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Resources Policy 80 (2023) 103171

Contents lists available at ScienceDirect

Resources Policy
journal homepage: www.elsevier.com/locate/resourpol

Mining and sustainable development in the Asutifi North District, Ghana


David Anaafo a, *, Ricky Yao Nutsugbodo b, Daniel Adusu c
a
Department of Planning and Sustainability, University of Energy and Natural Resources, Sunyani, Ghana
b
Department of Ecoutorism, Recreation and Hospitality, University of Energy and Natural Resources, Sunyani, Ghana
c
Department of Environmental Management, University of Energy and Natural Resources, Sunyani, Ghana

A R T I C L E I N F O A B S T R A C T

Keywords: Mining’s developmental ethos is criticised and praised in equal measure. The presence of precious mineral de­
Mining posits has been associated with widespread poverty and underdevelopment, at least at the macro level of ana­
Sustainable development lyses. This study, through the Asutifi North District case study sought to undertake a micro level analysis of the
Mine-take communities
nexus between mining and the sustainable development of the mine-take communities. Using questionnaire,
Asutifi north district
Ghana
focus group discussion, stakeholder validation workshop and analysis of satellite imagery the study finds,
particularly in relation to social development that mining has made significant contributions to the development
of the mine-take communities in the Ahafo area. The study, however, concludes that issues such as the one-off
payment of compensation to people who lose their lands, use of mineral royalties, and the amount of money
going to the NADeF require some review in tandem with global market trends and local development aspirations.

1. Introduction rate of extraction of mineral resources should not exceed the rate of
renewability, recyclability or the rate at which new substitutes may be
Mining, a major global activity is extolled and chided in equal found (Allan, 1995). To others (Hendrix, 2017; Dubiński, 2013) sus­
measure. Beck (2000) observed that mining is generally detrimental to tainable mining requires that mining addresses economic, social and
development because it often takes place under conditions of awful la­ governmental issues. Yet still there are those that view the relationship
bour conditions and results in inequity in the distribution of wealth, and between mining and sustainable development from the lens of corporate
poor development outcomes. More recently, Al-Hassan and Amoako social responsibility with its paternalistic tendencies and benefits for
(2014) have argued that the benefits of mining to national economies communities beyond the mine (Kemp, 2010; Emel et al., 2011). Esteves
are obscured by the socio-economic and environmental costs which are (2008) sees sustainable mining as being the extent to which the interests
wrecked on mine-take communities. It is observed that mining, is of mining firms are harmonised with the values of society generally and
destructive, and a capture for corporate and individual benefits, that affected communities in particular; while Yildiz (2020) sees sustainable
which should ordinarily belong to all. Given these contentions, Beck mining as that which is undertaken in an environmentally friendly
(2000) have described mining as a hydra-headed issue. They observe manner.
that mining is often associated with significant and mostly irreversible As to whether mining can be made sustainable or not, the sector
socio-economic and environmental impacts for the majority and outra­ remains very important to many African countries. Ghana for instance,
geous benefits to a few. There is also the general believe that mining’s has recently overtaken South Africa to become Africa’s largest producer
overall potential is not properly harnessed and when done at all the of gold (Ghana Chamber of Mines, 2020). Mining in Ghana is an age-old
dividends are not equitably shared. Bebbington et al. (2008, p. 965) and ancient industrial activity from which the country first acquired its
conclude that: “in the coexistence of such divergent feelings about name, the Gold Coast (Awudi, 2002; Amponsah-Tawiah and
mining and its human and environmental impacts lie the seeds of much Dartey-Baah, 2011). Ghana is blessed with a variety of commercially
conflict.” valuable minerals such as gold, diamond, manganese, and bauxite. Ac­
The arguments show that as to whether mining can be made sus­ cording to Appiah and Buaben (2012) the mineral and natural resources
tainable through its contributions to development remain contentious. sectors of Ghana have witnessed significant foreign direct investment
Notwithstanding, sustainable mining has been used to mean that the since 2000 and as a result contributed to the country’s economy through

* Corresponding author.
E-mail addresses: david.anaafo@uenr.edu.gh (D. Anaafo), ricky.nutsugbodo@uenr.edu.gh (R.Y. Nutsugbodo), Daniel.adusu@uenr.edu.gh (D. Adusu).

https://doi.org/10.1016/j.resourpol.2022.103171
Received 15 December 2021; Received in revised form 2 August 2022; Accepted 23 November 2022
Available online 26 December 2022
0301-4207/© 2022 Elsevier Ltd. All rights reserved.
D. Anaafo et al. Resources Policy 80 (2023) 103171

