Newmont faces legal action for non-payment of compensation

Livelihood & Environment Ghana (LEG), research and advocacy organization, is considering legal action against Newmont Africa for failing to pay compensation arrears in its Ahafo North project as stipulated by law.

The NGO says if Newmont fails to pay the poor farmers all their compensation arrears by the end of February 2024, it will be compelled to sue the multi-national mining company in court to ensure that the hundreds of landowners and farmers whose lands have been taken over by the mining company are duly compensated.

Addressing the media in Sunyani, the Executive Director of LEG, Mr. Richard Adjei-Poku, called on the government and other stakeholder groups to impress on Newmont to do the right thing without any further delay.

“Ghana is endowed with a lot of mineral resources including Bauxite, Iron Ore, Manganese, Diamond, Oil, Gold and many more. The country is now the largest producer of gold in the Africa sub-region. Ghana and the world at large, Newmont Corporation is the leading gold company. They have attained this because of their production from Ahafo and Akyem, Ghana”, he recounted.

Disdainful attitude
“Unfortunately, the company (Newmont Ghana Gold Limited) continues to be disdainful to the farmers and laws of Ghana,” he said.

According to him, both Article 20 (2a), 1992 Constitution of the Republic of Ghana and Section 73 (1) of the Minerals and Mining Act, (Act 703, 2006), mandate companies to execute a prompt payment of fair and adequate compensation to persons whose properties (buildings, crops and lands) shall be affected by mining operations.

“Again, Compensation and Resettlement Regulation (2012, L.I. 2175 Section 4 (1)) also mandates companies to pay property owners within three months after an amount of compensation payable has been agreed by parties else pay 10 percent interest anytime compensation remains unpaid.

The Executive Director wondered why Newmont parades itself as a responsible corporate citizen, but it is “exploitative, anarchist, violator, defiant and non-conformist as it is failing to pay compensation arrears of the vulnerable farmers in Ahafo North whose compensation packages were manipulated by the same company and its allies.”

He said Section 100 (1), Minerals and Mining Act (Act 703, 2006), compels government and the regulatory bodies to ensure proper implementation and companies’ compliance with the mining laws.

Mr. Adjei-Poku wondered why the government of Ghana last year issued an Executive Instrument compelling the concerned farmers in Ahafo North who rejected Newmont scanty compensation package to accept it else they shall use force to acquire the land, but the same government appears not to have heard about this matter.

Even though Newmont was reached on Monday for its response to the above issue, it was yet to make any official pronouncement on the matter at the time of filing this report on Thursday evening.

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