 55% to 19% in 1998.

AGC's expansion programme was moved into higher gear in 1995, with the initiation of the Ashanti Mines Expansion Programme (AMEP) Phase Two programme, which was also financed by the IFC. The target of the Phase Two programme was the exploitation of abundant lower- grade underground resources that were designed to increase both the production and the life of the existing mine at Obuasi.

Following the divesture and substantial reduction of government's interest in the company, its name was reverted to Ashanti Goldfields Company (AGC) Limited, an action that led to the listing of the Company on the Ghana, London and New York stock exchanges.

Ever since the divesture and the listing of the Company on major international stock exchanges, the character and operations of the Company have changed drastically. AGC is no longer limited to a single mine in Ghana, the company has been exploring and developing mines in various parts of the country and in major gold belts in Africa.

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Global Reach of Ashanti

The Company's listing on the London, New York (February 21, 1996, the first African company to be listed on that exchange), Toronto and Sydney stock exchanges affirmed the Company's status as a global player. It is currently the only black African Trans National Corporation (TNC) operating in several African countries. It possesses mineral rights in Ethiopia, Mali, Cote D'Ivoire and the Democratic Republic of Congo, among others.

Elsewhere in Ghana, AGC is the majority shareholder in the Bibiani (90%), Iduapriem (80%), Teberebie (90%) and Ayanfuri (90%) (now closed) mines. The company possesses reconnaissance licenses for the Winneba (470km2) and Bia (1755km2).

In Africa, AGC through its wholly-owned subsidiary, Ashanti Exploration Limited, was influential in developing an exploration portfolio throughout the continent. In 1995, regional offices were opened in Guinea, Mali, Ethiopia and Eritrea. Exploration areas throughout the years include among others: • West Africa - Youga project in Burkina Faso, Bambadji and Mako projects in Senegal; Allangoua project in south eastern Cote d'Ivoire and Siguiri in Guinea.

• East Africa - Lake Victoria Goldfields in Nyamatigata on the Geita concession in north western Tanzania and in Northern Ethiopia.

• Southern Africa - Tambara and Gorongouncesa projects • Democratic Republic of Congo.

In addition to these exploration areas, the company currently operates in: • Guinea - Siguiri (where it owns 85% with the remaining 15% belonging to the Government of Guinea). This US$55 million mine was commissioned in 1998.

• Tanzania - Geita (AGC owns 50% while the other 50% is owned by South African-based Anglo Gold Limited). A strategic alliance between the two companies was completed in 2000. The project secured a Revolving Credit Facility to the tune of US$100 million from Barclays Capital.

• Zimbabwe - Freda- Rebecca (AGC owns 50%).

• Mali - Kalana Mine (a joint venture was formed in 1995 with AGC as the major equity partner (50%), Johannesburg Consolidated Investment (JCI) of South Africa, (30%),and Government of Mali, (20%).

• The Company in 1998 acquired 60% of Midras Mining Limited in the Midras-Asikam Mine in Ghana.

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AGC and the Emerging Globalisation of the Mining Industry

Over the last ten years, the mining industry worldwide has witnessed aggressive merger and takeover transactions. In many of these merger or take-over cases, more powerful transnational operators have sought to increase their dominance either through complete takeover of smaller operators or by assuming majority shareholding in the merger transactions.

Over the years, AGC tried to stay alive through a variety of strategic schemes including acquisition and mergers in the face of fierce competitive mining environment. In 1995, AGC formed a strategic alliance with International African Mining Gold Corporation (IAMGOLD), a private company registered in Toronto, to jointly fund and manage a portfolio of the two companies' exploration properties in West Africa. This was lauded by industry connoisseurs as it enabled AGC to undertake major gold projects in some African countries. IAMGOLD had a number of gold properties in several West African countries. The alliance gave AGC the opportunity to extend its operations to some of these lucrative fields. One of these fields is the Sadiola Mine in Mali, owned by IAMGOLD and believed to be one of the largest open pit mines in West Africa .AGC also acquired an exploration license in the Mandiana Region of Haut Guinea, south of Siguiri gold mining area and covering an area of 1,145km2 with a contiguous concession of 1226 sq. Km for gold. IAMGOLD had acquired an adjoining concession (1,196km2) to these two AGC properties and these properties became the basis of further cooperation between the two companies. A similar alliance allowed the two companies to enter into agreement to develop the Bambadji property in Senegal.

AGC has over the period acquired several properties in Ghana through direct takeovers. These include the former International Gold Resources (IGR) of Canada's Bibiani prospect which has since been developed into the Bibiani Surface Mine by AGC (Bibiani) Limited, the Anyafuri property of Cluff Resources of U.K., also developed into a surface mine by AGC (Anyafuri) Limited. They also include the Iduapriem Surface Mine near Tarkwa, acquired from Golden Shamrock of Australia, Midras Mines from IRD/GLAMCO, Sankofa Gold Fields in Prestea from SAMAX and also SAMAX's, 50% interest in the Golden Pride Mine in Tanzania.

In 2001, the Company entered into a strategic alliance with the South African-based AngloGold Limited, the world's largest gold producer. This strategic alliance will allow the pair to go into future mining projects in their

25

home countries as well as elsewhere on the continent. In 2002, it provided the company with the means to complete its Geita project following the AGC hedging crisis of 1999. Anglo Gold paid AGC US$205 million representing 50% purchase of the latter's interest in the Geita Project and providing an additional US$130 million for the project.

Ashanti Goldfields Company has tried to stay afloat, amidst these fierce competitions through several schemes, but had to succumb finally in 2004.

The Company was the center of a takeover war between its long-time partner, AngloGold, a subsidiary of Anglo-American Corporation and Goldfields South Africa. Anglo Gold finally won the day in a merger deal that saw the name of the company changed from Ashanti Goldfields Company to AngloGold Ashanti Company.

Turbulence and Strikes

As mentioned earlier, AGC has had its share of turbulence from host communities as well as from its own workers from the colonial era to date. The most recent ones include: • A disruption of mining activities by the people of Akrofuom on February 9, 1996. Armed and angry, the people seized four of the Company's vehicles and invaded the Gyambusu open pit, forcing AGC to negotiate with them.

• A demonstration to back demands for salary increase on 14 May 1999, degenerated into a "near clash situation," when striking workers of AGC in Obuasi used dump trucks to block all entry points to the mine The workers also seized dynamites, buses, trucks and diesel fuel to press their case. This 11-day strike which resulted in the loss of 20,000 ounces of gold valued at over US$8 million was finally resolved on May 25, 1999.

• AGC was sued in 1999 by Adryx Mining and Metals Limited. The latter, a wholly owned subsidiary of the Addax and Oryx Group, became linked to AGC through the acquisition of SAMAX Gold Inc (a 44% share owned subsidiary company of Adryx Mining and Metals Limited which was engaged in mineral exploration and then owned a part of the Geita mining district of Tanzania).

• In mid 1999, the Company was set to lay off 2,155 of its workers within a week following the fall in gold price on the world market.

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AGC Hedge-Book Crisis

Hedging is a way of reducing risks involved in holding an investment. There are many different risks against which one can hedge and many different methods of hedging. It is a price management technique that is employed by commodity sellers and buyers worldwide, and like any speculative business, the speculators either win or lose. Hedging is used by businesses to protect their revenues against price uncertainties. Hedging future contracts or forward selling is the mechanism by which companies are able to secure what they believe to be the most profitable and stable prices for their produce irrespective of the actual prices prevailing on the market. However, what makes AGC hedging crisis worth mention is the way it almost assumed a political dimension.

Mining companies which want to shield their operations from persistent price drops, (particularly as seen with gold from June 1996 to mid 2002), would enter into contracts with banks counterparties or gold bullion dealers to deliver gold on certain future dates and at certain agreed prices which are usually higher than the spot price (the prevailing price of gold on the market).

Hedging thus provides the gold mining company an avenue to sell its proven but unmined metal reserves, assuring it of predictable flow of usually higher income despite falling or volatile gold prices. Additionally, when the due date for the delivery of the gold is up, the gold company can arrange to defer this transfer (for instance, in a case where the actual spot price is good) and roll over its hedging commitments to an agreed future date.

The benefits of hedging to gold producers, therefore, cannot be underestimated. Almost every gold producer has a hedging policy, with the Canadian-based gold producer Barrick Gold Corp3, seen as the pacesetter in modern day hedging practice. It established the idea that derivatives could be used for more than just reducing price risk. It could also enable a company to realise higher than the spot average prices, irrespective of the state of the market. Barrick Gold Corp refers to its hedging activities as its "premium gold sales programme" (Mining Journal, 1999, pg 329).

AGC initiated its hedging programme in 1991, when the trend in the gold market indicated a steady decline in the gold prices. AGC pursued hedging in order to modernise, expand and build the company into a world- class company with an attractive portfolio for the potential investor. It hedged 38% Gold Limited has had its share price climb by more than 60% following the surge in gold price, partly attributed to the threat of war in Iraq.

3 Barrick

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(two- fifths of its reserves) of its production at US$300 an ounce on the assumption of a continuing fall in the price of the bullion.

AGC's hedging activities principally involve long-term spot deferred forward sales, together with the use of option contracts. The contracts were written with leading international bullion banks which included, among others, J Aron /Goldman Sachs, NM Rothschild, Chase Manhattan and Société Générale. Its hedging policy was heralded by leading gold analysts from Goldman Sachs, Nesbit Burns, Merrill Lynch, Scotia McLeod, T D Securities Inc (a subsidiary of the Toronto Dominion Bank), among others as one of the best and transparent in the industry. So effective was its hedging policy that the company reportedly realised close to US$700 million over a five- year period. This helped the company to raise the huge financing needed for the Siguiri Mine in Guinea, the Geita Mine in Tanzania, and in the development of the Bibiani Mine in Ghana, without issuing shares. It also offset the losses incurred in the operation of some of the group's properties at one time or the other. The hedging programme provided AGC with enhanced revenues that enabled it to pursue a successful programme of growth and strategic acquisitions which lifted the group's gold production from 0.7 Moz in 1992 to 1.6 Moz per year in 1999.

In 1999, the fall in gold price was worsened by the sale of gold reserves by the United Kingdom and Swiss Governments and the intended sale of gold reserves by the IMF. This was further exacerbated by the financial crisis that hit Asia (a major market for the precious metal and jewellery) in 1998. After a series of lobbying in international circles coupled with the fast improvement of the Asian economy, the price of the precious metal once again began to surge. The surge in the spot price of the metal raised it from US$250 in mid September 1999, by an outstanding US$55 an ounce (by as much as 25%) to well over US$325 in the same month.

This surge increased the value of unhedged gold. The remaining 62%, representing the group's unhedged reserves therefore benefited from these hikes and accordingly brightened the future of the group as a world-class producer. However, the crisis that the Company faced was that its hedge book became a liability instead of an asset. This exceptional increase in gold price exposed AGC to the risk of margin calls, which could far exceed the company's available liquidity and threaten its solvency.

AGC's aggregate margin-free limit (a credit limit similar to an overdraft facility) of US$300 million was in contrast to limits of its peers in South Africa, North America and Australia, many of which had margin-free limits

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of US$1 billion, and in some cases, no limits at all. This brings to the fore the fact that AGC was hard hit because its African address meant a greater perception of political and economic instability. African countries usually get lower credit ratings than their counterparts elsewhere. In other words, the company's problems were not just a product of price swings but also because it was a black African TNC. After all, AGC's resources and reserves (proven and probable) were estimated at 23 million ounces and the company was one of the top ten gold mining companies worldwide, with one of the five richest gold mines in the world (Obuasi).

As a result of this hedging crisis, AGC received merger bids from Lonmin Plc, South African AngloGold, Barrick Goldfields and Normandy, all internationally acclaimed gold mining companies. Lonmin Plc (a rump of the former Lonrho conglomerate) that holds approximately 32% of AGC's issued shares, cashed in and made a takeover/ merger bid. Initially, thirty-two (32) Lonmin's shares were offered for every forty two (42) AGC's shares which placed the value of the Company's share at US$7. This was subsequently revised to sixteen (16) Lonmin's shares for every twenty-seven (27) AGC's shares, placing the value of the latter at US$5.75 per share. This was withdrawn when the company failed to gain the support of the Government of Ghana. Under Ghanaian mining law, the government had a "golden share" in AGC. The golden share conferred on the government the right to veto a merger even though it had only 20% of the shares. The government was therefore not only a shareholder but also a guardian of public policy. In the midst of this crisis and merger negotiations, the Government of the day sacked the then Minister of Mines and Energy and the Chief Executive of the Minerals Commission. The Government also reportedly pledged financial support to bail the company out of its crisis with assistance from a Saudi billionaire, Prince Al- Waleed bin Talaal.

In pursuit of negotiations for extensions of margin-free limits or rolling over maturing debt instruments, the company in1999, signed an agreement with all its fifteen hedge counterparties that exempted it from posting margins on any of its hedge contracts or depositing a collateral up to December 31, 2002, to stave off the liquidity crisis that threatened the company's near term financial position. In effect, the Company was given a "margin holiday" and in return, the counterparties were issued with unlisted warrants for mandatorily exchangeable notes issued in three tranches expiring in 4.5, 5 and 5.5 years from the date of issue. This measure converts directly into ordinary shares, a measure which when exercised in full converts into approximately 19.8 million shares, equivalent to 15% of the company's capital.

29

In order that the agreement with their counterparties was ratified, the company needed a financial plan in place. This plan detailed two options, the "Preferred Option" and the "Alternative Option" both of which were made up of two components.

The Company's "Preferred Option" - a loan of US$125 million - the separation of the Company into "Obuasi Ashanti" and an "Ashanti International" The Company's "Alternative Option" - a loan of US$125 million - the sale of 50% of Geita or the raising of US$150 million in equity within the next 6 months.

The first option was preferred by the Company because it would not only have implied a restriction of the Government's interest in the Obuasi Mine but it would also have allowed "Ashanti International" to pursue a merger with Lonmin Plc. The Government of Ghana did not support this option because not only was it financially unattractive and complex, it also implied the loss of the company's unique identity as an independent African gold company.

Having served as the platform for the company's expansion, the government insisted on the integration of Obuasi Mine into the Company's future even if it required significant restructuring.

The government's preferred solution was a variation of the "alternative solution" which included the possibility of selling some assets. In February 2000, AGC signed a US$100 million debt facility to complete its Geita Mine.

This was after the Company had been able to secure a separate Revolving Credit Facility to complete its return to full financial health. Barclays Capital was appointed by AGC to arrange this debt facility. In addition, the Company pursued a strategic alliance with AngloGold which paid US$205 million to AGC for its share of the Geita project as well as providing an additional US$130 million for the project.

30

CHAPTER FIVE

Heavy Metal Pollution in the Study Area Introduction

This chapter discusses the environmental impacts of mining activities on the water resources of local communities in the study area following field investigations in the area. The objective of the field investigation was to assess the status of metal concentrations and other water quality parameters in ground and surface water, sediments, soils and fruits.

Contaminant Sources in the Area

The long period of mining and the more recent extensive surface mining operations have together generated considerable waste and affected the quality of water, especially surface water in the study area. During the over hundred years of its operations, the Obuasi goldmine was estimated to have crushed 150 million tonnes of ore rock and generated an estimated 600 million tonnes of waste with considerable effects on water resources in the area and the environment in general. The major activities and facilities impacting on the host communities and their water sources in the study area are surface mining operations, gold processing activities, waste rock and tailings dumps as well as sites of spent cyanide solution containment ponds.

Most of the communities immediately downstream or within the operational area of AGC bear the full brunt of the mining operations. Even communities relatively distant from mining and processing facilities are adversely affected due to offsite migration of these pollutants. Communities such as Sansu, Bidiem, Anyinam, Akatakyieso, Odumase, and Tutuka are directly impacted by surface mining and processing activities. Anyinam and Kwabrafoso are within the periphery of ore processing facilities and clusters of tailings dumps while Dokyiwa, Binsere, Adaase and Ntonsua are near to the spent cyanide containment ponds (Fig. 5.1).

The Cyanide Spillage at Dokyiwa

A major source of heavy metal pollution in the area is the frequent but unreported cyanide spillages and leakages from cyanide containment ponds situated upstream of Dokyiwa. According to officials of the District

31

Fig. 5.1: Map of Study Area showing sampling points Environmental Committee of Adansi West, a major spillage occurred on May 5, 1998, as a result of a structural defect in the cyanide containment pond.

The committee members said this major spillage had catastrophic effects on communities. A host of communities downstream including Dokyiwa, Ntonsua, Ewiase, Attakrom, Kwabena Badukrom, Kronko, Adaase, Hia Nos. 1 & 2, Ankaako, Fenaso Nos. 1 & 2 and Fenaso Faaman were affected. The committee members said a report on the effects of the spillage was prepared to enable the mining company carry out remedial measures. However, the report has disappeared from the offices of the District Assembly.

32

Alleged failure of the mine personnel to inform the communities of the spillage on time and the persistence of some inhabitants in using the affected rivers and streams even after they had been informed, worsened the effects of the spillage. Some of the alleged affects of the spillage included health problems such as stomach and skin disorders. The spillage also resulted in widespread deaths of fishes and destruction of farmlands. In Fenaso Faaman (a village further downstream of Dokyiwa), there was a reported loss of human life when one person allegedly consumed a dead fish he had found in the river.

Livestock was also reported lost as a result of the spillage. According to some members of the District Environmental Committee, most of the complaints of the communities were captured in the missing report.

