COMMUNITY RELATIONS IN GHANA
Context
- Potential new taxes introduced by a new government have minimal impact on the Tarkwa and Damang operations owing to the Development Agreement between Gold Fields Ghana and the government in 2016
- The government campaigned against illegal mining, supported by the media and other civil society organisations. They suspended small-scale mining activities. This exacerbated youth unemployment, especially in mining communities, pressurising the formal mining sector to offer greater employment opportunities
- Tarkwa and Damang, in the Western region of Ghana are both close to other large-scale gold mines, including AngloGold Ashanti's Iduapriem and Golden Star's Wassa
- The Tarkwa mine located in the Tarkwa/Nsuaem municipality, which has a total population of 90,477 (2010 census). The mine has nine host communities that are impacted by its operations. These communities (and Tarkwa town) have a population of 47,861 (2010 census), representing about 53% of the municipality's population, and are under the traditional jurisdiction of the Apinto stool of the Wassa Fiase Paramountcy. The municipal working population are mainly engaged in agriculture, the informal sector, industry and services provision
- Damang, in the Prestea/Huni-Valley district, has a total population of 159,304 (2010 Census). Damang has nine host communities and a few informal settlements. With a total of 36,231 people (2010 census), Damang's host communities represent about 23% of the district's population and are under the traditional jurisdiction of the Bosomtwe stool of the Wassa Fiase Paramountcy. Over half of the working population in the district are engaged in crop farming and almost 30% in livestock rearing
Build relationships and trust
- Stakeholder engagement is a business imperative for Gold Fields Ghana. In 2017, the mines further built relationships with key stakeholders including communities, employees, traditional leaders, local and national government, and civil society groups. Several formal engagement platforms are in place
- The local employment committee was critical in 2017 when Damang migrated from owner mining to contract mining, following a US$341m reinvestment in operations. Community leaders participate in the committee which is headed by a local chief. The committee helped to dissipate tension and address community hiring needs during the contract mining transition. This committee model has since been adopted by both operations in labour recruitment
- To deepen stakeholder engagement, an updated three-year community relations strategy and implementation plan was prepared for roll-out in 2018. The strategy focuses on building trust, measuring the mines' impact, and sharing benefits with communities
| Create and share value |
Most of our community investment projects are funded by the Gold Fields Ghana Foundation, which receives 1% of our mines' pre-tax profits and US$1 for every ounce of gold sold by them. |
| Project 1: Road rehabilitation |
The 33km public road rehabilitation between Tarkwa and Damang, host to our two mines, commenced in 2016, funded by Gold Fields Ghana. It was a commitment under the Development Agreement. During 2017, the design of the road was revised to include additional drainage, pavement redesign, sub-base reinforcement, and an asphalt finish. The revised design is expected to increase the road's lifespan from about seven years to 20+ years and has raised the cost of the road to US$21m from the original US$17m. Construction will take a further six months. |
Benefits to the community Most workers engaged on the road construction are from the host communities. Upon completion, the improved road infrastructure will reduce travel time, increase access to social amenities and markets, reduce the cost of transportation, and increase economic activities along the route. Dust pollution will be eliminated, and safety will improve. |
Benefits to Gold Fields An improved road infrastructure will reduce light vehicle maintenance costs, labour transportation costs, goods and materials haulage, road maintenance costs, and reduce employee travel time and driver fatigue. |
| Project 2: Youth employment in agriculture |
The Youth in Horticulture Production (YouHoP) programme, aimed at generating employment and improving incomes for the host community youth started in 2016. Gold Fields and the German Development Cooperation (GIZ) are investing over €800,000 (US$1m) over a three-year period. The programme targets 1,000 community youth in the mines' host communities. Phase one of the programme implementation began in 2017 with 120 farmers engaged in vegetable production. Their first harvest, which was impacted by pest infestation, was sold to catering firms operating on the mine and to local markets in Tarkwa and Takoradi. Spend to date: US$327,000 |
Benefits to the community
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Benefits to Gold Fields
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Rehabilitation of the road between Tarkwa and Damang
| Other material value creation projects: |
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For more information of the Gold Fields Ghana foundation go to www.goldfields.com/societal-foundations.php |
| Manage risk and impact |
| Project 1: Damang - Resettlement and compensation |
Risk: 88 farmers livelihoods could be affected by the Amoanda pit expansion and three farmers by the Lima South project. This could potentially impact the mine's reputation and social licence to operate. |
Action: 81 of the farmers, mostly migrants, opted for cash compensation for their farms and structures. The land owners were compensated in cash. Ten farmers have been temporarily accommodated while buildings are completed, in line with an agreed resettlement action plan. Relocation is expected to be completed in mid-2018. Farmers will be monitored and evaluated for the six-month defect liability period and to ensure effective integration of the farmers into the receiving community. Spend to date: US$347,000 |
| Project 2: Damang and Tarkwa - Host community youth unemployment |
Risk: High unemployment in host communities remains a top risk, due to the lack of job opportunities and the government campaign against ASM. |
Action: Strategies being implemented include:
Spend to date: US$174,000 |
| Project 3: Tarkwa - Impact of blasting |
Risk: Persistent complaints of blasting vibration and noise from the mine's adjoining communities could attract regulatory sanctions, including suspension of mining activities. It could also affect the mines' social licence to operate. |
Action: A blast monitoring team, involving community representatives, was instituted. In addition, new electronic blasting techniques were introduced. A blasting zone of influence was demarcated and noise bunds were erected. Spend to date: US$279,000 |
Measure actions and impacts
SED spend in West Africa 2014 – 2017
West Africa SED contributions by type 2017 (%)
| Grievances |
Our grievance mechanism enables and encourages community members to freely put forward their complaints, while obligating the mines to address the grievances within an agreed period. 54 grievances were received by both mines through their formal mechanisms during 2017 (2016: 64), relating to land issues, compensation, and environmental issues, 46 of these were resolved and eight are being processed. Three of the four unresolved grievances lodged during 2016 were addressed during 2017. The outstanding grievance from 2016 relates to a group of farmers near the Tarkwa mine's Kottraverchy waste dump area, who disputed previously-paid compensation, and subsequently petitioned the Environmental Protection Agency (EPA) to mediate. The farmers argued that their crops and structures were not accurately assessed and valued. Based on a recommendation by the EPA, agreed to by both parties (the farmers and the Tarkwa mine), an independent valuation was carried out to re-evaluate the crops and structures in 2017. The revaluation was completed but the farmers again rejected the recommendations and have since petitioned the Member of Parliament (MP) for the Tarkwa-Nsuem constituency for redress. |