Mining and its Impacts on Land and Agriculture in Ghana. By Dr. Ibrahima AIDARA OSIWA Economic Governance Program Manager

Similar documents
TAXATION AND AID FOR DOMESTIC RESOURCE MOBILIZATION (D.R.M.) AID: HELPING OR HARMING DOMESTIC RESOURCE MOBILIZATION IN AFRICA

Corporate Social Responsibility (CSR) for Responsible Agricultural Investments (RAI)

IBIS Policy Extractive Industries

Competitive Advantage of Libyan Business Environment

NEWMONT GHANA GOLD LTD. AHAFO SOUTH PROJECT COMPLETION AUDIT TERMS OF REFERENCE RESETTLEMENT ACTION PLAN

China s experiences in domestic agricultural support. Tian Weiming China Agricultural University

Striving for Good Governance in Africa

Fifty years of Australia s trade

IBIS Global Strategy for Democratic Governance, Citizens Rights and Economic Justice

NEWMONT GHANA GOLD LTD - AHAFO SOUTH PROJECT. INDEPENDENT MONITORING OF RESETTLEMENT IMPLEMENTATION - 2 nd REVIEW OF DECEMBER 2005 PROGRESS UPDATE

THE REGULATORY FRAMEWORK FOR SOLID MINERALS DEVELOPMENT IN NIGERIA

Meeting Urban Development Challenges

NEWMONT GHANA GOLD LTD. AHAFO SOUTH PROJECT COMPLETION AUDIT TERMS OF REFERENCE ENVIRONMENTAL, HEALTH, AND SAFETY

Progress report: Artisanal and Small-scale Mining over the last 10 years. Presented by Assheton Stewart Carter SVP Global Engagement Pact

A version of this essay was published as "Reduziert die Globalisierung die Kinderarbeit?" in Neue Zürcher Zeitung, February 23/24, 2002 p29.

the sale of mercury to natives. According to Ofosu-Mensah the law was passed by the colonial

GHANA S LAND ADMINISTRATION PROJECT: ACCOMPLISHMENTS, IMPACT, AND THE WAY AHEAD. W. ODAME LARBI (PhD, FGhIS) CHIEF EXECUTIVE OFFICER LANDS COMMISSION

GLOBAL ALLIANCE FOR CLIMATE-SMART AGRICULTURE (GACSA)

Research to improve the use and conservation of agricultural biodiversity for smallholder farmers

Investing in rural people in Indonesia

Comparing Chinese Investment into North America and Europe

PRESENTATION ON GHANA S NATIONAL COCOA PLAN

WATCH NATURAL RESOURCE SIERRA LEONE AT A GLANCE. US$ billion REPORT ON: FEBRUARY 2014

Intervention on behalf of Denmark, Norway and Ireland on the occasion of the Open Working Group on Sustainable Development Goals meeting on

Company Income Tax and Other Taxes

PERU TRADE BARRIERS FREE TRADE NEGOTIATIONS

VIETNAM FORUM ON LIFELONG LEARNING: BUILDING A LEARNING SOCIETY. ILO Director Ms. Rie Vejs-Kjeldgaard Hanoi, 6-8 December 2010

5. Industrial and sector strategies

MEKELLE. ፼፼፼፼ ፼፼፼፼ ፼፼፼፼፼ ፼፼፼፼ Bright Africa Youth Association

DEPARTMENT OF FORESTRY DRAFT REVISED NATIONAL FOREST POLICY OF MALAWI

Unemployment: Causes and its Economics Outcomes during Recent Years in Afghanistan


The social and economic impacts of gold mining

On the occasion of the Service Exporter Network Annual Meeting and Conference November 2008, Johannesburg

INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

THE YOUTH ISSUE BASED POSITION

The role of Agricultural cooperatives in accessing input and output markets An overview of experiences of SRFCF, SNNPR, Ethiopia

Following decades of instability and several natural disasters,

Agricultural Growth Is the Key to Poverty Alleviation in Low-Income Developing Countries

CZECH ECONOMY CZECH ECONOMY. Ing. Jaroslav Vomastek Director of the Department of Economic Analysis

SIERRA LEONE UPDATES FROM THE INSTANBUL PRIORITY AREAS OF ACTION

BENCHMARKING THE BUSINESS OF SUSTAINABLE SMALLHOLDER FARMING

Guidelines for Civil Society participation in FAO Regional Conferences

GHANA. 01

THE EFFECT OF SCIENCE IN COCOA PRODUCTION FARMER S POINT OF VIEW

Chapter 6:Economies in Transition Economic systems: is a set of institutions for allocating resources and making choices to satisfy human wants.

