Background.
Mining and especially gold mining
has always been a key sector in the Ghanaian economy. Since the 16th
century Ghana has been a world leader in the production and export of gold.
During colonization, British economic strategy focused extensively on the
extraction and shipment of the valuable mineral.
The attraction of gold in Ghana continues to
provide incentive for extensive foreign direct investment in the country.
Companies based in the United States, Canada, South Africa and Australia have
all become major investors in the nation’s gold mining industry.
The debate over whether mining in
general has benefitted the Ghanaian economy and the general society rages on. Critics
sometimes emotionally and genuinely relate the negative impact of mining on
communities and question the economic rewards to the country at large.
Environmental, Socio-economic and even moral issues are raised in the
advancement of arguments against mining.
The colonialist reap of Ghana’s
prime mineral resource and previous mining operations which yielded little
benefit to the country may rightly draw negative nostalgic memories and justify
continuous call for caution against mining generally.
However,
it is an established fact that everything we depend on is either made from
minerals or relies on minerals and mining for its production.
It is thus important, realizing the inevitability of mining, to find
ways of exploiting the positive impact of mining to the fullest, so as to
reduce its negative impact to the barest minimum or even to make the negative
impact insignificant altogether.
Further,
foreign direct investment in this global world economy is unavoidable. For Ghana,
our quest and commitment to attain sustainable development must be demonstrated
through the institution of the right laws and policies and also to encourage
Multinational Corporations with demonstrable commitment to be partners in
development to initiate programmes that will enhance the living conditions of
the communities in which they operate and the country at large through
Corporate Social Responsibility initiatives. Newmont Ghana Gold Limited’s NADeF
(Newmont Ahafo Development Foundation) is a worthy case study for corporate
bodies whether large or small in the country.
Newmont Ahafo
Development Foundation
Chief Executive Officer (CEO) of Newmont Mining Corporation, Wayne W.
Murdy visited Ghana in 2005 and made a public commitment to contribute $1 per
ounce of gold sold and 1% of net pre-tax annual profit from its mining
operation in Ahafo for the sustainable development of the mine area. This
pronouncement was made before mining begun in Ahafo in 2006, in fulfillment of
Newmont Ghana Gold Limited (NGGL) avowed commitment to contribute towards the
sustainable development of the Ahafo Mine Communities.
Consequently, NGGL alongside the
Chiefs and people of the ten (10) Ahafo Mine Communities formed the Ahafo
Social Responsibility Forum (ASRF) to deliberate on how to execute the
commitment.
The ASRF which is made up of 53
members representing traditional rulers, local and regional governments, youth,
women, farmers, local NGOs and NGGL, with an independent Moderator and a
Co-Moderator, deliberated for over two years and came up with 3 main Agreements:
Relationship
Agreement: This is to strengthen further the cordial relationship
between NGGL and the Community.
Employment
Agreement: This spelled out modalities governing the employment of
locals by NGGL.
Foundation
Agreement: Focuses on the funding and implementation of
sustainable development projects within the Community.
The Newmont Ahafo Development
Foundation (NADeF) was subsequently incorporated as a trust limited by
guarantee and a nine member Board of Trustees was sworn into office on 29th May
2008.
Newmont Ahafo Development Foundation
(NADeF) is a sustainable community development Foundation, operated through a
Foundation Agreement developed and signed between Newmont Ghana Gold Limited
and the Ahafo Social Responsibility Forum (ASFR). ASRF in a true strategic and
participatory communications approach is represented by 10 Ahafo Mine
Communities, Local Government, and Regional Government and Civil Society groups,
to share resources granted to the Foundation through an annual contribution
from Newmont to support community development programs in the area of the Ahafo
Mines’ operations.
The
Foundation utilizes funds to support the following key areas of development:
Human
Resource Development
Economic
Empowerment
Provision
of Infrastructure
Natural
Resources
Cultural
Heritage and Sports
Social
Amenities
There is also
the Sustainable Development Committees (SDC) of the 10 Community Towns
(Adrobaa, Afrisipakrom, Gyedu, Kenyasi # 1, Kenaysi # 2, Ntotroso, Susuanso,
Terchire, Wamahinso and Yamfo) which prepared project proposals according to
the specific and peculiar needs of the community and sent them for endorsement
by the respective District Assemblies.
The maximum participation of
Ahafo Mine host communities in their own sustainable development is the
objective of the NADeF model. Although Newmont has led the development of
NADeF, it is owned by the Ahafo Mine host communities to literally determine,
through their Sustainable Development Communities, the area in which to apply
their funds from NADeF".
The governance structure has been
designed in such a way that the majority of the board membership would be
selected by the Ahafo host communities.
On 11th October 2011,
NADeF outdoored some of it projects and launched the NADeF website to update
the public about the progress of the foundation.
A six-unit classroom block with
an office, a computer room and a staff common room of the Saint Peter's
Catholic Primary school was also commissioned at a durbar of chiefs and the
local people of Ahafo to climax the series of durbars held to outdoor the
projects.
Launching the website, the Chairman
of the Board of Trustees of NADeF, Mr. Saarah-Mensah observed that the Foundation
had so far, attracted over $7.4 million dollars from Newmont Ghana Gold Limited
for various infrastructural and non infrastructural projects to improve the
lives of the local people.
Out of these funds one thousand
five hundred and eight (1508) students from the Ahafo area in various senior
high schools and tertiary institutions across the country have benefited under a
scholarship scheme under the non infrastructural projects of NADeF.