job creation and the growth of the country’s Gross Domestic Product component is important in this research because it is the dimension of
(GDP). The Government of Ghana (2019) estimates that mining and the sustainability agenda that has received less attention in both policy
quarrying contributed 12.6% to GDP in 2019, 18.38% of direct domestic and academic cycles (Koning, 2001) even though the preamble of
revenue, and 19.05% in corporate tax over the same period. The Ghana Agenda 21 actually projects it beyond ecological and economic issues by
Chamber of Mines, in its annual report (2020) indicated that there are indicating that “a perpetuation of disparities between and within na­
some thirteen (13) large-scale mining companies, operating 16 conces­ tions, a worsening of poverty, hunger, ill health and illiteracy, and the
sions and about 1000 licenced small-scale mining companies involved in continuing deterioration of the ecosystems on which we depend for our
gold mining in Ghana. Cumulatively, these mining companies paid a well-being” (UNCED, 1992, p.15). This paper will become part of the
total of GHC1,006,668.50 in royalties to the Government of Ghana and larger recent trends aimed at incorporating the social dimension into
affected mining communities in 2019. It is also estimated that the development generally and to set social sustainability indicators (Kon­
small-scale mining sector employs about 1.1 million, mostly illiterate ing, 2001).
and unskilled people, whose practices and methods of mining are Studies like this have become necessary because of recent trends in
rudimentary and primitive (Wilson et al., 2015). Given the contributions global demand for mineral resources coupled with growth in foreign
of the mining sector to the development of Ghana, it is not surprising investment in the mining sector. Again, efforts are underway by the
that the sector is thought to be central to efforts aimed at achieving the global community to promote sustainability principles in the operations
sustainable development goals, especially in developing countries of mining firms, evidenced by initiatives such as the adoption of ethical
(Hentschel et al., 2002; Amponsah-Tawiah and Dartey-Baah, 2011, Nti, values, integrating sustainable development in corporate governance,
2020). and respecting the rights and culture of employees and host commu­
Although the mining sector of Ghana makes significant contributions nities among others (Akpalu and Normanyo, 2017; Carvalho, 2017;
to the economy, infrastructure development, and rural livelihoods, it is Erdiaw-Kwasie et al., 2014; Ghorbani and Kuan, 2017; Kokko et al.,
also viewed as a major cause of environmental degradation (Appiah, 2015). It is contended that “mining with sustainable development” will
1998; Armah et al., 2013). Adverse impacts of mining in Ghana are result in the attainment of beneficial economic, social, and environ­
catalogued to include loss of productive land to mining operations, mental outcomes for communities within the catchment of mining op­
excessive cost of living, sporadic contamination of the environment from erations. However, Dubiński (2013), indicates that the fluidity and
cyanide and other chemicals, depletion of forest cover, and high rates of complexity of challenges in the mining sector do not readily lend
unemployment in mine-take communities (Ayee et al., 2011; Ampon­ themselves to notions of sustainable development. Rather, what is
sah-Tawiah and Dartey-Baah, 2011). There are also reported increases required is the need to harness diverse expertise, engage with multiple
in diseases such as malaria, respiratory diseases, HIV/AIDS, and social stakeholders, adoption of modern technology, research and innovation
challenges such as drug abuse, social segregation, and forced displace­ to address the multiple concerns emanating from mining environments
ment in many mining communities across the country (Amponsah-Ta­ (Dubiński, 2013). This paper is divided into five main sections.
wiah and Dartey-Baah, 2011; Erdiaw-Kwasie et al., 2014). Following the introduction is a review of the theories related to mining
These observations are, however, too general and do not allow for a and development. Section three discusses the study area and methods.
case-by-case analyses of the benefits and burdens of mining. They adopt Section four is used to undertake an analysis of the data with section five
a macro-level view of the phenomenon and in the process the micro- dedicated to discussion of the results, leading to a conclusion.
level issues are obscured. Such a process does not allow for learning,
understanding and promotion of best industry practices. This study 2. Mining and sustainable development nexus
therefore undertakes, through the Asutifi North District case study of
Ghana, a micro-level analysis, to unpack the possibilities of mining co- It was generally argued that there is no positive correlation between
existing with development. This micro-level analysis is informed by the possession of valuable deposits and economic success (Ziyadov and
the thinking of Beck (2000, p. 48–49) that to study the macro is also to Shaffer, 2011). Contrasting the resource endowments and standards of
study what is local, because macro level issues are better understood “in living of countries such as Angola, Nigeria, Sudan, and the Congo with
the small and concrete, in the spatially particular, in one’s own life, in those of rocky, less endowed East Asian countries such as Japan, Korea,
cultural symbols that all bear the signature of ‘glocal’“. Micro level Taiwan, Singapore, and Hong Kong Ziyadov and Shaffer, (2011)
analysis also helps us to have a firm grasp of the differences in practices, concluded that the presence of valuable mineral resource deposits had
the particularities and patterns in specific places (Suopajärvi et al., no discernible positive correlation with development. Similarly, Stevens
2017), thereby allowing for upscaling, where necessary. The study et al. (2015) undertook an assessment of the economic performance of
sought to address the question of whether there is any discernible resource rich countries and concluded that resource abundance was
relationship between resource extraction (gold mining in particular) and often associated with poor economic performance and socio-economic
the socio-economic and environmental development of communities ills. Earlier studies (Prebisch, 1950) established that the benefits from
within the catchment of mining operations? To have an in-depth un­ the export of primary commodities suffer secular deterioration resulting
derstanding of the issue the study was broken into economic, environ­ from the barter terms of trade.
mental and social development components. The economic aspect While these assertions were generally borne out of the facts the
measured variables such as stability of income over time, availability of narrative has changed significantly since the publication of the report of
food all year round, equity and fairness of access to mine related jobs, the World Commission on Environment and Development (WCED) on
and stability of expenditure over time, among others. The environmental sustainable development in 1987. The definition of sustainable devel­
aspect measured variables such as forest cover, land use and land cover opment by the WCED (1987) was that it is “development that meets the
(LULC) changes, riverbed and watercourse dynamics, and land degra­ needs of the present without compromising the ability of future gener­
dation to assess the effects of mining on the environment. The social ations to meet their own needs”. The definition of sustainable devel­
aspect collected and analysed data on land access and use rights, access opment is seen to have undergone modifications thereby allowing the
by members of the communities to relevant information and services, mining sector to define their operations as sustainable or otherwise
stakeholder participation in decisions affecting their lives, and contributing to sustainable development. Reed (2002, p. 206) observes
accountability of local chiefs in the use of their share of royalties to that sustainable development was initially “equity centered” but was
assess the links mining and social development. This component also redefined to be more “growth-centered” following the Earth Summit in
examined vulnerability levels and adaptive capacity of members of Rio de Janeiro. This redefinition, it is argued favours the preservation of
mine-take communities to the adverse effects of mining operations. This biodiversity by managing small and relatively undisturbed conservation
manuscript focuses only on the social component of the study. The social sites (Kirsch, 2010). It is further argued that the redefinition allows

