DETERMING COMPENSATION FOR PEOPLE AFFECTED BY MINING (PAGE 23)

WESTERN Region, particularly the Tarkwa-Nsuaem Municipality and the Prestea-Huni Valley District, undisputedly have the highest concentration of minerals in the country.
The mining industry, as most people are aware has many problems, one is the activities of illegal gold mining in the concessions of the various companies, resulting in fierce clashes and fatalities.
Other problems are environmental degradation and the pollution of water bodies in mining communities through cyanide spillage.
The most important problem associated with the mining industry which seems to have been relegated to the background is the payment of compensation to persons whose assets have been affected by mining.
There have been instances in the Western Region where disagreements, misunderstanding and mistrust between the traditional authorities and mining communities on one side, and the mining companies on the other, as a result of inadequate payment of compensation to the beneficiaries.
Section 73 (1) of the Minerals and Mining Act, Act 703 (2006), states: “The owner or lawful occupier of any land subject to a mineral right is entitled to and may claim from the holder of the mineral right compensation for the disturbance of the right of the owner or occupier…”
This new mining law prescribes compensation payments for lands, crops and buildings affected by mining.
But according to mining consultants and researchers, the new law leaves the determination of actual compensation payable to negotiations between the parties involved, resulting sometimes in lengthy litigation.
The question then is how can the parties involved reach a consensus through a standardised compensation process in the mining industry and communities.
They noted that the issue of compensation had been one of the difficult subjects in the mining sector, spanning from exploration to decommissioning.
To help find a lasting solution to this nagging problem, the Ghana Chamber of Mines and the Business Sector Advocacy Challenge (BUSAC) Fund have commissioned an advocacy and research project, titled ‘Advocacy for the Establishment of Standards of Compensation in the Mining Industry’.
To help achieve this goal, the Ghana Chamber of Mines organised a day’s workshop in Tarkwa to get public and stakeholder input into the formulation of a compensation policy that will eliminate rancour and litigation in the payment of compensation by the mining industry.
It was attended by 40 participants drawn from mining companies in the region, chiefs, stakeholders as well as host communities and regulatory agencies in the mining sector.
A Consultant and Researcher of AIDEC Consultancies International Limited, consultants for the project, Mr Adu-Nyarko Andorful explained that the major objective of the study was to collate relevant data on the current socio-economic conditions, livelihood activities, capabilities and options available to households that had suffered economic displacement with the purpose of re-evaluating the options for compensation packages.
He said it was also to facilitate the review of the Minerals and Mining Law with regard to compensation with a view to minimising the impact mining operations had on incomes and livelihoods of mining communities.
Mr Andorful further explained that specific objectives of the study included identification of inputs for a national policy that set out clearly the principles, basis and standards of compensation for mining concessions and property values.
He said it also included detail negotiation procedure and dispute resolution mechanism as well as recommending policy on speculative developers on mining concessions.
According to the consultant, messages the study had for change targets, including the government and regulatory agencies, mining companies and the mining communities were the need for the government to have a national policy on compensation, involve beneficiaries to ensure ownership and buy-in, and also recognise the elements of sustainable livelihood framework, among others.
He said the study also urged the mining companies to use collaboration, continuous dialogue and negotiation as a tool, and to ensure pre-disbursement and post-disbursement training for beneficiaries of compensation as well as commitment from mining companies, traditional authorities and opinion leaders to enforce standards.
He said the study justified that if action was taken, it would avoid or minimise involuntary resettlement that tends to dislodge project affected persons, mitigate negative social and economic impact on safety, health and the environment and also provide opportunities for displaced persons to improve on or restore their livelihood.
He said it would improve the living conditions of displaced persons through the provision of adequate social infrastructure as well as maintain a balance of good relationships between mining companies and project affected communities.
According to Mr Andorful, the study concluded that project affected persons were not satisfied with the present compensation levels and standards as offered by the government and the mining companies.They urged for better compensation, especially for non-cropped areas.
He said these persons also needed better compensation levels that should include money,land and a mix of financial investments.