Ghana: How Mining Companies Breathe Life Into Host Communities

Newly asphalted Tarkwa-Damang Road in Prestea-Huni Valley in the Western Region of Ghana

November 16, 2019//-Bumping roads which used to be the constant speckle welcoming visitors into Ghana’s mining communities in the past are becoming a thing of the past.

This is due to sustained investments by mining companies operating in the communities. These investments are being backed by the country’s mining sector local content policy.

Social investments

For instance, recently Gold Fields Ghana, a member of Ghana Chamber of Mines commissioned a 33km road in Damang in the Western Region, as part of its corporate social investments.

One of the key highlights of this voluntary social intervention was that, the GH₵145 million ($27 million) contract was awarded to four local Ghanaian companies.

The project, financed by Gold Fields Ghana links the Tarkwa-Damang communities including Aboso, Bompieso Amoanda, Huni-Valley, Kyekyewere and Nyamebekyere.

A three unit classroom Early Childhood Development Centre and the renovation of Akoon M.A primary and Junior High School

The project among others is meant to improve the economy of the area as well as other projects.

The West Africa Head of Goldfields, Alfred Baku told African Eye Report as part of the publication’s tour of mining communities in Western, Eastern, Central, Ahafo, and Ashanti regions that, “the project was undertaken under the Gold Fields’ shared-value initiative, aimed at promoting the socio-economic development of our host communities”.

I am happy to announce that this road will last for the next 20 years and even beyond. It is also worth mentioning that the four contractors who built this beautiful road are local construction companies selected by the Ghana Highway Authority.”

Mr Baku added: “We are upgrading the Tarkwa and Abosso Park, popularly known as T&A Park, into a modern stadium. We are also working on upgrading the Apinto Government Hospital, which is the first government hospital in the country.

This facility according to him would have a new medical hub with fully equipped emergency centre, operating theatre and an intensive care unit.

“We are investing close to GH₵100 million in these two legacy projects. We also intend to rehabilitate the inner roads of Huni-Valley and Damang”, Mr Baku said.

Since the establishment of the Gold Fields Ghana Foundation in 2004, it has invested over $87 million in community projects and programmes, particularly in the areas of health, education, agriculture, water and sanitation.

“Our focus is not only on providing physical infrastructure, we are also committed to developing the human capital among our workforce and our host communities.

These two go hand-in-hand and we are proud to say that almost 75% of our workforce hails from the communities around us here”, the Group CEO of Goldfield, Nick Holland, emphasized.

“Employing members from our host communities is one of the best ways of creating economic benefits for the towns and villages that are adjacent to our mines”, Mr Holland said.

Boosting local economies

Besides, the mining companies are also investing in their host communities by supporting local businesses to take part in the value chain of the country’s mining industry.

 This remarkable development has boosted the local economies of the mining areas and their surrounding communities in all the regions toured by the African Eye Report.

For instance, the Newmont Goldcorp’s Akyem Mine in the Eastern Region has 420 local businesses that it does business with. It also has capacity building programmes that it rolls out to ensure that these local businesses are capable of helping the mine to meet its objectives.

Newmont Goldcorp Akyem 2019 Learnership graduants 4th Batch

In 2018, the Akyem mine alone spent over $8 million on the local businesses which provide various services including transportation, wielding, and reclamation activities to the company.

For a project like this it is important to have every part of the construction done correctly, that´s why these welding professionals should be contacted for their expert services.

A post weld heat treatment complies with all the recent welding codes and other mandatory requirements for certain metals. The welding codes often apply to metals like stainless steel, carbon steel, work-hardened steel and high alloy steel.

The Acting Communications and External Relations Manager of Newmont Goldcorp’s Akyem Mine, Dr Osenkor Gogo told African Eye Report: “In 2018, our local content target was $7 million for Akyem mine. But we exceeded that target and spent $8.8 million on local businesses alone”.

In 2019, we set an even higher target of $9 million and we are working very hard to ensure that we meet that target”.

 For AngloGold Ashanti (AGA) which operates the Obuasi and Iduapriem mines located in the Ashanti and Western regions of Ghana respectively, revealed that 85% of its Obuasi Mine Redevelopment Project expenditure goes to Ghanaian businesses.

The 85% spend which worth millions of dollars in monetary terms had been paid to local and national companies since the commencement of the project in early this year.

The Senior Manager In-charge of Sustainability of AngloGold Ashanti Obuasi Mine, Emmanuel Baidoo revealed.

