Onslaught of galamsey on mining concessions in Ghana, a threat to investor confidence

Mining industry watchers have posited that Ghana’s gold mining sector could collapse if the trend of illegal miners encroaching on concessions of mining companies is not halted. 

According to the Ghana Mineworkers Union (GMWU), the spate of illegal miners taking over concessions is a scare to the investor community.

General-Secretary of the Union, Prince William Ankrah describes as “shameful and barbaric” the uncontrollable levels of the galamsey onslaught on the concessions of legally registered businesses.

“Mining companies such as AngloGold Ashanti, Obuasi Mine witnessed a gruesome attack by illegal small scale miners on its concession, resulting in the death of a top management staff of the company. Again, Owere Mines in Konongo was also not spared in this nefarious enterprise as these hoodlums invaded and took control of the Mine's concession for weeks, while owners and our members watched helplessly,” he observed.

The gradual take-over of the Obuasi mine by the illegal operators forced AngloGold Ashanti to file a suit against the Government of Ghana at the International Court of Arbitration, seeking protection on its concession.

Prince Ankrah describes the development as unfortunate, emphasizing that “Obuasi is a major asset to our nation and for that matter we all need to be careful so that we don’t create any scare that will allow that mine to remain dead even though it’s a rich resource”.

The Anglogold Ashanti, Obuasi Mine, currently undergoing operational reforms, is said to viable, hence the need for all stakeholders to be on board for its resuscitation.

The Minerals Commission recently constituted a District Mining Committee at Obuasi to oversee the peaceful exit of the unlicensed miners from AGA concession to the demarcated areas within the lease area surrendered by the company.

The move is expected to forestall what interest groups have described as a near-crisis situation at Obuasi. 

Chairman of the Committee, Engineer Kwaku Frimpong Kuma, was part of a team that set up underground operations about 20years ago within the area of Anglogold’s concession under contest.

He is confident the committee’s work will yield the requisite results to the satisfaction of both interest parties.

“At this stage, it’s going to be a win-win situation…it will be solved to the joy of both parties and then Obuasi will come back to life,” he stated.

Prince William Ankrah is also hopeful the new arrangements will be workable to help bring a closure to the menace of illegal miners taking over the concession of Anglogold Ashanti.

“Let’s hope that it will yield the needed results…let’s all be confident that it will work out,” he said. “It’s evident that Obuasi can bounce back and remain very vibrant for the economy, so that’s what we want to see and we pray that really materialize”.

The Ghana Mineworkers Union, has however, stated that it will not hesitate to withdraw labour services to the industry all over the country if the menace of illegal mining and the threat to the safety and security of members is left unchecked.

“Considering the pace and nature of the destruction by illegal small scale mining and its consequences on the environment, it would be extremely difficult to bequeath anything meaningful to generations yet unborn if we continue on this indiscriminate tangent with impunity,” said Prince Ankrah.

By Kofi Adu Domfeh

Committee constituted to evict illegal miners from Anglogold Obuasi Mine

Ghana's Minerals Commission has identified 70 groups of illegal small-scale miners to be relocated from concessions of Anglogold Ashanti Obuasi Mine.

A District Mining Committee has been inaugurated at Obuasi in the Ashanti region to oversee the peaceful exit of the unlicensed miners from AGA concession to demarcated areas within the lease area surrendered by the company.

Anglogold Ashanti has been battling the illegal miners who have encroached and taken over the company’s mining operations at Obuasi in recent times.

Over the years, there have been a number of casualties and loss of lives arising from conflicts in some areas where unlicensed small-scale mining thrive.

The Minerals Commission describes the problem at the Obuasi Mines as “a crisis or near crisis situation” that calls for immediate attention.

“It is clear that we need to strengthen, broaden and coordinate better our efforts in tackling the challenge of illegal mining in the country and I know measures have been put in place for short, medium to long-term solutions,” said Richard Kofi Afenu, Director of Policy Planning, Monitoring and Evaluation at the Commission.

The Paramount Chief of Adansi Traditional Area, Opagyakotwere Bonsra Afriyie II, says government should be proactive is salvaging the situation where individuals enrich themselves at the expense of the State.

“We as traditional rulers cannot sit down for people to do whatever they like when we have a government that controls the security forces,” he said. “It’s the government’s responsibility to make sure the police controls Obuasi if there is a problem… when there is illegal miming inside a concession and the law does not allow the concession owners to have security with guns; and we call the police and the military and cannot get it, then somebody must accept responsibility”.  

Municipal Chief Executive for Obuasi, Richard Ofori Agyemang Boadi, however says government is committed to providing security protection to investors and investments, including Anglogold Ashanti, to continue to stay in business for the common good.

“As we speak, there a deployment of police and military on the mine,” he said.

Mr. Boadi observed chiefs and traditional authorities must refrain from aiding and facilitating the thriving illegal mining activities which are negatively impacting on farmlands and water bodies.

