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

New joint venture to revive Obuasi Gold Mine

Randgold Resources Limited and AngloGold Ashanti Limited have concluded an investment agreement aimed at the formation of a joint venture to redevelop and operate AngloGold Ashanti’s Obuasi gold mine in Ghana. 

Under the Agreement, Randgold will lead and fund a development plan designed to rebuild Obuasi as a viable long-life mining business with an attractive cost structure and returns.

Obuasi has a large, high-grade deposit with proven and probable ore reserves of 24.53Mt part of a substantial mineral resource base.  

At the end of 2014, AngloGold Ashanti converted Obuasi to limited operations, ceasing underground production, retrenching the workforce, but continuing to process tailings and starting a feasibility study on the redevelopment of the mine.  Development of the decline ramp has continued over this period.

“Obuasi is a world-class resource.  We now have to see if we can convert it into a world-class mine.  We have a long history of cooperation with AngloGold Ashanti and we look forward to working with them again on charting a new course towards a viable future for Obuasi,” said Randgold chief executive Mark Bristow in a statement.

Randgold is expected to deliver the new development plan to both parties’ boards by 31 January 2016.

“AngloGold Ashanti has since 2012 effected a range of improvements to modernise Obuasi and – in line with its strategy – has progressed a feasibility study as the critical next step toward breathing new life into this important mine,” AngloGold Ashanti CEO Srinivasan Venkatakrishnan said.

“Our partnership with Randgold has proved successful for well over a decade in bringing value from sustainable gold mining to all stakeholders and we believe that pooling the extensive expertise and the capital of these two companies will improve our ability to bring Obuasi’s world-class high-grade gold deposit to account.”