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Attitudes of Local People to Mining Policies and Interventions

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Attitudes of Local People to Mining Policies and Interventions Working paper Attitudes of Local People to Mining Policies and Interventions Daniel K. Twerefou Kwadwo Tutu John Owusu-Afriyie Kwame Adjei-Mantey May 2015 When citing this paper, please use the title and the following reference number: E-33107-GHA-1 Attitudes of Local People to Mining Policies and Interventions By Daniel K. Twerefou, Kwadwo Tutu, John Owusu-Afriyie and Kwame Adjei-Mantey May, 2015 1 | Page Contents Acronyms ............................................................................................................................................................ 4 Chapter One: Introduction ............................................................................................................................... 6 1.1 Background to the study ........................................................................................................................ 6 1.2 Research questions .................................................................................................................................. 7 1.3 Aims and objectives ................................................................................................................................ 7 1.4 Structure of report .................................................................................................................................. 8 Chapter Two: Research Approach and Methodology .................................................................................. 9 2.1 Introduction ............................................................................................................................................. 9 2.2 Desktop Research ................................................................................................................................. 10 2.3 Preliminary Stakeholder Consultations and Reconnaissance Survey ............................................ 10 2.4 Survey ..................................................................................................................................................... 11 2.5 Focus Group Discussions and Key Informant Interviews ............................................................. 13 3. Chapter Three: Overview of Mining in Ghana ...................................................................................... 15 3.1 Socio economic environment.............................................................................................................. 15 3.2 Mining Sector Reforms ........................................................................................................................ 16 3.3 Impact of Mining Sector Reforms ...................................................................................................... 16 Chapter Four: Literature Review ................................................................................................................... 21 4.1 Mining and Conflicts ............................................................................................................................ 21 4.2 Resettlement and Compensation ........................................................................................................ 23 4.3 Small Scale Mining ................................................................................................................................ 25 4.4 Mining and the Environment .............................................................................................................. 27 4.6 Alternative livelihood Programes ....................................................................................................... 30 Chapter Five: Results and Discussions ......................................................................................................... 31 5.1 Introduction ........................................................................................................................................... 31 5.2 Socio Demographic Characteristics of Respondents....................................................................... 31 5.3 Social Factors Influencing Attitude .................................................................................................... 32 5.3.1 Resettlement ................................................................................................................................. 33 5.3.2 Conflicts ................................................................................................................................... 39 5.3.3 Provision of social amenities .................................................................................................... 44 5.4 Economic Factors affecting attitude .................................................................................................. 46 5.4.1 Compensation ............................................................................................................................... 47 2 | Page 5.4.2 Unemployment in Mining Communities ................................................................................ 52 5.4.3 Alternative Livelihoods Programmes...................................................................................... 54 5.5 Environmental Factors Affecting Attitude ....................................................................................... 56 5.5.1 Land Degradation ........................................................................................................................ 57 5.5.2 Noise pollution ............................................................................................................................. 59 5.5.3 Water pollution ............................................................................................................................ 59 5.5.4 Cracks in buildings caused by vibration from blasting ....................................................... 60 5.5.5 Forest destruction ........................................................................................................................ 61 5.5.6 Air pollution ................................................................................................................................. 62 5.6 Small Scale Mining ................................................................................................................................ 63 5.6.1 Social and Environmental Problems of SSM ........................................................................ 65 5.6.2 Income, poverty and inequality amongst SSM and Non-SSM Workers ......................... 67 5.6.3 Illegal Small Scale Mining ........................................................................................................ 69 5.6.4 Factors Influencing Participation in Illegal SSM Activities ..................................................... 71 5.7 Attitude of mining communities towards Mining sector policies and interventions .................. 75 Conclusions and Recommendations ............................................................................................................. 76 References ......................................................................................................................................................... 81 3 | Page Acronyms ALP Alternative Livelihood Program CNC Compensation Negotiation Committee CSOs Civil Society Organizations CSR Corporate Social Responsibility EIA Environmental Impact Assessment EITI Extractive Industries Transparency Initiative EPA Environmental Protection Agency ERP Economic Recovery Program FDI Foreign Direct Investment FGD Focus Group Discussion GCM Ghana Chamber of Mines GDP Gross Domestic Product GETFund Ghana Education Trust Fund GLSS Ghana Living Standards Survey GoG Government of Ghana GPRS I Ghana Poverty Reduction Strategy GPRS II Growth and Poverty Reduction Strategy GSGDA Ghana Shared Growth and Development Agenda GSS Ghana Statistical Service ICMM International Council on Mining and Metals LI Legislative Instrument LSM Large Scale Mines MC Minerals Commission MDF Minerals Development Fund MDG Millennium Development Goals MESTI Ministry of Environment MIDR Mining Induced Displacement and Resettlement MLNR Ministry of Lands and Natural Resources MMDAs Metropolitan MoF Ministry of Finance MTDP Medium Term Development Plan NDPC National Development Planning Commission NGOs Non Governmental Organizations NHIFund National Health Insurance Fund NTFP Non Traditional Forest Product OASL Office of the Administrator of Stool Lands PMMC Precious Minerals Marketing Company PNDCL Provisional National Defense Council Law RNC Resettlement Negotiation Committee SAP Structural Adjustment Program SOEs State Owned Enterprises SPSS Statistical Package for Social Sciences SS Small Scale SSM Small Scale Mining SSMs Small Scale Miners 4 | Page TA Traditional Authority 5 | Page Chapter One: Introduction 1.1 Background to the study Many minerals can be found in Ghana including gold, diamond, bauxite, manganese, salt and other minerals such as granite, gravels, sand and clay. Gold, diamond, manganese and bauxite being the most important in terms of economic value and foreign exchange earnings. Several challenges confronted the mining sector right after independence which made it difficult for the mining sector to expand and increase production. These include obsolete machines and equipment, deteriorating infrastructure, cumbersome import licensing and mining acquisition procedures, lack of foreign exchange and weak institutional and legal framework
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