Ghana: The World Bank in the gold scenario

SOURCE: World Rainforest Movement
Web page: http://www.wrm.org.uy

Ghana: The World Bank in the gold scenario

Decades of deforestation and forest degradation have left less than two
percent of Ghana's native forest intact. These forests have been the
source of livelihood for forest dependent people, providing them with fuel
wood, charcoal, building materials, fodder, fruits, nuts, honey,
medicines, dyes. They also play an environmental role regarding prevention
of soil erosion, watershed protection, soil fertility/shade, shelter from
wind, prevention of floods and landslides, water retention and maintenance
of water purity. They are also home to 2,100 plant species, over 200
mammal species including buffalo, leopard, golden cat, chimpanzee, forest
elephant and pygmy hippopotamus, 200 bird species including the African
grey parrot, and butterflies, all internationally recognized as in danger
of extinction, thus designating them as Special Biological Protection
Areas and Globally Significant Bio-diversity Areas.

In 1994, some efforts to protect the remaining savanna and moist tropical
forests gave way to a Forest and Wildlife Policy Draft. However, the
prevailing economic theory that binds Southern countries to the depletion
of their natural resources in order to develop --a path which has brought
about pollution, displacement of communities, misery and hunger for the
majority, while huge profits just for a few companies and local elites--
presses hard through the multilateral instruments of power (World Bank,
International Monetary Fund).

For Ghana, they have set its gold mining fate (see WRM Bulletin Nº 68).
The country stands as Africa's second largest gold producer, at the
expense of nature and human rights (see WRM Bulletin Nº 41 and 54). Mining
operations in Ghana have displaced more than 50,000 indigenous people
without just compensation, employed less than 20,000 Ghanaians (due to
over-reliance on expatriate workers), burned villages, illegally detained
activists, raped women and continually denied the local culture. But this
a well established pattern common to almost all mining communities.

At a time when international gold prices were at a six-year high due to
investor caution surrounding the impending war with Iraq, the government
indicated that it was ready to open the protected forest to mining, thus
handing over the country's biological wealth. Newmont --a gold producing
firm and a leader in processing technology and exploration headquartered
in Denver, Colorado in the United States-- and other mining companies had
issued veiled threats of lawsuits, or complete closedowns and relocations
to Tanzania in order to "convince" the government to follow through on the
permits after exploration had started.

Mining operations within pristine forest ecosystems will speed mass
deforestation and environmental degradation in the country and pollute the
fragile freshwater systems and topsoil with cyanide and arsenic. "Just
look at this country's forest estate. We had about 8.3 million hectares;
now we are left with only 1.2 million hectares and we still want to give
out some more for mining when we know very well that after the mining
there will be no forests," said Friends of the Earth's Abraham Baffoe.
"Our villages have already been so rapaciously deforested by mining and
the health and the quality of remaining forests continue to decline and
now they are asking for the forest reserves; do they think Ghanaians wash
their faces from their chin upwards? Please write all that I have said and
tell the authorities that I said so," said Akosua Birago a sixty-two year
old farmer at Abekoase in Ghana's Western Region.

Though the Minister of Mines Cecilia Bannerman had denied having given out
mining permits to any mining company to mine in any portion of the forest
reserves, the President has assured Newmont that his government is willing
to support the company to enable it to smoothly operate in the country.

On January 14, 2004, the Ghana National Coalition of Civil Society and
Community Groups against mining in forest reserves, which includes more
than 17 NGOs and community groups, sent a second letter to the President
of the World Bank Group, James Wolfensohn. In the letter, they reminded
him of the sign-on letter they had sent to him last year, demanding that
the Government of Ghana rescind any permission already granted to mine in
the country's forest reserves and calling upon the World Bank Group to
clearly state that it does not and will not support the authorization of
mining in Ghana's forest reserves and also requesting a formal response
from the Bank to the Coalition's appeal (see WRM Bulletin Nº 71). Up to
date, no response has still been received from the World Bank.

Instead, the gold mining companies have gone ahead with processes leading
to mining in some of the forest reserves. The Government of Ghana and
Newmont Mining signed an investment agreement last December 2003. In
January 2004, Ghana's Environmental Protection Agency (EPA) advertised the
Environmental Impact Assessment (EIA) of Chirano Gold Mines project in the
Tano-Sraw forest reserve, in the Western Region of Ghana. Canadian diamond
explorer PMI Ventures announced this year that the next phase of diamond
drilling has started on the nine exploration concessions and applications,
which comprise its Ashanti II Gold Plate located in southwestern Ghana.

The social organizations feel the World Bank Group (WBG) is aware and
fully behind the government and the companies, which explains the long
silence and apparent neglect of their letter. The WBG has a long history
of involvement in Ghana's mining and forestry sectors, providing technical
assistance on policy and institutional reform, as well as investments in
and support for private sector mining operations.

This happens at a time when the WBG is considering its response to the
Extractive Industries Review (EIR) report which recommended the vigorous
pursuit of good governance, respect for community rights in mining
projects and full implementation of the Natural Habitat Policy as a basis
for clear No-Go-Zones.

The World Bank's silence is thus a clear answer that it is willing to
support mining companies in the destruction of the country's remaining
forests; that it will continue assisting in the destruction of local
peoples' livelihoods and that it does not care about the fate of any
endangered species.

Article based on information from: "Newmont Meets Media", Isaac Essel,
Accra Mail, http://allafrica.com/stories/200403030502.html ; "Newmont
Moves In to Open Ghana's Closed Forest Reserves", Charity Bowles, who
worked with Friends of the Earth, Ghana, on the National Coalition on
Mining, sent by Mike Anane, E-mail: [email protected] ; "Newmont Boss
Presents Straight-Faced Joke to Ghana's President", Allan Lassey, Third
World Network, http://twnafrica.org/event_detail.asp?twnID=438 ; "Canadian
explorer starts drilling at Ghana gold project", Creamer Media (Pty) Ltd,
http://www.engineeringnews.co.za/eng/utilities/search/?show=46618