body-container-line-1
29.03.2009 Research Findings

Ghana Mining Report: Gold Firms Abusing Human Rights

By The Statesman
Ghana Mining Report: Gold Firms Abusing Human Rights
29.03.2009 LISTEN

The 2009 Ghana Mining report has criticized government for only having interest in making money in the Gold industry and disregarding the plight of mine affected people.

The report, which was intercepted by The Statesman described Ghana as being many leagues behind South Africa when it comes to regulations to protect the rights of the locals; even though it hosts the second-largest gold deposits in the African region after South Africa.

The report said in spite of the numerous criticisms by human rights activists and environmentalists, foreign players continue to exploit legal loopholes and abuse both human rights as well as the environment to the detriment of humanity.

"Injustice against the mining communities and lack of proper compensation to affected communities in Ghana is an everyday affair that usually passes unnoticed. The water bodies in such communities are constantly polluted and left for them to consume" the report noted.

According to the Ministry of Mines and Energy, the report noted, approximately 30% of Ghana's land is under concession to mining companies and every year more farmland is converted for this use.

The mining report further faulted the Ghana's Commission on Human Rights and Administrative Justice which has the mandate to protect human rights in the country for doing little to promote human rights in communities around mining areas and for allegedly claiming that "Ghana's mining laws are designed to attract foreign investors and not to protect the rights of local communities".

The repot recommended that issues of regulation over compensation ought to be updated and that the current price levels for valuing crops, livestock and landed property for compensation should be reviewed to help improve the living conditions of mine affected persons.

The nation derives a bulk of its external revenues from gold mining -forming as much as 90% of the total mineral exports of Ghana but receive less than 10 percent royalties from the sale of the commodity.

According to data from the Ghana Chamber of Mines, Ghana's gold output increased by 4% to 2.6mn ounces in 2008. Meanwhile, the rising price of gold – which has been seen as a safe haven during the credit crunch – resulted in mining revenues reaching US$2.3bn, an increase of 28% on 2007 levels. Gold accounts for approximately 90% of Ghana's income from minerals.

Though the mining industry has been successful in attracting foreign capital, it has also been subject to criticism from the Ghanaian government, environmentalists and human rights activists. Foreign players have been known to exploit legal loopholes and abuse both human rights as well as the environment.

The basic law governing the mining industry is the Minerals and Mining Act 2006 (Act 703 which grants the president the power to grant mining rights.

The report however said pressure had been mounted of Ghana's government by civil society organizations to amend the law and allow farmers to have a say in authorizing their lands for mining activity.

This it said is increasingly gaining favour in the country – and is being seen as a necessary move to crack down on the rampant exploitation of the environment by mining industries. The value of the mining industry is expected to increase from US$1.03bn in 2008 to US$3.14bn in 2013.

body-container-line