ii

BULE HORA UNIVERSITY

COLLEGE OF NATURAL AND COMPUTATIONAL SCIENCE

DEAPARTMENT OF GEOLOGY
 RESEARCH PROPOSAL

Gold Mining and Its Effect on Natural and Socio-Economic Environment: the
Case of OddoShakisso District, East Guji Zone ,Oromia Region, Ethiopia.
 TABLE OF CONTENT

Page
CHAPTERONE.........................................................................................................
1 INTRODUCTION....................................................................................................... 1
1.1Statement of the Problem..................................................................................... 5
1.2Research Question..................................................................................................
1.3Research Objectives................................................................................................
1.3.1 General Objective..........................................................................................7
 1.3.2 Specific objectives........................................................................................7
1.4 Significance of the Study...........................................................................................8
1.5Limitations of the study.............................................................................................9
CHAPTERTWO.................................................................................................................11
2 LITERATURER REVIEW
2.1 Concept of Mining and Sustainable Development...............................................11
2.2 The Effects of Gold Mining on Natural and Social Environment........................13
2.2.1 The Effects of Gold Mining on Natural Environment.......................................13
2.2.2Effects of Gold Mining on Social Environment................................................16
2.3The Ethiopian Gold Mining Industry...................................................................18
2.4 Policy Issues and Legal Provisions put.............................................................24
CHAPTERTHREE............................................................................................................30
3 RESEARCHMETHODOLOGY.................................................................................... 30
3.1Sampling Procedure and Sample size..................................................................32
3.2Data Collection Methods......................................................................................34
3.4 Data Analysis.......................................................................................................36
3.5 Validity and reliability of instrument..................................................................37
3.6 Ethical Considerations.........................................................................................38
CHAPTERFOUR............................................................................................................. 39
4 Data Presentation, Analysis and Discussion............................ 39
4.1 Data Analysis and Discussions of the Study...................................................45
4.2Air Pollution in OddoShakisso........................................................................53
4.3Noise pollution in Lege Denbi and Sakarro...................................................55
4.4 Effect of Gold Mining on Social Environment...............................................56
4.5Effect of Gold Mining on Animal and Human Health....................................56
4.6 Observing the practice of Corporate Social Responsibilities..........................65
CHAPTER FIVE...........................................................................................................68
CONCLUSSIONS, RECOMMENDATIONS AND REFERENCE............8
5.1 Conclusion.......................................................................................................
5.2 Recommendations...............................................................................................
5.3 REFERENCE
 CHAPTER ONE
INTRODUCTION

The extraction and processing of minerals and metals to provide goods and services essential
to human society is as old as human development. Mining is the process of obtaining
desirable mineral and metal resources from the earth (Aryee, B.N.A., 2012). This process has
been occurring since humans began using stones and metals for tools and minerals for jewelry
and trade (Rees, 1985). Minerals and metals have brought huge benefits to society; they are
vital commodities that serve as a foundation to society’s material quality of life (Ibid., 2012;
Worrall et al., 2009).The International Council on Mining and Metals proved that mineral
exports can be an alternative for increasing exports for agrarian, low and middle income
countries and that in the past two decades its contribution to total exports had increased from
30 to 60 per cent (Prior, T. et al.,2012).

Artisanal and small scale mining generate about 15 percent of the world’s nonfuel minerals.
Yet is a major source of income in about 30 countries around the world. It provides a
livelihood for approximately 13 million workers a significant proportion of who are women
Ethiopia's main mineral export and has been mined since ancient times, primarily as alluvial
or free gold. It is considered to possess the most potential for mining investment in the
country. Recent Ethiopia’s geological formation also showed extensive mineral resources
with wide-ranging potentials for continuing development. These minerals includes gold,
platinum, niobium, tantalum, nickel, cooper, chrome, manganese, limestone, sandstone,
gypsum, clay, lignite, opal, oil shale, laterite iron ore, bentonite, clay, perlite, diatomite,
potash, halite, and oil & gas.
Lega Dembi, the largest gold mine of the country, it has been mined by a private company
called Midroc Gold. The amount of gold produced by this Company is reported to be about 5
tons per year. In addition, gold mining is also conducted in the area by Adola Gold
Development Enterprise and by many Small Scale Artisanal Gold Mining Micro Enterprises
(EEITI ,2016).This research mainly assessed the implementation of the Ethiopian Mining
Policy and its Effect on Natural and Socioeconomical Environment of the Study Area. It tried
to investigate the soc economic legacies of gold mining in the area, in relation to
Environmental policy, proclamations and universal environmental protection protocols that
our country is bound to respect.