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D. Anaafo et al. Resources Policy 80 (2023) 103171

mining companies to define growth using economic indices as sustain­ development is the economic arena. Zmami et al. (2021) observe that
able development and to use the economic gains to fund conservation this role of mining stems from the relevance of minerals as raw materials
projects as their contribution to alleviating the environmental impacts of to the operations of many industries, the revenues of national govern­
mining (Kirsch, 2010). ments, and the stimulation of allied activities. Again, Sala-i-Martin et al.
Over the years, however, the contributions of the mining sector to (2004) in a Bayesian averaging of classical estimates for 88 countries
sustainable development have grown significantly beyond economics concluded that mining is a major contributor to long-term economic
and conservation, to encompass various equally important issues growth. These positives, notwithstanding, there are several criticisms of
(Erzurumlu and Erzurumlu, 2015). The mining sector now embraces the the contributions of mining to sustainable economic development. Stern
need to extract with responsibility, ensure corporate-community action (1995) in a study of 19 mineral rich developing countries held that the
on social initiatives, increased focus on community engagement, use of long-term benefits of mining are not supported for all countries. The
safer processes, adoption of new sustainable technologies, promotion of relationship between resource abundance and poor economic perfor­
improved wellbeing of local communities, adoption of corporate social mance, otherwise known as the “Dutch disease” has long been espoused
responsibility, and respecting and honouring stringent environmental by Prebisch (1950); with Cowell et al. (1999) recently arguing that the
policies (Esteves, 2008; Hilson, 2000; Kamlongera, 2013). In the social non-renewability of most mineral resources negates their
context, it is observed that the mining sector significantly affects social inter-generational equity potentials. The Ghanaian case in terms of both
variables such as poverty, unemployment, and corporate social re­ environmental, social, and economic sustainability have already been
sponsibility (Zmami et al., 2021). Empirical studies undertaken in espoused in the introductory section of this study. How these play out at
different world regions support these conclusions. A study on social and the micro level, particularly in relation to social development within the
environmental impacts of mining in Tanzania revealed that 42 percent context of societal values is the focus of this present study.
of the study participants got employed in the mining sector, with
another 20.3 percent benefiting from social interventions such as roads, 3. The Ghanaian situation
water and educational facilities provided by the mining sector (Kitula,
2006). In Peru, Loayza and Rigolini (2016) investigated the Ghana is a resource-rich country and the debate as to whether these
socio-economic impacts of mining and found that mining districts have resources are contributing positively to development or otherwise,
comparatively lower levels of poverty and higher per capita consump­ remain inconclusive. For instance, Siakwah (2016, 2017) while not
tion. And in Canada Gueye et al. (2021) observe that proximity to a disputing conclusions from other studies projecting Ghana as a country
community mine correlates positively with educational outcomes, borne inflicted with resource-curse, argues that such conclusions obscure other
out of the prospects for well-remunerated jobs after completion of pro­ equally important socio-economic and political factors contributing to
grammes of study. Efforts by the mining sector in this respect have, the situation. He argues that the land tenure system, political culture and
however, received some criticisms. It has been observed that many of the even educational levels of Ghanaians also play crucial roles. On the
social development initiatives are often targeted at shoring up the image contrary, Dupuy (2017) and Beck (2000) observe that the Ghanaian
of companies in respect of global sustainability standards as opposed to mining and natural resources sectors are already afflicted with the
genuine efforts to address the social development challenges (Gilber­ various negative outcomes as all essential features of resource curse are
thorpe and Banks, 2012). Esteves (2008) also indicates that although readily observable. This section attempts to unpack the natural re­
mining companies generally accept that they have a responsibility to sources sector of Ghana, particularly as it relates to mineral resources to
play in the social development of host communities, they are often un­ understand how the sector has evolved over the years and the positive
certain as to the extent to which they should be involved. contributions or otherwise to national development.
It is not only within the arena of social development that the mining Ghana is one of the countries in Africa that can boast of significant
sector is contributing to sustainable development. They are equally endowments of mineral deposits, including manganese, diamonds,
doing so with respect to the environment. Mining and the construction bauxite, oil, and gold. Of all these endowments, gold is the single most
of associated infrastructure is generally thought to have adverse effects important mineral resource of Ghana. While there are gold deposits
on water, biodiversity, air, soil quality, spatial degradation, and trans­ across the entire country, the largest gold deposits of commercial value
formation of mining areas (Mabey et al., 2020; Monteiro et al., 2019). are found in the Ashanti, Western, Central, and the Brong-Ahafo Re­
Irrespective of the efforts that mining companies are making to gions. The Ghana Chamber of Mines (2019) reported that, the mining
ameliorate the environmental impacts of their operations, the outcomes and quarrying sector contributed GH’ 4.02 billion in 2019, to national
of empirical reviews of environmental sustainability by the mining revenue, accounting for 7.6 percent of revenue as against 4.8 percentage
sector across the globe are not encouraging. Mhlongo et al. (2018) un­ contribution in 2018. Again, the mining sector generated US$4.5 billion
dertook a study on water quality in a mining and water-stressed region in export revenues in 2019, out of which US$ 3.3 billion was returned to
in South Africa and concluded that there was increasing levels of water the country. This amount represents 73 percent of export proceeds for
contamination, requiring urgent action to avert any potential health the year (Ghana Chamber of Mines, 2020).
risks. In a similar study, Kitula (2006) also laments the adverse effects of Aside revenue and export earnings the mining sector also serves as a
mining on water quality and the collapse of buildings in Tanzania. source of direct employment to some 11,899 Ghanaians, with several
Mabey et al. (2020) identified deforestation, air pollution, and lack of others indirectly involved with the sector. The multinational companies
clean water as some of the main environmental problems resulting from involved with mining are also initiating and implementing various
mining in Sierra Leone. These emerging concerns in respect of envi­ Corporate Social Responsibility (CSR) programmes and projects.
ronmental sustainability are not surprising as Maconachie and Hilson Through the Ghana Chamber of Mines these companies have established
(2013), observed that in most instances mining companies acting with the Tertiary Education Fund into which an amount of US$442,500 is
the tacit support of governments disregard environmental regulations paid annually and intended to be invested in educating skilled human
with impunity. Yildiz (2020) has, however, observed that the emerging resources in support of the socio-economic transformation of the coun­
role of EIA in the identification of potential environmental problems try. It is estimated that mining companies invested about US$24.45
associated with mining and taking steps to prevent or mitigate them can million on CSR programmes in 2019 alone (Ghana Chamber of Mines,
be a game changer for the role of mining companies in promoting 2020). Fig. 1.1 shows the share of mineral receipts as a share of total
environmental sustainability. Examining the permitting processes of exports from 2005 to 2019.
mining operations in Turkey, he indicated that EIA has become the main Irrespective of the benefits generated by the sector, issues of health
basis for deciding to grant or decline a request for a mining permit. and safety, environmental pollution and widespread discontent with the
The area most often touted as mining’s main contribution to contributions of the mining sector to the development of the country