For the infrastructural projects,
over 34 projects have either been completed or ongoing for the ten beneficiary
communities.
The projects comprise 14-room
teachers’ quarters at Adrobaa, four-unit teachers’ quarters and nursery school
blocks, a nursery block at Gyedu, six-unit classroom block with office, store,
staff common room and library at Kenyasi number two.
Others are the construction of a
chief’s palace, community library, three-unit classroom block with office, staff
common room at Susuanso, 20-seater water closet toilets at Akyease and
Apantuase.
Further in Ntotroso, NADeF have
successfully provided two mechanized boreholes, electricity for two schools,
sporting equipment as well as construction of six-unit classroom block with
office, staff common room and computer library.
Under the Foundation’s community
projects, the Techire community has benefited from the construction of Polytank
stands and mechanization of five boreholes, whilst Wamahinso community also
benefited from the construction of six-unit classroom block with office, store,
staff common room and library, as well as the provision of furniture and books
and the renovation of the chief’s palace.
At Yamfo, NADeF has began
constructing 14-seater water closet toilet, library, and Information
Communication Technology Center with a conference room. The Foundation has also
supplied furniture, books, computers and accessories, and constructed two-unit
nurses’ quarters for the community.
The people of Afrisipakrom have
been provided with a borehole, library and chief’s palace, and the Foundation
was supporting the Kenyasi Number One community to construct a chief’s palace.
The Foundation had piloted a
micro credit facility at Wamahinso, Gyedu and Ntotroso and had assisted 132
businessmen and businesswomen with GHC 40,000.
The Foundation also operates a
four-year mine apprenticeship program targeted at young locals in the Ahafo
area with the aim of increasing local employment in the Ahafo mine to 50 per
cent by 2016.
Interviews with beneficiaries of
both the infrastructural and non infrastructural project revealed their outmost
elation over the success of the Foundation which is making life meaningful for
them. For Abena Nyarko of Acherensua Senior High School and Agnes Boateng of
Ola Girls, the scholarship scheme administered with funds under the Foundation
could not have come at a better time. They explained how the scheme had saved
them from dropping out of school at the junior high level.
The headmistress of one of the
beneficiary schools, St Peters Catholic School located in Kenyasi # 2, Sister
Sarah Dora Wilberforce said the children had been studying under a tree for almost
a year before NADeF came to their aid.
She pointed out the old school
building which had its roofs removed. She explained that it took NADeF six
months to put up the new six unit classroom block for the school immediately
the Foundation were informed about the school’s plight. She was appreciative of
the work of NADeF and urged them to keep up the good work to help develop the
community.
Nana Kontoh Fofie, Kontihene of
Kenyasi # 2 expressed his gratitude to Newmont for fulfilling their commitment
to improve the living conditions of the people of the Asutifi area through the
ASRF agreements.
Significantly all project
contracts under the NADeF funds are awarded to local contractors.
One
other important aspect of the Foundation’s work is that, as part of Newmont’s
annual contributions to NADeF, there is a provision for the creation of an
endowment trust fund. (An increasing proportion of the funds will be earmarked
as endowment fund over the life of mine). What this means is that, even after
the life of the mine where Newmont Ghana would have closed the mine, there
would be a fund available to continue with development projects in the Asutifi area.
Endowment provision funded via the annual contributions is scheduled as follows
(10% - first 5yrs; 15% - second 5yrs; 20% - third 5yrs; and 25% - fourth 5yrs).
Mr. Randy Barnes, Regional
Vice-President, Environment and Social Responsibility of Newmont Gold Ghana Limited
in his remarks at the durbar of chiefs and the community explained that the
company’s decision to create the Foundation was based on its conviction that
creating shared value in the company’s host communities would substantially
spur the growth of those areas and also be of greater benefit to the larger
society.
Mr. Barnes observed that mining,
like any other human enterprise, had its challenges and that there was a
continuous effort by mining companies and other stakeholders to ensure that it
was an activity that was carried out safely and responsibly and that Newmont
Ghana remains committed to living their value of demonstrating leadership in
stewardship of the environment and social responsibility by creating opportunities
and shared value for the host communities.
Conclusion.
Corporate Social Responsibility
(CSR) is defined by CSR Foundation Ghana as a planned, systematic and ethical
corporate behaviour that meets statutory and regulatory requirements beyond an
organisation's mission statement or charter and also satisfies the needs of all
stakeholders and social imperatives in a transparent and sustainable manner for
development.
Newmont Ghana Gold Limited
through engagements with the communities in Ahafo culminating into the
agreements, which gave birth to NADeF is one model of CSR and the efficiency of
strategic communications in ensuring effective community engagements to ensure
peaceful co-existence and improvement based on trust due to continuous
interaction.
Newmont Ahafo Development Foundation
is definitely a model worth profiling for other corporate bodies whether large
or small to emulate.
For our part of the world, where
the developmental challenges are various and diverse, having a partner
committed to an engagement with the community and government to enhance the
living conditions of the people through a well structured system of governance
and funding in a sustainable manner is worth spreading for other organizations
to replicate.
However central and local
government must not shirk their responsibilities to the people due to such
socially responsibly initiatives from responsible corporate bodies such as
Newmont Gold Ghana Limited.
With the right ethical conscience
and a balance of responsibility between government, corporate organizations,
civil society, communities, society in general and individuals in the country,
Ghana would surely realize our sustainable development targets.
The NADeF model of Newmont Ghana
Gold limited is certainly a demonstrable commitment by a responsible corporate
body to contribute to sustainable development of the communities they operate
and the country at large.