Water, Sediment and Fruit Analysis

In order to assess the extent of chemical pollution in the area, analysis of water, stream sediments and fruits was carried out. A total of 25 water samples, 8 sediment and 4 fruit samples were taken. Water samples comprised 12borehole, 10 stream and 3 hand-dug well water samples. All samples were analysed for some potentially hazardous heavy metals. The metals included iron, manganese, arsenic, cadmium copper, mercury, nickel, lead and zinc. In addition, water samples were analysed for selected water quality physicochemical parameters such as pH, conductivity, alkalinity, total dissolved solids, major anions and cations. The concentrations of these parameters were recorded and compared with maximum allowable limits provided by various regulatory agencies nationally and globally.

Sample collection, preservation and storage followed approved standard methods as outlined by APHA, AWWA, WEF, (1998) and Eppinger et al (2000). For water sampling, polyethylene bottles were rinsed thrice with the water to be sampled. Borehole water was pumped for sometime before sampling. A plastic scoop was used to sample sediments into polyethylene sampling bags and tightly secured. Orange samples were randomly taken from orange trees in some of the communities where water and stream samples were taken. All sample locations were recorded with a Global Positioning System (GPS).

All water samples were taken in triplicates: two filtered and one unfiltered sample set. Samples for anion and silica analysis were filtered but not acidified while those for major cations and trace element analysis of dissolved species were acidified with pure nitric acid (HNO3) to pH less than 2. The unfiltered batch was also acidified for major and trace cations of both

33

suspended and dissolved species. Temperature, pH, electrical conductivity and alkalinity were measured in the field with a multi-parameter metre.

The stream sediments were sampled from the streambed of the Jimi River and its tributaries, including positions upstream, within the mining and processing areas of active "galamsey" activities and the downstream of these positions. These samples were oven-dried at 40oC for three days and subsequently sieved to <180mm (80 mesh) in the laboratory. As pointed out by Dinelli & Tateo (2001), this grain size is very suitable for data interpretation in high-energy environment because it still retains information typical of smaller grain size classes. A total nitric acid extraction was therefore applied to this fraction to obtain a leachate. This leachate was then analysed for Cu, Pb, Zn, As and Cd by Atomic Absorption Spectrometry (AAS).

Orange fruit samples were thoroughly washed with deionised water in the laboratory before pulverisation. Nitric acid extraction was then applied to the pulp to obtain a leachate. The leachate was then analysed for the various heavy metals using the same methods as was used for the water and sediment samples.

The analyses were performed at the Water Research Institute of the Council for Scientific and Industrial Research (WRI of CSIR) and followed standard methods. The results are presented in Tables 5.1 and 5.2 and discussed below. The standards for the maximum allowable levels of these parameters and metals in domestic water from the Ghana EPA, WHO and the World Bank are included in these tables.

Results

The results generally show attenuation of the concentration of the parameters in streams further away from mining and processing facilities. For trace metals, this is largely due to dilution and sequestering of these elements in sediments as they travel further away from the polluting source.

Physico- chemical Analyses in Water

The results of physical and chemical parameters usually used to evaluate water are presented in Table 5.1. The waters in the study area are acidic, falling outside the EPA and WHO range of standards for drinking water.

Analyses revealed that the pH of the water sampled is acidic and averages 5.6 but ranged from 3.7 to 8.3.

34

35

WHO Guideline

Kwabrafoso Jimi

Amamon Akatakyieso

New Bidiem

Sansu

Fenaso/ Faaman

Hia no. 1 Hia no. 2

Ntonsua

Dokyiwa

(Doctor's Flat) Kwabrafoso

Adaasi

Community

Source River Fena Borehole Borehole Borehole R. Kwabrafo R. Kwaame Tawia Borehole Borehole R. Supu Borehole Hand Dug Well Hand Dug Well R. Fena R. Fena Hand Dug Well Tap Tap (outskirts) R. San Borehole Borehole no. 201 R. Buama Borehole Borehole R. Kwabrafo R. Jimi 6.5-8.5

pH 4.66 5.59 5.2 5.59 6.92 6.68 5.4 4.56 6.65 4.42 3.7 4.2 8 8.33 5.61 5.52 5.62 6.92 4.44 4.85 6.23 5.07 4.76 6.65 5.74

Cond 248 195 191 147 489 492 203 95.3 448 65.3 52.5 295 150 167 344 152 147 618 51.3 78.3 305 126 99.6 847 126

5

Turb.

4.35 9.34 0.63 0.84 501 125 2 1 58 1 1 1 4.9 148 2 6 6 3 1 10 189 1 4 25 11

Tot. alk 16.0 76.0 68.0 53.3 100.0 96.0 104.0 47.7 148.0 20.5 0.0 92.0 59.0 52.0 128.0 72.1 56.0 212.0 18.0 40.0 87.0 57.0 39.0 100.0 49.1 500

Tot. H 74 66 56 44 168 74 56 18 100 18 4 68 36 38 114 58 52 260 14 28 38 38 24 326 36 250

Cl 12.6 6.83 10.3 4.63 12.6 27 5.86 6.6 27 4.28 0.19 36.7 10.3 9.9 28.9 5.07 4 7.78 3.18 2.3 10.6 6.1 6 18.4 9.42 10

NO3 0.19 <0.02 17.9 0.05 <0.02 <0.02 <0.02 8.83 0.05 2.35 <0.02 80.3 0.12 <0.02 8.47 0.09 <0.02 0.94 1.05 0.45 0.05 0.71 0.7 <0.02 0.01 400

SO4 74.6 1.72 2.16 1.95 123 100 1.68 0.44 44.5 0.33 0.04 0.47 17.3 34.6 2.46 1.44 1.38 109 0.29 0.34 15.2 1.12 2.35 240 3.0

SiO2 25.5 48.5 36.5 50.5 21.6 19.6 48.7 28.2 23.8 24.4 12.3 29.5 17.1 23.2 48.6 29.5 28.9 19.8 16.5 27.1 26.6 40 28.5 21.1 13.1

Table 5.1 Physico-Chemical Parameters of Water Samples

200

Na 11.8 14.3 15.5 12 20.9 60.5 25.7 18.1 49.5 5.3 7 22.1 12.6 12.9 19 8.5 9.1 18.6 3.3 5.2 15.3 11.1 9.5 35.4 5.9

TSS 3.5 0.5 <0.1 <0.1 2799 282 <0.1 24 102 <0.1 6.5 <0.1 55 78 <0.1 0.5 0.5 1.5 1 66 95 <0.1 9.5 24 5.5 1000

TDS 161 126.8 124.2 95.6 317.9 319.8 132.0 61.9 291.2 42.4 34.1 191.8 97.5 108.6 223.6 98.8 95.6 401.7 33.3 50.9 198.3 81.9 64.7 550.6 81.9

HCO3 19.5 93.0 83.0 65.0 122.0 117.1 126.9 58.3 180.6 25.0 0.0 112.2 72.0 63.4 63.4 88.0 68.3 258.6 22.0 48.8 106.0 70.0 48.0 122.0 60.0

Total suspended solids far exceeded Ghana's EPA and WHO standards of 50mg/l and 5mg/l respectively. The average value for the area was 197.44 mg/l. The average turbidity of the waters sampled (44.64 NTU) fell within the EPA guidelines. However, certain sampling point values were in excess of EPA guidelines. These sampling points are at Kwabrafoso, Amamom, Fenaso/Faaman and Dokyiwa. All these communities are near past and present mining activities. High values at the Kwabrafo River sampling point at Kwabrafoso are possibly linked to the effluent it receives from the Pompora Treatment Plant (PTP). Those at Dokyiwa possibly emanate from drainage occasionally received from the Dokyiwa spent cyanide solution. Similarly high values from the Fena River sampled at Fenaso/Faaman are due to drainage from the Dokyiwa pond as it is immediately downstream Dokyiwa.

Heavy Metals in Water

The results of heavy metal analysis are presented in Table 5.2. Heavy metals are generally low in groundwater but high in stream water; Fe, As and Mn are particularly high and ranged from < 0.002 to17.100mg/l0.001 to 6.318mg/l and <0.001 to 2.584mg/l respectively. Augmented mercury values were observed in a few streams.

Arsenic concentrations were generally high in stream water samples and the highest values were recorded in communities living within or using streams draining mining, processing, and mine waste storage facilities. The highest values were from samples taken from Kwabrafo, Dokyiwa and Ntonsua .Arsenic (As) at high doses has been known as the poison of choice since ancient times, but scientists are also discovering that long-term exposure to low concentrations of As in drinking water can lead to cancer of the bladder, lungs, skin, kidney, nasal passages, liver and prostrate. Non-cancer effects of ingesting As, at low levels include cardiovascular diseases, diabetes, anemia as well as reproductive and developmental, immunological and neurological effects (Smedley et al, 2002; Krieger et al., 1999). At Kwabrafoso, arsenic values were as much as 38 times higher than EPA general guidelines, 19 times higher than the EPA's mining and mineral processing guidelines and over 1, 800 times higher than the WHO maximum values.

The same pattern was revealed for manganese where in addition to the above-mentioned sampling points, the villages of Amamom and Sansu (where surface mining was undertaken) also exceeded EPA guidelines. Manganese values were 26 times higher than EPA limits in Kwabrafoso. The toxicity of

36

Table 5.2: Heavy Metals in Water Samples (Mg/L)

WATER SAMPLE

SOURCE

Fe

Mn

Cu

Ni

Zn

Pb

Adaase

Borehole

1.811

0.272

0.015

0.013

0.02

<0.001 <0.02

Adaase Adaase

Doctor's aptt Kwabrafoso Dokyiwa Dokyiwa Dokyiwa

Ntonnsua Ntonnsua

R. Fena

Borehole No. 162 Borehole (with pump)

0.358 <0.02 0.044

0.48

0.329

0.002

1.525

0.027

0.058

2.584

Borehole No. 238

0.178

0.071

Borehole No. 291 R. Supu

Borehole

<0.02 4.01

<0.02

0.032 0.455 0.001

0.024

0.016 0.014 0.024

0.112

0.039

0.12

0.011

0.034

<0.002 0.015 0.019

<0.01

0.02

<0.002 0.002

<0.001 <0.002 0.001

0.015

<0.002 0.001

<0.01 <0.01

6.318

0.014

0.057

0.012

<0.001 <0.002 0.001

<0.01

0

<0.01

0.009 0.004

3.071

<0.001 <0.002 <0.001 <0.01 0.013

<0.002 <0.001 2.201

0.048

<0.002 0.001

<0.002 <0.001 0.255

<0.002 0.001

3.273

0.192

0.018

0.01

0.014

0.046

R. Fena

2.516

0.363

0.026

0.058

0.025

<0.001 <0.002 <0.001 0.015

Fenaso Faaman Sansu Sansu Sansu

New Bidiem New Bidiem Amamom

Akatakyieso Akatakyieso Kwabrafoso Jimi

Hand dug well

0.127

<0.01

<0.001 <0.002 <0.001 <0.01

0.183

0.003

<0.002

0.014

0.005

<0.002 <0.001 <0.01

Tap (entrance to village)

0.248

0.1

0.216

0.02

0.006

0.05

0.001

<0.002 <0.001 0.288

Borehole No. 110

0.08

0.008

0.038

0.003

0.009

<0.001 <0.002 0.001

R. Buama

11.01

0.234

0.022

0.03

<0.001 <0.002 <0.001 <0.01

R. San

Borehole No. 201 Borehole Borehole

R. Kwabrafo R. Jimi

0.259

15.34

0.021 0.058 2.042 4.06

WHO Guideline maximum values

3

EPA Mining & mineral processing guidelines

10

EPA General guidelines World Bank

0.046

2.352

Tap

0.04

0.02

0.008

<0.002 0.018

<0.01

R. Fena

Fenaso Faaman

0.066

0.006

0.004

<0.001 <0.002 0.001

Hia No 2

<0.02

0.008

0.078

As

Hand dug well Hand dug well

0.002

0.086

0.069

Hg

Hia No 1 Hia No 1

0.041

0.021

0.032

17.19 5.603

0.044

0.003

0.11

R. Kwabrafo

R. Kwame Tawia

0.002

Cd

3.5

0.146

0.115 0.043 0.103 1.131 0.472 0.5 0.1

0.001

0.012

0.094 0.008 0.032 0.021 0 2

2.5 5

0.026 0.003 0.02

0.014

0.039 0.003 0.028

0.034

<0.002 0.001

0.801

<0.001 <0.002 <0.001 0.271

<0.01

0.023

<0.002 <0.001 0.015 <0.002 0.001

<0.002

0.024

0.096

0.044

0.033

<0.001 <0.002 <0.001 18.91

0.013 0.005 0.02 0.5 0.5

0.071 0.019

0.014

<0.002 0.001

<0.01 0.027

0.006

<0.002 0.001

0.31

3

0.01

0.003

0.001

0.01

10

0.1

0.1

0.005

1

5

2

0.1

0.1

<0.1

0.1

0.005

0.01

0.5 0.1

37

manganese is equally well documented. Exposure to high levels of manganese is known to be harmful to the central nervous system. Symptoms of manganese neurotoxicity include a shuffling gait, slack facial muscles, speech difficulties, depression, tremors and psychological imbalance. Other effects are respiratory effects such as increased incidence of cough and bronchitis and increased susceptibility to infectious lung diseases (Kondakis et al., 1989).

Iron values showed the same trend with the highest values found at Kwabrafo, roughly 1.7 times higher than EPA guidelines. Tests results for iron confirmed claims by the inhabitants of Sansu and New Bidiem (resettled from Bidiem by AGC) regarding the rust-coloured nature of water from specific boreholes in these communities. In Sansu, the iron value for the borehole in question was 2.35mg/l and as high as 15.34mg/l in New Bidiem (WHO, 3: EPA, 10).

Mercury levels are particularly high at Adaase village. The use of mercury, especially by "galamsey" operators in the recovery of gold, poses a serious threat to water resources in the area. Mercury and a related compound, methyl mercury, are potent neurotoxins. They have been known to accumulate as they work their way up the food chain from prey to predator. Exposure to high levels of mercury can permanently damage the brain, kidneys and developing foetus. Effects on brain functioning may result in irritability, shyness, tremors, changes in vision or hearing and memory problems. Mercury levels in streams at Adaase, where active illegal mining is said to be intense, were 2 to 4 times higher than WHO limits

Heavy metals in sediment

Sediment samples generally exhibit the highest concentration of measured trace ions with values of arsenic and iron being extremely high in most samples. Cadmium (Cd), however, was not detected except at Kwabrafo.

Although concentrations of Zn, Cu, Mn, Ni and Hg are relatively lower compared to Fe and As, they are generally higher than their average global concentration in sediments and soils (Fig.5.2). Arsenic and Iron concentrations in sediments range from 0.24 to 7591.58mg/kg and 2,210 to 50,180mg/kg with mean concentrations of 1746.51mg/kg and 28270mg/kg respectively.

Manganese (Mn) concentrations range from 2.76 to 167.24 and averaging 51.27 mg/kg Copper (Cu) ranged from 3.65 to 80.46 and averaged 30.40 mg/kg. Nickel (Ni), 3.28 to 23.11 and averaged 10.28 mg/kg; Zinc, 8.87 to142.51 and averaged 47.83 mg/kg; Lead (Pb), 0 to115.37 and averaged 15.09 mg/kg; Mercury (Hg), 0.26 to3.02 and averaged 1.21 mg/kg; and Arsenic (As) 0.24 to7591.58, averaging 1746.51 mg/kg.

38

Generally, metals in sediments do not have immediate implications for human health as long as humans do not consume these sediments directly, but they can have serious consequences when they enter the food chain. Some of these sediments supply these chemicals to plants and aquatic organisms which could then pass them on to humans. It has long been established that organisms can accumulate heavy metals in greater concentrations than those found in their environment and that invertebrates that ingest large quantities of sediments may accumulate higher concentrations of toxins than species that ingest leaf material (Kelly, 1999).

Table 5.3: Heavy Metals in Sediments.

SEDIMENT Sample

Fe (g/kg) Mn

Cu

mg/kg dry weight Ni Zn

Pb

Cd

Hg

As

50.27

12.08

4.71

0.24

1.44

5778.15

Fenaso Faaman (R. Fena)

2.21

31.72

3.65

Sansu (R.San)

25.71

12.72

18.32

Kwabrafoso (R. Kwabrafo)

13.91

14.5

Ntonsua (R. Supu)

43.42

2.76

Hia No 2

6.22

25.35

Adaase (R. Fena)

50.18

137.52

Dokyiwaa (R. Kwame Tawia) Adaase (R. Fena)

44.56

39.96

167.24

3.28

8.87

41.44

8.36

142.51

80.46

23.11

13.48 4.98

25.82

23.08

61.74

ND

115.37

0

ND

0.29 2.6

0.24

190.38

8.41

33.06

0

ND

3.02

318.66

8.1

13.31

ND

ND

0.28

85.19

ND

ND

1.46

0.25

10.94 7.98

80.35

21.03

21.73

0.65

ND

ND ND

0.26 0.29

7591.58 7.62

High concentrations of these pollutants in sediments in an environment typified by high tropical rainfall such as the study area have long-term health and environmental risks. They provide sporadic regimes for possible re-suspension of the stream sediments when the rivers flow increase, thus supplying mobile heavy metals to both stream and groundwater.

The highest concentrations or values were roughly coincident with areas of past and or active mining and processing activities already identified.

Concentrations of these ions peak in areas such as Kwabrafoso (immediate downstream of PTP), Dokyiwa, Sansu (large-scale surface mining undertaken in the past) and Ntonsua (immediate downstream of Dokyiwa) and Adaase (further downstream of Dokyiwa), which are proximal to mining and processing facilities (Figure 5.2).

39

Fig. 5.2: Long Concentration of Heavy Metals in sediments

Heavy Metals in Fruits

To obtain the levels of heavy metal concentrations in foods (bio-availability), an investigation was carried out in fruits from the area. Vegetation is the preferred channel for the movement of contaminants through the food chain (Punshon et al, 2003).