3
D. Anaafo et al. Resources Policy 80 (2023) 103171

Fig. 1.1. Share of mineral receipts in total exports (2005–2019).


Source: Ghana Chamber of Mines (2019)

remain. As such some reforms have been initiated over the years. Most of 4. Study area and methods
these reforms, however, seek to position Ghana as an attractive desti­
nation for the investor community. Often the policies have no long-term 4.1. Study area
beneficial impacts as they are watered down to incentivise and attract
Foreign Direct Investments (FDI). These challenges militate against the The study area is the Asutifi North District of Ghana, which serves as
sector’s ability to contribute in a manner commensurate with its size to the African headquarters of Newmont Goldcorp, an American mining
government revenues and the development of the country (Ayee et al., giant headquartered in Denver Colorado. The Asutifi North District is
2011). located between latitudes 6◦ 40′ and 7◦ 15′ North and Longitudes 2◦ 15′
Recently, however, reforms have sought to ensure that the country and 2◦ 45′ West, with Kenyasi as its capital. The district has a total land
derives optimum benefits from its natural resources. Some of these re­ area of 1500 sq. Km (Asutifi North District Assembly, 2020). Newmont’s
forms include the local content policy which requires of mining com­ operations in the Asutifi North District affects five communities which
panies to employ a certain percentage of their staff from the country; have been categorised as mine-take communities. These are Kenyasi No.
social responsibility agreements requiring the setting up of consultative 1, Kenyasi No. 2, Ntotroso, Gyedu and Wamahinso. The choice of study
committees in mine-take communities; and environmental sustainabil­ area was borne out of the positive reviews from industry watchers and
ity agreements requiring companies to sign on to reclamation bonds, the fact that Newmont Goldcorp participates voluntarily in initiatives
among others. Aubynn (2013) argues that these policies and reforms that seek to provide an agenda for action, offer the means for indepen­
have resulted in increased contributions of the mining sector to the dent assessment of their performance, willingly generate and share best
development of the country. Mining companies operating in Ghana are industry practices.
also required to meet standard practices in the industry as contained in Newmont Goldcorp prides itself as operating a system that allows for
agreements such as the Publish What you Pay (PWYP), Extractive In­ effective health, safety, community relations and environmental pro­
dustries Transparency Initiative (EITI), the Kimberley Process Certifi­ tection processes. Since 2007, the Ahafo site like other Newmont sites
cation Scheme (KPCS), the US Congress’ Frank-Dodd Act, and the across the globe are often assessed using ISO 14001 (environment) and
African Mining Vision (AMV) which have been adopted to deal with OHSAS 18001 (health and safety) standards (Newmont, 2019). In the
practices contributing to poor gains from resource endowments in 2019 sustainability report of Newmont Goldcorp, and in relation to
different country contexts (Khadiagala, 2015). sustainability, the company proudly stated that “we serve as a catalyst
The legal and regulatory regime for mining in Ghana have also seen for local economic development through transparent and respectful
some reforms. The most salient is the promulgation of the Minerals and stakeholder engagement and as responsible stewards of the environ­
Monteiro et al., 2019 (Act 995), amending the Minerals and Mining Act ment” (Newmont, 2019, p.10). Newmont Goldcorp also argues that it is
of 2006 (Act 703). Act 995 has as its objective to “increase the penalties contributing to the realisation of the globally endorsed Sustainable
for a person who buys or sells minerals without a licence or without a Development Goals (SDGs) especially, Goal 3 — good health and well­
valid authority; to increase the penalties for a person who engages in being; Goal 5 — gender equality; Goal 6 — clean water and sanitation;
mining contrary to a provision of the Act and to provide for related and Goal 8 — decent work and economic growth; Goal 17 — partner­
matters”. It also aims to make local content a central requirement for ships for the goals (Newmont, 2019).
granting licences to mining companies. Some activities prohibited by Meanwhile other independent assessments of Newmont’s operations
Act 995 include the provision of mining support services to small scale put the company in a rather bad light in respect of its commitment to
mining companies, and the imposition of stiffer punishment for trading sustainable development. Two separate studies carried out by the
in minerals without a license. There are also plans to further amend Act Institute of Development Studies of the University of Cape Coast and the
703 to reduce the duration for acquisition of a development agreement Wassa Association of Communities Affected by Mining (WACAM) with
from 15 to 5 years; and mainstream gender into employment decisions funding from Ford Foundation concluded that the operations of New­
of mining companies (The Daily Statesman, 2017). Overall, while there mont negatively impacted various segments of the mine-take commu­
are disagreements about the positive role of mining in Ghana’s devel­ nities. Women’s access to potable water, farmlands and other means of
opment, efforts are underway to reform the industry to make it more economic livelihood have been adversely affected, farm sizes have
responsive to the development needs of Ghana. reduced, and general living conditions have worsened, the study argued
(The Daily Statesman, 2017). Considering these contestations, the
mine-take communities bordering Newmont’s operations were purpo­
sively selected as the best place to unpack the nuances between mining