Ministry of Finance. Ha Noi, December 2013

Participatory planning and monitoring

TANZANIA REAL ESTATES INVESTMENT OPPORTUNITIES

GEF PACIFIC IWRM PROJECT RESULTS NOTE

FEED THE FUTURE LEARNING AGENDA

Principles for Responsible Agricultural Investment that Respects Rights, Livelihoods and Resources

LOCAL REVENUE GENERATION: UGANDAN EXPERIENCE

Business as Usual is Not an Option: Trade and Markets

CALL FOR PROPOSALS. PEOPLE s RIGHT TO WATER WHEN FACING EXTRACTIVE ACTIVITIES

How To Help The World

2011 Tunza International Children and Youth Conference Bandung Declaration October 1, The Voice of Children & Youth for Rio+20

Reading the balance of payments accounts

Global water resources under increasing pressure from rapidly growing demands and climate change, according to new UN World Water Development Report

Challenges of Public Administration Reform in Myanmar

EC2105, Professor Laury EXAM 2, FORM A (3/13/02)

The Business Case for Sustainability

The Role of the Public Service

Performance Standard 8:

Web Annex 6: Output indicators and targets

KENYA CIVIL SOCIETY PLATFORM ON OIL AND GAS AGENDA FOR KENYA S OIL AND GAS DEVELOPMENT

COMMUNITY EMPOWERMENT (SCOTLAND) BILL [AS AMENDED AT STAGE 2]

SOCIAL AND COMMUNITY DEVELOPMENT OF THE AHAFO REGION COLLABORATION TO PROMOTE PROJECT BENEFITS VISION AND COMMITMENTS AHAFO GOLD PROJECT

INDIA CONSTRUCTION INTRODUCTION IMPORTANCE OF INFRASTRUCTURE CONSTRUCTION IN INDIA

SIXTY Years of Fair Trade A brief history of the Fair Trade movement November 2006

The Role of Government in the Economy

Ireland and the EU Economic and Social Change

Post Conflict Agricultural Development in Ethiopia: General Overview. Jemal Yousuf, Haramaya University, Ethiopia

Seeing the Forest for the Trees Making the Most of Synergies to Achieve SDGs in a Constrained Environment By Mahmoud Mohieldin and Paula Caballero

MINISTRY OF TRADE AND INDUSTRY STATEMENT BY HON. CALLE SCHLETTWEIN, MINISTER OF TRADE AND INDUSTRY,

Inclusive Model for Agribusiness Development. October 2011

Rio Political Declaration on Social Determinants of Health

Increasing farm debt amid decreasing interest rates: An explanation

CHARCOAL PRODUCTION AND COMMERCIALIZATION IN KENYA. Robert Pavel Oimeke Ag. Director Renewable Energy Energy Regulatory Commission, Kenya

VOLUNTARY GUIDELINES ON THE GOVERNANCE OF TENURE. At a glance

Federal Democratic Republic of Ethiopia Growth and Transformation Plan Annual Progress Report for F.Y. 2012/13

Egypt's ICT A General Overview. Dr. Magued Osman Minister of Communications & Information Technology

Liberia Leasing Investment Forum

Effects of the Global Economic Crisis on Health: Ghana's Experience

The. The Future of Expatriate Remuneration. SARA Johannesburg Kohl van Rensburg Nevan Naidoo

KEY HUMAN RIGHTS AND BUSINESS CHALLENGE: WORKING CONDITIONS Pillars in Practice Multi-stakeholder Forum Recommendations:

WHY SHOULD THE DRAFT LAW ON FORESTRY AND WILDLIFE REGULATIONS BE ADOPTED? POSITION OF THE TRADITIONAL AUTHORITIES OF CAMEROON

Competition based Industrial Policy. Outline. What is industrial policy? What is industrial policy? Framework for Industrial Policy

Growth promotion through industrial strategies in Zambia

Trinidad and Tobago. Table 1: GDP Value Added by Industry (Million Dollars, Constant Prices) & % Share in Total Value Added

SECTOR ASSESSMENT (SUMMARY): WATER SUPPLY AND OTHER MUNICIPAL INFRASTRUCTURE AND SERVICES Sector Performance, Problems, and Opportunities

Economic Overview. East Asia managed to weather the global recession by relying on export-oriented

SCIENCE, TECHNOLOGY AND INNOVATION FOR THE TRANSFORMATION OF AFRICAN ECONOMIES

Criticisms of The Neo-Classical Development Model. Colin Henning ECON 4999 Spring 2008

How To Understand The Economic Situation In Saint Lucy

Robert M. Persaud, MBA, MP Minister of Agriculture

Rwanda. Strategy for Sweden s development cooperation with MFA

Answer Keys to Unit Tests

SUMMARY OF THE FORUM Vietnam: Readiness for WTO Accession Hanoi, June 3-4, 2003 and Ho Chi Minh City, June 6-7, 2003

Will Sulfide Mines Bring Employment and Economic Benefits to Northern Minnesota?

Transcription:

Mining and its Impacts on Land and Agriculture in Ghana By Dr. Ibrahima AIDARA OSIWA Economic Governance Program Manager UNCCD-COP 11, Windhoek Namibia 17 th September 2013

Mining is an increasingly important part of several national economies within the West Africa region (1). West Africa is Africa s poorest region despite growing mining operations (2). Weak capacity of states to adequately regulate and monitor mining operations or to transparently invest the revenues generated by the industry. Mining has potential to fund development efforts (3)

Overview of mining in Ghana Gold mining in Ghana The Jungle Booms (1) o 1 st Jungle Boom: Started in 1892 and peaked in 1897; o 2 nd Jungle Boom started in 1925; o 3 rd Jungle Boom started in the mid 1980s Conditions and attraction for the 3 rd Jungle Boom (2) o Strong desire of government to attract FDI through generous incentives Incentives For Attracting Multinational Mining Companies (3) o Weak and liberal regulatory framework

Overview of mining in Ghana (ctd) Mining Regulatory Framework in Ghana (i) The Minerals and Mining Act (Act 703) permits foreign mining companies to retain not less than twenty five(25%) of its foreign exchange earnings in offshore accounts (Companies could negotiate a retention of about 80-90% of earnings from foreign exchange in offshore accounts) (ii) Exemption from payment of customs import duty in respect of plant, machinery, equipment, and accessories imported for mining. (iii) Generally weak environmental standards. There are no legally binding environmental standards e.g. EPA accepts that there are no laws on cyanide spillages. (iv) Inadequate protection of community rights in the mining law e.g. whilst the 1992 Constitution of Ghana makes provision for citizens to go to High Court on original Jurisdiction on Compensation issues, in the case of mining, compensation grievances are supposed to be made to the Minister responsible for mines first without direct recourse to High Court.

Contribution of mining to the economy Ghana s economy grew by 14.3% in 2011, led by the increased prices of solid mineral commodities like gold and receipts from oil. Mining industry accounts for about 7% of the country s GDP. Mining (particularly gold) has long been Ghana prime export surpassing cocoa (main agricultural product). And mineral export made up to 41% of total merchandised export in 2011, contributes about 17.5% of Ghana s total corporate tax earnings and 27.6% of government revenue.

Contribution of mining to the economy FDI inflows into the mining sector in Ghana from 1983 to 2011 are estimated to be over $11 billion. Mining sector employs only 28,000 people in the large scale mines and mines support services, or about 1% of the labor force in Ghana, against 60% for agriculture.

