Obuasi is widely noted for its rich gold resource. It is one of the world’s richest gold mines in terms of yield per ton of ore. By the end of the 20th century, it was the 10th largest gold mine in the world.
Large-scale commercial and industrial mining began at Obuasi in 1897 with the formation of Ashanti Goldfields Corporation.
It is worthy to note that In 2004, Ashanti Goldfields merged with AngloGold to form AngloGold Ashanti. However following heavy losses mining was suspended in late 2014 with about 5,000 employees being laid off and the mine put into care and maintenance.
During this time a large security force remained on site due to heavy pressure from local illegal miners. A statement from AngloGold Ashanti confirmed the death of an employee, John Owusu who was the Communication officer of the company.
“Mr. Owusu was killed in a car accident on Saturday, February 6, 2016 after a large group of illegal miners, trespassing on the site, hurled stones and other projectiles at a group of mine employees who were observing the incursion”.
The aftermath of his death resulted in an unpredictable future for the company’s investment in Obuasi with AGA contemplating a shutdown of its operations. Again, the rate of insecurity was also partly blamed for the pull out by Rangold Resources Limited of a merger between them and AngloGold Ashanti.
Randgold Resources Limited and AngloGold Ashanti Limited in September 2015 concluded an investment agreement aimed at the formation of a joint venture to redevelop and operate AngloGold Ashanti’s Obuasi gold mine.
However, 3 months after the agreement, Rangold pulled out from the merger citing a plethora of reasons including “The Obuasi mine doesn’t have the social contract to mine and it seems to be in conflict with everyone”.
Residents of Obuasi who hitherto had greeted the news of a potential merger with excitement especially at the Central Business District and major programs on radio stations in Obuasi were soon disappointed when news came in that the proposed merger had collapsed.
Obuasi who at the time was akin to a ghost town had little or no hopes of revival. Some workers who had been laid off by AngloGold Ashanti left Obuasi to its fate. The Eaton Turner Shaft (ETS) area commonly referred to as Fagum became a pale shadow of its former self losing its spark.
The area which was full of activities including the popular ‘Lebene food joint’, second-hand clothes spots, the Anyinam taxi and trotro station, A-life shop, etc became quiet as a cemetery.
Various businesses pulled out from Obuasi as a result of the 2014 retrenchment exercise. Private schools in Obuasi were among the hardest hit with most families leaving Obuasi with their wards. A school like Queen Egyimah, Jesus Cares, Holy Child bore the brunt of the woes of the Obuasi community, others folded up.
To the average Obuasi resident, the event preceding the redevelopment of the Obuasi Mine should be fresh in our memory.
AGA TAKES GOVERNMENT TO COURT
In the midst of the insecurities faced by AngloGold Ashanti as a result of the illegal miners invasion of their concessions, AngloGold Ashanti in June 2016 dragged the Ghana government to the International Centre for Settlement of Investment Disputes (ICSID) citing the country’s inability to restore law and order at the Obuasi mine which had been taken over by galamsey operators.
The mining firm argued that the takeover of its Obuasi mine by the galamsey operators was impacting negatively on its operations and its optimized feasibility studies.
REDEVELOPMENT OF THE OBUASI MINE & JOB RELATED ISSUES
In 2018, after approvals were received from the Ghanaian Government, the decision was taken to recapitalise the Obuasi gold mine, with work beginning in 2019. The new mechanised mine had its first gold pour in December 2019 and began commercial production on 1 October 2020.
Before the commencement of the Redevelopment exercise, Late Nana Ampofo Bekoe who was the Senior Manager Sustainability of AngloGold Ashanti was heard on several platforms alluding to the fact that the ‘ new AGA’ will prioritize contract mining and more of mechanised mining.
Ostensibly, this was to prepare the minds of residents of Obuasi to lower their expectations in terms of mass employment into the Mine as it used to happen. Did we even listen or pay attention to him?
It is important to again mention that, after announcements went viral that AngloGold Ashanti was recruiting through Underground Mining Alliance (UMA), a company tasked to deliver a full suite of underground mining services at Obuasi, long queues were seen at the AGA’s North mine.
This was a firm indication of the desire among the youth to seek employment and also lending credence to the hope people of Obuasi had in the comeback of AGA in terms of employment.
AngloGold Ashanti which promised to employ about 2000 workers came out with a strategy to focus on the employment of indigens who had anticipated jobs at the mining company. This saw the birth of AGA’s validation forms.
The forms was deemed by the company as the panacea to local employment conundrum. It had portions where local authorities including Assembly members, Adikro and Paramount chiefs were to sign authenticating one’s affiliations to Obuasi or Adansi.
Whiles the validation forms has been criticized for its defects, it is worth noting that it was a novelty and as such subject to some inefficiencies.
DEMONSTRATIONS & ILLEGAL MINERS INVASION
The redevelopment of the Obuasi Mine has not been without the aged long ‘battles’ between AngloGold Ashanti and some youth of Obuasi regarding employment and illegal miners invasion of AGA’s concession. It began with a demonstration by some youth of Anyinam in May 2019 registering their displeasure about the “inability of the Mine to hand jobs to more of the youth from the community “.
It was followed by another demonstration in June, 2022 by some youth Obuasi, again demanding jobs from AngloGold Ashanti insisting that the company had employed a lot of people from Obuasi denying indigens from Obuasi access to jobs in the Mine.
RECURRING GALAMSEYERS INVASION ON AGA’s CONCESSION
The illegal miners invasion on AGA’s concession by illegal miners seems to have no end with the latest one happening in May, 2023 at Cote D’or. The mining company spends huge sums of money on security just to ward off illegal miners from their concession.
Currently, the company has improved their security with almost all vehicles of the Mine accompanied by a Military escort. This comes at a huge cost to the company.
Though AGA has rolled out two developmental programs, that is, the 3-year Social Management Plan (2019-2022) and the comprehensive 10-year Socio-Economic Development Plan (SEDP) which was launched in July, 2022, the investment made in security can pose a danger to the successful implementation of the plan.
AngloGold Ashanti since 2016 has relinquished 70% of its concessions to the Government of Ghana. It was expected that Small scale miners will liaise with government and with the appropriate measures put in place, they will have access to the relinquished concessions.
WAY FORWARD
It is imperative for residents of Obuasi to note that, whatever our demands may be, our expectations may be, nothing should be done to jeopardize the security of AngloGold Ashanti and by extension Obuasi.
Events preceding the redevelopment of the Obuasi Mine should remain fresh in the memory of all ‘Obuasinians’. AngloGold Ashanti should not be left insecured. The company should enjoy optimum security to operate. It is refreshing that the government has affirmed its commitment to provide security to the Obuasi mine but residents should do their part by protecting the pride of Obuasi.
It is also incumbent on AngloGold Ashanti to listen to the plight of the youth and decide on how best to resolve the issues ones and for all.
WE CAN’T AFFORD TO GO BACK TO THE DARK DAYS….WE CAN’T AFFORD TO LOSE ANGLOGOLD ASHANTI……OBUASI MUST MOVE ON!!!