4
D. Anaafo et al. Resources Policy 80 (2023) 103171

and sustainable development of mine-take communities at the Determining a sample size to guide the study started with a perusal of
micro-level in Ghana. Fig. 1.2 shows the study area in the context of the Medium-Term Development Plan of the Asutifi North District As­
Ghana. sembly (2017). The report indicates that there are 6305 households in
the identified mine-take communities. At a 95% confidence level the
sample size for the study was calculated using fluid surveys (Survey­
4.2. Methods Monkey, 2022). This approach was used for the sampling because it is
easier to use and provides statistically accurate results. It can also be
The study made use of mixed methods, deploying questionnaire used for both simple and complex studies (Meysamie et al., 2014).
administration, key informant interviews, stakeholder validation Thereafter, the sample size for each study community was proportion­
workshop and analysis of satellite imagery for a detailed and nuanced ally determined based on its share of the total number of households.
understanding of the different components investigated. According to Table 1.1 shows the sample size for each of the study communities.
Anthony et al. (2009), this approach is ideal for studies involving the The study employed a multistage sampling technique to ensure the
collection, analyses, and interpretation of quantitative and qualitative selection of a representative sample of the communities for the analyses.
data in a single study. Furthermore, in emphasizing the strength of this With the help of National Service Personnel recruited and trained for the
approach, Creswell and Clark (2017) stressed that the mixed methods study, all houses within the study communities were numbered. A
approach provides a better understanding of the research problem than simple random sampling technique was used to select the first house
either the quantitative or qualitative approach. Therefore, the study from which data was collected, and the remaining houses were sys­
draws on the complementary strengths of both quantitative and quali­ tematically sampled, as contained in Table 1.1. The basis for the sys­
tative methods to provide a comprehensive understanding of the tematic sampling of houses in the study was the relatively homogenous
research problem and meet the stated objective of the study.

Fig. 1.2. Asutifi north district in the context of Ghana.


Source: Asutifi North District Assembly, (2017)

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D. Anaafo et al. Resources Policy 80 (2023) 103171