The AGA in March 2016 surrendered 60percent – 273 square kilometer – of the Obuasi Concession, but retained the Obuasi Mine, where portions have been encroached upon by unlicensed miners.

The Minerals Commission is hopeful the inaugurated committee will assist regulatory agencies to resolve the impasse evicting illegal miners from concessions of Anglogold Ashanti Obuasi mine.

The Committee will also assist in the formation of small scale mining cooperatives to enable them apply for mining concessions in the surrendered area.

The 15-member committee, Chaired by Eng. Kwaku Frimpong Kumah, comprises representatives from the Minerals Commission, Ghana Chamber of Mines, Ghana National Association of Small Scale Miners, the Obuasi Municipal Assembly, Anglogold Ashanti Ghana Limited, Municipal Police Command and the Adansi North Traditional Council.

By Kofi Adu Domfeh

National Coalition on Mining questions Dr. Aubynn’s appointment as head of Minerals Commission

The National Coalition on Mining (NCOM) has called on President John Mahama to reconsider his decision to appoint Dr. Tony Aubynn as Chief Executive of the Minerals Commission, a body mandated by law to regulate and manage the minerals sector in the national interest.

The Coalition describes as “shocking” the appointment of Dr. Aubynn, stating that “the appointment points to a pattern of capitulation by the Mahama government to the interests of foreign mining capital”.

The National Coalition on Mining is a grouping of CSOs, community groups and individuals who work for the respect of human rights in mining and optimal national and citizens’ benefit from the country’s mineral resources.

The full text is reproduced below:

Champion of transnational mining companies

Dr.  Aubynn is a citizen of Ghana. However, our call, shock and concerns arise from the fact that Tony Aubynn is a champion of transnational mining companies.  Until his appointment, he was the Chief Executive Officer of the Ghana Chamber of Mines in which position he consistently defended the interest of transnational mining companies. 

There is a record of his pronouncements in defence of these interests which are not only diametrically opposed to the optimisation of national benefit from the country’s non-renewal mineral resources but raises questions about his capacity to discharge the responsibilities as head of the Minerals Commission impartially and equitably.

A striking example of his defence of corporate interests has been his role in the campaign in Ghana and around the world against efforts to raise royalties and taxes paid by the mining companies. At a time when gold prices had risen astronomically (from $400 in 2003 to almost $1900 in 2011) and government wanted to introduce legislation to capture a lot more of the share of this bounty, the Chamber of Mines, fronted by Dr. Aubynn, resisted this move. This was based on the palpably false claim that the industry was overtaxed.

In seeking to deflect the demand for a greater national share of mineral earnings, the Chamber tried to make itself the champion of a greater community share of royalties.

Worrying pattern

Dr. Aubynn’s appointment comes soon after President Mahama used the 2014 Davos World Economic Forum to make public his government’s capitulation to the mining companies. It was there that he announced that in response to their pressure the government was shelving its plan to impose a windfall tax aimed at increasing the public share of mineral earnings.

Is it unreasonable to assume that Dr. Aubynn’s appointment to head the Mineral Commission does not only underline the influence of the mining companies in the corridors of power but also means that they now have a firm ally in charge of the key public body overseeing the mining sector?

The context of Dr. Aubynn’s appointment makes the President’s decision even more shocking and worrying. The decision of the Mills government to raise mineral royalties and review the most unfair mining contracts placed Ghana in a global and African process where mineral rich countries, from Australia to Zambia, were taking steps to increase national earnings from increased global mineral prices.  Domestically a mining contract renegotiating committee chaired by Professor Akilagpa Sawyerr has been set up and has been working with the close support of the Minerals Commission. 

Over the past few years Ghana has been an active participant in the development of the Africa Mining Vision and the formulation of steps for its realisation. Mr. Ben Aryee, the ousted CEO of the Minerals Commission, distinguished himself as Ghana’s representative in these processes and also earned the respect of his peers for his intellectual contributions. Across the world mining companies mounted a campaign against steps which they denounce as “resource nationalism”.

The negative attitude of the Ghana Chamber of Mines, expressed by Dr. Aubynn, is our local experience of this corporate resistance to change.

Unfit for purpose

Given Dr. Aubynn’s long standing defense of the interests of transnational mining firms we doubt his capacity to be impartial, equitable and lead the drive towards the optimal use of Ghana’s mineral wealth for the benefit of its people.  We have serious doubts about Dr. Aubynn’s ability to serve the national interest as CEO of the Minerals Commission, especially at this juncture when the whole of African continent is moving to break with the mining regimes that subordinated national to corporate interests. 

Given his history as a champion of mining corporate interests we wonder how Dr. Aubynn can effectively head a state organization which should be ensuring that the mining industry develops better environmental and social sensitivity, and that the country derives maximum benefit from its mineral assets and also be a leading voice in the ECOWAS and Africa reform process.

Is it unreasonable to fear that the Commission under his leadership will prioritise the interest of the companies for whom he has been such an energetic mouthpiece?

