GOLD FIELDS GHANA
Turning new ground in development

Transforming the mining industry into the national economic frontrunner has had ancillary benefits for local communities

Gold Fields Ghana (GFG), a subsidiary of Gold Fields South Africa, is the largest producer of gold in the country, drawing over 900 million ounces from its Damang and Tarkwa mines last year. Gold is increasingly becoming the most important commodity in Ghana, eclipsing cocoa and contributing $6 billion to the economy last year – 40% of Ghana’s total export earnings.

GFG’s two mines are OHSAS 18001 and ISO 14001 certified and represented a combined operating proft in the region of $185 million in 2006. Plans to increase production at both installations over the course of 2007 and 2008 are being carried out within a framework of sustainable community development and social responsibility. In May of 2006, GFG signed an agreement to provide economic opportunities for indigenous workers and to operate best practice in the areas of resettlement, compensation, security, human rights and community development. Co-signed by USAID, the Ghana Responsible Mining Alliance is designed to ensure the realisation of effective, non-impact mining.

GFG’s Sustainable Community Empowerment and Economic Development Programme (SEED) is designed to operate in tandem and seeks to improve the economic and educational status of the 4,000 families in the 16 GFG stakeholder communities. USAID, the WHO and OICI, a leading developmental charity with a 30-year presence in Ghana are active partners in SEED. A scholarship scheme has placed 90 underprivileged youths in full-time education and GFG’s foundation trust has constructed a number of schools and accommodation for teachers.

GFG’s managing director, Johan Botha, expands, “At both of our mines we have community affairs departments. They are tasked with ensuring that healthy relationships are maintained with all stakeholders. These departments are also responsible for socio-economic investment in local communities. Each mine has a set amount of funds that can be used for this purpose and these are typically injected into our sustainable economic empowerment programme and the provision of infrastructure such as schools and medical facilities. The funds are determined by a set formula that ensures the correct balance between playing a vital role in the development of the host communities and ensuring that our mines remain sustainable.”

Indeed, the equilibrium between the need of local communities and the needs of Ghana at large is the heart of mining industry. Joyce Ayree, CEO of the Ghana Chamber of Mines, explains, “In spite of the inconveniences that mining tends to create, without mining, modern economies could not exist.”