AngloGold Ashanti Layoffs: Implications For The Mining Worker, Especially The ‘Galamsey’ Operator

Isaac Nunoo

The mining industry has been a very lucrative business in Africa and Ghana, though, not without a myriad of problems ranging from uncertainty, unfavourable policies, illegal mining to ill-community relations.

Ghana as a nation has not really benefited so much from the sector, even though, much profits accrues from such operations. Many environmental policies meant to protect the mining communities have rather worsened the plights of both the mining industry and the locals. Many locals have therefore on several occasions tried to take the law into their own hands demanding their pound of flesh from the mining companies.

Though the mining companies usually provide some social amenities like boreholes, schools, recreational centres and even electricity, much more is expected of them given the veracity of the discomfort and destruction associated with their operations. Cases of environmental degradation, health and other factors affecting livelihood in places like Tarkwa and Obuasi are just the tip of the iceberg. Interestingly, some of the mining workers, who are arguably paid well compared to workers in other sectors, dissipate their resources which eventually bring untold hardships on them in times of retrenchment.

The case of AngloGold Ashanti is just a few of the many quagmires which confront the mining workers in the country. The Mine Workers Union is warning the nation that this might just be the tip of the iceberg as more mining firms also prepare to lay off workers. The initial rumour was that 6500 workers were to be shown the exit. This was however rebutted at a durbar by The Chief Executive Officer of Ghana Chamber of Mines Sulemanu Koney. He intimated that the number would be around 400. He however, indicated that beginning this year, some workers of the company are going to be laid off. In other words, we should expect to see more than 400 workers of the company being laid off in the coming years. He has also said that the redundancy is coming on the heels of some 'operation challenges' encapsulating fuel price, labour cost and imported chemicals. He, again, cited the dwindling price of gold as having aggravated the situation.

Ghana's mining industry has for some months now seen a decline in not only prices but also output. In the third quarter of 2013, Ghana's output of the precious metal declined by 18% as indicated the Minerals Commission in an interview with Bloomberg.

With the gold price dropping by an average of 28% in 2013, many mining companies have had to cut back. And the implications are that revenue as well as employment is going to be low; companies would have to scale down operations. Newmont Mining for example, announced last year that it would lay off 300 employees in an attempt streamline measures.

According to the Wall Street Journal, the announcement by AngloGold to lay off workers brings to nine the number of companies planning to lay off a total of about 4,000 workers in the mining industry (in the country).

To me and I believe many of us, this is a clear indication that our gold ore deposit, just like any other mineral is non-renewable and faces extinction. It is also an indication that those working in the mining industry should think of alternative ways of survival. This especially applies to those engaged in what is popular called 'galamsey.' It has been told many times that those who engage in 'galamsey' hardly keep any money because they have the belief that if they spent all they have a day they will still get some windfalls the following day. In fact, they are best described as revellers. Anew, some of them also have a credo that 'life is short and the work is cumbersome so you have to 'chill' anytime you get some coins.'

I believe that the old adage that says that 'if your friend's chin is on fire get water by your side'is already a good advice to the 'galamsey' operators.

Apart from the fact that 'galamsey' is illegal, it is also shrouded in so much mystery. Many are those who have lost their lives through it (galamsey) leaving their families in grave sadness. Yes, we can whatever they did was to find means to put bread on the dining table for the same family members; so perhaps, they could be regarded as martyrs. But were they doing the right thing; following lay down regulations?

Small Scale Mining
The government of Ghana has passed an LI supporting and regulating the activities of small scale mining operators. However, many of these locals who are legally allowed to operate in the mining industry are continually harassed by security officers many of whom are not even on official errand. Many very expensive equipment belonging to locals operating in the SSMS are destroyed just to put them out of business perpetually. Of course, no one is saying that those not following the regulations and policies governing the industry should be extricated. But in as much as they should face the law, it is important to exercise circumspection. Instances where equipment and other logistics are mangled do not speak well of the Ghanaian law enforcers (including the Inter-Ministerial Task Force). Interestingly, there are many foreigners engaged in the same operations. Of course I will not forget to ennoble the Ministers of Foreign Affairs and Lands and Natural Resources and the security apparatus for those they have arrested and their refusal to negotiate with the Chinese government over an illegality.

