• Newmont will allocate $1 per ounce of gold sold and 1% of mine net profit to fund sustainable community development projects.
  • The Ahafo Linkages Program support the development of local businesses in communities.

Mines Urged to Be Conscious of Environmental Issues

Article published in the Ghanaian Times - 10 April, 2008 - by Ian Motey, Sunyani

The Brong-Ahafo Regional Minister, Ignatius Baffour-Awuah, has advised mining firms operating in the region to take issues of the environment seriously.

He said residents of the region, especially those in the Ahafo area, are predominantly farmers, and any activity that poses a threat to their livelihood will not be countenanced.

He urged companies engaged in surface mining to abide by laid down environmental regulations to avoid confrontations with the inhabitatnts.

"We do not want to see a situation where the activities of the company will degrade the environment to the extent of depriving the communities of their means of livelihood and other economic activities and also injure their health," he cautioned.

Mr Baffour-Awuah gave the advice on Tuesday at the inauguration of the Newmont/Community 2008 Crop Rates Review Committee in Sunyani.

The committee is made up of staff of Newmont Ghana Gold Limited, a mining firm, operating in the region and communities within its concessionary area.

The committee's terms of reference include determining the rate to be given as compensation to farmers who may lose their crops as a result of the mining activities of Newmont.

The Regional Minister urged the company to open up to affected farmers in order to clear all doubts in their minds.

He also entreated the negotiating committee to let the current macro-economic trend in the country reflect in their negotiations.

Mr. Baffour-Awuah said the government, being mindful of the benefits of foreign investment, will always credit the enabling environment for the operations of the company.

In his welcome address, Randy Barnes, the External Affairs Manager of Newmont, said the need for access to land for mining continues to remain a major challenge for stakeholders in the extractive industry.

He said that one of such concerns is that of inadequate compensation to farmers.

"It is therfore important for all involved in the review compensation packages to have a common undertaking," he said.

Mr. Barnes pledged Newmont's commitment to maintaining the highest standards in its operation by complying with all regulations and laws governing the mining industry.

He said, Newmont has, since 2004, undertaken three of such review negotiations and has learnt valuable and insightful lessons from them.

A former Inspector General of Police, Ernest Owusu Poku, who chaired the function, lauded Newmont for developing a strategy involving communities in its area of operations.

He called for a frank and open discussion between the company and the communities in order to arrive at mutually accepted terms.

Newmont Ghana began operating in July 2006 with the construction of an open pit mine and associated facilities for gold production at Ahafo.

The company, with about 1,000 employees, is expected to produce around 500,000 ounces of gold in 20 years.