1.1. Statement of the Problem

In Ethiopia, currently, gold, tantalum, emerald and other industrial minerals are being
extracted from economic purpose at the different mining sites of the country. In particular,
mining for gold is a key development sector, as it almost covers more than 97% of the mineral
export share. Gold export, which was just US$ 5 million in 2001, has shown a large increase
to US$ 602 million in 2012.OddoShakisso and Saba Boru weredas of Guji zone, in Oromia,
are mineral rich parts of the country, where a lion’s share of gold production for the country is
extracted from this area. Laga Dembi large scale private gold mine is found in this Wareda.
However, the issue of sustainable development is a crucial matter along with the development
of mining industry of Ethiopia (EEITI,2016). Thus, the two things are decisive and need
common ground. To decouple these two separable and competing needs, mineral extraction
should be conducted in the light of sustainable utilization and management of the environment.
The other thing that needs consideration is the interest and the rights of the local community for
the development of the national economy in fair and compromising way.
, Sawana kebeles and other similar areas are complaining about the negative effect of the mining
activities brought to them. They describe that even though their children got daily income from
the gold extraction, most of them don’t want to go to school, and some are exposed to HIV/AIDS
due to a large extent of people mobility in the area. Most part of their natural forest is cleared for
the sake of gold mining and as a result the land is degraded and on some sites land slide has been
feared, while, some part of the district is facing rain shortage. Farther more crop production is
hampered and some overproducing kebeles are put under safety netprogram .
As far as Midroc Laga Dambi Gold Mining Company is concerned, people living around the
mining site mostly complain about the chemical by product used to separate the gold from non-
gold items. The chemical contaminated water is released to the dam and created an artificial lake.
This chemically contaminated lake is separated from the natural clean water lake by a heap of
gravel and soil. The local residents believe that the chemical water is slowly leaking and
contaminating their drinking water, and different animals and birds which drink this contaminated
water are gradually dying. Plants grown around the lake are also drying. Some animals and people
who drink this water are giving birth to deformed offspring (Information from Local Health
Center March201
1.2. Research Questions
2. How much is the natural and social environment affected by the onset of goldmining
operations in the study area?

3. What is the level of employment Opportunities that gold mining has created for the
inhabitants in the study area?

4. What is the economic contribution of gold mining to the study area in particular and the
country as whole?

5. Is the principle of corporate social responsibility observed in the study mining area?

5.1. Research Objectives

1.4.1. General Objective
The general objective of this study is to assess Ethiopian Mining Policy and its effect on
natural and socio-economic environment, in the Case of Gold Mining in Reji, Dhiba Batte and
Sawana Kebeles of Oddo Shakisso wereda from 2005-2009 E.C, and identifying the gaps and
possible policy recommendations for future gold mining activities in the study area.

1.4.2. Specific objectives

1) Examine the extent of the effects of gold mining on the natural and social environment in
the study area;
2) Identify the level of employment Opportunities created by gold in the study area;
3) Analyze the contribution of gold mining for the national economy of the country as
whole; and,
4) Evaluate principle of corporate social responsibility being observed in the study mining
area.