Table 1.1 contested nature of issues from various participants and the need to
Sample size determination. ensure that the outcome of the study is reflective of the views shared
Community No. Of No. Of Sample Randomly Systema- with the researchers. Claims which were contested at the workshop and
Houses Households size Selected tization could not be verified on the ground were taken out of the analyses.
House Quantitative data was analysed with descriptive statistical methods
Kenyasi 1183 2838 163 21st 7th in SPSS version 21, whilst qualitative data was transcribed and manually
No.1 analysed based on themes that emerged from the interviews with study
Kenyasi No. 620 1427 82 87th 7th participants. A major limitation of this study was the inaccessibility of
2
Ntotroso 641 1209 70 215th 9th
crucial informants, particularly Newmont Goldcorp and NADeF due to
Gyedu 270 500 29 37th 9th their inability or unwillingness to approve their staff to be interviewed
Wamahinso 241 331 19 116th 13th for the study. As a result, publicly available information including
Total 2955 6305 363 annual reports from Newmont which were corroborated by reports from
Source: Author’s construct (2021) the Ghana Chamber of Mines relating to the operations of Newmont
were relied on, where necessary.
households in the study communities and the direct and indirect in­
teractions of community members with the mining activities. A house­ 5. Results
hold for our purposes is a grouping of relatives or non-relatives living
together and sharing food from the same pot. Therefore, a house may be The socio-demographics of study participants were deemed impor­
inhabited by one or more households. Study participants from the sys­ tant to unpacking the social development issues in the area. Issues
tematically sampled houses, who were either heads of households or examined included ethnicity, household sizes, gender, age, religion,
their representatives were selected based on availability and willingness marital status, education and occupation of study participants. Put
to partake in the study. Field officers were trained using questionnaires together, these were considered relevant to the employability, ability to
developed, pre-tested, and modified after reconnaissance surveys in the participate meaningfully in the community development space, ability
study communities. Data were collected over one month, with each to access and manage information and the vulnerability and adaptive
questionnaire administration lasting approximately thirty (30) minutes. capacity of individuals within the study area. The average household
The questionnaire was used to elicit relevant data on the various size for the mine-take communities was five which is almost equal to the
aspects of sustainable development. Social sustainability for purposes of 4.2 reported in the 2010 Population and Housing Census report for the
this study is understood within societal values to include the processes of district. In terms of language, Akan the language spoken by the natives
enabling access to land for use by community members, access to rele­ of the study area, and its varying dialects was widely spoken by 82.5
vant information and services, participation in decisions affecting their percent of the study participants with 81.4 percent of them being natives
lives, and accountability for mineral royalties. These have been adapted of the study communities. Again, 54.7 Percent of the participants were
from the principles of social sustainability which include equity of access male while 45.7 percent were female. The study participants were pre­
to key services; political participation; a sense of community ownership dominantly within the age group of 31–40 (36.4%). Most of the par­
and a system for transmitting awareness among others (Morelli, 2011). ticipants were married (73.5%) with many having between 3 and 5
Key informant interviews with members of the Sustainable Development children (40.2%) and mainly Christians (90.9%). Only 7.3 percent of the
Committees (SDCs) of the mine-take communities, the District Planning participants had tertiary level education, with 15 percent never having
Officer, the District Director of Agriculture, and the Director of Social any form of education and the majority (29.9%) having just basic edu­
Welfare and Community Development were also undertaken. These cation. The participants were mainly farmers (39.1%) with 5 percent of
experts were selected based on their specialized knowledge on the them being unemployed. The socio-demographic data show that the
subject matter and over-sight responsibilities over social sustainability study participants comprised of people who were active participants in
issues in the study communities. Each interview lasted 40–60 min and the socio-economic life of the mine-take communities. They had the
was recorded using a tape recorder. Interviews with key informants potential to be considered for employment or trained to be employable,
focused on the role of mining operations in the development of the area, could partake in public discussions and decision-making and thereby
food availability all year round, social responsibility arrangements, contribute to the social sustainability objective of the study which
relationship between the mining company and mining communities, focused on voice and accountability.
avenues for community participation, and measures by relevant actors In respect of the social sustainability variables underpinning the
to improve benefits for affected communities among others. study, it was realised that modes of land access remain unchanged
Also, essential and significant but divergent issues that emerged from despite the operations of mining within the area. Most people (65.7%)
the key informant interviews contributed to inform the design of the still access land through the family as autochthonous members of the
guide for focus group discussions. Five focus group discussions were land-owning communities. Even in the face of mining, share cropping
conducted, one in each study community. The discussion comprised 8 to arrangements based on abunu and abusa and grants to land are also
10 household heads in each of the study communities and was facilitated prevalent modes of land acquisition. Abunu is an arrangement whereby a
by the lead researcher with assistance from the head of the field team. tenant and a landowner go into a tenancy agreement usually involving
Like the household interviews, participants in the focus group discus­ food crops for an equal share of the yield realised at the end of a farming
sions were selected based on their willingness to participate. Focus season. Abusa on the other hand, involves tree or cash crops and the
group discussions were intended to contribute to method and data sharing arrangement is 1/3 to the tenant and 2/3 of yield to the land­
source triangulation for the study. Carter et al. (2014) indicates that owner. The results show that 26.2 percent of the respondents access land
there are four types of triangulations in qualitative research. These are through sharecropping arrangements while 7.7 percent accessed land
method, investigator, theory and data source types of triangulations. through grants. Although respondents acknowledge that some families
This study used both method and data source triangulation to obtain lost their lands to the concession acquired by Newmont Goldcorp, its
varied perspectives and data validation. The discussion was conducted impact on general land access by locals is negligible. For instance, one
in Twi, the dominant language in the study communities. Each discus­ participant argued thus:
sion lasted approximately 2 h, and the output was recorded using a tape “Every family member had ready access to family lands. However, we lost
recorder. Following initial analyses and synthesis of the data, a stake­ substantial portion of the family land to the concession acquired for the
holder validation workshop was held. It was necessitated by the mine and what is left is inadequate to support the farming needs of all

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D. Anaafo et al. Resources Policy 80 (2023) 103171

