• 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.

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Newmont Inaugurates 2008 Crop Review Committee

Article published in The CHRONICLE - 10 April, 2008 - Michael Boateng, Sunyani

To fulfill the Minerals and Mining Act of companies to negotiate compensation packages with the lawful occupiers of land, Newmont Ghana Gold Limited (NGGL) has inaugurated a Newmont/Community 2008 Crop Rates Review Committee, in Sunyani.

The Committee, made up of the NGGL, representatives of farmers and communities, regulatory agency representatives, and NGOs, is to revie, negotiate and establish agreements for crop compensation rates, in a transparent manner that would be acceptable to all parties.

The Brong-Ahafo Regional Minister, Ignatius Baffour-Awuah appeal to the farmers not to let any group influence them on the negotiations which may lead to tension in their communities, but come out with concrete ideas for a formidable compensation decision.

He also urged the NGGL to open up to the affected farmers, in order to clear all doubts in their minds.

He also entreated the negotiation team, to let the current micro-economic trend in the country reflect in the negotiations.

Mr. Awuah noted that since mining, and for that matter surface mining, leads to serious environmental degradation, and knowing that the Ahafo Mine is sited in a predominantly farming area, Newmont should take environmental issues seriously, to make it possible for people to farm in areas where mining has ceased.

He stated that Ghanaians do not want to see a situation where the activities of Newmont would degrade the environment, to the extent of depriving the communities of their means of livelihood, and other economic activities, and also bring health hazards to them.

According to the Regional Minister, such destruction of the environment by some mining companies, has led to civil strife, and the disruption of their operation in some parts of the country, which Brong-Ahafo does not want to experience.

He therefore urged Newmont to strengthen its environmental programmes, to make life meaningful to the people in the communities.

Mr. Awuah also appealed to Newmont, to guide the affected farmers to make judicious use of the compensation, which would be given, and also urged the affected farmers to invest their compensation in profitable ventures.

HE said government, on its part, knowing the benefits derived from such foreign investment, would always create the enabling environment for the operations of the company, but would not fail to ensure full adherence to the fundamental Human Rights of its citizens.

The External Affairs Manager of Newmont Ghana Gold, Randy Barnes, noted that the need for mining to gain access to land brings about the issue of compensation, and at times even resettlement, which continues to remain a challenge for stakeholders in the extractive industry.

He said some of the concerns raised by farmers, with regard to compensation, are that the compensation packages are not adequate or too low, therefore, it was important for all involved in the review of compensation packages, to have a common understanding.

Mr. Barnes continued that the common understanding of the new Minerals and Mining Act, 2006 (Act 703) requirements would go a long way to ensuring that there was a good relationship between mining companies, and the communities within which they operate.

He noted that even though the new law had been passed, the regulation covering that law were in progress, and the Minerals Commission was facilitating the completion of those regulations, to guide everyone in the application of the law, to ensure fairness, transparency and adequacy of compensation packages.

According to Mr. Barnes, Newmont was in support of, and fully committed to a continuous improvement process, which seeks to achieve the highest standards in complying with all regulations and laws governing the mining industry.

 


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