Analytical results from the orange samples exhibited a similar trend for concentration of these metals, but in relatively lower concentrations compared to the sediments (Table 5.4). Some fruit samples contain much higher concentrations of the measured pollutants, especially Hg, Zn and As than the allowable limits for food. It has long been rumoured that the extraordinary sweetness of the oranges from the study area is due to the high arsenic content in them. No scientific basis has been found to support this, but the rumour underscores the perceptions of metal pollution in the area and the degree of their bio-availability. High concentrations of Hg, Zn and As are indicative of significant amount of these pollutants entering the primary-producer compartment of the food chain (Sobolewski, 1999).

Generally, the concentration of metal in oranges was higher than the corresponding concentration of metal in water and lower than in sediment (Table 5.3).

In the case of Hg, values were 5 times more than EPA limits and 26 times more than WHO limits. Zinc (Zn) concentrations were up to 5 and 8 times more than EPA and WHO limits, Arsenic values were 24 and 1,226 times more than EPA and WHO limits. Nickel and Pb were non detectable while Fe, Mn, Cu and Cd were present in small concentrations.]

40

Table 5.4: Heavy Metals in Fruits.

FRUITS

mg/kg dry weight

Sample

Fe

Mn

Cu

Hia No. 1

0.805

0.277

0.465

Dokyiwa Adaase

Akatakyieso

ND

0.206

4.112

0.33

0.352

0.557

Summary of Results

Ni

Zn

Pb

19.679

0.072

0.507

ND

7.4

0.404

ND

14.817

0.835

ND

ND

24.298

Cd

Hg

As

0.125

0.021

5.591

0

0.044

0

ND

0

0.096

0.026 0.02

0.025

0.022 1.881

12.261

There were abnormally high concentrations of heavy metals in areas where mining had been undertaken in the past (e.g. Sansu), communities where mining was still taking place as well as those where mining-related activities were located. This was the case with communities downstream of mining operations, such as Kwabrafoso Akatakyieso, Amamom, Ntonsua, Adaase and Fenaso Faaman.(Figures 5.3, 5.4. and 5.5)

Fig. 5.3: Concentration of Heavy Metals in Sediments Note: Concentration of Mn at Adase and Zn at Sansu are above 100mg/kg

41

Fig 5. 4: Concentration of Selected Heavy Metals in Stream Water

Figure 5.5: Concentration of Selected Heavy Metals in Oranges

As one moved further downstream of the "hotspot" areas, the quality of water generally improved. For instance, at the River Kwabrafo sampling point just downstream of the PTP, concentrations of the measured heavy metals were much higher than at the sampling point further downstream of River Kwabrafo. The quality of River Fena was better at Hia No. 2, than at Ntonnsua, which is immediately downstream of the pond. At Ntonnsua, the river is known as the Supu. It goes on to join River Fena at Adaase from which point it flows through Fenaso Faaman and then to Hia No. 2

42

CHAPTER SIX

Health Impacts Introduction

This chapter discusses the impact of mining activities on the health of communities within the catchment areas. A thorough study and delineation of the specific causal factors for particular disease prevalence in an area is a costly and time-consuming proposition. It would usually involve the medical study of a sample of subjects who are members of the communities impacted by the particular activity suspected to be responsible for the disease over a considerable time span (Plant et al., 1998). It is even more difficult to clearly establish links between geochemistry and human health (Smith and Huyck, 1999). It has been suggested that in addition to defining the nature of the disease or lesion in the exposed subject through the practice of clinical medicine, epidemiological studies of a group of subjects exposed to the same type of mineral should be made so as to clearly describe the causative agent(s) and to define a 'dose or response' relationship between the amount of exposure and degree of injury (Rose, 1999) It is however, not uncommon that such casual factors could be ascertained through mapping of patterns of disease occurrence, their incidence levels in such communities as against global, national and regional averages and also soliciting community members' perceptions of the possible causes of these diseases. Although the results of such disease surveillance studies and perceptions do not constitute full proof evidence of the exact causes of these diseases, the use of such anecdotal evidence in health studies are not uncommon and indeed very useful for designing mitigation measures (Yang et al, 2002).

In developed countries effective combination of regional geochemical data with epidemiological data and certain associations between environmental geochemistry, diet, and degenerative disease have been suggested (Plant et al., 1998). In the absence of such comprehensive data for comparison as in the case of Ghana, the current study is a useful pioneering exercise.

The section on health impacts makes use of health surveillance data provided by Obuasi government hospital covering 16 communities, which have been covered in the socio-economic survey. The health survey have been integrated with water, sediment and fruit survey and community perceptions of

43

casual agents for common diseases in their community to establish any temporal and special relationships between disease incidence and level of pollution.

Compilation of Disease prevalence and Incidence Data

In order to understand the disease prevalence pattern in the communities studied, a collation of outpatient department (OPD) annual reported cases of the top ten most prevalent diseases was undertaken from the records of the Government Hospital at Obuasi. The records covered the period from 1989 to 2003. The study design had envisaged a coverage period from 1985 to 2003.

This was to cover considerable time from pre-surface mining, period of active surface mining and period after cessation of surface mining activities. Only data from 1989 was, however available. Surface mining is emphasized here for two reasons: a) the communities covered are mostly within areas defined by surface mining activities; and b) the communities, during our field survey conveyed a strong perception that surface mining unlike underground mining impacted negatively on their health.

The collated data on health was analyzed to observe any temporal and spatial changes in the distribution of the ten most prevalent diseases in the area measured by the number of the annual total number of patients reporting a particular disease at the OPD and the communities they are coming from.

Relationship between Disease Patterns and Heavy Metals Distribution

Epidemiological studies of mining environments have established toxicity of specific metals and the diseases they are likely to engender when such metals are consumed by humans beyond determined threshold doses. Some of these chemicals may be classified as carcinogens, neurotoxins or irritants; others may cause reproductive failure or birth defects (WHO, 1988; Kelly, 1999).

The study analysed and established the toxicity levels of metals as they relate to human health. Table 5 gives a summary of established human health effects of selected metals.

44

Table 6.1: Established Human Health Effects of Selected Metals Cadmium Copper Lead

Manganese

Mercury Nickel Zinc

Respiratory tract infection, lung toxicity, bronchitis, kidney damage, gastrointestinal irritation, nausea, vomiting and pain.

A possible carcinogen.

Irritation of eyes, mouth and nose; nausea, diarrhea and abdominal pain; headache, dizziness and drowsiness; liver and kidney effects

Impaired growth, induces weakness in the fingers, wrists and ankles; increased blood pressure; anemia; damage to kidneys; abortion in women and damage to male reproduction system leading to sterility

Chronic exposure affects the nervous system and the effects are termed manganism characterised by feeling of weakness and lethargy and progress with other symptoms such speech disturbance, a mask-like face, tremors, psychological disturbance, and respiratory effects such as increased incidence of cough and bronchitis and increased susceptibility to infectious lung disease.

It may also cause reproductive/developmental effects such as impotence and loss of libido Kidney damage, irritation, nausea, vomiting, pain, ulceration, and diarrhea; and toxicity to the brain and nervous system Respiratory tract infection such as chronic bronchitis, asthma and emphysema.

Gastrointestinal effects, impaired lung functioning, respiratory irritations

Sources: (Da Rosa and Lyon, 1999, Guo and Valberg, 1997; Ogola et al., 2002, Ross, 1999, Smith and Huyck, 1999)

Immediate human health threats from heavy metal contamination in the study area came from possible human consumption of water and foods such as citrus grown in the area. Metals in sediments may not have immediate implication for human health as long as humans do not directly consume these sediments. However, they have serious implication when the general food chain is considered. Some of these sediments represent sources of supply of chemicals to plants and some aquatic life, which could then, pass them on to humans. In fact, it has long been understood that organisms can accumulate

45

heavy metals to greater concentrations than those found in their environment and that invertebrates, which ingest large quantities of sediments may accumulate higher concentrations of toxins than species that ingest leaf material (Kelly, 1999). In addition, there is the possibility that sediments could serve as regimes for possible re-suspension of the stream sediments during floods, thus supplying mobile heavy metals to both stream and groundwater.

Results of the Survey

Twelve (12) diseases constituted the top ten causes of OPD attendance from 1989 to 2003, but the composition of the diseases differed from year to year.

Table 6.1 shows the list of these diseases. From the table, malaria exhibits the highest annual incidence, consistently increasing from 1989 to 2003. The percentage of outpatients reporting malaria annually increased from 20% to 59% (Fig. 6.1). The national average for malaria incidence in 2003 is 44.3%.

Nineteen, representing (95%) out of the 20 communities surveyed mentioned malaria as the major health problem. The communities blame the high incidence of malaria on pits of stagnant water created by AGC mining related activities for serving as breeding grounds for mosquitoes.

However, community members as well as members of the District Management Team recommended belated efforts on the part of AGC and the Obuasi Municipal Assembly to help address the malaria problem in the district. The company is supporting the Ghana Health Service's "Roll Back Malaria Programme". According to the district health authorities the company has committed $329,000 dollars in support of the programme in the district.

There is abundant literature to suggest possible casual relationships between mining and certain diseases. This relationship informed the choice of six top diseases namely malaria, acute respiratory infections (ARI), diarrhea, skin diseases, acute eye infections, and Schistosomiasis (Schisto) for spatial analysis. Prevalence of tuberculosis (TB) and HIV/AIDS were also included because of the strong perception in the communities that they were on the ascendancy due to surface mining activities.

Temporal Trends

Graphical display of the annual OPD reported cases of the selected diseases showed that, on the whole, the incidence of diseases tended to increase from 1989 to 2003. Most diseases increased drastically from1993 to 2001, before dropping from 2002 to 2003. Most diseases recorded annual peak values from

46

47

0.9

4.2

Rheumatism

-

Source: Field Survey, 2003

Preg. Rel. com.

0.6

Gynae Disord.

Anaemia

0.9

3.8

0.9

Intest. Worms

Hypertension

Accidents

1.2

Acute eye inf.

ARI

2

Skin diseases

-

0.6

0.4

0.8

2.8

0.8

1.1

-

1

1.8

0.6

-

0.5

0.9

14

1.1

0.8

-

0.6

0.6

2.1

20.4

2.3

26.7 26

Diarrhoea

Malaria

1989 1990 1991

DISEASE

1.6

1.6

1.5

1.2

-

-

1.2

3.8

5.1

3.5

3.6

21.0

1.9

1.5

1.5

2.9

-

-

3.1

3.6

4.5

4.1

3.1

21.5

1992 1993

1.5

1.5

1.5

3.0

-

-

2.9

4.6

4.7

5.3

4.8

20.8

1.4

2.8

2.3

4.9

-

-

1.3

11.5

12.5

9.8

10.1

26.4

1.3

2.8

2.2

4.3

-

-

1.3

12.0

12.3

8.7

9.5

26.0

1.2

1.9

1.3

3.5

-

-

1.0

12.4

12.4

8.3

8.4

25.6

3.0

3.0

4.4

1.3

-

-

1.3

2.0

12.3

3.0

3.8

29.1

2.2

2.8

1.2

-

5.1

4.3

1.2

12.2

4.9

3.2

28.8

2.7

2.3

1.1

1.2

-

3.3

1.5

1.4

2.7

1.2

28.0

30.4

40.6

3.1

-

1.3

-

-

8.5

2.2

1.2

12.8

1.3

1.6

-

-

2.6

1.9

1.6

8.1

1.7

2.1

5.7

1.8

3.0

1994 1995 1996 1997 1998 1999 2000 2001 2002

Table 6.2: Top Ten Causes of OPD Attendance (%) 1989 - 2003

-

-

2.7

2.0

2.4

2.6

1.7

2.5

5.3

-

5.8

59.9

2003

1997 to 2001, a period when surface mining was at its peak. In many cases, there was no significant variation in the numbers reported for the various diseases from 1989 to 1993, a period during which surface mine development was underway; while the period from 2001 to 2003 saw a drop in the number of patients reporting these diseases annually, the period following the closure of surface mining activities.

Fig. 6.1: Malaria Incidence in Selected Communities in the Study Area

Temporal Trends

Graphical display of the annual OPD reported cases of the selected diseases showed that, on the whole, the incidence of diseases tended to increase from 1989 to 2003. Most diseases increased drastically from1993 to 2001, before dropping from 2002 to 2003. Most diseases recorded annual peak values from 1997 to 2001, a period when surface mining was at its peak. In many cases, there was no significant variation in the numbers reported for the various diseases from 1989 to 1993, a period during which surface mine development was underway; while the period from 2001 to 2003 saw a drop in the number of patients reporting these diseases annually, the period following the closure of surface mining activities.

48

The diseases that aptly displaced this trend are malaria, diarrhea, ARIS, skin diseases, eye infections and schistose.

There were a few exceptions in 2003 in a number of communities where the incidence of some diseases continued to rise. These anomalous trends could be due to the fact that developments such as stagnant waters, created by the mining company, had not been removed even after cessation of mining in the area (Fig. 6.2). In addition, continuing exploration drilling, trenching and pitting have left in their trails a number of unreclaimed trenches and pits with bodies of stagnant water.

Fig. 6.2 Annual Prevalence Trends of the Five Top Diseases (Excluding Malaria) in the Adansi West District.

Spatial Trends in Distribution of Diseases

Trends in the distribution in the various communities showed that Anyinam, Kwabrafoso, Dokyiwa, Ntonsua and Sansu had the highest occurrence of the eight diseases analysed, with Anyinam and Kwabrafoso posting the highest annual values (Fig. 6.1).

These trends cannot be considered conclusive since the number of reported cases would be directly related to total populations of these communities.

If the populations of the communities were known, the data could have been

49

evened out to take account of the differences in population. Unfortunately, these statistics were not available. The weakness in the data treatment should therefore be noted.

The annual spatial trends were very consistent with temporal trends discussed above. In terms of disease prevalence, malaria, ARI, acute eye diseases, diarrhea and skin diseases, respectively, were the most prevalent in many communities. There were however, some diseases that appear more prevalent in some communities than others. Malaria, once again, consistently topped the list in all the communities.

A number of communities distant to areas of mining activities and locations of processing and waste facilities were included in this analysis. These communities included Ankaako, Akatakyieso and Amamon. Trends in these communities did not show the marked patterns exhibited by those communities impacted directly by mining activities.

Disease Patterns Exhibited in the Communities

Kwabrafoso This community showed high prevalence of malaria, diarrhoea, ARI and skin diseases. From 1989 to 1993, there was little variation in the annual disease prevalence in Kwabrafoso. However, from 1994 to 2002, there was a drastic annual increase in the number of OPD reported cases for these diseases, with 1998 to 2002, being the peak years (Fig. 6.3). The disease prevalence dropped

Fig. 6.3: Disease Trends in Kwabrafoso, 1989 to 2003

50

drastically after 2002. The perception among residents was that that mining accounted for the high prevalence of the diseases in the area. Kwabrafoso is at the heart of a number of processing facilities and waste dumps. The community is situated along the Kwabrafoso Stream which takes effluents from a number of old tailing dumps and from the Pompora Treatment Plant (PTP).

The plant roasts sulphide ore for efficient processing but also sends noxious gases of both sulphide and arsenic into the air. However, as part of AGC's expansion programme, sulphur and arsenic oxides abating facilities have been installed at the plant to minimise the impact of these gases on the environment. The five most prevalent diseases in the area were ARI, eye infections, skin diseases and diarrhea. All of these diseases have possible causal links to a variety of heavy metal oxides associated with roaster fumes.

Sansu The disease pattern in Sansu mirrors those discussed for Kwabrafoso. ARI, diarrhea, skin diseases and eye infections, in addition to malaria, were the most prevalent diseases in Sansu (Fig. 6.4). The incidence of these diseases exhibited drastic annual increase from 1994 through to 2002, peaking between 1998 and 2002, but dropping considerably in 2003. Sansu has a concentration of surface mining pits, ore crushing and milling facilities in addition to Sulphide Treatment Plant (STP). These activities give rise to considerable dust pollution and pollution of streams through the mobilisation of heavy metals in waste emanating from these facilities. Apart from malaria, ARI is the most prevalent disease in the Sansu area. Dust is a major cause of

Fig. 6.4: Disease Trends in Sansu (1989 â&#x20AC;&#x201C; 2003)

51

the disease and the people in the area believed that dust generated through ore haulage, crushing and grinding was responsible for the widespread presence of ARI in the area. The drastic drop in the prevalence of these diseases in the area in 2003 may be attributed to the abatement of pollution following cessation of surface mining activities in the area. Continuous monitoring of the prevalence level in subsequent years might give a clearer trend since a drop in one year was not enough to lead to any logical conclusion.

Dokyiwa and Binsere At Dokyiwa and Binsere, it was observed that ARI, eye infections, skin diseases, malaria and diarrhoea, were the most prevalent diseases. The Dokyiwa Stream receives mine effluent from waste dumps upstream. In addition, there is a huge spent cyanide containment pond close to these communities.

This cyanide pond receives cyanide-laced water from heap leaching activities upstream. There have been a number of recorded leakages and major spillages from the pond into the Fena Stream. This has fueled a strong perception among community members that the diseases prevalent in the area were caused by the pollution of the Fena, their main source of drinking water.

Fig. 6.5: Disease Trends in Dokyiwa and Binsere

Ntonsua and Ewiase The prevalent disease here is ARI, which exhibited a trend consistent with that described for the communities discussed earlier. ARI showed a steady increase from 1997 to 2001. (Fig. 6.5). According to community leaders, AGC

52

frequently flushes its pipelines carrying sewerage, silted material and cyanide laced water from its mining activities to keep them clean and prevent blockages.

