WHAT ARE THE SOCIAL (ENVIRONMENTAL) EFFECTS OF GOLD MINING IN GHANA?

Gertrude AsumaduMain Findings

1. The introduction of the ERP (Economic Recovery Programme) and the SAP (Structural Adjustment Programme) led to the acceptance of large scale

mining in the country. (Yankson, 2010)2. These foreign owned companies(share ownership of 85%) have also contributed to a vast amount of environmental degradation, land pollution etc in

operating communities. (Action Aid, 2006)-Anglogold Ashanti (AGA); Destroyed the rivers of

Ankobra and Pra. (ibid)-Inadequate/no compensation after toxic pollution (arsenic levels of up to 38 times above legal limits)

leading to contamination of land affecting local food security. (Kumah, 2005)

3. Government aim of boosting economic growth through mining sector fairly achieved…but does it

cover the extent of the impact the booming business has had on the environment?

Introduction1.To investigate the social (environmental)

impact of gold mining on the Ghanaian economy.

2. This is achieved using case study methodology drawing on previous

literature (journal articles, research papers) on the proposed topic

3. The property rights approach theory will be incorporated in explaining the extent of

the impact of gold mining on the Ghanaian economy [Economic theory and

Research Question].

Background into Gold Mining in Ghana1. Second largest gold producing country

in Africa and 9th in the world. (Aryee, 2001) 2.Serves as one of the key major source of

foreign exchange in the country (ibid)3. The two major players in the gold

mining industry include i) Small Scale miners (self employed, low

level of expertise- existed since the 8th century)

ii)Large Scale Miners (foreign owned companies-Newmont Mining Ltd,

Anglogold Ashanti, Goldfields Ghana Ltd-high level of expertise and use of highly

skilled labour). Conclusions/Recommendations

1.The need to strengthen the rules regarding foreign companies operating in the country.

2.Sustainability measures should be enhanced regarding the gold mining activity.

3. Increased Revenue in aid of economic growth should not always be the motivating factor in policy making.