1.5. Significance of the Study

The mining sector should be seen as an opportunity to find an alternative to agricultural

product export. The sector helps to earn foreign currency, encouraging industrialization by
providing the capital and the raw materials needed. Thus, this research focused on assessment
of Ethiopian Mining Policy in terms of the scope of gold mining activity in the area, f ;
particular reference to Gold Mining in Reji, Dhiba Batte and Sawana Kebeles of Oddo
Shakisso wereda.
In doing so, the researcher wanted to analyze the scope of gold mining and employment
Opportunity created; identify the contribution of gold mining in revenue generation, and
effect of gold mining on the environment and surrounding fauna and flora. This study is also
believed to raise awareness about the need for environmental protection and sustainable
growth. The findings can be used to provide information to different levels of concerned
government bodies and policy makers on the implementation of mining policy in line with
environmental rehabilitation and sustainable development. It may also assist other researchers
to further investigate implementation related problems and the way forward. At last, enhanced
knowledge could be released on the mining policy and its effect to the environment.

CHAPTER TWO
LITERATURE REVIEW

2.1 Concept of Mining and Sustainable Development

Minerals are essential for modern living, and mining is still the primary method of their
extraction. Now a days, it appears that the main constraints to sustainability in the mining
sector come from the ever-increasing demand for resources; the consumption of resources
(mostly energy and water) needed to extract and process metals, and the increasing pollution
generated by the extraction process. This holds true for both large-scale, often multinational
corporate, operations as well as for small-scale or artisanal ventures.

How to maximize the development benefits of mining while improving the environmental and
social sustainability of the mining sector was first addressed in the Johannesburg Plan of
Implementation (Seyfang, G., 2003), where the following three priority areas were identified:

1. Address the environmental, economic, health and social impacts and benefits of mining
throughout their life cycle, including workers' health and safety;
2. Enhance the participation of stakeholders, including local and indigenous communities
and women;
3. Foster sustainable mining practices through the provision of financial, technical and
capacity-building support to developing countries and countries with economies.
According to this report, the major objective of development should be to ensure the satisfaction
of human needs and aspirations of a material kind. It emphasized the fact that over exploitation
of resources may compel human societies to compromise their ability to meet the essential needs
 of their people in future. Settled agriculture, the diversion of watercourses, the extraction of
minerals, the emission of heat and noxious gases into the atmosphere, commercial forests, and
genetic manipulation, were all mentioned in the report as examples of human intervention in
natural system during the course of development (Rockström, J.et al.,2013). Thus, in every mining
activities the following ICMM 10 Principles for Mining and Sustainable Development should be
implemented for good (Diehl, P.F. and Frederking, B. eds.,2

2.2 The Effects of Gold Mining on Natural and Social Environment

2.2.1The Effects of Gold Mining on Natural Environment
Mining practices are depleting forest, bush lands and farmlands. Producers cut trees to
develop roads to get to the cliffs and around the tunnel. The trees and the soil are left on the
ground and no effort are made to fill the holes with soil. The rocky soil removed out of the
tunnel rolled down the slope and eroded the surface soil of the slope and even deposited in the
riverbank at the base of the slope. The stone and soil disposed is destroying the trees and
vegetation down the cliff of the mountain. The surrounding dwellers complained that the
mining has produced extensive negative social, economic, and environmental effects on the
surrounding area and nearby communities (Worrall et al.,2009).

Mining activities can have both positive and negative lasting effects on communities and
regions. The mining industry boasts the highest wages in the resource sector in Canada; this
can lead to comparably wealthy communities (Gibson and Klinck 2005; Gibson and Robinson
2014). New mining activities come with new opportunities for both direct employment and
contract work.

Under current technological circumstances most minerals and metals are considered to be
nonrenewable resources. Minerals and metals exist in a fixed overall quantity on the earth
and when consumed become irreplaceable. Many metals and minerals

The type and amount of pollution and waste depends on the range of minerals extracted and
the diversity of environments that extraction takes place in so it varies from mine to mine.
Besides being voluminous, waste from mining activities is often chemically reactive and
becomes more concentrated with each stage of ore processing. Because of their high level of
processing and pollutant concentration, tailings can be the most detrimental to the
environment (Moore JN, Luoma SN,1990). Tailings are the finely ground resultant residue
from the mining process that consists mainly of gangue (commercially worthless) minerals,
process water, process chemicals, and unrecovered minerals (Younger and Wolkersdorfer
2004). These mine generated tailings, spoil heaps, and mineral stockpiles require careful
management lest they contaminate local water resource through runoff of water with
excessive dissolved minerals, and other suspended solids(Ibid).