The flushed water is discharged into the Fena Stream, which is the source of drinking water for the communities at Ewiase. The community leaders produced several records of correspondence with AGC over the pollution of their only water source. The communities had also experienced the effects of cyanide leakages and spillages from another cyanide pond near Attakrom, Kwabena Badukrom and Kronto, all upstream of Ntonsua. They also provided the research team with correspondence with the company over cyanide pollution of their water. According to community sources, the people of Attakrom, Kwabena Badukrom and Kronto migrated to join Ntonsua and Ewiase because the effect of the cyanide spillage was so intense upstream that the communities feared for their lives. The affected communities asked for compensation from the company but were denied and the case was still in court.

Fig. 6.6: Disease pattern in Ntonsua and Ewiase (1989 â&#x20AC;&#x201C; 2003)

Jimiso Jimiso consistently recorded the highest prevalence of malaria and schistosomiasis relative to the rest of the communities (Fig.6.6). The Jimi River has been dammed at Jimi to provide a large reservoir of water for the company's ore processing facilities. According to members of the Jimiso community, the dam overflows during rainstorms, flooding the area and leaving behind pools of stagnant water. These pools of water and the dam are perceived to be responsible for the high incidence of malaria and schistosomiasis in the area.

53

Fig. 6.7: Disease Trends in Jimiso (1989 â&#x20AC;&#x201C; 2003)

Mining, Tuberculosis (TB) and HIV/AIDS

The average TB case rate in Adansi West District is above the WHO figure for Ghana. In 2003, the WHO reported that TB detection rate for the country was 281 new cases per 100,000 people. During the same period, Adansi West detected 740 new TB cases in its total population of 263,597, given a detection rate of 290 new cases per 100,000 people. Tuberculosis figures from AGC Hospital, the biggest diagnosing centre of the disease in the district were not available to the district health authority. The causal link between TB and mining activities are however well known. Ample number of cases exist worldwide of silicosis infections (caused by silica dust) particularly, among mine workers.(Fig. 6.6).

The incidence of HIV/AIDS infections in the district also demonstrated an increasing trend. Reported cases rose from 215 in 1997, to 389 in 2003.

The year 2002 national sentinel report puts Obuasi's HIV prevalence rate of 6.0%, far above the national average of 3.4%. Obuasi has, therefore, become one of the National AIDS Control Programme HIV/AIDS sentinel sites.

The study did not establish a direct link between mining activities and the increased incidence of HIV/AIDS infections. However, there was a general perception that mining activities facilitate the spread of the disease. Mining activities have attracted a lot of unemployed youth from various parts of the country to Obuasi in search of jobs. Among these are illegal gold miners and commercial sex workers, who are mainly in their youth and sexually active.

54

The District Health Directorate has commercial sex workers on its Sexually Transmitted Infections (STI) Control Programme. According to the Directorate's records, the number of commercial sex workers increased from 320 in 2002, to 704 in 2003. The Directorate has recommended AGC for playing an active role in the AIDS control programme. The company is supporting the district's AIDS Response Initiative in the areas of prevention of Mother-to-Child transmission of HIV, voluntary confidential counseling and testing for HIV. However, during the field survey, community members denied any knowledge of the incidence of HIV/AIDS in their communities. They were however, quick to point out that if there were any such cases of the disease, they might be the results of activities of AGC miners and "galamsey" operators. Records of OPD reported cases of the disease pointed to the contrary.

The records showed small but increasing number of cases from the communities (Fig. 6.6)

Fig. 6.8: TB and HIV/AIDS Prevalence in the Communities

55

CHAPTER SEVEN

Perceptions of Communities on Mining Activities Introduction

The social and economic impacts of mining activities on local communities in the study area were investigated using a variety of information gathering techniques outlined in the chapter on methodology. The information is summarised below.

Demographic Characteristics of Respondents

Sex and Age Distribution of Respondents Out of a total sample population of 200, 51.5% were males and 48.5%, females. The age distribution of respondents indicated that about 58.0% of them were between the ages of 30 and 60. Those below age 30 and those over 60 were 24.5% and 17.5% respectively. This age structure of the population has two implications. First, the population is active and its effective utilisation would have a positive effect on the socio-economic development of the districts. Secondly, such a population is sexually active and this may affect its growth rate with concomitant effects on dependency ratio. Most of the respondents were married. The survey revealed that 72.5% of the sample population were married, 13.5% singles, 7.5% divorced or separated and 6.5% widowed.

Household Size of Respondents The composition of a household in the districts essentially reflects the structure of the extended family system. Most households in the area are composed of couples living together with their children, relatives and other dependents who are answerable to the head and share a common source of food.

Generally, households are large. Illiteracy appears to be a factor in household size with illiterate families having slightly more people than literate ones, usually with a difference of about two. This situation also reflects in the

56

rural-urban comparisons with the rural households having slightly more people than the urban ones.

Children constitute the major group of dependents in a household, and most of them are usually the offspring of the head. The field survey revealed that only 12.5% of households had less than three people as members. Thirty-three and half per cent of households however had between three and five members, while the remaining 54.0% had six or more members.

These large family sizes could definitely be a strain on heads of households, especially female-headed ones.

Educational Background of Respondents Education is a key variable of household formation, structure, socio-economic status and value judgements. The level of education in rural Ghana is generally low and the study area was no exception. Sixty-one per cent of the sample population have had basic education (primary, middle or JSS), secondary or vocational education, 9.5% and tertiary education, 2%. Twenty-six per cent had no formal education and 1.5% had other forms of education such as studying Arabic.

Occupational Characteristics of Respondents With the vast majority of respondents with minimal or no education, their occupations tended to be those that required little or no education. Farming and its related activities were the main occupation of respondents, a reflection of the general pattern in the country. Fifty-eight and a half per cent and 23.5% of respondents were engaged in farming and trading respectively. Other types of economic activities that occupied respondents were teaching (2.0%), public/civil service (1.0%), AGC staff (1.0%), "galamsey" (1.0%), students (1.0%) and others (12.0%). A number of respondents have however changed jobs. The survey revealed that 16.5% of respondents were former employees of AGC. Movements of Respondents Among factors that can influence an individual's perception of issues pertaining in a community are the length of a person's stay in that area and whether or not that individual is indigenous to the area. Asked how long they have lived in the study area, 63% of the respondents said they hailed from the study area while the remaining 37% did not. Sixty -seven per cent were born in their resident district and the remaining were born either in the region or other

57

regions. While 62.5% were indigenes and had lived all their lives in the area, 9.5% had lived all their lives in the area but were not indigenes. Four and half per cent and 5.5% had lived in the area within the last five years and between five and ten years respectively. In all, about 10.0% of the respondents had lived in the area for 10 years or below. Since surface mining started in the area a little over ten years ago, this section of the population could not give first hand information about the pre-existing situation. The rest (18.0%) had lived in the area for over ten years.

The migration of 32.5% of the respondents to the area were caused by a myriad of push and pull factors. Among the reasons given were marriage (7.0%), work (11.5%) and school (1.5%). The remaining 11.5% gave varied reasons for going to the area. Indigenes, who were previously living elsewhere constituted 24.5% of the sample population. Among them, 4.0% returned within the last five years and 5.0% between the last five to ten years.

The responses from this section of the respondents on issues pertaining to preexisting situation could therefore not be regarded as first hand information.

The remaining 15.5% however returned to the place more than ten years ago.

A sizeable number of these people were living in other districts in the region and by and large, they returned either to establish a new business or for personal reasons.

Nature of Household Facilities of Respondents Major attractions of an area include basic facilities such as electricity, potable water, and the type of buildings. The availability or otherwise of these facilities also depend, to a large extent, on the financial status of inhabitants.

Boreholes constituted the principal source of drinking water for a vast majority of the respondents (74.0%). Only 5% had piped water in their homes; these were all people living at Obuasi. Ten and a half per cent of respondents were using private or communal standpipes and the remaining 10.5% got their drinking water from streams. The boreholes however broke down frequently, forcing users to resort to fetching water from the streams.

The poor quality of water and the inefficient storage systems portended ill for the health of the residents.

Characteristic of rural communities in Ghana, most of the respondents (72.0%) used fuel wood for domestic cooking and 22.0% used charcoal. The rest used kerosene, electricity and LPG in the proportions of 1.5%, 2.5% and 2.0% respectively. Quite a number of the respondents (71.0%) lived in brick houses and 25.0% lived in blockhouses. Seventy-five and a half per cent of them had aluminium roofing while 11.5% had thatch roofing. Conditions of

58

lavatories in the area were unpleasant. This was mainly due to unavailability of water in many households. Very few (2.5%) of the respondents had access to water closet toilet facilities. Majority (71%), had to depend upon pit latrines and 10% used the bush. The pit latrines were in most cases, subjected to severe pressure due to the number of people who used them, leading to frequent breakdowns.

Refuse disposal by households was also a problem. Most households kept their refuse in open containers. Apart from parts of Obuasi and New Bidiem, where refuse collection had been contracted to waste companies, the rest dumped their refuse in open spaces.

Levels of Economic Activities of Respondents before Surface Mining

Assessing their situations before the introduction of surface mining in the area, 73% of the respondents said the levels of their economic activities were encouraging while 11.5% said they were discouraging. The rest were mostly not engaged in income generating activities at the time (in school or as apprentices). Surprisingly, 89.5% of respondents were not getting any financial assistance at the period. Out of those who were getting assistance, more than half were remittances from relatives.

As a proof to the encouraging levels of economic activities of respondents, 64.0% were either solely or partially responsible for the upkeep of their households. The rest were basically minors and a few unemployed. With regard to specifics like the education and health needs of one's household, 71.0% of the respondents said they were able to meet them either solely or partially while 4.0% said they could not. The rest were mostly people who did not have such responsibilities.

As already indicated most respondents were either illiterate or semi-illiterate and as such did not keep proper accounts of their businesses. As well, sizeable proportions were either in farming or trading and therefore used a large part of their output for the upkeep of their households. This naturally affected the amount of money they realised from their ventures. On monthly basis, 38.5% of respondents said they were making less than ¢100,000 while 17.5% said they were making between ¢100,000 and ¢200,000. Fifteen per cent of respondents said they were making between ¢201,000 and ¢300,000 (this was quite high at the time, that is, before 1990). One per cent of respondents said they were getting negative returns. Another 15.0% were not engaged in any economic ventures because most of them were minors at the

59

time. The rest, mostly the affluent urban dwellers, were earning between ¢301,000 and ¢500,000. Incomes of respondents from the perspectives of their previous occupation are illustrated in Table 7.1.

These impressive levels of income of respondents really affected their household financial positions during the time. Thirty -four per cent of them saved during the period and 37.0% spent their earnings. While 6.0% spent savings, only 5.0% borrowed. Judging by the general market conditions of the entire nation at the period, this was a fairly well-off community.

Table 7.1: Respondents’ Incomes in their Previous Occupations (’000 cedis) Less ¢100

B/n ¢100 B/n ¢201 B/n¢301 B/n¢401 Over &200 &300 &400 &500 ¢500 1

3

Farmer/Fisherman

25

16

13

Teacher/Lecturer

2

Public/Civil Servant

1

2

2

Trader/Artisan/Driver

18

8

3

2

5

3

1

5

AGC Worker

11

7

6

2

2

3

1

1

Other (Specify)

3

1

3

1

1

71 30.5

35 17.5

30 15.0

14 7.0

12 6.0

Student

Previous main occupation

Column Total

Source: Field Survey, 2002.

60

11

1

1

4

Lose

4

N/A

7 7

23 11.5 70 35.0

2 1.0

2

5 2.5

Row Total

11 2 1.0

31 15.5

7 3.5

45 22.5 33 16.5 20 10.0

200 100.0

Levels of Economic Activities of Respondents during and after Surface Mining

Mining and its auxiliary services normally create employment opportunities which should impact positively on the local economy. It was therefore the expectation of the people of Adansi West and Amansie East Districts that there would be a general transformation of their living standards with the introduction of surface mining activities in the area.

It is over a decade now and conditions on the ground do not suggest that these expectations have been met. There have been few changes in people's jobs due to retrenchments, especially by AGC. Respondents' level of satisfaction with their economic activities had decreased. Only 38.0% of the respondents were of the view that their economic ventures were encouraging. Fiftytwo per cent however felt that they had gone down and 2% said there has not been any change in their businesses. The rest were either not working or were in school. The number of people who were not getting any financial assistance had increased to 92.0% and among the 8.0% that were getting some form of assistance, 2.0% had assistance from the traditional financial institutions (banks), 4.0%, from remittances from relatives, 1.0% from money lenders and another 1.0% from cooperative organisations.

Majority of respondents had other dependent. Seventy-four per cent of those interviewed, were either solely or partially responsible for the provision of their household needs. The rest heavily depended on others. With regards to health and educational needs, 80.5% of respondents said they were either solely or partially responsible whereas the rest heavily depended on others. In view of the high inflation rate over the period, one had expected the average income to increase in nominal terms but this was not the case. The percentage of people earning less than ¢100,000 a month had increased from 38.5% to 46.0% and those making net losses from 1.0% to 4.5%. The proportion of those earning between ¢301,000 and ¢500,000 had also fallen from 13% to 10.0%. Seventeen per cent were earning between ¢100,000 and ¢200,000 and 14% earned between ¢201, 000 and ¢300,000. Eight and a half per cent of the respondents were however not economically active. This is further illustrated from respondents' occupational point of view in table 7.2.

Due to the precarious economic conditions in the area, savings by respondents had fallen drastically to 11.0% whereas those, living from "hand to mouth," had increased to 66.5%. Not surprisingly, those who depended on loans had increased to 9.0% while those who spent savings, dropped slightly to 5.5%. The rest were economically active. The analysis shows that the

61

economic situation of respondents was better before the introduction of surface mining in the area.. An overwhelmingly majority of respondents (69%) confirmed this observation. However, close to a quarter (21.5%) disagreed.

Table 7.2: Respondents’ Incomes from their Current Occupational Point of View (’000 cedis) Less ¢100

B/n ¢100 B/n ¢201 B/n¢301 B/n¢401 Over &200 &300 &400 &500 ¢500

Student Farmer/Fisherman Previous main occupation

1 63

Teacher/Lecturer

17

16

2

3

6

1

1

2

23

10

8

1

2

AGC Worker

Column Total

1

2 1.0

3

117 58.5

1

1

1

2 1.0

1

1

47 23.5

2

Galamsey Other (Specify)

7

N/A

4 2.0

Public/Civil Servant Trader/Artisan/Driver

Lose

1

1

6

4

2

1

92 46.0

34 17.0

28 14.0

6 3.0

Row Total

2 1.0 2 1.0

9 4.5

5 2.5

9 4.5

11

24 2.0

17 13.5

200 100.0

Source: Field Survey, 2002.

Respondents Knowledge of Mining While mining at Obuasi dates back over a century ago, surface mining started in 1989 at Sansu and quickly spread to other areas. It is most likely that an individual's understanding of mining and its related activities would

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influence their perception of these activities. It was therefore important to find out from respondents their understanding of mining and mining related activities.

When asked what mining was, 73.0% of the respondents said it is the extraction of minerals.. The rest (27.0%) however gave varied responses.

With reference to the kind of mining activities presently going on in the communities, the response pattern varied. Forty- eight per cent of the respondents said no mining activity was directly taking place in their communities though there were a lot of residual activities (farming, damming) by AGC in some of the communities. Less than a fifth of respondents (18.5% and 17%) said that underground and surface mining were being undertaken in their communities respectively. Eleven and a half per cent of respondents however said both activities were taking place in their communities.

One per cent did not know whether mining activity was taking place in their communities and 3.5% of respondents gave varied responses. Only 0.5% (one person) agreed that "galamsey" activity was taking place in the community. This response could be due to the criminalisation of the activity.

At the risk of their lives, a number of jobless young men engage in small scale illegal mining activities. For fear of repercussions, 'galamsey' had become a taboo subject. An interview with the District Chief Executives of Amansie East and Adansi West revealed contrasting views. Whereas the Adansi West Assembly had been working towards the cessation of surface mining in the district, the Amansie East Assembly was promoting the activity in Heman and Krodua.

When respondents were asked about the types of mining activities that had taken place in the area in the past, some (11.0%) said underground mining and others (26.5%) responded that surface mining has been undertaken in their communities,, while (23.5%) said both activities had taken place in their communities. Thirty -five per cent of respondents said no direct mining activity has taken place in their communities. A small proportion, (1%), did not know whether mining had taken place in their communities in the past but slightly more people (1.5%) thought "galamsey" operations had been undertaken in their communities. Three people (1.5%) were not clear about the types of mining that had taken place in the area in the past.

The Impact of AGC's Activities on the Study Area

Gold mining impacts both negatively and positively on host communities.

The impacts are felt in the physical environment, on the health of the residents and communities livelihoods.

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The Impacts of Mining on the Physical Environment Gold mining involves a lot of processes which affect the land, vegetation, water, air and buildings. Simply put, mining affects our physical environment.

Mining and Land, and Vegetation Land is an invaluable asset since it is a major input in the production processes. It can be put to various uses ranging from farming to construction. In Africa, over 60.0% of the population are tied to the land from which they derive their means of livelihoods. Mining in Adansi and its environs is mainly through the deep shaft and open pit methods. Both of these methods affect land and vegetation immensely. Asked to evaluate the impacts of mining on the land in the area, the overwhelming view of respondents,(92%), was that mining had affected the land negatively. But a small proportion, (6%), held a contrary view. These respondents however happened to be living in communities where mining was not taking place directly. An even smaller percentage (2%) did not have any knowledge of the effect of mining on the land.