Over the past few years the National Coalition on Mining, communities and other civil society organisations have been working with the Minerals Commission to improve interaction and mutual confidence between mining policy makers and society towards reducing the negative impacts of mining while improving the contribution of the sector to national development and citizens’ benefit. 

A lot of work remains to be done in this regard. The appointment of a defender of corporate mining interests to the important office of CEO of the Minerals Commission is not a good signal for the health of these collaborative relations.

Minerals Commission seeks public support to curb illegal mining

The Inspectorate Division of the Minerals Commission is confident the operations of its special taskforce will help curb the spate of illegal mining activities in the country.

Officials however say sustained success will depend on public cooperation and collaboration to expose individuals and syndicates involved in promoting illegal gold mining.

The increasing rate of foreigners in Ghana’s small scale mining sector has been a source of grave worry to the citizenry.

Gold mined illegally leads to land degradation, destruction of farmlands, pollution of water bodies, high accident rates leading to death at the mines and rise in social vices in communities. The illegal miners also do not pay royalties and taxes to the State.

“We’re liaising very well with the national security sub-committee on lands and natural resources and we’ve been going round arresting, especially the foreigners in the field; that one is never done anywhere in the world that foreigners will go to some place and they’ll start illegally taking up their natural property”, said Joseph Frimpong, a Mines Inspector in the Ashanti region.

There is presently a renewed drive to flush out such illegal miners to save the environment and protect natural resources.

Lands and Natural Resources Minister Alhaji Inusah Fuseini has stated that moves have been initiated to identify and weed out companies with expired licenses who are illegally leasing out concessions to galamsey operators.

He also wants to expose politicians and chiefs involved in galamsey operations

President John Mahama has also assured the security agencies of adequate support to flush out illegal miners across the country.

Mr. Joseph Frimpong however believes uprooting the illegal activities requires deeper collaborations, especially in reporting practices at their early stages.

“For small scale mining, no foreigner is permitted, no foreigner is allowed”, he emphasized. “Yes we welcome foreigner but we’re not expecting that they go into illegal activity. Landlords should report them, that even though they’ve taken rooms and accommodation in your houses, they are engaged in illegal activities”.

Mr. Frimpong has commended the proactive posture of interest groups in the Ahafo Ano North District of Ashanti to uproot galamsey activities.

He expects local and traditional authorities as well as other interest groups to be conversant with laws governing mining in the country, especially the Minerals and Mining Act, Act 703 and subsequent legislative instruments.

Meanwhile, trade and business groups are taking keep interest to sensitize members on the need to get involved in the national drive to discourage illegal mining.

President of the Ghana Employers Association, Terry Darko, says businesses have the responsibility to speak out against such practices.

“All of us are witnessing the way small scale mining is destroying our environment. As businesses we may need to speak because if the environment is compromised, it will affect the health and safety of our workers of today and the general tomorrow and it can create problems for all of us. So let us not think that it is the responsibility of only the security agencies”, he noted.

 

Story by Kofi Adu Domfeh

Interest groups join forces to uproot illegal mining

There is an insurgence of armed robbery, prostitution and drug abuse in Subriso, a galamsey prone community in the Ahafo Ano North District of Ashanti.
 

Farmlands are being destroyed whilst water bodies and the environment are gravely polluted as a result of illegal gold mining.

A collaborative initiative has been mounted to rid Subriso and other communities in the District of illegal mining operatives.

Interest groups, including the district assembly, Minerals Commission, Environmental Protection Agency and traditional authorities are devising strategies to get tough on the galamseyers.

Manfomanhene, Nana Kwame Ntim has decried the reluctance of the illegal miners to submit to regulation to minimize the negative impact of their activities in all aspects of livelihood in the area.

He has vowed to take all the necessary action to uproot illegal miners who have refused to formalize their operations, emphasizing that “the Asantehene Otumfuo Osei Tutu II will not take kindly to any chief who condones illegal mining in his area”.

The illegal gold miners have been disrupting the prospecting activities and operations of Pelangio Ahafo Limited and looted gold worth millions of dollars.

A court recently ordered the police to shut down pits created by ‘galamsey’ operators after the company tool legal action on illegal activities on its concession.

According to District Chief Executive, David Addai Amankwaah the Assembly is ready to support the small scale miners to legally prospect gold.

He stated that the District Security Council has taken steps to minimize the social vices associated with galamsey operations, including boosting the capacity of the district police command and upgrading facilities.

Ashanti Regional Director of the EPA, Isaac Osei noted the country would need to curb illegal mining now to save the future.

“We are moving towards a very dangerous situation”, he observed. “If they are regulated, then the level of destruction will totally be minimized. But the people are very difficult to convince to come and register and that the basis of the problems that we are facing in this country”.

The Mineral Commissions expects all stakeholders to show commitment in curbing illegal mining.

Story by Kofi Adu Domfeh