2.2.2 Gold Mining on Social Environment

Mining makes up a substantial part of the economies of many developing countries around the
world and has the potential to deliver significant development benefits when managed in a
holistic, sustainable manner. Mining can be considered sustainable if the derived revenues
from mining are collected and used to promote sustainable objectives at community and
national levels, particularly through regulation and taxation measures that encourage the
investment climate. Gold mining companies are a major source of income and economic
growth, with an important role in supporting sustainable socio-economic development.
(Sandlos, J. and Keeling, A., 2013).

A mine must be profitable in order to be sustainable. Managers will need to generate profit
responsibly for as long as possible by keeping costs to a minimum while maximizing revenue.
Ensuring profitability can help to maximize benefits for all stakeholders including employees,
local communities and businesses, which depend on the mine, as well as the governments that
benefit by means of taxes and royalties. Globally, the gold mining industry directly
contributed around US$ 83.1bn to the global economy in 2013 equivalent to the combined
gross domestic product of

mining is a growth industry its direct economic contribution has increased almost seven- fold
from 2000 to 2013. The growth in the economic impact of the gold mining industry has been
most significant in Asia and Africa. There is a positive correlation between the growth of
commercial gold mining in countries that have implemented the Extractive Industries
Transparency Initiative and reductions in corruption. One of the objectives of transparency
initiatives such as the EITI is to reduce corruption risk, a significant factor in the misuse of
revenues from extractive industries. In gold producing countries, this appears to be working
(Ibid).p
2.3 Observing the practice of Corporate Social Responsibilities
Corporate social responsibilities are local content policies (LCPs) which were first introduced
in USA in the North Sea in the early 1970s by an oil mining company. The social support
activities which were performed by the company ranged from restrictions on imports to direct
state intervention in the oil sector. Over the time, the aim of LCPs has evolved from creating
backward links (that is, supplying input to the local economy through transfer of technology,
the generation of value-added in domestic supply sectors, the creation of local employment
opportunities, and increasing local ownership and control) to creating forward links (that is,
processing the sector’s output prior to export through, for example, the establishment of
refineries, petrochemical industry, and the production of fertilizers (World Bank, 2013).

There are often high expectations that mining companies will have a positive impact on
poverty in and around the areas of their operations. As noted earlier, much depends on the
local operating context, and whether or how governments reinvest profits into social services
and basic infrastructure. Many companies recognize that investing in different community
programs, such as skills training, health and agricultural assistance can help reduce project
related risks and gain and maintain a social license to operate (Opoku-Ware,2010)

Expectations of employment creation that benefits local communities are not restricted to gold
mining operations in developing countries. Gold mining companies operating in developed
countries such as Canada and Australia face strong pressure to demonstrate that local
indigenous communities gain socio-economic benefits from the development of gold mining
operations on their land.

FoIf mining companies have poor relationships with communities, this has business
implications as it can destruct management from running an efficient operation and if tensions
rise and escalate it could result in disruptions, damages to reputation and shareholder value.
Through taking proactive approaches to engaging and investing in the communities
surrounding mining operations, companies can manage risk, obtain and maintain a social
license to operate while at the same time helping to contribute to local community
development(Ibid.,1998).

Stakeholder engagement is a critical aspect of any sustainable business strategy and effective
community investment depends on understanding the local needs as well as the assets and
strengths of host communities, the roles of various institutions and host government
development priorities. In planning for community investment, companies need to consider
their own business drivers, site level risks and opportunities and the local context. Some
companies have community investment guidelines and clear criteria for investments which
can help with decision making on the ground. Different resources available to companies may
include staff, expertise, facilities, equipment, and contacts which can be leveraged for
community programs. Lessons learned from mining companies over the years also points to
the importance of having an exit and handover strategy and putting in place strategies to avoid
community dependency in the long term. While many companies have good will and seek to
support local causes, a strategic approach to community investment which focuses on returns
for both the business and for the community can help to bring shared benefits (Weber et al.,
2002

.Policy Issues and Legal Provi

Thus, to harmonize these broad directions of cross-sectoral, sectoral, and national issues and
guide sustainable development hand in hand with management of the

CHAPTER THREE
3.1. RESEARCHMETHODOLOGY

Research methodology with how research is conducted scientifically (Kothari, 2004). The
discussion in this chapter dealt with the research approach, research design, study area, target
population, sample and sampling procedure, data collection methods and instruments, validity
and reliability of instruments, data analysis procedure and research ethical issues
/considerations.

