Surface Mining And Its Socio-Economic Impacts And Challenges

The mining industry remains the backbone of many economies in the developing world. Its resurgence in Ghana since 1989 was driven by the global paradigm which emphasizes private sector-led development as the engine of economic growth in developing countries. The historical importance of mining in the economic development of Ghana is evident in the country?s colonial name, Gold Coast (Akabzaa T. and Darimani A., 2001). Ghana earned $2.5 billion from mineral exports in 2007. 20,000 people are employed in large-scale mining whilst 500,000 are employed in the small-scale sector. Mining contributes about 7% of Ghana?s total corporate tax earnings, 41% of total exports, 12% of revenue collected by the Internal Revenue Service and 5% of Gross Domestic Product (Ghana Chamber of Mines, 2008). Gold dominates the mining sector and the country is Africa?s second largest gold producer after South Africa. Surface Mining, which refers to a method of extracting minerals from the earth by their removal from an open pit or borrows, requires a large tract of land for its operations (Wikipedia, 2008). There is therefore a continuous divergence of interest between land required for surface mining and other land uses such as farming and housing, among others. In recent years, surface mining has been promoted in many mining countries because of the following reasons: ?Cost considerations compared to underground mining; ?Safety considerations, compared to underground mining; ?Low grade ore which requires processing huge quantities; ?Location of the ore bodies; and ?Competition among gold producing countries for investors. This paper looks at the socio-economic impacts and challenges of surface mining by using Gold Fields Ghana Ltd. Tarkwa, Ghana as a case study. The company has a concession of about 208 sq km located in the heart of the Wassa communities in the Western Region of Ghana and undertakes surface mining like most of the other mining companies in the country. Gold Fields, Tarkwa mine produces 700,000 ounces of gold a year with the potential of increasing this output to 800,000 ounces after its current expansion programme. Some of the effects of surface mining identified were: 1. Relocation/Resettlement of host communities and its negative effects; 2. Disturbance to Flora and Fauna; 3. Disturbance to Sacred Places; 4. Land Degradation; 5. Noise and Air Pollution; and 6. Water Pollution. This paper sought to investigate the measures put in place by the government and the Gold Fields Ghana Ltd. to mitigate the above effects in order to ensure peaceful coexistence between the mining company and its host communities. It concludes that most mining companies presume the provision of socio-economic development in mining communities will lead to the company securing a social license to operate. This however is not true but rather effective community relations combined with socio-economic development. According to Gold Fields Ghana Ltds. model, this involves continuous community engagement, conflict resolution and comprehensive environmental monitoring programme which will all lead to effective community relations. The strategies to ensure socio-economic development involves community development programme, livelihood restoration programme and community training and employment. All these will then lead to sustainable development which will ensure the company?s social license to operate. Gold Fields? model is in line with the principles of responsible mining. With this model, the community feels they are part of the company and the social license of the company is guaranteed. Gold Fields? model, which has been tried and tested for the past five years, could serve as a template with suitable modification for local conditions for other mining countries where surface mines operate.