He was emphatic the project had been successful and impactful on the lives of the people.

Giving the breaking down, he said that Obuasi Mine proudly employs 58% of new hires from host communities, while 63% of contractor employees were from the same host communities.

Mr Baidoo added that the company also enrolled 46 youth in apprenticeship programme, stressing that the company’s graduate traineeship was being piloted.

Obuasi sustainability strategy according to him was “contributing to building resilient communities … to maintain our Social Licence to Operate”.

“We are going beyond compliance to legislation…..to ensure we create and retain value in Ghana over the long term”, Mr Baidoo, said.

The project has placed a premium on local content, with 80% of the capital thus far spent incountry, according to the Managing Director of the Obuasi Mine, Eric Asubonteng.

Impacting lives

Across-section of youth in the mining communities told this publication that the mining companies were living up to their expectations.

“Our lives have improved tremendously since the commencement of mining activities in our area”, they stated.

Ernest Asante, a 40 old-year farmer at Damang said: “It was difficult transporting our farm products to the market centres. But that problem has been solved following the commissioning of the Tarkwa-Damang road by Gold Fields”.

Richmond Obeng Mensah, Managing Director of Tubingen Company Limited, a local company which does branding, welding and other supply services to the mine praised Newmont Goldcorp’s Akyem Mine highly for their unflinching support.

Richmond Obeng Mensah, Managing Director of Tubinge Company Limited

“If not for their support, I won’t have been able to grow my company to the point of employing over 15 indigenes from the communities”, he said.

In his own words: “Right now, I employed eight permanent workers and another eight casual workers. They are casual because the reclamation activities are done in quarterly basses. So, every quarter when there is a contract I call them to come and work”.

But the eight onsite at the Akyem mine are permanent. I pay their SSNIT contributions every month. Mr Mensah told the news website.

 “I’m earning very good payments from Newmont. Even the exposure along is something to be proud of”.

Besides, the Tubingen Company Limited, S.K Boafo Company which provides transportation services for the Akyem mine, and Obaapa’s Golden Plaza Hotel in the New Abirem are among the 420 local content beneficiaries of the mine.

 Local content is the pathway

Local content is the key pathway through which the minerals and mining sector interacts with the non-mining economy to spur national development. It is also the vehicle in which it ploughs back of minerals export receipts and expenditure of same in-country.

In addition to the fiscal contributions, the mining industry continues to create significant value to its various stakeholders, particularly suppliers of goods and services into supply chain, according to the Chief Executive Officer of the Ghana Chamber of Mines, Sulemanu Koney.

Mining companies operating in Ghana procured 94.4% of their inputs from local supplies as part of a deliberate effort to enhance local content in the country.

Data from the Minerals Commission has disclosed. The procurement figure rose by 1.57% in 2017 from 92.83% in 2016. If the 2018 and 2019 data is released, the local procurement spending may reach 100%.

The Ghana Chamber of Mines and the commission are aiming to achieve 100% local procurement of mining supplies soon.

This is in sharp contrast to the long-held perception that mining companies mostly procure their goods abroad, denying local suppliers of business to boost local economic development in the country.

Under Regulation 2(2) of the Minerals and Mining (General) Regulations, 2012, L.I. 2173, mineral right holders are required to submit to the Commission, a five-Year Procurement Plan which among other things details – targets for local procurement covering at least items in local procurement list (LPL).

Third edition of LPL which was published in October, 2018 contains 10 items:  Legal, Security, Insurance, Financial, Contract Mining Services, Fuel Supply, Activated Carbon, Cable Bolt & access, Wear-resistant plates and Cupels.

In 2018, the sector contributed 9.8% to GDP compared to 7.3% in 2017, making it the fourth largest economic sector by value.

Mr Koney indicated that proceeds from the export of minerals also accounted for 39% of gross merchandize exports, making it the foremost source of export earnings for the economy.

Minster of Lands and Natural Resources, Kwaku Asomah-Cheremeh, admitted that local content and value addition had become integral part of the strategies that resource-rich countries including Ghana had adopted to increase the benefits from resource extraction and stimulate broad base growth beyond securing optimal rents, royalties, taxes, shares and other revenues.

Indeed, the goal of the local content strategy is to promote linkages with other sectors of the economy through local employment opportunities, local manufacturing of inputs, in-country spending on local procurement of goods and services, technology and skills transfer on local participation through equity and management.

By Masahudu Ankiilu Kunateh, African Eye Report

 

 

 

 

 

 

 

Leave a Reply

*