3.2. Research Design

Research design provides a framework for the collection and analysisof data (Bergman,
M.M. ed., 2008). In essence, the design influences to determine our choice of the methods to
use in the collection of your data. Basically, five prominent designs are outlined by Bergman
2008 and involve the experimental design, cross-sectional design also known as survey
research, longitudinal design, case study and comparative design. In this research the
researcher used descriptive and explanatory research designs which elaborates what and the
why of the environmental effect of mining activity. It then described and explained the
phenomenon
ds and focal persons from 10 Wereda level offices.

3.3. Discription of the Study Area

This research is conducted in Oddo Shakisso Wereda, Guji Zone Oromiya Region. Guji is one of
the zones of the Oromia Region and it is named after the tribe which settle there; Guji Oromo. It is
bordered on the south by Borena, on the west by the Southern Nations, Nationalities, and Peoples
Region, on the north by the Ganale Dorya River which separates it from Bale and on the east by
the Somali Region. Based on the population Census conducted in the year 2007, this Zone has a
total population of 1,389,800, of whom 702,580 are men and 687,220 women; with an area of
18,577.05 square kilometers, it has a population density of 74.81. While 129,852 or 14.31% are
urban inhabitants, a further 5,315 or 0.38% are pastoralists. A total of 269,440 households were
counted in this Zone, which results in an average of 5.16 persons to a household, and 258,540
housing units.

The zone is further subdivided into fourteen weredas and three city administrations. The weredas
are namely Bore, Dama, Uraga, Ana Sora, Saba Boru, Aga Wayu, Oddo Shakisso, Girja,
AdolaRede, Wadera, GoroDola, Liban, Haro Walabu and Gumi Eldallo; and the city
administrations are Nagelle, Adola Wayu and Shakisso.

3.4. Sampling Procedure and Sample size

The researcher used purposive sampling, sometimes called judgmental sampling, which is a
form of non probability sampling (Noushmehr, H.et al., 2010). In this type of small-scale case
study where generalizing of the finding to the whole population is not possible and hence the
representativeness of the sample is not relevant; the researcher should strategically determine
the number and the participant that best serve his research purpose (O’. Leary, 2004:103).
After he identified the concerned sector of the society the researcher used Kothari’s (2004)
formula to determine the total sample size and a sample frame from the specific category.
Since the research strategy is mixed approach case study; the method employed is none
probability stratified purposive sampling. Thus, to avoid monotones ideas, time and resource
wastage; the researcher purposively restricted the proportion of the sample population from
each site to be 100.

DataAnalysis
Before data analyses began the researcher transcribe the un-structured interview recordings.
This process allowed the researcher to become more familiar with his data and the transcribed
interviews become more conducive to coding. The researcher analyzed quantitative data using
SPSS software and to analyze qualitative data he used the approach of NVivo12QDAS
( Qualitative Data Analyzing Software) (Woods, M.et al., 2016). It allows the researcher to

dissect the interview data into themes and group these data pieces together (Buchanan, D. and
Bryman, A. eds., 2009). This process is known as coding and allows the researcher to group
items that share a similar theme, seem to be of potential theoretical significance. The
researcher used selective category based association mechanism to analyze qualitative
responses with that of relative quantitative data.

3.5. Validity and reliability ofinstrument

Reliability and Validity are two factors which were used during designing a study, analyzing
results and judging the quality of the study.

