Newmont Kenyasi mining area under threat

Kenyasi (B/A), June 25, GNA - Newmont Ghana Gold Limited (NGGL), managers of the Ahafo project at Kenyasi in Asutifi District in the Brong-Ahafo Region, has expressed worry about the rate at which residents put up structures and farm on its mining lease purposely to claim compensations.

Mr Randy Barnes, External Affairs Manager, told newsmen at Kenyasi on Wednesday that, the practice was impeding the operations of the company.

Leading newsmen to Amoma, an area within the concessions that the company intends to excavate, he said the situation was putting a strain on the company considering the high investments it has made in the area. Mr Barnes said the company always declared a moratorium of its activities on the mine site and noted with regret that immediately after the declaration, people started raising structures with the hope of getting compensation.

"NGGL will and only compensate those who built before the declaration of the moratorium and who are found eligible for resettlement, relocation or compensation in accordance with the provisions of the 1992 Constitution and the new minerals and mining Act (2006) 703", he warned.

Mr Barnes said NGGL believed in dialogue to improve its relationship with communities within its operational areas. He indicated that the company would conduct survey to record buildings, crops and land owners in the control area in collaboration with the land owners and lawful occupiers on the matter. "After the declaration of moratorium at the Amoma area, perpetrators erected more than 400 illegal structures, a practice that not only frustrate the company but also the community, since the company will not compensate such people," he added. Mr Barnes said in order not to create unnecessary confusion, NGGL had established a monitoring and control team to educate local communities on the company's concessions and cautioned that "no one should build a structure or upgrade crops in the control area without the approval of NGGL". He said the company's mining lease in the area is 535 square kilometres and was currently working on 8,000 acres of land. "The company since 2004 and 2006 has paid crop compensation of 14 million dollars", Mr Barnes added. He called on the Minerals Commission to intervene and help halt the activities of the encroachers in order to avert unnecessary tensions between the communities and the company. 25 June 08