Gold Fields

Integrated
Annual Report

2018

 
 
 

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Community relations in Ghana

Context

  • Tarkwa and Damang are located in the western region of Ghana, which is also home to other gold mines
  • The Tarkwa mine is located in the Tarkwa/Nsuaem municipality, which has a total population of 90,477 (2010 census), though the mine’s host communities only have a population of 47,861. The working population are mainly engaged in agriculture, the informal sector, industry and services provision
  • Damang is in the Prestea/Huni valley district, which has a total population of 159,304 (2010 census). Damang’s nine host communities have a population of 36,231 people. Over half of the working population in the district are engaged in crop farming and almost 30% in livestock rearing
  • During 2018, Gold Fields acquired 45% in the Asanko gold mine, about 100km north of our existing mines. However, Asanko Gold remains the manager and has responsibility for community relations (Managing our portfolio)
  • Illegal miners continue to encroach on the Tarkwa and Damang mining concessions. Encroachers are usually arrested by the patrol team (comprising the mines’ protection services team and the local police) and arraigned before court for prosecution. The patrol teams have been trained in applying the Voluntary Principles on Safety and Human Rights in handling encroachers
  • The Tarkwa mine changed its business operating model from owner mining to contractor mining, necessitating the retrenchment of over 2,500 employees. The majority of the retrenched employees were absorbed by the mining contractors. Qualified community residents were given preferential job opportunities during the transition to contract mining
  • Gold Fields Ghana’s community investments are managed by the Gold Fields Ghana Foundation, which receives 1.5% of our mines’ pre-tax profits and US$1 for every ounce of gold sold by them. During 2018, the Foundation invested US$15.3m in community development (2017: US$6.5m). For more details on the foundation go to www.goldfields.com/societal-stakeholders.php

Build relationships and trust

  • In 2018, we further solidified relationships with our host communities by engaging regularly with local government, community organisations and residents, as well as dealing transparently with grievances submitted
  • During 2018, 130 community youth gained employment in Tarkwa with the mining contractors through the host community employment committee, comprising Gold Fields, the contractors and community leadership. A similar committee oversees host community employment at Damang
  • The Tarkwa mine collaborates with local government to implement community projects and programmes
  • Gold Fields celebrated 25 years in Ghana during 2018. The communications campaign included the launch of the Gold Fields Ghana Facebook page to communicate with employees and community members. Details can be found at www.goldfields.com/gold-fields-in-ghana.php

Manage risk and impact

DAMANG – SEEPAGE AND FLOODING

Risk: The Damang mine experienced a Level 3 environmental incident during the commissioning of the its new tailings storage dam (Environmental stewardship). A farming community, Togbe Junction, raised concerns when they found dead fish in the river. This could potentially impact the mine's social licence to operate.

Action

  • Intensive engagements with leaders and members of the community
  • Provided the community with potable water even though there was no contamination of any of the water sources used by the community
  • Implemented three-year livelihood enhancement projects that were agreed with members of the community
  • Ensured that surrounding communities were not impacted

Spend to date: US$80,200

TARKWA – VALUATION OF CROPS AND STRUCTURES

Risk: During 2016, a group of farmers near the Tarkwa mine’s Kottraverchy waste dump area disputed previously paid compensation and petitioned the Environmental Protection Agency (EPA) to mediate. The farmers argued that their crops and structures were not accurately assessed and valued. Various proposals by the mine and the EPA have been rejected by the farmers.

Action

  • Independent valuation to re-evaluate the crops and structures carried out in 2017
  • Meetings between Gold Fields and the Land Valuation Board (LVB) to determine the appropriate compensation to be paid
  • Submission of relevant documents to the LVB
  • Investigation by the Ministry of Lands and Natural Resources ongoing

TARKWA – BRAHABOBOM COMMUNITY DISPUTE

Risk: A group of residents within the Brahabobom host community, whose structures are close to the Tarkwa mine’s Atuabo-Mantraim pits, petitioned the Commission on Human Rights and Administrative Justice (CHRAJ), alleging infractions by the mine, and demanding resettlement. After its investigation, CHRAJ recommended the following:

  • Resettlement of those in the Brahabobom community who are located within 500m of the pits
  • The adoption of sound blasting practices
  • Operate within the provision of minerals and mining regulations

Action

Measures that have been taken by the mine to reduce blast impacts include:

  • Introduction of electronic blasting
  • Reduction in the number of blast holes
  • Creation of noise barriers
  • Planting of vegetation between the pits and the community
  • Engagement of an independent body to monitor blasts
  • Suspension of mining in the area closest to the Brahabobom community

Following CHRAJ’s recommendations, the Minerals Commission subsequently granted approval for blasting activities within 400m of the community, subject to the implementation of blast controls and blasting protocols. This has been officially communicated to CHRAJ. Tarkwa continues to engage on a final and amicable resolution.



Create and share value

We set and monitor quarterly and yearly host community procurement and employment targets. At both Tarkwa and Damang, we exceeded our 2018 host community employment targets of 70%. This is attributed to focused efforts to hire or retain host community members during the transition to contractor mining at Tarkwa and during the retrenchments at Damang. Furthermore, our host community procurement spend at Tarkwa increased from 12% in 2017 to 27% in 2018 and, at Damang, increased from 14% to 40% in 2018, exceeding our targets of 15%.

For more details of our host community programmes see Value creation and distribution and Stakeholder relations.

REHABILITATION OF THE 33KM ROAD BETWEEN TARKWA AND DAMANG

During 2016, Gold Fields began a comprehensive rehabilitation of the 33km public road that links the Tarkwa and Damang mines, and serves several communities along the corridor. Due for completion in Q1 2019, the road will have an asphalt finish, with safety features to prevent speeding and accidents. The total cost is US$26m.

Benefits to the community: The road is being constructed by local contracting companies who were asked to source workers mostly from our host communities. The improved road 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: A reduction in the cost of transportation and maintenance, improvement in safety, and reduction in travel time and fatigue, which will positively impact productivity. Many Damang employees live in and around Tarkwa, and commute by this road on a daily basis.

YOUTH EMPLOYMENT IN AGRICULTURE

In 2016, we started the Youth in Horticulture Production (YouHoP) programme in collaboration with the German government aid agency GIZ, which is aimed at creating employment opportunities and improving incomes for youth in our host community.

The second phase of the YouHoP programme started in 2018. During phase 2, 323 farmers were selected, bringing the total number of farmers engaged by the programme to 498. Other allied community employment created through YouHoP includes credit officers (12 youth), off-takers (18) and extension officers (9). During the year, farmers were training in disease and pest identification, green label certification, proper harvesting of produce, and off-take agreements.

Benefits to the community: The YouHoP programme reduces youth unemployment in our host communities and improves agricultural production in the area, which leads to increased income that can be reinvested in the community.

Benefits to Gold Fields: The YouHoP programme successfully reduces tension between the mines and the communities, maintains our social licence to operate and improves our reputation within the community.

Spend to date: US$584,000

OTHER MATERIAL VALUE CREATION PROJECTS

  • During 2018 we awarded 110 new scholarships and bursaries to tertiary students from our host communities, valued at US$271,000
  • Following practical assessments carried out for applicants of the apprenticeship programme at Tarkwa, 50 young men and women were selected in October for training on how to operate dump trucks and excavators. Furthermore, 55 applicants received training in associated professions
  • A medical outreach programme was held in Tarkwa and Sekondi-Takoradi. Over 1,000 residents from nearby communities received free health screening and medication
  • A cocoa support programme, aimed at assisting at least 100 cocoa farmers each year, was introduced and piloted during 2018

Measure actions and impacts

West Africa SED spend

West Africa SED spend

West Africa SED by type 2018

West Africa SED by type 2018

Engagement with communities

2016   2017   2018  
153   220   152  

Grievances


There was a decrease in grievances submitted during 2018. 49 grievances were received by both mines through their formal mechanisms during 2018 (2017: 54), relating to social issues (7), compensation (6), and environmental issues (36). All 49 grievances received in the year, and eight unresolved ones from 2017, were resolved. The 2016 grievance relating to disputed compensation by a group of farmers near Tarkwa's Kottraverchy waste dump remains under mediation. We will migrate our grievance mechanism to an electronic system in 2019.