Public Agenda (Accra)

Ghana: Mining Has Done Ghana No Good

opinion

Accra — At a time when the World Bank Group's internal study has revealed that their policy of promoting extractive industries like mining has not benefited developing countries like Ghana, the Ghanaian government is opening up the little that is left of its forest reserves for surface mining.

The World Bank Group in the 1980s and 1990s promoted investment in the extractive industries, mining in the case of Ghana, in the hope that "judicious exploitation of these resources for export," would result in "increased government revenue, temporary employment and construction of infrastructure" among others.

However, a recent study by the bank's Operation Evaluation Department (OED) has raised questions about the effectiveness of bank's assistance to poor countries like Ghana, which are dependent on extractive industries.

The report, which reviewed the bank's assistance to six countries, including Ghana from 1993 to 2002 concluded that the inherent risks and costs of developing such a sector, which include "long term environmental damage with accompanying health consequences, the destruction of the traditional (and more sustainable) economic foundations of local communities," involuntary resettlement and increased corruption, outweighed potential benefits.

The report also claimed that the benefits and risks are not evenly distributed resulting in the situation where local communities benefit from whatever temporary employment these activities generate but "bear the brunt of accompanying environmental damage, health risks, property takings and damage, and changes to traditional life and culture."

The bank's conclusion ties in with concerns raised by environmental groups within and outside the country about the disastrous effects mining, especially surface mining is having on mining communities.

Government however seems to be paying little heed to these warnings and is continuing on this self destructive path.

The Minister of Lands and Forestry, Professor Dominic Fobih, last month proudly announced that more than 220 exploration and small-scale mining operations were registered last year.

Addressing Journalists at the "Meet the Press Series in Accra," the Minister, until recently responsible for the Science and Environment Ministry, claimed mining companies had so far achieved about 75 per cent

compliance with environmental regulations and standards.

Prof. Fobih attributed the high level of success to a sound environmental awareness created among the mining companies.

Information emanating from the ground however points to the contrary. Mining communities are experiencing terrible environmental degradation, a trend that is set to continue.

The National Coalition of Civil Society Groups against Mining in Forest Reserves, on Wednesday revealed that government has declared its intention to release portions of the country's closed forest reserves for mining.

These reserves, including Subri River Forest Reserve - the largest forest reserve in the country- serve as critical watershed between some major rivers in the country.

Already, five mining companies, Chirano Goldmines Limited, Satelite Goldfields Limited, Nevsun/AGC, Birim/AGC and Newmont, are lined up for mining leases to exploit mineral resources in these reserves

The group made up of 13 organisations, including Third World Network Africa, Centre for Public Interest Law, League of Environment Journalists and Wassa Association of Communities Affected by Mining want government to rescind the decision to allow mining in forest reserves and revoke all mining leases already granted on forest reserves.

They also want government to "enact a clear cut regulatory framework that prohibits mining in forest reserves."

They are also calling on the World Bank Group, the International Monetary Fund and other Multinational Financial Institutions not to finance or support the government and the five companies.

The group lamented that the country's current forest reserve, which stands at 1.6 million hectares, is less than the initial 1.76 million hectares reserved as permanent forest estates. Also, only two per cent of the present forest reserve is "said to be in excellent condition."

According to the World Bank Group report, because resources like gold, diamond and bauxite are limited and non-renewable their exploitation cannot be a long-term base for developing the economy. The idea then was to promote them as a means of providing government with some revenue to create sustainable growth and development and this did not happen in countries like Ghana as predicted.

The group protesting against mining in forest reserves accuses the Chamber of Mines of being behind the government's decision to open up the forest reserves for mining.

"Mining in forest reserves will aggravate the already alarming rate of forest degradation in the country and wreak havoc on freshwater systems and watersheds," the group warned in a statement.

"Civil society has a role to play by participating in decisions regarding the projects that affect them, respecting investor rights while insisting on compliance with law and best practice , and holding the government accountable for the responsible management of the sector and use of revenues," notes the World Bank Group report.

That is exactly what the coalition against mining in forest reserves aims to do and has called on the public and media to join its campaign to get the government to rescind its decision.

Experience, it is said is the best teacher and countries like Ghana bear evidence to the report's conclusion that, "if the promise and potential of development through EI (extractive industries) is tempting, it is elusive."


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