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Friday, 10/21/2005 4:32:23 PM

Friday, October 21, 2005 4:32:23 PM

Post# of 2140
Golden Star, Ghanaian Mining Targeted by NGOs
By: Dorothy Kosich
Posted: '21-OCT-05 04:00' GMT © Mineweb 1997-2004

RENO--(Mineweb.com) Size does not matter when it comes to being targeted by The No Dirty Gold Campaign, as foreign companies mining gold in Ghana have learned.

This week, Washington, D.C.-based EARTHWORKS, Heidelberg, Germany-based FoodFirst Information & Action Network (FIAN) and Ghanaian-based the Wassa Association of Communities Affected by Mining (WACAM) targeted Colorado-based gold miner Golden Star Resources (GSR) for renewed scrutiny.

The three NGOs called on the Environmental Protection Agency of Ghana to conduct an environmental audit of Bogoso Gold's mining operations in Prestea in the Western Region of Ghana. Coincidentally, Golden Star Senior Vice President and CFO Allan Marter told Mineweb Thursday that he supports the idea. Golden Star is the parent company of Bogoso Gold Ltd. (BGL).

A suspension order was issued to BGL last month by the EPA for violating conditions of its environmental permit at its Plant-North pit of the Bogoso/Prestea mine. During the suspension, the processing facility continued to mill stockpiled ore. Meanwhile, mining and processing at the Wassa Mine, 35 kilometers east of Bogoso/Prestea and construction work at the sulfide expansion project at the Bogoso plant continued without interruption.

The mitigation work included relocating the Prestea Police to a new police station built by Golden Star to replace the existing police station located adjacent to the southern end of Phase 3 pit development. A fence was erected around the pit development, and a road was construction to divert traffic away from the southern end of the pit development.

In their news release, the NGOs criticized BGL for generating excessive noise, dust and property damage during mine blasting activities. Golden Star had already called in experts from the nearby School of Mines to research blasting effects on the community. Meanwhile, Marter said blasting schedules were changed to better accommodate the community and mitigate dust. He added that the property damage has already been repaired and/or villagers were compensated.

In his fight against BSL, Daniel Owusu-Korenteng of WACAM resurrected a topic, which he also employed in his battles with Newmont Mining--allegations that the exploration and/or mining operations have impacted water quality. Meanwhile, Ute Hausmann of FIAN Germany declared that "the government of Ghana is obligated under international law to protect the rights to health and water and to ensure an adequate standard of living for people affected by mining operations."

Marter acknowledged there had been one cyanide spill from mine tailings a year ago, which affected a local river. The mining company quickly went to work providing alternative sources of water for the community, which included hiring 20 women to carry water to the local community. Ironically, water trucks from the mine so busy delivering fresh water to local residents, they have less time to mitigate dust at the minesite.

The NGOs also raised objections to covering a natural spring with waste rock. Marter noted that the Ghanaian EPA had studied, approved and permitted the temporary disposal of waste rock over the spring. Since then, the waste rock was moved and the spring is clear of debris.

While Marter understands and does his best to address the environmental concerns raised by NGOs, Golden Star is mystified by the continuous allegations that the mining operation is violating human rights. Last June, what originally began as a peaceful demonstration against the mine intensified, spilled onto BSL property, and exploded into violence after police were pelted by rocks by demonstrators. Several people are injured, according to Marter. However, he added, he is unaware of other incidents that could have violated human rights.

Marter asserted that NGOs may be wrongfully raising allegations of human rights violations in an effort to attract more publicity to Ghanaian mining. For instance, the website Actionnetwork.org claims that "local communities contend that GSR operations are contributing to serious human rights and environmental problems and making their communities uninhabitable." Marter responded that BSL has been active in community consultation for years. However, parts of the mining operation are approaching the end of mine life. Therefore, he suggested, some members of the community may be trying blackmail GSR into providing them additional compensation before mining ends.

One of the people quoted by the NGOs in this week's news release as a member of the Concerned Citizens Association of Prestea, Kwesi Blay, happens to be employed by a milling operation which processes ore allegedly illegally mined from BSL's concessions. "We hoped that BGL would quickly begin the clean-up the environmental pollution caused by their mine and this would also be a lesson to all the multinational companies in the country," Blay declared. Marter said a consideration portion of the pollution Blay refers to come from illegal mining, not Bogoso/Prestea. In fact, Marter bluntly asserted that Blay is employed processing gold stolen from BSL. Concessions belonging to BSL in the Beta Boundary area of Bogoso/Prestea have been over-run by an estimated 3,000 to 5,000 illegal miners

NEWMONT ESTABLISHES BASELINE HEALTH DATA

The World Bank invested $9.37 million from 1996-2001 to enhance the capacity of mining sector institutions to encourage and regulate investments in the Ghanaian mining sector in an environmentally sound manner. As part of this project, reduction of environmental impacts by small-scale mining were also emphasized. Small miners were trained in marketing, basic business skills, safety and environmental protection, using World Bank funding.

Villagers located near the mining hub of Tarkwa have complained that the operations of mining companies, such as Ghanaian Australian Goldfields, a subsidiary of AngloGold Ashanti and Goldfields Ghana Ltd., have created health problems. Farmers have complained that they are not adequately compensated for the loss of their farm land to mining waste management operations.

Independent studies have asserted that while the Ghanaian Government has done an excellent job in stimulating the expansion of foreign mining investment in the nation, subsistence farmers are being inadequately compensated for the loss of their crops and/or lands to mining operations. These studies also concluded that the Ghanaian government must pressure foreign mining companies to assume greater environmental and social responsibility.

Newmont Mining has responded with a partnership with the University of Colorado School of Medicine (CU), which is documenting Ghanaian villagers' health prior to opening Newmont operations in Ghana. The health assessment of the communities located near the Ahafo project in the Brong-Ahafo region of Western Ghana was released this week by CU.

The CU team identified 15 health-related issues for the region including reduce of malaria, support for the Regional Health Directorate in surveillance and treatment of HIV/AIDs, and strengthening training and implementation for the integrated management of childhood diseases. Also recommended were improving and expanding maternal audits for the prevention of maternal mortality, increasing access to clean water, and proving support for home latrines development and maintenance, and for improved garbage collection and landfill sites.

The group also called for the training of new community health officers in the Asutifi District, and upgrading the Kenyasi, Gyedua, Acherenusa and Dadiesoaba health centers and district hospitals. They also recommended that certain schools be enlarged or renovated, and housing provided for teachers. Domestic violence prevention and adult literacy programs aimed at women were also suggested.

The university team will now work with Newmont and local residents near the project area to develop criteria for implementing their recommendations.


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