- 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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Managing the Transition and Impacts of Resettlement
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Adapted from Beyondthemine.com
While a mining operation is often a large industrial complex, it is quite different
than most other industries in that mines are located based on where ore is
found in the earth. Oftentimes, mines and their associated facilities must be
located on land that is already occupied or used by other people. As a result,
we must work with people who already live on the land that is needed to develop
and operate a mine.
Before relocating communities, our company explores every feasible alternative. Where alternatives are not feasible, Newmont works with the resettled communities to identify opportunities to improve their quality of life. It was necessary to relocate a community at Newmont Ghana's Ahafo mine, which necessitated the resettlement of about 500 families, many of whom had relied solely on farming for their livelihood.
The regional communities established a Resettlement Negotiation Committee (RNC), composed of community representatives and traditional authorities who are independently nominated and validated to represent the people living in the area. They negotiate with Newmont on resettlement and crop compensation.
The RNC handled all negotiations on behalf of the local residents, relocating them to two new villages with newly constructed homes. Newmont spent $14 million to construct the two sites. The Ntotoroso Resettlement Village is located immediately south of the existing community of Ntotoroso and spans 398 acres (161 hectares). The OLA Resettlement Village covers 126 acres (51 hectares) just west of the existing community.
For the first time, the homes and residential plots came with a legal title (99-year leases). Prior to Newmont's resettlement, residents held no titles to the lands they occupied because these were owned by the traditional families and landowners. Legal title has created "pride of ownership" among resettled residents because they now know the land they live on is their own.
Two new schools built in the villages are providing modern and well-equipped facilities for students.
Neighbors who opted for monetary compensation rather than resettlement went through a rigorous review process before the RNC to ensure they had alternative homes to relocate to before they could qualify for payment.
Loss of land and the ability to earn a living were the primary concerns expressed by locals involved in resettlement. About 90 percent rely on farming - principally cocoa trees - for their livelihoods. Residents who lost their residential land received a replacement plot in a resettlement village and farmers received monetary compensation for displaced crops.
To ensure crop compensation rates were fair, a Crop Review Committee comprised of 60 community representatives, nongovernmental organizations (NGOs), traditional authorities and government agencies annually reviews the rates based on local market crop prices and other economic factors.
Many people have found new ways to earn a living, including employment at the new mine or starting small businesses. However, a large number of the locals want to continue farming. Some local youth also express ongoing concerns regarding their ability to access employment opportunities.
Nationally recognized as Ghana's "breadbasket," the region supplies more than 30 percent of the nation's food. After soliciting public input and review, Newmont Ghana launched an Agriculture Improvement and Land Access Program to help farmers maintain or exceed the levels of crop productivity they experienced prior to the start of the mine. The program works to ensure compensated farmers have access to land to farm at no charge. We offer five agricultural assistance packages and monetary assistance as well.
Some local residents contended that there was a lack of compensation for fallow land, or land currently not planted with crops. Newmont's practice of not compensating for fallow land was in accordance with the rules and regulations of Ghanaian law. Nonetheless, Newmont Ahafo launched a study to explore traditional uses of fallow land and to identify appropriate mitigation measures for the loss of fallow land based on recent law revisions.
Resettlement, if not managed properly, can negatively impact households. We launched a Vulnerable Program to provide a safety net for the most vulnerable households directly impacted by the new mine. The goal of this program is to foster household self-sufficiency, specifically to provide a place to live, a means of income, food security, and access to medical care and education.
The program is founded on a community-based strategy in which Newmont sponsors a local NGO, Guardians of the Earth and the Vulnerable, to conduct assessments of vulnerable households and to work with OICI, a nonprofit organization, to develop ways to assist those in need.
We identify, register and provide vulnerable residents with assistance that can aid them in reaching a self-sufficient state. Newmont historically contributes food, training and cash compensation. Our company also expanded assistance to include farming support, education, medical support and training.
We track formal monitoring of the vulnerable households and assistance measures, including household visits. We record each visit and flag changes to ensure we identify and address problems. The tracking has been a useful tool and has received well by affected communities. Vulnerable households have benefited from various forms of assistance programs including registration in a national health insurance program.
By ensuring that those impacted by resettlement, particularly vulnerable populations, are provided with the assistance and care they require and deserve, Newmont is working to minimize impacts from our mine and enhance the standard of living now and into the future for local communities.