Those who were of the view that mining had impacted negatively on the land gave several reasons. Among them, 26.0% said it had degraded the land, 10.5% said it had deprived them of their farmlands and 2.0% said it had affected the vegetation. Whereas 52.0% of the respondents gave other reasons with regard to how mining had affected the land, 3.0% said that mining had destroyed farms in their communities and 6.5% could not respond because they said they did not have a clear understanding of the issue. The general consensus gathered at the focus group discussions held in six of the communities also attested to the fact that mining had impacted negatively on the land in the area They contended that the construction of exploration trenches, appropriation of land as sites for waste rock dumps, tailings and spent cyanide containment ponds have contributed to the degradation of the land. They claimed that surface mining has profoundly promoted erosion of the land. The District Chief Executives of the Amansie East and Adansi West districts also confirmed that mining had caused considerable land degradation in the area.

Based upon these responses, it became necessary to find out whether mining and its auxiliary activities in the area had deprived the people of their farmlands. As much as 86.5% of respondents said that people have been deprived of their farmlands as a result of mining in their communities. A minority,(10.5%) of them did not believe that mining had deprived people of their farmlands. Some aspects of the Minerals and Mining Law, 1986 PNDCL

64

153 (as amended) are relevant here. Section 70 (1), (2) and (3) respectively stipulate that the "holder of a mineral right shall exercise his right under this Law subject to such limitations relating to surface rights as the Secretary may prescribe.

The rights conferred by a mineral right shall be exercised in a manner consistent with the reasonable and proper conduct of the operations concerned, so as to affect as little as possible the interest of any lawful occupier of the land in respect of which such rights are exercised. The lawful occupier of any land within an area subject to a mineral right shall retain the right to graze livestock upon or to cultivate the surface of such land in so far as such grazing or cultivation does not interfere with the minerals operations in the area."

Furthermore, section 71 (1) provides: "The owner or occupier of any land subject to a mineral right may apply to the holder of the right for compensation for any disturbances of the rights of such owner and for any damage done to the surface of the land, buildings, works, or improvements or to livestock, crops or trees in the area of such mineral operations."

Surface mining is the technology of choice in gold mining in the last decade globally. In Ghana, all gold mines coming on stream since the promulgation of the Minerals and Mining Law in 1986 has been surface mine operations. Surface mining technology require much more land space than underground mining and has therefore generated considerable conflicts between mining communities and the companies. That past conflict between the people of Akontanse and Goldfields (Gh.) Limited Mining Company in the Western Region is a case in point. The Company started 'blasting' even before the people of Akontanse were resettled or compensated (Asare, 1997).

The situation in the Amansie East and Adansi West Districts was not any better. Though a number of the people (60.0%) were of the view that the affected people were compensated for the destruction of the farmlands and produce, they were dissatisfied with the compensation levels. This was also the view held by the community leaders. During the focus group discussions, it was revealed that after taking lands for cattle rearing, construction of fish ponds, teak plantation and surface mining (which has been halted for the past two years) in Adaase in the Adansi West District, AGC has not paid any compensation to the affected people. A few people were however given kerosene and eggs. At Jimiso, it came to light that the damming of the Jimi River by the Company caused occasional flooding which had destroyed farms in the village. Although, the affected communities had notified the company about

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this, nothing has been done to correct the situation.. Table 7.3 illustrates respondents' knowledge of compensation for the destruction of farms and farm produce.

Table 7.3: Respondents' Knowledge about Compensation Paid to Affected Individuals Yes No

Don't Know

Total

Frequency

PercentValid

Percent

Cum. Percent

59

29.5

29.5

89.5

120 21

200

Source: Field Survey, 2002.

60.0

10.5

100.0

60.0

10.5

100.0

60.0

100.0

Mining companies acquire rights to undertake surface and open pit mining operations which result in the displacement of communities from their homes, loss of farms, grazing, fallow and reserved lands, as well as contaminating water sources and courses.

In the light of the above, and looking at the vast lands acquired by the company, it became necessary to find out whether AGC allowed community members to farm on their idle lands. It was revealing that as much as 55.5% of the respondents were of the view that the Company did not allow the people to farm on their idle lands. This viewpoint was further buttressed by the fact that community members were refused access to their farms if the farms happen to be close to mining areas. A little over one-fifth of respondents (22%) however thought that the Company allowed the local people to farm on their idle lands while the rest either thought that the company was not directly operating in their communities or had no knowledge on the issue.

It has been established that surface mining poses the greatest threat to both commercial and subsistence farming in Ghana .Cocoa is as important as gold, in terms of cash value. Cocoa is a long yielding investment, with a productive cycle of between 40 and 50 years (Kasanga, 2002). Cocoa farms are often interplanted with food crops for subsistence and commercial purposes.

Even though there is some slash and burning involved in the initial land clearing, environmental damage done is negligible when compared to surface mining.

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In 1997, cocoa farmers at Dunkwa-on-Offin were offered ¢9,000 as compensation for every cocoa tree destroyed. This was woefully inadequate in view of the fact that a matured cocoa tree was capable of yielding half a bag of cocoa beans a season, which was selling at ¢55,250 at the time. (Kasanga, 2002).

When respondents were asked about the effect of mining on food production in the communities, most of those interviewed (90%) said that mining has led to the reduction of food production in their communities. This was also evidenced by sharp increases in the price of food in the area. Foodstuffs were now being "imported" from other parts of the region to the area. The two DCEs were emphatic that mining, especially surface mining has led to land degradation and impacted negatively on food production in the area. The general consensus in the focus group discussions was that mining in general and surface mining in particular was destroying the land. Only a small minority of respondents (7.0%) said mining had not had any effect on food production.

The remaining (3.0%)had no idea as to whether mining had had any effect on food production or not.

On what should be done to save the land from destruction, the general consensus was that surface mining should be minimised, if it could not be halted, to save the land from further destruction. According to the then Adansi West DCE, AGC has halted its surface mining activities in the district.

However, new fronts were being opened at Heman and Krodua in the Amansie East District.

Effect of mining on water sources Technological advancement has made it economically possible to recover low-grade ore by open pit and heap leach (cyanide) methods but the processing of the ore through these methods comes at a high environmental cost. It usually involves the construction of a tailing dam to contain residue from the heap leach process which demands the use of huge volumes of water with potentially catastrophic effects on water bodies and human health.

Most streams and rivers in the study area had been polluted by these methods of processing ore, making it difficult for people in the communities to access water. River Fena (Fra), which takes its source from Akatakyieso hills and flows down through most of the communities studied is being threatened by both the open pit and heap leach operations. The river used to serve as a major source of water for domestic and commercial activities for a host of communities downstream but it has been rendered unfit due to the mining

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activities. Cyanide leakage and spillage (caused by over-flooding and dam failure) such as the minor South and major North Dokyiwa incidents of 1996 and 1998 further compounded an already pressing problem, leading to the abandonment of villages like Badukrom, Attakrom and Kronko by residents whose water sources had been contaminated.

It is important to note that the active mining concession lies within the Offin River Basin and the Jimi River sub-basin, which serve the people of Obuasi and surrounding villages including Jimiso Kakraba. The effluent discharge from the Pompora Treatment Plant (PTP) to the Kwabrafo River, a tributary of the Jimi River, has contaminated these rivers and therefore deprived villages and towns like Sansu, Odumase, Akofuom, Jimiso Kakraba and the community downstream of their once wholesome water. The situation was no better in other communities in the area. This was confirmed by local people, district assemblies and community leaders.

When respondents were asked what effect mining has had on the water bodies in the area, the majority (93.0%) said mining has polluted water bodies in their communities but a few (6.0%) did not agree. With regard to potable water, 79.0% held the view that mining has affected this important source of livelihood. Twenty - one percent of respondents were however of the view that mining activity had not affected their source of drinking water and these were mostly people living in the urban communities like Obuasi, Anyinam and Akrofuom who have access to pipe - borne water.

It was scary to see that 71.0% of the respondents could not drink from their traditional sources of water (streams and rivers) due to pollution. Some 3.5% of respondents still drank water from these polluted sources because they said they did not have any alternative source of drinking water. On whether mining has had any effect on the use of water for other purposes, 85.5% of respondents believed there was an impact while 14.0% said there was no impact.

In an attempt to find out which specific activities had been affected, 43.5% of respondents mentioned farming activities. Five and a half per cent said fishing in the rivers and streams had become a thing of the past as most rivers and streams in their communities were either dead or had dried up.

Thirty - nine and half per cent gave miscellaneous reasons. The rest said that mining had not affected water bodies.

When respondents were asked about which remedial measures had been undertaken by AGC, 48.5% said the company had provided boreholes for their communities though they felt the numbers were inadequate. The boreholes were apparently provided by the company after persistent demands

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from the communities. A few respondents (9.5 %) said their communities were provided water by tanker services but this lasted for barely two weeks.

A number of respondents (35%) however said their communities have had nothing from the Company in this direction. A small percentage (7%) did not respond to this question.

An example of non-response by the company to community complaints over the pollution of their water sources happened at Hia Nos. 1 and 2. The Unit Committee wrote to the then General Manager of AGC, reporting the pollution of River Fena, their only source of drinking water. According to the letter, anytime AGC cleaned its pipelines at Odaso, the dirty water, spilled at the outlets near Mile 9 and Ewiase, found its way into River Asuokokoo near Mile 9 and River Fena near Ewiase, denying water access to all the villages downstream Fena, namely, Hia, Ewiase, Ankaako, Fenaso and Faaman. The letter also reported that the damming of River Fena at its upper course at Anyankyirem for the company's fishpond had also caused the river to dry up earlier than usual during the dry season. The people therefore, requested the Company to assist them to acquire boreholes.

After waiting for about eight months and receiving no reply, the people sent another letter dated July19, 1996, to remind the company of their plight.

In reply however, the company disassociated itself from the pollution of the river. According to the Company, a laboratory analysis of water samples from the river carried out on August 14, 1996, revealed the Company's activities had not polluted the river. It said that the quality of River Fena at the downstream point of the drain valve was in fact found to be better than the upstream point in terms of its turbidity and suspended solid levels, thus confirming that the company's activities had not impacted negatively upon the river.

The letter however stated that the company had installed new equipment at the Odaso Pump Station which would enable the 'pigging' operation to be carried out in one session from the pump station to the processing plant without having to open drain valves along the route. The Company believed that the new system would prevent any discharge of dirty water into the environment during 'pigging.' The letter stated that the Company could therefore, not agree to the request for the provision of an alternative source of water for the people of Hia. There are a number of pertinent issues worth commenting on. Firstly, the time of the pollution and the time of testing were quite far apart. Secondly, the testing was done by a party with an interest in the issue. The last intriguing point was that if there was no pollution, why did the company decide to introduce a new system?

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It is also noteworthy to recall that the same River Fena was polluted by a cyanide leakage near Ntonsua about three kilometres from Hia in 1998 and the people on May 25,1998 wrote to AGC to demand for boreholes. The Company rather chose to provide the two communities, Hia Nos. 1 & 2, and a host of affected communities with tanker services for two weeks.

Another example involved the construction of the Jimiso Dam at Jimiso Kakraba. Before the dam was built, the people of Jimiso Kakraba, petitioned the then Minister for Lands and Natural Resources against its construction, based on their fears that the dam would cause flooding in their communities if it overflows.

When the Company's attention was drawn to the petition, they replied in a letter signed by the Company's management, assuring the "Odikro" and his elders that the dam would not flood the village. The letter further stated that in the unlikely event of their farmlands being flooded, the Company would compensate the affected farmers, including providing farmlands, if necessary.

Additionally, the people were assured that should it ever become necessary to resettle the community, (which event was most unlikely,) the Company would do so.

Unfortunately, the Company's game of probabilities did not work in its favour as the dam overflooded a couple of times resulting in the destruction of farmlands and leaving a bad odour in its wake. It also served as a breeding ground for mosquitoes and reptiles. In reaction, the people demonstrated to show their displeasure. This resulted in a meeting between the community and the Company on January 26, 1998. The Company promised to, among other things, fumigate the village frequently, pay compensation for destroyed crops and supply mechanised boreholes to the communities. The fumigation was short-lived while the other promises were yet to be redeemed at the time of the study. The dam was still a source of health hazards to the community, although representatives of the community and the company continued to have meetings.

It would be useful at this point to examine a similar occurrence in Papua New Guinea (PNG). Broken Hill Proprietary Limited, (BHP), the operators of OK Tedi Mine, began production in 1984 and by 1989 the impact on the OK Tedi River in the Western Province had negatively affected the river communities' ability to produce enough food. Stuart Kirsch, an anthropologist, conducted a social impact study in 1991 which showed that environmental degradation from mining was causing severe hardships downstream yet the mine operators had refused to address the source of the problem, the tailing (or mine waste). This resulted in a lawsuit, which was later settled out of court in

70

1996 for approximately US$500 million in compensation and a commitment by the company to tailings containment. Based on the report of an environmental study, released on June 1999, BHP announced in August 1999, that it regarded the mine as being incompatible with its environmental values. The plan then was whether to continue with the mine or to shut it. According to Kirsch, the issue is not whether to operate or shut down the mine. Given the sheer volume of tailings already in the river and continued erosion from the waste rock dumps adjacent to the mine in the mountains, the problem was bound to grow worse over the next forty years. He further stressed that there would be cascading effect as the tailings already deposited in the river gradually migrate downstream over time.

The environmental situation discussed in the example above is not dissimilar to the situation in Adansi West and Amansie East. Already, there have been some confrontations between the people and AGC over the water pollution issue. The social, economic and political implications of such confrontations could be devastating. It is therefore troubling to note that only 14.5% of the respondents felt that the Company responded promptly to humanitarian emergencies caused by AGC's mining operations. A significant number, 31.5% felt that the company was non-committal in such situations while 18.5% said the company would respond but only after a prolonged struggle.

It was however not applicable to 35.5% of the respondents.

Mining and Air Pollution Air pollution, resulting from mining and its related activities, manifest in diverse forms as airborne particulate matter (dust), black smoke, bad odour and other forms of chemicals. Asked whether the company's activities have contributed to air pollution in the communities, a large majority of respondents (70%), believed this to be the case while a fifth of the number held an opposing view. The remaining 8% did not have any knowledge on the issue.

When asked what constituted pollution of air in their communities, 32.5% of those surveyed mentioned dust, 19.0% pointed to the discharge of chemicals and 12.0% felt it was the bad odour in the atmosphere. A small percentage, (4.5%) of the number said it was the emission of smoke by AGC. Airborne particulate matter is normally created by activities such as site clearance, road building, open pit drilling and blasting, top soil stripping and dumping, loading and haulage, stripping, ore and waste rock handling and heap leach crushing. Particulate matters of concern in the area include sulphur dioxide (SO2), nitrogen dioxide (NO2) carbon monoxide (CO) and black smoke.

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Dust resulting from gold mining operations has been shown to be the main cause of silicosis and silico-tuberculosis because of its high silica content. Minute dust particles of less than 10 microns are small enough to penetrate deep into the lungs. All dust to this degree of fineness at a high level of exposure is a health risk; it can cause several respiratory diseases and disorders (Akabzaa, 2000). The transportation of ore, waste rock and mine related constructional works are a source of dust pollution in Sansu, Anyinam and surrounding areas. Heman and Krodua in Amansie East where surface mine development is taking place are clear examples of places where dust is a serious problem. All the focus group discussions in six communities highlighted this problem.

Another worrying problem is the emission of thick black smoke into the atmosphere. The Pompora Treatment Plant (PTP) and Sulphide Treatment Plants (STP) are major sources of thick black smoke in Sansu, Anyinam and Obuasi. According to the people, these treatment plants emit foul odour into the atmosphere in the night, creating a lot of discomfort for them.

From the perspective of the people, the company was not responding appropriately to these problems created by its activities. Asked how AGC was responding to these problems, as much as 64.0% said the company had done nothing to redress them. A small number (2.5%) said that the company had rechannelled the smoke from the pipes connected to the PTP. While a smaller proportion of respondents ((1.5%) said the company discontinued with particular activities when it realised that it was impacting negatively on the atmosphere.

The Health Implications of Mining Blasting used to excavate mineral bearing rocks creates noise and vibration.

The dust ends up as particulate matter in air and water. The processes used in extracting gold from the rocks, especially the heap leach method, involves toxic chemicals such as cyanide. The use of cyanide facilitates the leaching and distribution of toxic metals such as arsenic and other heavy metals.

Additionally, large craters created by surface mining activities serve as breeding grounds for mosquitoes. It was against this backdrop that it became necessary to find out the communities' perceptions on the health implications of mining.

A significant majority of respondents (69.5%) said they believed the high incidence of specific illnesses such as like malaria, bilharzia, eye problems and skin diseases in their communities were due to mining related activities.

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Only 8.5% did not believe that mining and its auxiliary activities were directly linked with specific illness in their communities and the remaining 22.0% could not relate mining and diseases in their communities. These responses lack scientific justification but they could not be ignored because specific incidents and other information gathered attest to the fact that mining activities pose serious health hazards to some communities in the districts.

There are big trenches in villages like Sansu, Akatakyieso, Ankaako, Fenaso and Amamom which serve as breeding grounds for mosquitoes. These were created when AGC undertook an exploration exercise for surface mining in these areas. Not surprisingly, the incidence of malaria in these communities is very high. Additionally, the dam at Jimiso Kakraba has been blamed for the increasing incidence of malaria, bilharzia, and onchocerciasis among the people. The dam serves as a reservoir for waste water generated by AGC's processing activities. There are signposts warning people not to drink, swim or even step in the water. However, the dam frequently overflows into the village.