Mining, land, and agriculture Large-scale mining is a growing challenge to small-scale agriculture in Ghana and there is an intense competition between agriculture and mining for land. i) In Ghana, nearly 30% of the country s land surface has been licensed to more than 200 mining companies for their activities, including at least 2% of the country s dwindling forest reserves. ii) In the Tarkwa and Prestea mining areas alone, agricultural land is about 1083 square kilometers and this constitutes 46% of the total land area. The area is dominated by mining with six companies mining in the area. By implication, most ofthese agricultural lands are now concessions of mining companies. Many farmers have lost access to agricultural lands.

Mining, land, and agriculture iii) In the Eastern region of Ghana, mining is competing with cocoa farmers and destroying forest reserves including the Ajenua Bepo Forest Reserve. (iv) Rural communities that have been left without access to land, good quality water, adequate infrastructure and the promised employment from the mining, e.g. Newmont Ahafo mine in Ghana would displace about 20,000 farmers. Already, 10,000 farmers have been displaced in the first stage. Goldfields Ghana Ltd displaced a total of 30,000 farmers in 5 years; iv) Lack of adequate compensation: for instance in Ghana, a mining company is offering $9 to a farmer to buy out a cocoa tree worth at least $20 per year over the tree's economic life of 30-50 years;

Mining, land, and agriculture Decrease in agricultural productivity o According to Fernando M. Aragon and Juan Pablo Rudz (2012) in their research on mining, pollution and agricultural productivity, between 1998/99 and 2005, agricultural productivity decreased by almost 40% in areas closer to mines. o The reduction in productivity is paralleled by a similar decline in agricultural output. o The negative effects extend to areas within 20 km from mines.

Mining affected communities: more vulnerability Limited public participation and accountability o Lack of political will to institutionalize active public participation in policy making. Governments see themselves as only accountable to international interests and use their power to impose mining projects on their citizens. Influence of IFIs, companies and foreign governments. o Exert considerable influence on national development priorities and decisions, and often impose natural resource extraction as a priority. Lack of binding principles on Corporate Social Responsibility. Inadequate accountability system and lack of accountability of local authorities.

Mining affected communities: more vulnerability Lack of power and adequate resources for local authorities to fully implement decentralization laws. Growing CSO movement, yet limited capacity. o CSOs are limited by their access to resources, their organizational ability and their capacity to effectively influence policy reform Communities lack of access to justice. o For example in Ghana, successive surveys in the late 90s found that 54% of the people believed court proceeding were always influenced by money. o There is a limited autonomy and independence of Judiciary institutions and the institutionalized corruption. o Domestic legal provisions for dealing with mining infractions remain largely obsolete and not in tandem with present day realities.

Mining and Women - Women s contributions and voices frequently ignored in decisions affecting the family and the community. - Women rarely benefit directly from jobs created by mining, and from compensation payments (1). - Greater work load for women (2). - Women are particularly vulnerable to the impacts of pollution from mining operations (3).

Mining legacies in Ghana Creation of ghost towns Problems of rock waste dumps Acid mine drainage Abandoned pits Water stress Socio-economic problems of resettled communities

OSIWA Interventions OSIWA EI overall program goal is to support participatory, transparent and accountable management of natural and public resources to ensure equitable distribution of national wealth, sustainable and environmentally-friendly development.

Some achievements Brought discussion of natural resource governance issues to national and regional forefront Promoted CSOs platforms for regular engagement with targeted and relevant government bodies on EI issues Worked with CSOs to create coalition, platforms to represent communities in negotiations and policy dialogues Media training and investigative journalism on EI related issues resulting in increased reportage on EI Empowering communities and litigations Contribution to Africa Mining Vision and ECOWAS Mining Directive EITI and PWYP

Challenges Mobilizing communities for accountability Very low capacity of mining communities. Weak Regulatory agencies in the face of powerful industry which use to play technical games to avoid being held accountable for environmental and social damages The challenge of having a holistic approach to EI advocacy by combining economic empowerment and protection of community rights. Need to strengthen the capacity of CSOs to meet the emerging challenges of the EI boom. Limited resources

THANK YOU FOR YOUR ATTENTION