family members. Increasingly, it is generally becoming difficult to get land The main vulnerability challenges were in relation to pollution
from other families” (A native of Ntrotroso, February 2021). (water, air, and noise). Participants complained of acid rain and their
inability to collect and use rainwater as they did in the past, noise
Respondents attributed any difficulties to land access to a multi­
emanating from blasting and dust emanating from heavy duty earth
plicity of issues including loss of farmlands to the mines, scarcity of land
moving equipment plying their untarred roads. Some of the complaints
due to population growth, general anxiety of losing land, rising land
are quoted below:
values, and growing pressure on farmlands as opposed solely to the
operations of the mine. Although Newmont declined to take part in this “there are various health consequences resulting from acid-mine
study, the favourable land access situation may be attributable to the drainage, contamination of soil, ground and surface water. These
Agricultural Improvement and Land Access Programme (AILAP) result in all kinds of illnesses, affect our health budgets, traditional
implemented by Newmont over the years. It is estimated that New­ livelihood activities and general agricultural practices” (A female
mont’s Ahafo project took some 8030 acres from landowners, of which respondent from Wamahinso, February 2021).
4854 acres, consisting of 7641 individual fields, were cropped. AILAP
“the negatives of mining is having a toll on us. We have very poor and
therefore sought to enable farmers who had lost their land re-establish or
dusty roads which can result in respiratory diseases and the frequent
exceed pre-mine levels of crop productivity by ensuring that compen­
blasting of rocks have led to our buildings developing cracks. There
sated farmers have access to land. Newmont offered agricultural assis­
are also suggestions that our rivers are now heavily polluted and not
tance to all crop compensated farmers and facilitated access to land for
good for drinking from” (A native of Ntotroso, February 2021).
compensated farmers who had lost their lands.
The provision of information by Newmont Goldcorp as a way of The mining company, the Newmont Ahafo Development Foundation
fostering community engagement was acknowledged by the study par­ (NADeF) a creature of the mining company and the Asutifi North District
ticipants. The information provided include employment opportunities, Assembly implement adaptation related interventions to deal with the
compensation schedules and arrangements, blasting schedules, pit vulnerabilities mentioned by the participants. Some of these include the
closure, and health and safety related information. These were provided direct provision of social services, provision of information, dust sup­
as and when necessary, as attested to by 67 percent of the participants pression activities and payment of compensation to deserving in­
and throughout the mine-take communities as evinced by about 80 dividuals and families. Some participants had these to say:
percent of the study participants. The main challenge with information
“They are trying their best to deal with some of the emerging con­
provision is that the information pertained to the operational activities
cerns. Some individuals whose buildings have been affected by
of the mine as opposed to general community development related is­
blasting were recently compensated. The company has been
sues. It was therefore not surprising that projects being undertaken by
entreated to provide blasting related information to the public well
the Newmont Ahafo Development Foundation were attributed by study
ahead of time to avoid any surprises and panicky behaviours” (A
participants to royalties received by local chiefs. This contradicts one of
male respondent from Gydeu, February 2021).
the main agreements signed by Newmont with the mine-take commu­
nities prior to the start of operations. Known as the relationships “the issue of acid rain has come to stay. So all they do is to make
agreement its main objective was to further deepen the cordial rela­ announcements to the effect that we should not collect rainwater for
tionship between Newmont Goldcorp and the Community. Democratic household use. Some communities are also being provided with
representation in all spheres of community development is essential to alternative water sources to prevent use of rainwater” (A female
the kind of relationship envisaged by Agreement. respondent Kenyasi No. 2, February 2021).
It emerged from the study that Newmont promptly paid-up royalties
“increasingly NADeF, is responding to our concerns. They have
due the mine-take communities. While about 76 percent of the re­
embarked on several social interventions aimed at improving com­
spondents indicated that royalties were being paid, some 18 percent of
fort and conditions under which we live” (A Male respondent from
the respondents indicated that the communities received no royalties
Wamahinso, February 2021).
from the mining company. For most respondents (82.7%), the royalties
are used for infrastructure development while for 11.6 percent of the Over the years the NADeF working in collaboration with Sustainable
respondents, royalties are used to provide scholarship opportunities for Development Committees has invested over $9,236,070.39 on various
students from the mine-take communities. Further checks, however, projects in the communities. These range from schools through to
revealed that royalties were kept completely by chiefs for the sole pur­ teachers’ quarters, libraries, water systems, electricity/power projects,
pose of “maintenance of the stool”. Therefore, the communities did not health facilities, community festivals and other socio-cultural activities.
benefit in any way from the payment of royalties to local chiefs. General NADeF also generates annual income of over $4 million and invests
community share of royalties went to the local government authority to about 20 percent of it into high yielding financial instruments that will
be spent on priority development interventions. While some respondents be ploughed back into the development of the communities when
indicated that royalties were being used transparently, others thought Newmont’s operations come to an end. An issue which emerged during
otherwise. The following statements represent the opposing views: the stakeholder validation workshop is that efforts by members of the
mine-take community to have the initial Social Responsibility Agree­
“There is transparency in the use of royalties. The beneficiaries of
ment (SRA) reached with Newmont reviewed have not yielded any re­
royalties in the community, particularly those on scholarships are
sults. For instance, they want the $1 per ounce of gold sold given to
well known to all of us” (A male respondent from Gueye et al., 2021).
NADeF reviewed upwards through negotiations. It is important for
“Because of the level of transparency and openness associated with Newmont to give this some attention in order not to derail the cordial
the disbursement of royalties, all projects initiated are completed relationship it has with the mine-take communities.
timeously. Frequently, meetings are held with community members
and we are informed on how royalties have been disbursed” (A male 6. Discussion
respondent from Kenyasi, February 2021).
The data show that there are various social development concerns in
Further checks revealed that the projects that respondent two was
the Ahafo area, where Newmont Goldcorp undertakes its mining oper­
referring to were projects being undertaken by NADeF and not attrib­
ations in Ghana. The evidence also show that Newmont is responding to
utable to royalties. It is important to ensure that royalties paid to chiefs
many of those challenges while exploring opportunities to mitigate the
are used in a manner beneficial to all members of the mine-take
residual effects. Regarding land access, it emerged that the operations of
communities.

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D. Anaafo et al. Resources Policy 80 (2023) 103171