During the field survey in July 2002, the dam had overflowed its banks and most farms in the community had been turned into swamps. Apart from causing serious health problems for the community, the situation had also led to an increase in the number of reptiles (snakes and crocodiles) and bad odour in the community. Nothing was done on the flooding which destroyed their farms and caused other health hazards. To reduce the incidence of malaria in the area, AGC resorted to fumigating the community frequently. This exercise was however, short lived.

In 1998, there were two major spillages from AGC's facilities. The two cyanide pond failures impacted heavily on communities downstream the pond. Communities such as Dokyiwa, Supu, Kwame Tawia, Kyekye and Atonkesu were directly impacted. The spillages created serious waste problems for these communities. The company provided two boreholes for the communities, however, these did not meet the demand of the numerous communities and many people resorted to using water from the polluted streams.

The water has adversely affected most farmlands and foods crops and the stench from the pond was nauseating. There have been alleged instances where people have died from either drinking water or eating fish from the stream. Eighteen deaths were recorded in Dokyiwa from January to August 2002. The people strongly believe that the increasing number of deaths in

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their community was mainly due to the mining activities especially the construction of the cyanide containment pond. They asked that the company should investigate the issue. The communities have made several approaches for the issue to be investigated.

Sexually transmitted diseases (STDs) especially HIV/ AIDS were also on the increase in the communities. This, according to the people, was mainly due to the high levels of migration to the area for jobs and other businesses.

Another group of people who are said to be contributing to this menace was the "galamsey" operators. In the survey, 20% of the respondents thought HIV AIDS was a problem in their communities. Thirty- three per cent of them disagreed and the remaining 47% did not know whether it was a problem or not.

Close to half (47.5%) believed that the high incidence of HIV AIDS in the area was due mainly to mining activities but 6.0% disagreed. The rest (48%) did not have any knowledge on the issue.

In an interview, the Planning Officer of the Amansie East District pointed out that the opening up of new surface mines in the district coupled with road construction has brought many casual labourers to the district. The itinerant activities are very conducive to the practice of prostitution. Recognising the danger these activities are creating for them, the two districts have formed HIV/AIDS education committees. The District Response Initiative (DRI) collaborates with NGOs in the district to undertake educational campaigns for AIDS prevention.

As to which type of mining they associate with HIV/AIDS, 19.5% were of the view that the "galamsey" operators were the major culprits. This view was held by many people in mining communities. Twelve per cent of respondents associated HIV/AIDS with large-scale underground mining.

On accessibility to health facilities, a little over a third (31.5%) of respondents said their communities had health centres or posts while the remaining 68.5% said they do not have any. Since the majority of the communities did not have health centres and posts, it became necessary to find out how far they have to travel to access health care. Thirty one and half per cent have access to health care in their communities but the rest have to travel long distances to access a health facility. Thirty- four and half per cent of the number travel between three to five miles to access one. Only a few people (8.5% of the respondents) travel under three miles to access health care while the rest had to travel over five miles to access a facility.

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Mining and Displacement

Gold mines are attractive, especially for those hoping for a lucky break. In their search for a better life, large numbers of the unemployed, largely young people from communities near mine sites move to the mining towns.

Unfortunately, they are often unable to secure their dream jobs and they resort to "galamsey" or plain criminal activities.

The population of Obuasi, for instance has swelled significantly because of the mining operations in the township. This has been aided in part by the growing displacement of communities due either to the pollution of their water or destruction of their lands. A number of young people lost out in the resettlement scheme at New Bidiem because they did not have permanent structures. Again the poor nature of the land and pollution of water bodies in some of the communities have also forced some youths who would have gone into farming to leave their communities. This is said to be one of the reasons for the shortage and attendant high prices of foodstuffs in some communities.

Pollution has also denied people access to water and agricultural land.

Compared to other Ghanaian towns, the cost of living in Obuasi is very high. High variations in incomes in Obuasi are believed to be among the reasons for high cost of living. Mine workers are among the highest paid in Ghana. Expatriate workers are paid internationally competitive salaries and they live with lower income earning groups including the displaced. The scenario created means that pricing practices will be unfavorable to those in the low-income bracket.

All these developments have impacted negatively on food production in the area. This was confirmed by 87% of the respondents. Prior to mining activities, Obuasi and its environs were known to be among the leading producers of foodstuff in the Ashanti Region. The area was among the leading quality citrus fruit producers in the country. This is no longer the case.

Farmers now complain that their oranges are full of spots and are not as sweet as they used to be.

The New Bidiem Resettlement Project

Bidiem community was originally located at a quarter of a mile from Sansu.

It was a small village where the main occupation was farming. The community had a number of streams and rivers where they could do fishing which served as a source of food and income for them. They also practiced game.

They lived mostly in mud houses and got water from streams and rivers. Since Sansu was just close by, they did not have any problem sending their children

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to school. They said they were satisfied with their living conditions till the company informed them of its plans to resettle them.

AGC had realised the gold potential in the area and decided to resettle the people on a piece of land belonging to the Edubiasehene near Nyamso.

The then chief, who is now incapacitated, together with the youth committee of the village met with the representatives of AGC and the Assembly to deliberate on the issue. They agreed that houses with equal number of rooms as pertained in the former settlement should be built. In addition, a school, a health centre and a market were also to be built in the new community which would be provided with electricity, potable water, toilet facilities, motorable roads and a good drainage system. Those whose lands and farms were affected would be compensated and the entire population was to receive financial assistance from the Company for the next four years.

Based upon this verbal agreement, the Company constructed 101 housing units ranging from a single to a ten-bedroom unit. They added two boreholes and four public toilets. They then informed the people to move to the new settlement. The people, sensing foul play, initially decided not to move to the new settlement until all the facilities, which were promised have been provided. According to them, the Company then told them that thieves were stealing their properties at the new community so they moved from Old Bidiem to New Bidiem on August 27, 1996, based on an understanding that all the other promised facilities would be provided in due course.

The community members however had a shock of their lives when they were given sums as low as ¢25,000 as compensation for their households and farms which they had depended on all their lives. According to them, the highest amount received was ¢150,000. Their problems were compounded by the fact that their new dwellings had no lands for farming activities. Those whose farms were not affected could not continue with farming because of the distance between their new dwelling places and their farms, and barriers created by the company's sand heaps. An old lady brought this point home when she lamented that her family might starve to death because she could no longer climb the heap to her farm and had no other source of income. Those who had the strength to walk the long distances were also prevented from going to their farms because of the company's fears that gold bearing stones might be stolen from the place.

The people felt cheated because additional facilities have not been provided in the community up to the time of the survey. The school, the health centre and the market had all eluded them. They pointed out that the people of Sansu had been provided with electricity and pipe borne water. According

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to them, this meant that they would have gotten these facilities if they had stayed in their old communities since they and the people of Sansu were promised the facilities at the same time. To add salt to injury, the chief of Edubiase, Nana Aguashie Ababio II, on whose land they were now living, had asked them to become part of an adjoining village called Nyamso.

They claimed that they could not send their children to school because they did not have a school in the community. They also claimed that the new houses were of inferior quality. Two members of the community, Samuel Gyekyi Bioh and Akwasi Antwi, claimed that that their seven-bedroom house has collapsed due to poor construction. Others also complained of cracks in their houses. Making matters worse were the harsh economic conditions at the settlement. However, the financial assistance promised them had yet to materialise. Nothing appeared to work in the community; only one of the boreholes functioned, while all the four public toilets were concentrated at one part of the community.

These precarious economic conditions forced them to go back to the company, but to their utter dismay, they were told that they did not have any documents to prove their claims. The chief who was instrumental in the negotiations had become incapacitated and bedridden. Those strong enough had started selling their houses in order to migrate. The aged however had no option but to stay in their new harsh environment.

Mining and the Problem of Ghost Villages

The spent cyanide dam failures at Dokyiwa in 1996 and 1998 forced communities including Badukrom, Atakrom and Kronko to abandon their communities which have now become ghost villages. There is also a looming threat, which has not caught the attention of many people; what would happen to the mining communities once the mines cease operations? Would the people be able to have their land back in a condition that would allow them to farm given the devastating effects mining has had on the land? This has however become a cause of concern to a vast majority of the people in the area. Though mining has caused a lot of harm, the people could not figure out how life would be without the Company. They contend that their communities have evolved and adapted livelihood strategies dictated by mining and that it will be difficult to see how some communities could easily adapt to other livelihoods if mining ceases.

In view of this, many people would like mining to continue in their communities. Some (65%) of the survey respondents supported the idea that mining should continue in their localities while 29% held the opposing view. This

77

fear is expressed against the backdrop of similar situations in two mining communities in Aboso and Mempesa in Western Region which used to be booming mining communities in the 1940s. The mines however closed down in 1949. According to Songsore et al (1994), Mempesa has ceased to exist while the population of Aboso has been halved. From 1948 to 1984, the population of Aboso decreased from 9,966 to 4,666 while that of Tarkwa, another gold mining town, increased from 7,805 to 22,107. Many believe that Aboso would have also been a ghost community but for the glass factory, which generated employment for about 300 people.

Redeployment is an on-going exercise in the Company. In July 1999 alone, the Company retrenched over 2000 workers. Such growing retrenchment disproportionately affects the unskilled labourers who are mostly from the surrounding villages.

Conflicts between the Company and Local Small Scale Miners

Artisanal gold mining, as stated earlier, far predates formal mining in Ghana including in the study area. It continued illegally even after the area was acquired for formal mining. Illegal mining activity (galamsey) has particularly intensified in the Obuasi area following the privatisation of AGC and subsequent massive retrenchment of workers from the company.

Since the entire Obuasi area is now the property of AGC, the small-scale miners are by law encroachers on AGC's property. However, the company's attempts to defend its property have been harsh and worsened its relations with local communities, particularly, the youth. There was an instance where teaming gangs of "galamsey" operators invaded the open pits of the Company, often eluding the company's security to rustle gold ore from the pits. On occasions, the company has called for help from the police and the military.

Unfortunately, lives have been lost in subsequent clashes. The company has since brought in guard dogs, allegedly from South Africa, to ward off these illegal miners. Company security personnel have been accused of high-handedness and barbarism in their use of these dogs against "galamsey" operators and even innocent farmers in the area. Cases of deaths and brutal attacks on villagers by these dogs have been documented (WACAM Report, 2003).

Horrific stories were heard from the youth in some of the communities of how mine security allowed the dogs to eat up "galamsey" operators caught on mine property. It was intimated to the research team by one alleged victim of AGC security brutalities that over ten people from the communities have died from

78

such attacks. In one instance, an alleged "galamsey" youth was attacked by mine security dogs and had his private parts partially chopped off .He was subsequently hospitalised at the Okomfo Anokye Hospital, Kumasi.

Unfortunately, it was not possible to ascertain the company's side of the story as its representatives did not answer the questionnaire sent to them nor gave the team the opportunity to interview them.

There were numerous complains that AGC operates private security cells within their premises, against the dictates of Ghanaian law. That suspected galamsey operators are usually detained and tortured in these cells for days.

The police admitted that such cells exists and are illegal but that they were doing everything possible to get the company stop such illegal acts.

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CHAPTER EIGHT

Conclusions and Recommendations Conclusions

1. The Obuasi mine accounts for over sixty per cent of total gold production in Ghana. It is the single largest gross foreign exchange earning mine (industrial) establishment in the country. The growth and development of Obuasi is linked to the mine. Obuasi and its environs are part of AGC's extensive Obuasi prospecting concession, which cover an area of about 150 square kilometers.

2. Apart from the operations of AGC, there is no other large-scale mining activities in the area. However, artisanal gold mining which predates mechanized gold mining by more than five hundred years is still going on, though it is illegally since the entire area is a property of AGC. 3. The existence of small-scale illegal mining is considered a serious threat to AGC and there are constant confrontations between these miners and the mine security. High-handed and barbaric methods have often been employed by AGC's security agents to ward off these illegal miners. The widespread incidence of brutalities against the alleged illegal miners is growing and could be a recipe for a major social dissent.

4. The history of this single company that had played a dominant role in the mining sector of Ghana is long and chekered. It evolved from a small operation owned by local merchants into a multinational company with properties across parts of Africa. The company has witnessed a series of turbulence: from resistance of local people and the Ashanti Kingdom to European domination; serious conflicts with local miners whose operations were rendered illegal by the colonial authorities and subsequently by the fact that the entire area became a private property following the official licensing of the area as AGC prospect; industrial action by workers; political interference and economic setbacks resulting from certain economic decisions by the management, especially its hedging policy.

5. The protracted period (over 100 years) over which underground mining has been carried out as well as the more recent extensive operations of

80

6.

7.

8.

9.

10.

11.

open-pit operations have together created a major source of both surface and underground water pollution.

Most of the communities are downstream of the areas in which AGC's activities (surface mining, gold processing activities as well as containment ponds) are located. As a result of the offsite migration of pollutants, most of these communities have also been adversely impacted by the company's activities even though mining had not taken place in these communities.

Water quality studies, analysis of stream sediments and fruits in these communities revealed anomalously high concentrations of various heavy metals and other pollutants generally characteristic of areas in which mining had been undertaken in the past (e.g. Sansu).

The operation of mining and its auxiliary activities at Obuasi and its environs have pulled a lot of people to the area Thereby increasing the population. In addition, the growing displacement of communities either due to the pollution of their water or destruction of land has resulted in the migration of the unemployed youth to Obuasi and other big towns in the area.. The source regions are also beset with numerous problems because the energetic youth, who would have otherwise gone into farming, have left in search of "better jobs" mainly due to the poor nature of the land and the level of water pollution in their communities. This has resulted in shortage of foodstuff and has therefore brought untold hardship on the source communities.

Prostitution is also prevalent in the study area.

Obuasi and it environs fall within towns in Ghana, which are considered to have high cost of living. High variation in incomes is believed to be one of the reasons for high cost of living. It is a fact that mines workers are among the highest paid workforce in Ghana and apart from this the expatriate workers are paid internationally competitive salaries. These people, compete with their poorly paid colleagues in the government sector, the self-employed and the unemployed in the market.. The scenario created means that pricing practices will tend to favour those in the high-income bracket.

Provisions of infrastructure and social services by the company has been viewed as highly inadequate by people living in the communities studied.

Boreholes in the communities except for a few are provided through community initiatives or development NGOs. This, despite the fact that traditional water sources of these communities have been destroyed by the mining operations.

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Similarly, AGC's social responsibility with regards to education and health was equally not manifest. The authorities of the Obuasi Government Hospital complained of lack of support from AGC although a significant number of their outpatients were former employees of the mine and their dependants.

12. There is no consensus on the true economic impact of mining by AGC on the local population. Industry backers use increased mine production and gross export value of mine products as indicators. However, increased negative environmental and social impacts on local communities and evasive foreign earnings from the sector as a result of the generous incentives to companies makes the actual economic impact of the sector debatable. It is recommended that a thorough cost-benefit analysis of the impacts of the sector as a whole should be undertaken as a matter of urgency. This should involve a comprehensive computation of economic returns from the sector, as well as the health, environmental and social impacts of the sector.

Recommendations

On the basis of the foregoing analyses and conclusions it is recommended as follows: 1. The overall effect of the activities of mining in the area has resulted in severe poverty and rural-urban unemployment. It is thus recommended that the District Assemblies in collaboration with the company should develop a strategy for re-engaing the displaced and unemployed people in the communities into sustaninable income generating activities and productive ventures. The district assemblies common fund, the company's corporate social responsibility scheme and the national poverty reduction and growth strategy could be appropriate platforms for supporting the strategy for re-engaging communities.

2. Again, both the company and the Minerals Commission in collaboration with the Local Assemblies of the study area should work out mechanisms of providing space for and accommodating the large army of small-scale illegal miners operating in the area.

3. There is so much anger and frustration on the part of local communities for failure of AGC to address the numerous intractable problems in the study area. These problems range from water pollution, through land and vegetation degradation, failed promises, low payment for compensation to naked brutalities against members of local communities. The company

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4.

5.

6.

7.

8.

9.

can redeem its image by embarking upon a participatory and comprehensive programme of addressing historical and current environmental and social problems. A clean up of some of the waste sites and public health safety programmes are some of the practical steps. In so doing, the company needs to pay particular attention to the rights and interest of local communities in its current and future operations.

The prevalence of mining related diseases should be a matter of public concern, which should spur public institutions, in particular the Ghana National Health Service and the Environmental Protection Agency (EPA) to investigate the causal relationship between mining and disease prevalence in the study area.

The study revealed alleged incidents of human rights violations involving the police, private security of AGC. There is a strong feeling of highhandedness on the part of the company in the study area. It is thus recommended that the Commission on Human Rights and Administrative Justice (CHRAJ) should conduct investigation into such alleged human rights abuses and make recommendations for resolving any further human rights violations.

Similarly, in the light of strong negative perception about the behaviour of private security of the mining company there is a compelling need for a thorough review of the practices of private security personnel operating in the area and their relationship with local communities. The findings of such review could be up-scaled nationally to ensure that private security personnel and firms con form to national security policies and legislation.

Further research into the effects of mining on the livelihood of local communities and the development of the two districts should be conducted, and the results used to guide decentralized planning and development.

A more accountable and transparent system of benefit sharing, utilization of mineral revenue and for allocation of resources, resettlement and compensation scheme is needed to improve the contribution that the mines can make to development process in the area.

The plethora of problems associated with mining in the study area and many other communities across the country are pointing to policy and institutional inadequacies. These areas require critical re-examination in order that realistic and pragmatic approaches could be developed to ensure real change with both immediate impacts to the impoverished communities and long term sustainability.

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10. Considering the long operating history of the mine and the vast area covered by the over hundred years of operation, it is recommended that a thorough environmental auditing be carried out in the area to provide the necessary data for a comprehensive environmental management plan that would seek, among other things, to address the serious environmental, social and health impacts of mining activities identified in this report.