3.5.1. Reliability

(Orodho, 2009)) Defines reliability as the consistency of an instrument in producing a reliable

result. Also, (Berkman, L.F.et al.,1993) also, define reliability as the degree of consistency a
given instrument demonstrates when it is to measure a particular phenomenon. In order to
ensure reliability of the data, the researcher employed multiple sources of evidences namely
documentation, individual interviews, and direct observation. (Crowder, M.J., 2017) argue
that the significance of using multiple sources helps to triangulate the converging lines of
evidence. To make the results of the intended research more dependable, the researcher tarted
with interviews and then related it with results of field observation, FGD and document
analysis. Using such multiple methods of collecting data, the findings led to more reliable
construction of realities (Rigdon, S.E. and Basu, A.P.,2000).

3.5.2. Validity

According to (Pais-Ribeiro,J.et al.,2007), validity refers to the degree to which study

accurately reflect or the degree to specific concept the researcher is attempting to measure. In
research, the concept of validity has been adopted to mean more appropriate terms such as
quality, rigor and trustworthiness (Fink, P. and Rosendal, M., 2008). Also validity is a
measure of accuracy;it is about whether the instruments of measurements are actually
 measuring what they are intended to measure. To ensure validity of leading interview
questionnaire and participant observation guide, the researcher developed it in a way that; it
solicits the relevant and crucial theme. To enhance the validity of the instruments, first the
researcher curiously selected the instruments, and prepared it, focusing on the intentof

3.6. EthicalConsiderations

All the research participants included in this study were appropriately informed about the
purpose of the research and their consent was secured before the commencement of the
interviews. Concerning the right to privacy of the respondents, the study maintained the
anonymity of the identity of each participant. Regarding data or information taken from other
sources the researcher has dearly acknowledged the sources and also the pictures used in the
research have letter of ethical clearance.

CHAPTER FOUR
4. Data Presentation, Analysis and Discussion
Ana
0

4.1. Data Analysis and Discussions of theStudy

The previous section of this study presented the introduction, response rate and the
demographic characteristics of respondents. The next part focuses on the presentation,
analysis and discussion of the survey results and with the outcome of the administered
questionnaires, focused group discussion, field observation and in-depth interviews made with
concerned administrative bodies and document analysis in the context of the literature review
of the study. The analysis is made up of three sections. Accordingly, section 4.4.1.presents the
analysis on effect of gold mining on the natural environment; Section 4.4.2.presents the
analysis of effect of gold mining on social environment in relation to co-existence,
employment opportunity and economic contribution of the gold mining; finally, section
4.4.3.looks at the level of adherence to the principle of corporate social responsibility by the
company underquestion.

4.1.1. Effect of Gold Mining on the NaturalEnvironment

The findings on this section were based on the result of analyzed questionnaires, focused
group discussion made with community elders, interviews made with concerned sector
respondents and participant observation made by the researcher during the field study. Indeed
the idea to ascertain the level of distraction brought by the onset of gold mining activity in
Oddo Shakisso Wereda on the natural resources, especially arable land, forest reserves, water
bodies and flora and fauna, needs more than primary data. However, owing to limited time
and logistical constraints, the researcher confined to the investigation of five years of related
secondary data from concerned sectoroffices.and forest areas were cleared on a seasonal basis
for agricultural purposes, they believed, the damage that resulted from their agricultural
practices were very insignificant compared to the devastation of these resources for mining
purpose. The following table can clearly reveals the level of reduction of forest coverage from
year to year time.arch
tion:

As it was stated in the review of related literature, a sustainable society would have to use
non-renewable gifts from the earth’s crust with great precautions, giving concern for life on
earth and demand of future generations(Giurco, D. and Cooper, C., 2012).As a matter of fact,
sustainable organization will maintain and where possible enhance stocks of capital assets
(natural, manufactured, financial, human and social) rather than deplete or degrade it. These
strategy allows business to broaden its understanding of financial sustainability by allowing
business to consider how wider

