RESOURCE EXTRACTION AND SUSTAINABLE DEVELOPMENT OF MINE-TAKE COMMUNITIES IN GHANA
Summary
The study assesses the economic, socio-political, and environmental impacts of Newmont Goldcorp's operations in the Ahafo area of Ghana. It finds that while the 'resource curse' is not evident—with increased local government revenues and improved income levels—challenges remain regarding income instability, youth unemployment, and lack of transparency in the use of mineral royalties. Environmentally, the report notes that Newmont's reclamation and afforestation efforts have led to a net increase in closed forest cover between 2010 and 2020, contrasting with pre-mining deforestation trends.
Key insights
- The study concludes that the 'resource curse' does not apply to the Ahafo area and Newmont Goldcorp's operations, noting that food production is performing well and local government revenues are increasing.
- Local government revenue in the Asutifi North District Assembly grew significantly from GH¢ 2,870,783.58 in 2010 to GH¢ 13,484,549.66 in 2020, with mineral royalties specifically increasing from GH¢ 1,125,212.76 to GH¢ 4,773,353.35.
- Average monthly income for residents increased after the mine's establishment; the proportion of respondents earning less than GH¢ 500 dropped from 55.8% before the mine to 35.5% after.
- Despite income growth, 59.2% of respondents describe their income as unstable, citing factors such as the loss of farmlands to the mine concession and the increasing cost of goods and services.
- There is a perceived lack of transparency regarding the use of mineral royalties, with 79.6% of respondents stating there is no transparency and 86.9% believing that chiefs control the funds.
- Local residents report significant vulnerabilities related to mining, including dust pollution, acid rain, water pollution, and structural cracks in buildings caused by blasting.
- Land use and land cover (LULC) analysis shows that closed forest cover, which declined by 58.1% between 1990 and 2000 (pre-mining), recorded a net gain between 2010 and 2020 (post-mining) due to reclamation and afforestation.
- Employment opportunities within the mine are perceived as difficult to obtain, with 64.2% of respondents stating it is unlikely they would gain employment there due to high skill requirements and a lack of recruitment transparency.
Cite the original document
- APA
- Anaafo, D. (2021). RESOURCE EXTRACTION AND SUSTAINABLE DEVELOPMENT OF MINE-TAKE COMMUNITIES IN GHANA. Good Governance Africa. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2021/10/Final-Report-Resource-Extraction-and-Sustainable-Development.pdf
- Chicago
- Anaafo, David. RESOURCE EXTRACTION AND SUSTAINABLE DEVELOPMENT OF MINE-TAKE COMMUNITIES IN GHANA. Good Governance Africa, 2021. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2021/10/Final-Report-Resource-Extraction-and-Sustainable-Development.pdf.
- Wikipedia
- {{cite report |last1=Anaafo |first1=David |title=RESOURCE EXTRACTION AND SUSTAINABLE DEVELOPMENT OF MINE-TAKE COMMUNITIES IN GHANA |publisher=Good Governance Africa |date=March 2021 |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2021/10/Final-Report-Resource-Extraction-and-Sustainable-Development.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{anaafo2021resource, author = {Anaafo, David}, title = {{RESOURCE EXTRACTION AND SUSTAINABLE DEVELOPMENT OF MINE-TAKE COMMUNITIES IN GHANA}}, institution = {Good Governance Africa}, year = {2021}, month = mar, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2021/10/Final-Report-Resource-Extraction-and-Sustainable-Development.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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