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APPENDIX ONE

Letter of Request for Information

Footnote: AGC did not respond to the request

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APPENDIX TWO

Questionnaire for AGC BASIC INFORMATION

1. Name of interviewee. ………………………………………...........……...

2. Position of interviewee. …………………………………..........………….

3. Name of company. ………………………………………..........………….

4. When did the company start operating? …………………..........………….

5. When did the company start its surface mining operations? ……..........….

6. Legal form of company? …………………………………...........…………

7. Indicate percentages shares by the various shareholders? a) Government b) Foreign partners c) Local shareholders d) Others (specify)

8. Primary mineral being produced by the company. …………...........………

9. Secondary mineral (s). …………………………………............………….

10. Method (s) of production.…………………………………..............……..

11. Does the Company also engage in any non-mineral line of production? 1. yes 2. no

12. If yes, please list the lines of productive activity: …………...........……..

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LAND PROFILE

13. What is the total area of your concession? …………………...........…….

14. When was it acquired (year)? …………………………….............………

15. From whom was it legally acquired and in what proportions? a). Government b). Chiefs c). Families d). Others (specify) 16. At the time of the acquisition, what were the main economic activities on the land? Tick as many as apply. a). Farming [ ] Percent. ……….. b). Mining [ ] Percent. ……….. c). Lumbering [ ] Percent. ……….. d). Forest Reserve [ ] Percent. ……….. e). Other (specify) [ ] Percent. ………..

17. How much of the area was under effective cultivation before the acquisition? …………

Please list some of the main crops? ……………………………...............

18. How much of the concession area has so far been utilised? …...........…...

19. How much of the concession area would have been utilised by the end of the life of the mine? a). Actual mine excavation ………………………………..........………… b). Tailing residue ……………………………………………...........…… c). Infrastructure (housing & roads) ……………………………...........…

20. How many individuals/households/firms were displaced by the acquisition? ………………

21. Have the people displaced been fully compensated?

1. yes 2. no [ ]

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22 If yes, when ad how much: Beneficiaries Year a). Farmers ……….… b). House Owners ……….… c). Timber Concession Holders ……….… d). Other Property Owners (specify) ……………………………………………

Amount …………. …………. ………….

TOTAL COMPENSATION ………………………………………

23. Have the displaced persons been resettled?

1. yes 2. no [ ]

24. If yes, please provide the following information.

Beneficiaries Number Year (s) Where a). Farmers ………. ……… …………. b). House Owners ………. ……… …………. c). Timber Concession Holders ………. ……… …………. d). Other Property Owners (specify) ………. ……… ………….

TOTAL COST

………………

Cost ………… …………

…………

…………

25. If no, please state reasons? …………………………………............…….

26. Were there miners (Galamsey operators) among the displaced concession residents? [ ] 1. yes 2. no 27. If yes, what was their percentage among the displaced residents? ……………………................……

28. Were they compensated for loss of incomes from their mining activity?

1. yes 2. no [ ]

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29. If yes, how many were compensated? ……………..........………………..

30. Total compensation granted. ……………………….............……………..

31. Does your Company allow any other economic activity to be undertaken in the concession area by outsiders?

1. yes 2. no [ ] 32. If yes, please list the kind of activities allowed: ………………………………………………..

33. Since the Company’s operations started, what have been the main economic and social problems encountered in connection with the use of the land? Kindly list and briefly explain them.

Economic Problems …………………………………………………………………................. ………………………………………………………………….................

Social Problems …………………………………………………………………................. ………………………………………………………………….................

34. What has the Company been doing to either eliminate or minimise these problems? ……………………………………………………………….....................

35. What do you think Government officials can also do to either eliminate or minimise these problems: a) At District Level:…………………………………………….........….. b) At Regional Level:……………………………………….........……… c) Central Government:…………………………………….........……....

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LABOUR FORCE PROFILE

36. What is your Company’s total labour force? ………………............…….

37. Please list the composition below: Professionals (engineers, accountant, etc) ……………..

Skilled Labour …………

Unskilled Permanent Workers …………

Unskilled Temporary Workers……........

Foreigners………….

Ghanaians…………..

Locals………….

38. Do you offer training to your workers?

1. yes 2. no [ ]

39. If yes, please describe the kind of training? …………………….........….. …………………………………………………………………….…..........…

40. If no, state the reason? …………………………………...…….........…..

41. How much does the Company spend on training annually? ……………………..

PRODUCTION AND CAPACITY UTILISATION

42. What is the anticipated operational life of the mine (concession)? …………….. years.

43. Is the Company operating at full capacity?

1. yes 2. no [ ]

44. If yes, how many shifts per day? ……………………………........……..

45. If no, what do you think is the problem? ………………………......…...

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46. What is the Company’s annual production/revenue trend in cash?

YEAR OUTPUT REVENUE 1989

………………

…………………

1991

………………

…………………

1990 1992 1993 1994 1995 1996 1997

……………… ……………… ……………… ……………… ……………… ……………… ………………

………………… ………………… ………………… ………………… ………………… ………………… …………………

1998

………………

…………………

2000

………………

…………………

1999

2001

………………

………………

46. Is the Company currently making profits?

1. yes 2. no [ ]

…………………

…………………

47. Do you plan to expand your operations?

1. yes 2. no [ ]

48. If no, why? …………………………………………………….........……

49. Do current regulations negatively affect your output level?

1. yes 2. no [ ]

50. If yes, which key regulation would you like Government to abandon and why? ………………………………………………..........… ………………………………………………………………….....………

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SOCIO-ECONOMIC PROFILE

51. Please provide data on the following: YEARS 1989

ROYALTY PAYMENTS

CORPORATE TAX

INCOME LOCAL TAX TAXES

OTHER

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

TOTALS 52. Is the Company financially involved in the provision of some social and/or economic amenities in its area (s) of operation?

1. yes 2. no [ ]

53. If yes, please list the amenities and the Company’s annual expenditure on each of them: Type of Amenity Location Total Expenditure ....……………… ………………. ………………....…

54. Does the Company make donations/contributions in support of local causes?

1. yes 2. no [ ]

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55. If yes, please provide the total amount of donations for the past five years: YEAR 1997 1998 1999 2000 2001

AMOUNT ……………………………………………......... …………………………………………………. …………………………………………………. …………………………………………………. ………………………………………………….

56. Do members of the Traditional Council/local residents complain about your operation?

1. yes 2. no [ ]

57. If yes, what do you consider as some of the major complaints? ……………………………………………………………………..........

58. What are your plans towards minimising these complaints? …………………………………………………………………..........…

59. In general, how would you rate the attitude of the Council/residents towards your operations in the area? [ ] 1. very negative 2. negative 3. neutral 4. very positive 5. positive HEALTH SERVICES

60. Does the Company provide its own health services? [ ] 2. no 1. yes

61. If yes, do employees pay for the services? [ ] 2. no 1. yes

62. If yes, what percentage of the actual cost? …………………….......……

63. Do non-employees have access to the facility? [ ] 2. no 1. yes

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64. If yes, is there a built-in subsidy element in the charges?

1. yes 2. no [ ]

65. If yes, how much? …………………………………………….........……

SELECTED ENVIRONMENTAL ISSUES

66. What are the main chemicals for the production and processing of the ore? ………………………………………………………..........……

67. How do you dispose o the chemical residue? ………………….......…… ……………………………………………………………………....……

68. Does the Company have an Environmental Department?

1. yes 2. no [ ]

69. Do you operate some of your activities (surface mining operations) near a river/stream?

1. yes 2. no [ ] 70. If yes, is the water used for production purposes?

1. yes 2. no [ ]

71. What precautions has the Company taken to minimise/prevent surface water pollution? ……………………………………...........……

72. What precautions has the Company taken to minimise/prevent underground water pollution? ……………………………............………

73. Has the Company provided alternative sources of water supply to residents of communities whose water sources have been affected by their activities?

1. yes 2. no [ ] 74. What about those downstream who fall outside the concession area?

1. yes 2. no [ ]

75. If yes to questions 73 & 74, what kind of water do you provide and do the residents contribute in anyway? ……………………….....................…... …………………………………………………………….........………...

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76. If no to question 74, why? ……………………..........…………………… …………………………………………………....……………………….

77. Has the Company ever experienced cyanide spillage?

1. yes 2. no [ ]

78. If yes, what did the Company do for the affected towns/villages? ……………………………………………………………………

79. What corrective measures has the Company put in place to prevent such occurrence in the future? ……………………………………................... …………………………………………………………………................

80. Does your production process generate dust?

1. yes 2. no [ ]

81. If yes, how are you able to prevent or minimise the level of dust emission in the area? ………………………………………..............................……

82. Does your production process involve blasting?

1. yes 2. no [ ]

83. If yes, does this affect the buildings in the communities involved?

1. yes 2. no [ ] 84. Has the Company compensated the affected the people?

1. yes 2. no [ ]

85. What measures has the Company put in place to minimise/halt the effect of blasting on the buildings in the communities involved? …………………………………………………...........………..................

86. What do you consider as your company’s primary environmental concern in connection with its operations? …………………...........................……

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87. How much money does the Company commit annually in respect of the following environmental management programmes: a. Vegetation Restoration ………………………………… b. Water Purification ………………………………… c. Health (Hospital, etc.) ………………………………… d. Other (specify) ………… …………………………………

EDUCATIONAL SERVICES

88. Does the Company has its own schools?

1. yes 2. no [ ]

89. Do these schools admit non-company workers children?

1. yes 2. no [ ] 90. Are there built in subsidy for these children?

1. yes 2. no [ ]

91. Has the Company been contributing to the educational development of the communities in its area of operation?

1. yes 2. no [ ]

92. If yes, in what way? ……………………………………………............… ………………………………………………………………............…….

93. How much does the Company commit to the development of education in the area of operation annually? …………………..............................……

94. In all your efforts towards the general development of the communities in the area of your operations, do you involve the District Assembly?

1. yes 2. no [ ] 95. If yes, how? …………………………………………………..........…..... ………………………………………………………………..........……..

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APPENDIX THREE

Questionnaire for the Local Communities IDENTIFICATION

Name of interviewer ………………………………………………….............

Date & Time of interview [ ] [ ] [ ] [ ] [ ] [ ] District ………………….. Town/Village ………………………..............….

Locale 1. Urban 2. Rural [ ] PERSONAL INFORMATION 1. Marital status?

1. single 2. married 3. divorced/separated 2. Size of household? ……………………..

[ ] 4. widowed [

]

3. Sex of respondent? 1. male 2. female

[

]

5. Age of respondent? …………………….

[

]

4. Number of dependents in school? ………………

[

]

[ ] 6. Highest level of educational attainment?

1. no formal education 2. no formal education, but can read & write English 3. basic (primary, middle & JSS) 4. secondary (SSS, training college & vocational) 5. tertiary (polytechnic/university) 6. other (specify) ……..................…

7. Current main occupation? [ ] 1. student 2. farmer/fisherman 3. teacher/lecturer 4. public/civil servant 5. trader/artisan/driver 8. others (specify) ………................

7. galamsey 6. AGC worker

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8. Previous main occupation? [ ] 1. student 2. farmer/fisherman 3. teacher/lecturer 4. public/civil servant 5. trader/artisan/driver 6. AGC worker 7. galamsey 8. others (specify) ………................

9. Place of birth? [ ] 1. in this town/village 2. within district 3. Another district in the Region 4. Other region 5. Other country 6. Other (specify) ……………

7. Don’t know 10. Do you hail from this district?

1. Yes 2 .No [ (If yes jump questions 11 to 14 and continue from question 15)

]

11. If no, where do you come from? [ ] 1. Another district in the Region 2. Another district outside the region 3. Another country 4. Other (specify)…………….....…

5. N/A

12. Where does your spouse come from? [ ] 1. Another district in the Region 2. Another district outside the region 3. Another country 4. Other (specify) …………....…...

5. N/A 13. Since when have you been living here?

1. Within 5 years 2. B/n 5&10 years 4. B/n 15&20 yrs.

5. B/n20&30 yrs 7. Not applicable 8. Since birth 14. What brought you here?

1. Marriage 2. Work 5. N/A

3. School

[ ] 3. B/n 10&15 yrs.

6. Over 30 yrs.

[ ] 4. Other (specify) ……....…

(If indigene but previously made a living elsewhere answer the following) 15. When did you return?

1. Within 5 years 2. B/n 5&10 years 5.B/n20&30 yrs.

4.B/n15&20 yrs.

7. Not applicable

[ 3. B/n 10&15 yrs.

6. Over 30 yrs.

]

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16. Where were you living?

1. Another district in the Region. the region 3. Outside country.

5. N/A 17. Why did you return?

1. Pension 2. Redeployed 4. To establish 5. Transfer 7. N/A

18. Where does your spouse come from?

1. Another district in the Region. the region 3. Another country.

5. N/A

[ ] 2. Another district outside 4. Other (specify) ……... [ ] 3. For family assignment 6. Other (specify) ……… [ ] 2. Another district outside 4. Other (specify) ………

19. Do you plan to move out of this town/village?

1. yes 2. no

[

20. If yes, why (state reasons) ………………………………………..

]

21. If no, why (state reasons) …………………………………………

INVENTORY OF SOCIO-ECONOMIC AMENITIES

22. Principal source of drinking water? [ ] 2. private stand pipe 3. communal stand pipe 1. indoor pipe 4. well/bore hole in house 5. community’s well/bore hole 6. open water (stream, river, etc. 7. other (specify) …….

23. Nature of energy for domestic cooking?

1. fuel wood 2. kerosene 3. gas (LPG) 5. charcoal

24. Nature of energy for domestic lighting?

3. gas (LPG) 2. kerosene 1. fuel wood 5. charcoal

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[ ] 4. electricity

[ ] 4. electricity

25. Structure of house?

1. cement 2. mud 3. concrete 5. other (specify) …………………

[ 4. thatch

]

[

]

27. Type of toilet facility you access?

1. no toilet 2. WC 3. KVIP 5. bush 6. other (specify) …………………..

[ ] 4. pan latrine

26. Roofing of house (indicate material) 1. aluminium sheet 2. asbestos 3. thatch 4. other (specify) ……………………….

28. How is household refuse stored? [ 1. not stored at home 2. open container at home 3. close container at home 4. other (specify) …………………

29. Where is household refuse finally dumped? [ 1. collection/designated point 2. empty land 3. along waterway 4. other (specify) ……....................

] ]

30. Schools (please indicate number and levels) in your community? [ ] 1. primary ( ) 2. JSS ( ) 3. SSS ( ) 4. other (specify) ………………………

31. Does your community have hospital, health post/centre?

1. yes 2. no

[

]

If no, how far is the nearest health post/centre from your community? ………….. [ ]

32. What are the major diseases in your community generally? …………………………………………………………………….............

33. Are there any specific illnesses you would associate with mining activities? Please indicate such illnesses: ………………………............… …………………………………………………………………............….

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SOCIO-ECONOMIC PORTRAIT OF RESPONDENTS BEFORE SURFACE MINING ACTIVITIES BY AGC 34. What kind of economic activity were you engaged in before surface mining was introduced in the District? [ ] 1. same 2. other (specify) ……………………….

35. What was the level then?

1. very encouraging 2. encouraging 3. same 4. very discouraging 5. discouraging 6. other (specify) ……………

[

]

36. Were you having some financial assistance during the period?

1. yes 2. no [

]

37. If yes, what was the source? [ 1. bank 2. money lenders 3. remittances from family 4. cooperative organisation 5. not applicable 6. other (specify) ………………………………….

]

38. Were you solely responsible for the provision of your household needs?

1. yes 2. no 3. partially [ ] 39. If no or partially, who assisted you? [ ] 3. association members 1. spouse 2. extended family members 4. friends 5. not applicable 6. other (specify) …………........…

40. In a rough estimation, what was your monthly earning? [ ] 1. Less than ¢100,000.

2. B/n ¢100,000&200,000.

3. B/n ¢201,000&300,000 4. B/n ¢301,000&400,000.

5. B/n ¢401,000&¢500,000.

6. Over ¢500,000 7. Losing 41. How would you describe your household financial situation during the period? [ ] 1. Saved 2. Spent earnings 3. Spent savings 4. Borrowed 5. Spent savings & borrowed.

106

42. Were you able to meet the basic needs of your household?

1. Yes

2. No

3. Partially

[

43. What about the health and education needs of your household? [ 1. Yes 2. No 3. Partially 44. If no, did you have any assistance?

1. Yes 2. No

[ 3. Not applicable

] ] ]

45. If yes, what was the source? [ 1. spouse 2. extended family members 3. association members 4. friends 5. not applicable 6. other (specify) ……………………………………

]

46. What kind of economic activity are you engaged in now?

1. same 2. other (specify) …………………………

[

]

[

]

[

]

SOCIO-ECONOMIC PORTRAIT OF RESPONDENTS AFTER SURFACE MINING ACTIVITIES BY AGC

47. What is the level?

1. very encouraging 2. encouraging 3. same 4. very discouraging 5. discouraging 6. other (specify) ………………………

48. Do you get financial assistance to support your venture?

1. yes 2. no

49. If yes, what is the source? [ 1. bank 2. money lenders 3. remittances from family 4. cooperative organisation 5. not applicable 6. other (specify) …………………………………………

50. Are you solely responsible for the provision of your household needs? [ 1. yes 2. no 3. partially

]

]

107

51. If no or partially, who gives the assistance? [ ] 1. spouse 2. extended family members 3. association members 4. friends 5. not applicable 6. other (specify) ……….........……

52. In a rough estimation, what is your monthly earning? [ ] 1. Less than ¢100,000.

2. B/n ¢100,000&200,000.

3. B/n ¢201,000&300,000 4. B/n ¢301,000&400,000.

5. B/n ¢401,000&¢500,000.

6. Over ¢500,000 7. Losing 53. How would you describe your household financial situation now? [ ] 1. Saved 2. Spent earnings 3. Spent savings 4. Borrowed 5. Spent savings & borrowed.