4.1.1.1. Air Pollution in OddoShakisso

Air is a very important natural resource for humans, animals and even plant life. Its pollution
may have serious consequences on their health. However, access to good and quality air can
be challenging and a problem leave alone in the mining areas, and other parts of the country.
Community elders were asked if the mining operations in their village have resulted in air
pollution due to the use of mining machines and other equipment. Most of them agree that the

dust particles and the smoke released off the underground tunnel and the open pit mining of
Sakarro are disturbing them. Health wise, this also goes with what is stated in the review of
related literature; which claims as dust particles which blow out of mining tunnel has got high
concentration of more than 5% alpha quartz silica which can cause lung diseases, cardio-
pulmonary TB, and asthma.(Sandlos and Keeling, 2013)Moreover, on the open space the dust
particles blown out by wheel of Midroc heavy machineries are suffocating plants and animals
surrounding it. From this, it can be inferred that the old gold mining strategy which is
followed by the Midroc Lega Dambi and micro and small scale gold mining enterprise is
clearly harming the naturalenvironment.

Observing the practice of Corporate SocialResponsibilities

Infrastructure basically refers to those physical structures that enhance the life and living
conditions of people in any place. These usually include electricity, roads, schools, and social
amenities etc that make life comfortable. Oddo Shakisso typically lacks certain facilities and
infrastructures comparable to other similar cities in the country.

In principle, any company is abide by corporate social responsibility, where a mining

company is expected to provide certain basic infrastructure and social amenities like good
drinking water for households, provision of electricity to houses, building of hospitals,
schools, tarring of untarred roads and other physical structures that can open up the area
readily for variety of economic activities and hence, create employment and reduce poverty.
Furthermore, the company was also expected to perform environment rehabilitationprogram.

To know if the above corporate social responsibilities are met, questionnaires were
administered to people living around mining area.

dents said that such infrastructures have not been provided or constructed or renovated since
the mining started. They rather indicated that the few that already existed have been worsened
or destroyed because of the pressure that the company has brought into the community due to
the large number of migrants and strangers moving into the community who compete with the
local people for few existingones.

It was also confirmed that,through focus group discussion conducted with the community
elders and interview with wereda Administration: Midroc does not have Community
Development and Environmental Rehabilitation plan. Shakiso town which was founded in
1944 and home for Lege Dembi and Sakaro mine does not have a proper asphalt road but
instead paved dirty road that connects the town with Dawa, Bule Hora and other neighboring
towns.
As a matter of good business practice, mining operation which is carried out with responsibly
has the potential to provide economic benefit to all investors, stakeholders and the local
community. In case of MIDROC the entire community that owned the land is neglected and
maltreated. When people complain and protest about the damage it is causing on the people
and other living things, the company releases some support to silence the cry. Community
complain that, the presence of Midroc mining in that area has brought only cyanide
contamination, forest destruction and pollution of the environment.
However, the issue of corporate social responsibility is very crucial in the mining sector
because of first of all it gives social licensing to company and harmonizes the relationship
between the host community and the company; it adds value to production and mining
sustainability. It builds trust between the company and the community. Different companies
perform corporate social responsibilities in different ways. The researcher have stated some
of these ways in the review of related literature. He avoided writing here fearing unnecessary
repetition.
4.2. Conclusions
Mining sector, especially gold mining contributes a lot in creating employment opportunity
and economic development for mineral endowed countries. In the principle of modern mini

scale

In general, modern mining strategy is a sustainable development imperative in the mining

sector. It has three dimensions, the first one is implementing modern gold mining process
these is elucidated by using modern technology, workers capacity building activity and
keeping environment and workers safety. The second is developing good, transparent
objective relationship with stakeholders and the third is the implementation of the issue of
community development and environmental rehabilitation. In these regard, since it is a
company a lot is expected from Midroc Gold Company. The core issues identified in the
findings were mostly related to social, technical and environmental issues; as well as
economics and governance. Thus, the analysis holistically indicates as there was a gap in
implementing modern mining strategy and realizing sustainablefuture.

