The Social And Environmental Impacts Of Mining Activities On Indigenious Communities
[THE CASE OF NEWMONT GOLD (Gh) LIMITED]

1.3. Background of study area

1.3.1. Newmont Gold (Gh) Limited Ahafo project site and the Kenyasi Community.

Founded in 1921 and publicly traded on the New York Stock Exchange since 1925, Newmont is one of the world?s leading gold companies. Headquartered in Denver, Colorado, the company employs approximately 15,000 people, the majority of whom work at Newmont's mines sites in the United States, Australia, Peru, Indonesia, Bolivia, New Zealand and Mexico (Newmont Mining Corporation, 2006). Newmont recently

developed its first project in Ghana, which has become the company's next core operating 

district and at year-end 2006, had over 20 million ounces of gold reserves in its concessionary sites (Newmont Mining Corporation, 2006). As already stated Newmont?s African operations are predominantly in Ghana and include basically, the Ahafo mine. The Ahafo mine situated at Kenyasi is located in the tropical, cocoa-growing region of mid- western Ghana, approximately 180 miles (290 kilometers) northwest of the capital city of Accra and contributes approximately 8 percent of Newmont?s worldwide equity gold sales in 2007 (Newmont Mining Corporation,2006).

Kenyasi, where the Ahafo mine is located in 2007 produced 446,000 equity ounces of gold and reported approximately 9.7 million ounces of gold in reserves, enough to actively mine for approximately 20 years (Newmont Mining Corporation, 2006). This in essence depicts how the natural resources of the area would be subjected to exploitation for the next fifteen or so years in the area.

Kenyasi is the capital of the Asutifi district in the Brong Ahafo region of Ghana. “The Asutifi District is one of the Nineteen (19) districts in Brong Ahafo located between

latitudes 6°40? and 7°15? North and Longitudes 2°15? and 2°45? West sharing boundaries with Sunyani District in the North, Tano South District to the North East, Dormaa District to North West, Asunafo North and South Districts in the South West and Ahafo Ano South and North Districts (Ashanti Region) in the South East” (Government of Ghana, 2002).

 Occupying a total land surface area of 1500 sq.km, the district is one of the smallest in the Brong Ahafo Region with a total of 117 settlements in the district and four paramountcies, namely: Kenyasi No.1 Kenyasi No.2, Hwidiem and Acherensua (Government of Ghana (GoG), 2000). “The district capital Kenyasi is about 50km from Sunyani, the regional capital of Brong Ahafo, through Atronie and Ntotroso” (GoG, 2000). Perhaps the most important potential for the development of the district lie in the abundant natural resources in the areas of forest and forestry products, good soil of high agronomic value, sand, clay and mineral deposits like gold, diamond, and bauxite (GoG, 2002).

Topographically, Kenyasi lies within the forest dissected plateau “with average height of about 700 feet above sea level and the lowest part of Kenyasi found along the river basins whilst the highest point is found within a chain of mountains” (GoG, 2000).

In fact, geologically, the area is fully covered by rocks of Birimian and Dahomeyan formations with these rocks known to be gold, manganese and Bauxite bearing rocks (GoG, 2000) and could explain why currently gold is being mined in the areas where these rocks are found by Newmont Ghana Gold Limited one of the biggest mining companies in the world. Predominantly, it is Kenyasi here that massive exploratory works is being carried out by mining companies. In addition to these are “large areas of forest reserves such as the Biaso Shelter Belt, Bia Tam Forest Reserve, Asukese Forest Reserve, Goa Forest Reserve and Desiri Forest Reserve with these forest reserves together covering a total of about 475.63 square kilometres , about 30% of the entire land surface area of the area” (GoG, 2000) and it is to be assumed that the massive exploitation of the area for minerals would invariably affect these forest since they are also embedded with some Birimian rocks.

The predominant occupation in Kenyasi is subsistence agriculture which engages 66.7 percent of the economically active labour force. As a matter of fact, the sector (farming and animal husbandry) employs majority of women population in Kenyasi. 

“About 91 per cent of those engaged in other occupations outside agriculture still take up agriculture as a minor activity” (GoG, 2002).  With the recent operation of mining activities by Newmont Ghana Gold Limited to mine gold within its boundaries, it has created grave concern about the tremendous implications of the mining activities on the local economy. For instance, farmers feel threatened by the mining operations, but on the other hand, a lot of job opportunities are being created both directly and indirectly. Kenyasi therefore finds itself in the middle of profound structural changes providing opportunities and challenges to managers of the town.