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Implementing the Ahafo Benefit Agreements IMPLEMENTING THE AHAFO BENEFIT AGREEMENTS: SEEKING MEANINGFUL COMMUNITY PARTICIPATION AT NEWMONT’S AHAFO GOLD MINE IN GHANA © 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: Boakye, B., Cascadden, M., Kuschminder, J., Szoke-Burke, S., Werker, E. (2018). Implementing the Ahafo Benefit Agreements: Seeking Meaningful Community Participation at Newmont’s Ahafo Gold Mine in Ghana. Canadian International Resources and Development Institute (CIRDI) Report 2018-003 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: Eric Werker i IMPLEMENTING THE AHAFO BENEFIT AGREEMENTS: SEEKING MEANINGFUL COMMUNITY PARTICIPATION AT NEWMONT’S AHAFO GOLD MINE IN GHANA June 2018 This report was written by Benjamin Boakye (Africa Centre for Energy Policy (ACEP)), Maggie Cascad- den (Simon Fraser University (SFU)), Jordon Kuschminder (Independent Social Performance (ISP)), Sam Szoke-Burke (Columbia Center on Sustainable Investment (CCSI)), and Eric Werker (Canadian International Resources and Development Institute (CIRDI) and Simon Fraser University (SFU)). Funding for the fieldwork was provided by CIRDI, and included in-kind contributions from ACEP, CCSI, ISP, and SFU. Fieldwork for the report was conducted in May 2017. We deeply thank the many people who spent time to discuss the implementation of the Ahafo benefit agreements with us. In the interests of ensuring factual accuracy, excerpts of all factual findings included in a draft of the report were sent to traditional authority representatives from each of the ten community towns and to Newmont representatives for feedback. We are grateful for the peer reviews of eight subject matter experts: Delgermaa Boldbaatar, Dalaibuyan Byambajav, Deval Desai, Kristi Disney, Tom Gunton, Andy Hira, Sean Markey, and Perrine Toledano. All remaining errors, and the discussion and considerations that follow from the research findings, are our own. ii IMPLEMENTING THE AHAFO BENEFIT AGREEMENTS: SEEKING MEANINGFUL COMMUNITY PARTICIPATION AT NEWMONT’S AHAFO GOLD MINE IN GHANA TABLE OF CONTENTS Executive Summary .................................................................................................... 1 1. Introduction .......................................................................................................... 9 1.1 What are Benefit Agreements? ..........................................................................10 1.2 Implementation of Benefit Agreements ..........................................................11 1.3 Purpose of the Report ........................................................................................12 2. Ghana’s Ahafo Mine ........................................................................................... 13 2.1 Gold Mining in Ghana .........................................................................................13 2.2 The Brong-Ahafo Region and the Ahafo Communities ..................................13 2.3 Newmont and the Ahafo Concession ...............................................................15 2.4 Recent Controversy.............................................................................................16 3. What is in the Agreements ................................................................................ 17 3.1 The 2008 Ahafo Benefit Agreements ................................................................17 3.1.1 Social Responsibility Agreement ....................................................................17 3.1.2 Employment Agreement ..................................................................................17 3.1.3 Development Foundation Agreement ..........................................................18 3.2 The 2014 Renegotiated Ahafo BAs ....................................................................19 3.2.1 Relationship Agreement ...................................................................................19 3.2.2 Employment Agreement ..................................................................................20 3.2.3 Development Foundation Agreement .........................................................20 3.3 Development Funding from the BAs ................................................................20 3.4 What’s Not in the Agreements? .........................................................................22 4. Earlier Findings on the AHAFO BAs .................................................................. 24 4.1 Newmont or Newmont-Funded Observations ................................................24 4.2 Independent Findings .........................................................................................25 4.3 Recognition and Awards ....................................................................................26 5. Methods ............................................................................................................... 27 6. Ahafo Perspectives ............................................................................................. 30 6.1 Negotiation and Renegotiation of the Ahafo Benefit Agreements ...............30 6.1.1 Objectives of the Ahafo BAs ...........................................................................30 6.1.2 Challenges to a Fair Deal During the Negotiations ...................................31 6.1.3 The 2014 Renegotiations .................................................................................32 iii IMPLEMENTING THE AHAFO BENEFIT AGREEMENTS: SEEKING MEANINGFUL COMMUNITY PARTICIPATION AT NEWMONT’S AHAFO GOLD MINE IN GHANA 6.1.4 Support Available to Communities ................................................................33 6.2 General Implementation of the Ahafo BAs ......................................................34 6.2.1 Varying Experiences of Communities ..........................................................34 6.2.2 Varying Experiences Within Communities ...................................................34 6.2.3 Community Awareness of the Ahafo BAs ....................................................35 6.2.4 Information Sharing and Communication ...................................................35 6.2.5 Barriers to Articulating Grievances ...............................................................36 6.2.6 Barriers to Meaningful Community Participation ......................................36 6.3 Implementation of the Relationship Agreement ............................................38 6.3.1 The Forum as a Multi-Stakeholder Body ......................................................38 6.3.2 Representation versus Delegation ................................................................39 6.3.3 Environmental and Social Monitoring ..........................................................40 6.3.4 Dispute Resolution Process ...........................................................................40 6.4 Implementation of the Employment Agreement ...........................................41 6.4.1 Meeting the Target ............................................................................................41 6.4.2 Dissatisfaction with Community Citizen Validation ....................................42 6.4.3 Unskilled Locals and Training for Jobs ..........................................................43 6.5 Implementation of the Development Foundation Agreement .....................43 6.5.1 Project Selection.................................................................................................43 6.5.2 Value for Money .................................................................................................44 6.5.3 Cross-Community Projects ..............................................................................44 6.5.4 The Funding Formula ........................................................................................45 6.6 Performance Outside of the Agreements ........................................................45 6.6.1 Developing Local Suppliers ............................................................................45 6.6.2 Compensation and Resettlement ..................................................................46 7. Discussion ............................................................................................................ 47 7.1 Design and Implementation of the Ahafo BAs ................................................47 7.2 Towards Better Corporate Performance .........................................................49 7.3 Considerations for the 2019 Review of the Ahafo BAs ...................................51 7.4 Improving Future Renegotiation Processes for the Ahafo BAs .....................51 7.5 Improving the Ahafo BAs ...................................................................................52 7.5.1 Improving the Implementation of the Ahafo BAs ......................................54 Endnotes .................................................................................................................... 56 iv IMPLEMENTING THE AHAFO BENEFIT AGREEMENTS:
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