Lastly, the researcher wants to make clear as this research was not an experimental research
that examines the extent of contamination of natural environment, but rather it is an
illustration of experience based and visible case study which is aimed at the assessment of the
effect of Ethiopian mining policy in the studyarea.
 CHAPTER FIVE
CONCLUSSIONS AND RECOMMENDATIONS
5.1 I
5.2. Basic ResearchFindings:

The quantitative and qualitative data’s were analyzed and discussed under chapter four. Based
on the data analysis and interpretation given, the basic research findings were summarized as
follows:

1. Gold mining conducted in the study area are not up to the standard of sustainable mining.
As a matter of fact, women from the study area are giving birth to a child with congenital
abnormalities (birth defect) and miscarriage. Moreover, 159 babies died in their mother’s
womb. Around 600 livestock and 12 goats and three donkeys have died; 500 live stocks
were aborted.
2. Micro and small scale gold mining is contributing a lot in employment creation where as
Midroc Gold hasreservations.
3. Both micro enterprise and Midroc Gold are bringing hard currency to thecountry.
4. As a result of gold mining cost of living was increased, some cultural disorientation like
divorce and pregnancy out of wedlock and social vices like prostitution, crime and
rampant style of lifeflourished.
5. There is no planned and progressive environmental rehabilitation and community
development activity obseved; rather, there is intermittent, quandary orientedapproach
6. To verify the annual amount of gold production and the amount of gold sent to the world
market the ministry of mines depend on the report of Midroc Gold Company
(source:World Bank Report, 2014). Oddo Shakisso Werda Administration complains as
if the annual gold production of the Company exceeds what wasreported.

5.3. Conclusion

The purpose of the study was to assess effect of gold mining on natural and socio-economic
environment of Oddo Shakisso Wereda. There is an old aged saying that still rings true today,
it was‘if you can’t grow it, you mine it. As we can understand from this saying anything
around as can possibly be used for our development. However the better ways has to be
adopted if not nonrenewable resources could be removed from the earth and this action has
long-lasting effects. Mining in itself is not a sustainable activity as mineral reserves are finite.
Since no mine will last forever, what matter most is how we implement the temporary act of
mining to produce many positive long-term effects and minimizes as many negative long-
term effects as possible. This research advocates the significance of environmentally friendly,
participatory and sustainable mining strategy for a better future and sustainable existence of
mankind.

The study involved quantitative and qualitative research designs. Data collection methods
involved the use of questionnaires, interview, focus group discussion, document analysis and
Participant observation. And the target population of the sample, involved people living
around the mining area, Small scale micro enterprise mining workers, Midroc Shakisso area
Manager, Lege Dembi and Sakaro Site mining workers, woreda level concerned sectors team
leaders and focal persons and from Ministry of Mines Mineral Licensing and Administration

xxi
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and Environment and Community Development Directorate concerned bodies. These
categories of the respondents were selected using purposive, random and snowball sampling
techniques.

The findings of the study have shown as there is a gap in implementing environmental
friendly sustainable mining. Regarding job creation, employment and wealth accumulation;
findings indicated that small scale micro enterprises were burring a fruit, if they will be
supported.mented:

5.4. Recommendations/ ResearchImplication

5.4.1. Recommendations for PolicyIssues
Based on the findings of the study the following recommendations are provided for policy
issues;

Clean, green and conducive environment is the guarantee of life on earth, this can be achieved
through the joint effort of the mining community (people living around the mining area, the
mining organization or company and different level of government structure).

A.
1.

B. Social and EconomicImplications:

1. Government has to make local community employment creation activity as a mandatory

act for licensing andrelicensing
2. To redress the cultural disorientation created due to the activity of gold mining, wereda
cultural Development and Truism Office should have to work with community elders and
AbbaGedas
3. As to tax and royalty collected from the sector, the government has to follow, area held
by the Company and production amount to avoid taxevasion.
4. Environmental rehabilitation and community development programs are there,
government has strengthen and enforce it.

5. Agreement made with mining companies at the federal level should be clearly
communicated to the regional and local govern

Lastly, advancing the 2030 Development Agenda and the Sustainable Development Goals
requires deeper transitions to more resource-efficient, resilient forms of growth that bring
xxi
ii
social, economic and environmental benefits over the medium and longer term. This requires
a focus on, benefit from a healthy environment. There is a need to decouple development
from environmental destruction, and to protect and restore ecosystems and the goods and
services they provide that underpindevelopment

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