Illegal mining operations on AngloGold Ashanti (AGA), Obuasi Mine’s concession – challenges, impacts and strategies for addressing them

Abstract

Illegal miners’ encroachments and operations on AngloGold Ashanti (AGA), Obuasi mine has been a problem that has always bedeviled the mine. Their operations on the mine’s concession have resulted in the damages to ventilation bulkheads and ductings; damages to drainage pumps and pipes; depletion of mineral reserves; weak incompetent underground rocks; discharge of toxic gases and dust from illicit drilling and blasting, smoking and defecation; reduced productivity of AGA workers; destruction of company properties, among others.

Methods employed include questionnaire administration to AGA workers, interviewing of key stakeholders of the mine, literature review of illegal miners’ encroachment, field visits to AGA for observations on the modes of encroachments, operations and the impacts of illegal mining on the mine. The measures put in place to address the problem and the success of such measures were studied. A study of mining companies which used to experience such problems and how they were able to address the issue was done. Results obtained show that the cost of damages caused by illegal mining operations on the mine and repair of such damages from January 2014 to December 2016 (which is the study period) runs into about $ 3.017 million with ore losses amounting to about $ 281.97 million.

Measures put in place to solve the problem including the construction of a concertina wire fence; destruction of illegal mining accesses; engagement of state security on the mine; dialogue with some stakeholders; ceding off of 60% of the mine’s concession back to the Minerals Commission; etc., have not been sustainable and economically feasible in solving the problem. It is therefore recommended that a holistic dialogue between the illegal miners and the mine using the services of an independent mediator be used to resolve the problem. Further recommendations have been made to address the problem. This research studied the modes of encroachments of illegal miners, their operations and the impacts on AGA mine operations. The measure put in place to address the problem was also studied.