MINING.com reported 'an estimated 50,000 foreign workers, mainly Chinese, were operating unlawfully in the country' as of last year before government's crackdown. This was an exercise that led to the expulsion of about two hundred Chinese from Ghana.

I recall a story I happened to be privy to __ a certain man in a Praso-bound car I took from Cape Coast, was engaged by others on the issue of 'galamsey' in the Western Region and to my surprise, he said it was not the first time that foreigners were engaged in 'galamsey,' especially in the Western Region. He intimated that the Chinese especially had been in Ghana over a decade doing 'galamsey.' He also added that the foreigners usually scout for pockets of land with ore deposits. As soon as they realize that a particular parcel of land has ore deposit they immediately buy it from the owner. Now what happens is that by time the owner realises the worth of his land they have already bought it and he/she can do nothing about it. Again, we were told the Chinese in particular, move out and come in with everything they have including their gold ore. And they usually sleep in the bush, of course not without good guns. They usually employ one or two locals to assist them in their operations. Of course, such locals also serve as their informants. Some prominent persons, we were told, are also involved.

So, if today some gold fields are being declared redundant, I think it behoves us as a nation to tackle the remote causes. It is also important for better policies to be made for us to get realistic returns from the mining industry.

Mining jobs, we all know are lucrative but not secure. There is countless number of people who have lost their jobs in the mining sector. Just last year, Zambian's Vedanta Resources threatened to lay off about 1, 500 workers.

The Way Forward
I believe that what is prudent to do is to rather educate, encourage and support our local companies to maximise enough profit from their operations paying realistic taxes and creating jobs for the Ghanaian populace. This will give them urge to employ fellow Ghanaians to work with. These small scale mining companies should not be overly taxed since this can lead to illegal activities.

Again, friendly policies that favour both the community and the mining operators should be promulgated. An estimate of how many ounces of gold should be extracted and sold every quarterly or year should be included in the policy.

Foreigners still operating in 'galamsey' business should be hunted and brought to book. Here, the local folks have even more responsibility than the security apparatus because they know very well where the perpetrators are hiding and/or operating.

Individual 'galamsey' operators should come together to establish a company and seek financial assistance from banks and other financial institutions like the Ghana Mine Workers Union (GMWU)'s savings and loan company, Golden Pride. Chiefs in areas where registered small scale mining companies operate should support them , collaborating with government to give them concessions and protecting them from illegal miners and other foreigners who would always use the Whitman's currency to pave their way through.

Laws are important in ensuring sanity and peace in a nation. Ghana is not a jungle field where one does whatever they please. It stands to reason that the existing policies regulating the operations of these small and medium scale mining companies in the country should be respected.

Families of young men and women engaged in 'galamsey' should endeavour to admonish them to either join small scale mining companies around or go into partnership to establish their own company.

It is also important for government to intervene when miners are unfairly dismissed or treated. I believe we can take a cue from what the Zambian authorities did when Vedanta Resources Ltd. tried to lay off 1,500 plus workers at its Zambia copper mine. The company's proposal to lay off 7% of its workforce so enraged the Zambian government that it threatened to revoke Vedanta local unit CEO's work permit.

Attitude, I believe, is what we really need to combat to remedy the majority of the quagmires plaguing the mining sector __ locals operating in the industry should respect the laws governing their operations; giant companies should pay realistic salaries; persons engaged in 'galamsey' should discontinue (and join companies already in the system or form partnerships; acquire a restricted reconnaissance license, restricted prospecting license, restricted mining lease or a small scale license and seek financial aid to operate formally).

Isaac Nunoo
The writer is a Communicator and a Researcher
([email protected])