The
bumpy deplorable road leading to the gold city of Obuasi in the Ashanti region depicts
a worrying state of an area that has played a significant role in Ghana’s
economic development.
For
over 100 years, mining at Obuasi has been a major contributor to the country’s
foreign exchange earnings – mining has contributed an average $2billion to
government’s revenue in the past five years.
Mining
communities however complain the industry has failed to deliver tangible
benefits for local people.
“They
should hear the communities cry,” wailed Madam Gifty Owusu Afriyie, who represents
Tutuka Central electoral area in the Obuasi Municipal Assembly. “Children are
suffering and women too are suffering because they have to travel a long way
before they can fetch some water.”
Concerns
are rife that the government has used up revenue from mining without recourse
to addressing the development challenges of local mining communities.
The
quality of spending minerals revenue by local assembly authorities has been questioned.
For instance, the Obuasi Municipal Assembly in 2007 constructed the Obuasi
Entrance Arch at a cost of Gh₵89,000 whilst local people yearn for good road
network, potable water, quality healthcare and education.
The
next Ghana Report on the Extractive Industries Transparency Initiative (EITI) would
be keen on how the mining sector has negatively or positively impacted on the
economy.
“If
there is any community in Ghana that we all need to be concerned about the
lessons, experiences and impact of mining, its Obuasi, especially in this
moment that the company [AngloGold Ashanti] is in its critical state,” noted
Emmanuel Kuyole, Africa Regional Coordinator, Natural Resource Governance
Institute (NRGI).
AngloGold
has put the Obuasi mine under what is termed as “care and maintenance”, following
operational losses recorded in recent times.
The
redevelopment of the concession has left over 5,000 workers losing their jobs –
only 500 to 600 of the workforce are being maintained.
The
two-year break is expected to cripple the ability of the Obuasi Municipal
Assembly to generate enough revenue to finance local development projects – as much
as 70 percent of the Assembly’s total property rate mobilization is from
AngloGold Ashanti.
“We’re
looking forward into how we can take advantage of the number of years that is
left for mining to take place in Obuasi to actually develop a local economy
that will be independent of the mine so that we can find jobs and grow other
sectors and make sure that once mining comes to an end, the economy of this
great place will also not come to an end,” stated Mr. Kuyole.
Obuasi
and adjourning districts mined by AngloGold Ashanti are under the spotlight of
a research by the Centre for Social Impact Studies (CeSIS), through the civil
society oversight activity of the NRGI.
Under
the Ghana Extractive Industries Transparency Initiative (GHEITI), interest
groups have been analyzing the EITI reporting on sub-national revenue
management and other benefits received at the local level.
The
validation dialogue process involves industry players, local authorities,
regulatory bodies, civil society and the media.
Major
issues emanating from the discussion is the proper use and formula for sharing
of mining royalties.
The
consensus is that deprivation of local people of benefits from mineral
resources could be disastrous as they sacrifice farms and livelihood sources
for mining to thrive.
“Government
must begin the process of addressing community challenges within the framework
of its own development planning processes,” observed Richard Ellimah, Lead
Researcher of CeSIS Study.
The
EITI seeks to create the missing transparency and accountability in revenue
flows from the extractive industry.
The 2012-2013 EITI Ghana Report will show
the contribution of the extractives sector to the local economy, exploring how
much revenue has been generated and its application.
Story
by Kofi Adu Domfeh
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