the mine has not significantly impacted traditional modes of land access p. 184) as capture of royalties remitted to mine-take communities.
for productive purposes. Modes of land access still included a mix of Meanwhile the claim that royalties are meant to be used for the main­
grant, sharecropping arrangements, use of family land or purchase. The tenance of the stool is traced to Article 267 (6) (a) of the 1992 Consti­
problems associated with land access include farmlands lost to mining tution of Ghana which states that in respect of the sharing of royalties,
concession in which case compensation was paid through to increasing “twenty-five percent to the stool through the traditional authority for
population, increased value of land and increased pressure on land. the maintenance of the stool in keeping with its status”. This article has
Irrespective of the competing demands over land, Worlanyo et al. (2022) been wrongfully interpreted by chiefs to appropriate mineral royalties
observe that mining is the single important competitor to agriculture in meant for the development of their communities for themselves. This is
terms of land use conversion in the Asutifi North District. Interestingly because chiefs occupy fiduciary role in the management of land (Anaafo
Newmont, through the AILAP project managed to mitigate the chal­ and Guba, 2017), as the “stool” represents the customary group being
lenges that emerged from the loss of land. The efforts of Newmont in this ruled by a chief (Lujala and Narh, 2020). Given this understanding,
regard are commendable as it has been argued that it is against sound royalties are to be used in a way that is beneficial to the community and
economic reasoning for private investors to initiate and implement not just to meet the needs of local chiefs. Several other studies (Dupuy,
measures that maximise benefits for local communities and minimise 2017; Adimazoya, 2013), decry this extortionist tendencies of chiefs.
profits as in the AILAP case (Li, 2011; Maconachie and Hilson, 2013). Chiefs are emboldened by the laws of Ghana which invariably make it
However, the current land access dynamics as evident from the study very difficult to initiate an action in court against individuals exercising
recognises broader set of factors influencing land access and agrarian fiduciary responsibilities. Section 13 of the recently promulgated Lujala
change in general (Hinojosa, 2013), hence the departure from heaping and Narh, 2020 (Act 1036) has no penal provision for breach of fiduciary
the blame entirely on the mining operations. The approach adopted by responsibilities. There is also a further requirement as per the law that to
Newmont is also different from attempts in the past to reclaim lands for sue a chief, evidence must be adduced to show that all traditional
agricultural uses after mining. Essah and Andrews (2016) have dis­ customary mechanisms for resolving the dispute at hand have been
credited reclamation practices and what they term disjointed CRS ar­ exhausted. These stringent conditions embolden chiefs, weaken the
rangements for nuanced interventions such as the AILAP. resolve by individual members of communities to seek accountability
Information is critical to socio-political decision making. Within the and result in wanton use of resources that should otherwise serve the
study area Newmont provided information on employment opportu­ larger community interest.
nities, compensation schedules and arrangements, blasting schedules, Lastly, quite obviously the activities of Newmont expose the mem­
pit closures, and health and safety. However, the sufficiency of the in­ bers of the mine-take communities to pollution of diverse kinds.
formation is called into question as people seem not to know of who is Meanwhile Newmont is also implementing measures to enable com­
doing what in terms of community development initiatives. Newmont’s munities adapt. The responsiveness of the measures is, however, un­
is violating its relationships agreement that requires of the company to clear. Dust, acid rain and cracks on building resulting from blasting have
engage with mine-take communities beyond the provision of opera­ been traditionally identified to be associated with mining operations in
tional information with community relevance. This approach is not different parts of Ghana and elsewhere. The conclusion from most
different from that complained about by Kamlongera (2013) in his ex­ studies is that mining imposes socio-economic costs on mine-take
amination of mining boom in Malawi in which he laments that agree­ communities as is leads to loss of land through land acquisition, envi­
ments are signed without greater participation of stakeholders in ronmental degradation, pollution in varied forms (Aboka et al., 2018;
decisions about mine development. In consideration of these Ayee et al. Lujala and Narh, 2020). This study further corroborates these claims.
(2011) argue that creating a platform for effective democratic repre­ However, the evidence also shows that Newmont is implementing
sentation of members of communities affected by mining activities is an measures through NADeF aimed at improving community resilience and
important step to avoid conflict between mining companies and host enhancing adaptation. This is quite progressive and must be deepened
communities. Recently, Awoa et al. (2021) show through a large panel for the mutual benefit and coexistence of the parties.
study involving 130 developing countries that resource abundance often
has adverse effects on women’s political participation. In light of these, 7. Limitations and future research directions
(Cornwall (2002) warns against equating the extension of invitations to
participate in decision-making regarding natural resources extraction to The main limitation is the refusal/inability of Newmont to partake in
democratic representation. Essah and Andrews (2016) also indicate that the study, although this was remedied to some extent using secondary
the involvement of community members in sustainable mining decision data. Second, the study could have benefited from a wider empirical
making should not be limited to operational reclamation and Corporate comparative analysis of micro level cases from different parts of Ghana.
Social Responsibility (CSR) activities but broadened to include formu­ The number of social variables examined could also have been broad­
lation and review of laws and policies. The takeaway from these dis­ ened. It will also be illuminating to undertake a study of this nature by
cussions therefore is that community actors and other relevant examining how the variables of social, economic and environmental
stakeholders including CSOs must play active roles in decision-making sustainability play out in different contexts. In respect of the role of
processes around mineral resources as a way of strengthening trans­ chiefs and royalties, an understanding of how the situation is likely to
parency, accountability, and democratic representation (Maconachie, play out in the northern part of the country, where lands are owned by
2010; Maconachie and Hilson, 2013). In this respect deepened collab­ individuals and families as opposed to traditional authorities would be
oration is important for ensuring that all stakeholders understand their informative. It is therefore suggested that future research endeavours
commitments within agreements reached and contribute to monitoring undertake comparative analysis of local micro-level cases, increase the
(Hamann and Acutt, 2003; Jenkins and Obara, 2008). Given that New­ variables under observation or even examine the issues from the social,
mont is flouting its own relationships agreement in terms of information economic and environmental perspectives.
provision, it may be concluded that the mechanisms for participatory
decision making are merely self-serving and tokenist. 8. Conclusions
The payment of royalties appears shrouded in secrecy. Although
study participants appeared to know that local chiefs receive royalties, This study set out to unpack the links between gold mining opera­
they have no idea as to what the royalties are used for. On the other tions and the sustainable development of host communities as a way of
hand, chiefs are frank in indicating that the royalties are used purposely providing a micro as opposed to a macro level analysis of the often-
for the maintenance “stools” to the exclusion of the members of the contested issues about the positive correlation between resource abun­
community. This behaviour has been labelled by Lujala and Narh (2020, dance and underdevelopment. Although the main dimensions of

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sustainable development were examined, this paper focuses only on the Al-Hassan, S., Amoako, R., 2014. Environmental and security aspects of contemporary
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