54. Would you say your household condition is better now than before the introduction of surface mining in the district?

1. yes 2. no [ ] 55. Are you able to meet the basic needs of your household?

1. Yes 2. No 3. Partially

[

56. What about the health and education needs of your household? [ 1. Yes 2. No 3. Partially 57. If no, did you have any assistance?

1. Yes 2. No

]

]

[ ] 3. Not applicable

58. If yes, from whom? [ ] 1. spouse 2. extended family members 3. association members 4. friends 5. not applicable 6. other (specify) ………..........……

THE PERCEPTIONS AND ATTITUDES OF RESPONDENTS TOWARDS MINING AND ENVIRONMENT.

59. What do you know about mining in this area? ……………………...........

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60. What kind of mining activities are presently going on in the area (please specify) [ ] 1. underground mining 2. surface mining 3. both 1&2 4. other (specify) …………………

61. What mining activities have been undertaken in the past?

1. underground mining 2. surface mining 3. both 1 & 2 4. other (specify) …………………

[

]

62. Has there been any effect of mining on water bodies in your community?

1. yes 2. no 3. not applicable [ ] 63. If yes, briefly explain the effects? ……………………………...............…

64. Has this in anyway affected the source of drinking water for the community? [ 1. yes 2. no 3. not applicable

]

65. If yes, in what manner? ……………………………………..............……

66. Has mining affected the use of water for other purposes?

1. yes 2. no

[

]

67. If yes, in which area(s)? [ ] 1. farming 2. livestock 3. recreation 4. fishing 5. other (specify) ………………………………………………...........…

68. What has the company done on the water situation? [ ] 1. provided us with bore hole 2. tanker services 3. nothing 4. not applicable 5. other (specify)……………………

69. Has there ever been a confrontation between the people and the company over water pollution issues? [ ] 1. yes 2. no 3. N/A 70. If yes, how did the company respond?

1. promptly 2. non-committal

3. N/A

[

]

109

71. Has mining affected land in this area?

1. yes 2. no 72. If yes, how has it affected it?

1. degraded the land 3. affected the vegetation 5. led to resettlement

[ 3. not applicable

]

[ ] 2. deprived us of farm lands 4. N/A 6. other (specify) …………….....…

73. Has it deprived people of their farmlands?

1. yes 2. no 3. N/A 74. If yes, were these people compensated?

2. no 1. yes

3. N/A

75. Were they satisfied with the level of compensation?

1. yes 2. no 3. N/A

[

]

[

]

[

]

76. Does the company allow the people to farm on their unused land?

1. yes 2. no 3. N/A [ ]

77. Has the activities of the company polluted the air in the community?

1. yes 2. no 3. N/A [ ]

78. If yes, briefly describe it? …………………………………...........……...

79. How is the company responding to this nuisance? ……….........………..

80. Has the activities of the company led to excessive noise in your community? [ 1. yes 2. no 3. not applicable 81. If yes, has it affected the buildings in your community?

1. yes 2. no 3. N/A

[

] ]

82. How is the company responding to this problem? ………………........…

83. What has been the effect of mining on the provision of foodstuff in your community? ………………………………………….........……….

110

84. Have you personally benefited from the mining activities in your community? [ 1. yes 2. no 3. not applicable

]

85. If yes, list some of the benefits? ……………………………........………

86. Have you been negatively affected by the activities of the company?

1. yes 2. no 3. N/A [

]

87. If yes, list some of the negative effect? …………………….........………

88. List some of the benefits your community has had from the mining company?…………………………………………………............………

89. How would you describe the contribution of the company to the general development of your community? [ ] 1. very satisfactory 2. satisfactory 3. unsatisfactory 4. don’t know 5. N/A 90. What type of mining operations do you consider as the major culprit of environmental degradation? [ ] 1. surface mining 2. underground mining 3. large scale mining 4. small scale mining

91. What type of mining operations do you consider as the major contributor [ ] to the growth of the local economy?

1. surface mining 2. underground mining 3. large scale mining 4. small scale mining 92. Would you like mining to continue in this area?

1. yes 2. no 3. N/A

93. If yes, which type of mining operation would you consider?

1. surface mining 2. underground mining 3. large scale mining 4. small scale mining

5. N/A

[

]

[

]

94. What is the major reason for your answer? ……………………............…

111

95. What do you think would be some of the effects if mining should be completely abandoned in this area? ………………………...........…........ ……………………..………………………………….......…..........…….

96. How would describe AGC in relation to employment creation?

1. very good 2. good 3. fair [ 4. poor 5. very poor 6. don’t know 97. Do you have galamsey operators in your community?

1. yes 2. no 3. don’t know 98. If yes, are they organised?

2. no 1. yes

3. don’t know

THE ROLE OF THE DISTRICT ASSEMBLY

]

[

]

[

]

99. Do you see any collaboration between the District Assembly and the AGC? [ ] 1. yes 2. no 3. don’t know

100. How do you assess the performance of the Assembly with regard to its supervisory role on the activities of AGC? [ ] 1. very good 2. good 3. fair 4. poor 5. very poor 6. don’t know 101. Have your community ever complained to the Assembly relating to the activities of AGC? [ ] 1. yes 2. no don’t know

102. If yes, what was the response of the Assembly? [ ] 1. reacted promptly 2. very lukewarm 3. did nothing 6. other (specify ……......…

5. don’t know 4. N/A

103. How do you assess the Assembly with regard to the utilisation of their part of the royalties to the development of the district?

1. very good 2. good 3. fair [ ] 6. don’t know 5. very poor 4. poor

112

104. Do you think the Assembly is performing its assigned roles well?

1. yes 2. no 3. don’t know [ ]

105. If no, what are some of the things you will recommend that they do? …………………….………………………………………….............

CHIEFS AND LOCAL DEVELOPMENT

106. How do you assess the contribution of your chief in the development of the community? [ ] 1. very encouraging 2. encouraging 3. very discouraging 4. discouraging 5. don’t know 107. Does the community get part of the royalties paid by the mining company to the Chiefs of Adansi?

1. yes 2. no 3. don’t know [

108. If yes how is it used?

1. for local development 3. don’t know

]

[ ] 2. For the chief’s personal use 4. other (specify) …………......................…

109. List some of the projects undertaken by the chief in the community ………………………………………………….............................………

NGOS AND LOCAL DEVELOPMENT

110. Name all the NGOs operating in this community: ……………............… ………………………………………………….............................………

111. List some of the activities undertaken by these NGOs in your community: ……………….......…………………………..........…………

112. How do you assess the contribution of NGOs to the development of your community? [ ] 2. encouraging 3. very discouraging 1. very encouraging 4. discouraging 5. don’t know 6. N/A

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APPENDIX FOUR

Focus Group Discussion Questionnaire FOCUS GROUP DISCUSSIONS WITH CHEFS AND COMMUNITY LEADERS

1. Nature of development projects you’re undertaking in the community ......………………………………………………………………………

2. What are the sources of funding for these projects?

………………………………………………………………….....…………

3. Are the needs of the local people captured in these activities and how?..........................……………………………………………………

4. Are they part of the implementation of these projects and in what respect? ……………………………………………………………………………

5. What activities are AGC involved in the community? ...........……………………………………………………………………

6. Positive effects of these activities on the community. .......................……………………………………………………………

7. Negative effects of these activities on the community. a). On land. ……………………………………………… ……............ b). On water…………………………………………………........……. c). On air. ………………………………………………….........……… d). On buildings. …………………………………………........……….

8. Measures undertaken by the Company to solve these problems. a). On land. ……………………………………………… …........……. b). On water…………………………………………………........……..

114

c). On air. ………………………………………………............………… d). On buildings. ………………………………………..……..........…….

9. List projects undertaken by the Company in the community. ……………………………………………………………..........…...……

10. How involved were the people in the formulation and implementation of these projects? ……………………………………………………….......

11. Does the community get part of the royalties paid to the Adansi stool? …….........................................................................…....................……...

12. How much do you get annually? …………………….........…………….

13. How is the money used? …………………………….........……………..

14. What is the relationship between the community and the Company? …………………………………………………….........………………...

15. What is attitude of the people towards the Company in relation to their social responsibilities to the community? ………………………………………………………...………….........…

16. How do you see the Assembly with regard to the performance of its responsibilities – supervision of the activities of the Company, collaboration with the Company and provision of socio-economic infrastructure in the district? …………………………........……............. .……………………………………………………………............………

17. List NGOs operating in the community and the nature of their activities ..................……………………………………………..........................…

18. How do you see the living conditions of the people today when compared with the period when surface mining had not been introduced? …………..............................…………………………………………….

115

PLANNING OFFICER

1. Approach to planning development projects in the district. ……………………………………………………………..........………..

2. The kind of projects undertaken in the district. ………………………………………...…………………..........…………

3. The nature of spread of these projects (urban or rural). ……………………….................................................................………...

4. Factors that determine the kind of project to be undertaken in the district. ……………..................……………………….........……………

5. Factors that determine where to site these projects. …………………………………….......………………..........……………

6. How involved are the people in project formulation and implementation in the district? ......………………………………..…….....……………… ...............................……………………………………..........……………

7. Constraints both internal and external with regard to the type and nature of spread of development projects in the district. a) Internal constraints. ……………………………..........………………. b) External constraints. ……………………………...........………………

8. Do you liase with AGC in particular and other development agents in your planning programmes and how is it done? ................…………………………………………..........………………..

9. What is the nature of collaboration between the Assembly and the Company? …………………………………………………...........………

10. How does the Assembly supervise the activities of the Company in the district? ………………………………………............…………......…….

11. Nature of projects undertaken by the Company for the communities. ………………..……………………………………..…………………….

116

12. List projects undertaken by the Company for the communities and where they are located?

PROJECT LOCATION …………………………… ………………………………… …………………………… …………………………………

13. How involved are the communities in the formulation and implementation of these projects? ………………………….........………

14. How does the Assembly use the royalties paid by the Company? ...........……………………………………………………..........…………

15. List projects undertaken with the royalties and where they are located.

PROJECT LOCATION …………………………… ………………………………… …………………………… …………………………………

16. Are you satisfied with the level of contribution by the Company towards the development of the district? Give reasons to support your answer. ………………………......................……………………………………..

17. How do you assess the surface mining activities of the Company and its effects on the local communities? ………………………………………………………………............…….

18. List communities where surface mining is either going on or has taken place before. ………………………………………………...................…

19. Have any of these communities complained to the Assembly with regard to the surface mining operations of the Company? ...................................……………………………………..........…………

20. What was respond of the Assembly? …………………….........…………

21. What has the Company done about these problems? ………………………………….........……………………………....……

117

22. Do you have any plan for women and what is this plan? ……………………………………..........………………………………...

23. What are doing about the HIV/AIDS menace in the district? …………………………………………….....................................………

24. What do you think accounts for the high incidence of HIV/AIDS in the district? …………………………………………………………

NON-GOVERNMENTAL ORGANISATIONS

1. Name of organisation. …………………………………............…………

2. Location of organisation. ……………………………...........……………

3. When did you start your operations in the district? ………..........………

4. What is your area of interest? ……………………………........…………

5. What major projects have you undertaken in the district? ………………………………………………………..........……………..

6. Where and when did you undertake these projects?

LOCATION YEAR …………………………………… ……………… ……………… ……………………………………

7. Were the local people consulted in the formulation and implementation of these projects? ………………………………………............……………

8. Did the local people participate in the implementation of these projects and how? …………………………………………........................………

9. How do you assess the utilisation of these projects by the local communities? ..............………………………………...........……………

118

10. What are the effects of these projects on the living standards of the people in the communities? ..........................………….........…………… ………………………………………………….........……………….…..

11. Do you periodically supervise projects undertaken in the district and how is it done? ………………………………………........…………

12. How are these projects maintained? ……..........…………………………

13. Do you finance locally initiated projects? ……….........…………………

14. If yes how many of such projects have your organisation given financial assistance and where are they located?

PROJECT LOCATION ……………………………… ………………………..........……… ……………………………… ………………………..........………

15. Are they offered any advice as to how to go about these activities? ……………………………………………………….............……………

16. Are these activities periodically supervised? ……….............……………

17. Do you organise seminars and symposia in the communities for the people? ……….……….……….………. ………............……….……….

18. Do you have some educational programmes in the district what is the nature? ………………………………………………................…………

19. Do you have some health programmes in the district and what is the nature? ………………………………………………...............…………

20. How are your activities linked up with the DA and other NGOs in the district to check duplications? ……………………................……….......

21. What is the response of the local communities to your initiatives? ……………………………………………………………..........………..

119

22. What is the effect of your activities on the development of the district? ………………………………………………………...............................

23. What is its effect on the living standards of the people in the communities?……………………………………………..........…………

24. What are some of the problems you face in the process of executing your projects? ……………………………………......................................…… …...………………………………………………............……………….

25. Do you experience some interference/control in the course of executing your duties in the district? …………………………………………………………….............………

26. Please name some of the sources of interference/control. ………………………………………………………...........…..…………

27. Why would they want to interfere/control your activities? …...……………………………………………............…………………..

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APPENDIX FIVE

Validation Workshop Report

VALIDATION WORKSHOP REPORT ON THE ENVIRONMENTAL AND SOCIO – ECONOMIC IMPACT OF MINING ON OBUASI AND SATELLITE COMMUNITIES. AUGUST 24 – 25, 2005, KUMASI, GHANA Statement From Participants From Affected Communities

We, communities affected by mining from Obuasi, Bibiani, Kenyasi, Oseikrom Twinsaaso, New Bidiem, Ankaako, Ntonsu, Ayamkyerem, Tarkwa, Prestea – Himan, Kwabrafoso, Gyimiso, Ewiabe, Dokyiwa, Fenaso – Fawoman participating in a two – day workshop in Kumasi – Ghana, from August 24 – 25, 2005 to validate a research conducted on the environmental and socio – economic impact of mining in Obuasi and surrounding communities, and also the potential effects of the mining bill concluded thus:

On the findings of the research, we are pleased that these have vindicated our long held perception that mining, particularly surface mining has adversely impacted our communities. The activities of mining in our communities have resulted in : • Water pollution, in particular, rivers Fena and Supu, which lie with in the operation area of Anglogold Ashanti • • • •

Increased lack of access for farmlands

The spread of mining related diseases such as skin rashes, eye inflammatory diseases, respiratory tract infections, HIV/AIDS and tuberculosis Unemployment

General environmental degradation including blasting effects

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Government and Company Response

We are extremely concerned that the response by the company in particular, Anglogold Ashanti, and the state regulatory institutions to these problems has been very appalling. For instance, while the law provides for adequate and fair compensation, this has not always been the case when mining companies take over our lands and other property. Also the expression of dissent and demand for fair treatment has often been met with rapid deployment of state and private security to harass community members resulting in many cases, in violent conflicts and human rights violation.

Minerals and Mining Bill 2005

On the current mining bill that has been laid before parliament, we have heightened suspicion that it would not address or mitigate the negative impacts of mining on our communities. We are even more disturbed by the fact that both the process and the content of the minerals and mining bill failed to articulate much of these realities on the ground. While the bill is replete with provisions that offer protection and incentives for transnational mining corporations, the same cannot be said when it comes to issues of compensation, environmental protection (in particular water and dust pollution, mining related disease control and public health and safety as well as land degradation), employment, access to information and courts, which are fundamental to community interest.

Call â&#x20AC;˘ â&#x20AC;˘

We call on parliament to allow more debate on the bill. Parliament should particularly reach out to the communities affected by mining before passing the mining bill.

The spread of mining related disease is a matter of concern to our survival and development in our respective communities. This was confirmed by aspects of the report and we call on the Ghana National Health Service and the Environmental Protection Agency (EPA) to investigate into this problem.

122

• • • • •

Also, the Water Resources Commission should carry out further and detailed investigation into the reported cases of water pollution in mining affected communities.

The Commission for Human Rights and Administrative Justice (CHRAJ) should investigate into the human rights complaints or violations raised by the report.

Mining companies should respect the rights of local communities and environmental standards.

The regulatory institutions should step up their monitoring responsibility to ensure compliance by mining companies.

The media should also step up its advocacy role on mining issues.

Conclusion

We commend TWN-Africa for good work done with respect to the report, but entreat them to replicate the study in other mining areas in the country.

We are committed to working with the media and other civil societies and interested groups to intensify public education on the negative impacts of mining on community development.

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LIST OF COMMUNITY PARTICIPANTS NAME

1

Clement Kofi Scott

3

Anthony K Ekyem

2 4 5 6 7 8

9

10

11

COMMUNITY

Obuasi

Gibson Asante

Bibiani

Nana Ofori Bonnah

Chief of New Bidiem

Kwabena Asamoa

Oseikrom/Twinsaasa Ankaako

Anthony Bioh

Ntonsu

J. A. Osei

Tarkwa

Nana Ama Dufie

Ayamkyerem

Nana Gyebi

Hia

Gloria D Farkwah

Kwabrafoso

Badu Samora

Prestea – Himan

12

Sylvester Osei

Gyimiso

14

Peter Manu

Dokyiwa

13

Baffour Awuah

Ewiabe

15

Thomas Owusu

Feneso – Fawoman

17

Richard Adjei – Poku

GEV Kenyasi

16 18 19

124

Kwame Boateng E K Sethena

Elvis G Adika

Hia

GEV Kenyasi

Civic Response