Newmont Ghana Pledges Commitment to Compensation in Akyem

EDMUND SMITH-ASANTE

Newmont Ghana Gold Limited (NGGL), has assured that it will duly compensate individuals with farms and immovable properties, which have or will be impacted by its Akyem Project, in line with the provisions in the Minerals and Mining Law and relevant provisions in the Constitution of Ghana.

The assurance followed a number of grievances expressed recently by several community members of the Akyem Project and published in sections of the media.  

Reiterating its commitment to act with integrity, trust and respect, and in ways consistent with its social responsibility values and policies through a press release signed by Adiki O. Ayitevie, Regional Manager, Communications and issued in the latter part of March 2010, Newmont said, “In implementing our commitment, the company assures all individuals with farms and immovable properties, which have or will be impacted by our Akyem Project, that they will be duly compensated, consistent with the express provisions in the Minerals and Mining Law and relevant provisions in the Constitution of Ghana.”

The company explained that farmers have not yet been compensated after a mining area was declared in late January and their crops were affected during boundary demarcation, because the priority was to demarcate the mining area boundary.

Newmont however assured that crops affected by the boundary demarcation activities were inventoried and that it is currently engaged with the affected farmers to verify affected crops and will be paying compensation as the process of counting is completed.  “We are compensating at the 2009 rates and when the 2010 rates are agreed, Newmont will make retro-active payments for the 2009-2010 increases,” the company said.

It said to this end, there is an established 66-member Compensation Negotiation Committee (CNC) in place in Akyem that has the mandate of the communities in the project area to negotiate compensation on crops, immovable properties, and land deprivation and resettlement issues; with advice and support from a team of professional valuers, which negotiation forum has been the accepted process for negotiations, at least since 2003 in Akyem.

Newmont further disclosed that the Committee comprises elected community representatives validated by project- affected farmers, relevant government regulatory agencies such as the Land Valuation Division, Office of the Administrator of Stool Lands, the Birim North District Assembly, Social Welfare, CHRAJ, NCCE and the Ministry of Food and Agriculture among other key agencies, while the communities are being supported by independent Valuation Experts from the Kwame Nkrumah University of Science and Technology.

“Newmont urges all affected farmers to continue to come to us directly with their complaints and grievances as has always been the case for an amicable settlement, through established and agreed-upon formal processes. We assure them that, wherever appropriate as determined by these processes, their compensation will be paid in a timely fashion,” the mining company urged.

Stressing that they were indeed committed to paying compensation to affected individuals and farmers, Newmont quoted provisions in the mining law as follows.

“Section 73(1) of the Mining Law states that: “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 rights of the owner or occupier in accordance with Section 74” - which deals with compensation principles.

“Further, section 73(3) says that: “The amount of compensation payable … shall be determined by agreement between the parties, but if the parties are unable to reach an agreement as to the amount of compensation, the matter shall be referred by either party to the Minister …..”

To allay the fears of affected parties in the Akyem project, the release said “Newmont, for its part, has in the past and will continue to reach agreement with the affected parties in a mutually acceptable manner. In all negotiations, Newmont has operated within the ambit of Ghanaian law and international best practice standards.  We wish to assure all affected farmers and individuals that this practice will continue.

“It must be emphasised that the negotiation process is in progress and we are confident of reaching agreement on fair and adequate compensation with all owners and lawful occupiers soon. It is only after mutual agreement that compensation can be paid promptly.”