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Mining Community Benefits in Ghana MINING COMMUNITY BENEFITS IN GHANA: A CASE OF UNREALIZED POTENTIAL © 2018 by the University of British Columbia and Canadian International Resources and Development Institute (CIRDI). The material in this publication is copyrighted. Quoting, copying, and/or reproduc- ing portions or all of this work is permitted provided the following citation is used: Hira A., Busumtwi-Sam J., (2018). Mining Community Benefits in Ghana: A Case of Unrealized Potential. Canadian International Resources and Development Institute (CIRDI) All opinions are those of the authors alone. Program undertaken with the financial support of the Government of Canada provided through Global Affairs Canada. Programme réalisé avec l’appui financier du gouvernement du Canada agissant par l’en- tremise d’Affairs mondiales Canada. Canadian International Resources and Development Institute Vancouver, British Columbia, Canada www.cirdi.ca [email protected] Cover photo: Jordon Kuschminder I MINING COMMUNITY BENEFITS IN GHANA: A CASE OF UNREALIZED POTENTIAL TABLE OF CONTENT List of Abbreviations .................................................................................................IV Executive Summary .................................................................................................... 1 1. Introduction ...................................................................................................... 3 1.1 Overview of the Study .......................................................................................... 3 1.2 Research Methods and Data Collection Activities ............................................. 4 PART 1: POLITICAL ECONOMY OF MINING IN GHANA ............................................. 6 Chapter 2. Ghana’s Political Economy ......................................................................... 6 2.1 Society and Economy .......................................................................................... 6 2.2 Modern History & Governance ........................................................................ 7 2.3 Governance in the Fourth Republic, 1993-2018 .......................................... 8 Chapter 3. Mining in Ghana ........................................................................................10 3.1 Overview of Mining in Ghana ..........................................................................10 3.2 Mining Governance ..........................................................................................11 3.3 The Mining Fiscal Regime ................................................................................14 3.4 Distribution of Mining Revenues ....................................................................14 PART 2. ISSUES IN MINING GOVERNANCE .............................................................. 17 Chapter 4. Community Benefit Agreements .............................................................17 4.2 How Monitoring and Evaluation (M&E) Can Help to Improve CBAs .............23 Chapter 5. Literature Review: Key Governance Issues in Ghana’s Mining Sector 27 5.1 Coherence in National Policies & Laws/Regulations on Mining .............27 5.2 Mining Revenue Collection .............................................................................28 5.3 Distribution and Use of Mining Revenues ...................................................29 5.4 Mining Governance Capacity .........................................................................30 5.5 Mining and Human Rights ...............................................................................30 5.6 Artisanal & Small Scale Mining (ASM) and Youth Employment...............31 5.7 Other Issues in Mining Governance .............................................................33 PART 3. CASE STUDIES ............................................................................................... 35 Chapter 6. Case Study 1: Newmont Gold Ghana Ltd ...............................................35 6.1 Overview of Newmont .....................................................................................35 6.2 Interviews in Kenyasi Community ..................................................................37 6.3 Survey Results for Kenyasi Community ........................................................38 6.4 Outside Studies and Reports on Newmont ................................................43 Chapter 7. Case Study 2: Golden Star Resources Ghana Ltd ..................................44 II MINING COMMUNITY BENEFITS IN GHANA: A CASE OF UNREALIZED POTENTIAL 7.1 Overview of Golden Star Resources ..............................................................44 7.2 Interviews in Prestea/Bosgoso .......................................................................46 7.3 Survey Results for Prestea/Bogoso Community ........................................48 7.4 Outside Studies and Reports on Golden Star Resources ........................53 Chapter 8. Case Study 3: AngloGold Ashanti (Ghana) Ltd .......................................54 8.1 Overview of AngloGold Ashanti Ghana Ltd ................................................54 8.2 Interviews in Iduapriem/Tarkwa Community ..............................................55 8.3 Survey Results for Iduapriem/Tarkwa ..........................................................56 8.4 Outside Studies and Reports on AngloGold Ashanti ................................62 Chapter 9.Monitoring & Evaluation Practices CoMpared .......................................64 9.1 Newmont ..............................................................................................................64 9.2 Golden Star Resources and AngloGold Ashanti .........................................65 Chapter 10. Interviews in Accra ..................................................................................67 10.1 Interviews with Government Agencies .........................................................67 10.2 Interviews with Ghana Chamber of Mines and Mineworkers Union ....68 10.3 Interviews with NGOs/CSOs ............................................................................69 PART 4. FINDINGS & RECOMMENDATIONS ............................................................. 70 Chapter 11. Findings and Recommendations .........................................................70 11.1 Summary of Research Findings ......................................................................70 11.2 Broad Recommendations on Mining Governance ....................................76 11.3 Specific Recommendations on CBAs & M&E systems ..............................78 Appendix 1: Interview Questions ...............................................................................80 Appendix 2: Survey Questions....................................................................................82 Appendix 3: Ethics Protocols ......................................................................................85 Appendix 4: PRINCIPLES OF MINERALS AND MINING SECTOR POLICY .................89 References ................................................................................................................. 91 III MINING COMMUNITY BENEFITS IN GHANA: A CASE OF UNREALIZED POTENTIAL LIST OF ABBREVIATIONS AGA AngloGold Ashanti AMV African Mining Vision ASM Artisanal and Small Scale Mining AU African Union CBA Community Benefit Agreement CDS Community Development Scheme CHRAJ Commission on Human Rights & Administrative Justice CIRDI Canadian International Resources Development Institute CPP Convention Peoples Party CSO Civil Society Organization CSR Corporate Social Responsibility DA District Assembly DCE District Chief Executive ECOWAS Economic Community of West African States EITI Extractive Industries Transparency International EMDP ECOWAS Mineral Development Policy EPA Environmental Protection Agency ERP Economic Recovery Program GHEITI Ghana Extractive Industries Transparency International GRI Global Reporting Initiative GSD Geological Survey Department GSR Golden Star Resources ICMM International Council for Mining and Metals MDF Minerals Development Fund M&E Monitoring and Evaluation MMDAs Metropolitan, Municipal & District Assemblies MMSD Mining, Minerals & Sustainable Development MNC Multinational Corporation MSG Multi-Stakeholder Group NDC National Democratic Congress NERG National Environmental and Resource Governance Program NGO Non-Governmental Agency NPP New Patriotic Party IV MINING COMMUNITY BENEFITS IN GHANA: A CASE OF UNREALIZED POTENTIAL OASL Office of the Administrator of Stool Lands PM&E Participatory Monitoring & Evaluation PMMC Precious Minerals Marketing Corporation PNDC Provisional National Defence Council PNP Peoples National Party PP Progress Party RCC Regional Coordinating Councils V MINING COMMUNITY BENEFITS IN GHANA: A CASE OF UNREALIZED POTENTIAL DEDICATION Dedicated to the hard working men and women in Ghanaian mining communities, may they find a better day. ACKNOWLEDGEMENTS We would like to thank Jordon Kuschminder of Independent Social Performance. He was instrumen- tal in helping to guide the field research to a successful conclusion. We gratefully acknowledge the financial backing of the Canadian International Resources Development Institute (CIRDI) and Simon Fraser University (SFU) to complete the project. We acknowledge the research assistance of Denis Dogah, Leighton Kerr and Raphael Ochil at SFU. We also acknowledge the logistical support and research facilitation provided by our consultant in Ghana and his team of field research assistants. This project is part
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