CSR Case Studies: Endeavour Mining Formation of a Community Consultative Committee

Background

Endeavour Mining Corporation is a growth-focused gold production and exploration company, with two operating mines located in Ghana and Burkina Faso, in West Africa.

Endeavour has an experienced management team and has established strong relationships in West Africa, having been active there since 2003. A key to its success has been the Company’s focus on effective community relations, with the company playing a very active role within the local communities as part of its social responsibility commitments.

One of the Company’s two mines is the Nzema Gold Project, which is located in south-western Ghana, approximately 280km west of the capital Accra. The project consists of a contiguous block of tenements and options covering approximately 665 square kilometres. The area is accessible via 80km of sealed roads from the major port city of Takoradi and in close proximity to the major mining centre of Tarkwa. The only previous mining activity in the area was some informal mining in the Salman-Akango pits, more than 100 years ago.

The permitting process for Nzema was completed within two years, a relatively short timeframe for a country in West Africa, with the model being considered by Government as the blueprint for other companies. Central to this process was the establishment of a Community Consultative Committee (CCC), which continues to play an important role in the mine’s operation.

The Challenge

The Company’s tenements sit astride nine separate communities; Nkroful, Teleku Bokazo, Anwia, Salman, Akango, Duale, Aluku, Kikam and Akropong. Each community in Ghana typically has its own hereditary ruler as well as an elected Government Assembly member responsible for traditional issues and interests.

A key challenge of the development of the Nzema Gold Project arose from the fact that in order to develop the project, the nearby Salman Village needed to be relocated. Resettlement involved over 2,000 people, 450 structures (including homes) and 19 public buildings, all being resettled to a site approximately 1km to the east of planned mining at the Salman Central pit. In addition to the resettlement, other community issues included land access, crop compensation and local employment expectations.

This was the first mining related involuntary resettlement in the Eastern Nzema / Ellembelle districts of Ghana, and as such both the community and the Company broke new ground in establishing negotiations and agreements. Through the vehicle of a Community Consultative Committee the company was able to listen to the concerns of the affected communities, gain insight into their perspectives and co-develop a mutually-beneficial solution. This took the form of the Salman Resettlement Agreement, formally signed on 11 May 2010. In establishing the CCC, the Company’s sensitivity to local traditions and values meant that full support from local government and community leaders was achieved.

It is expected that development of future mining pits will require further resettlements in the years ahead. Endeavour feels it has established a good foundation for future negotiations in this respect, but realises that meaningful community relationships require ongoing nurturing in the interim.

The Program

A Community Consultative Committee was officially inaugurated on the 20 April 2006 in Nkroful (birthplace of Kwame Nkrumah, the founder and first president of independent Ghana) at historic Nyaneba House.

The Committee meets on a regular basis throughout the project life and addresses the concerns of the local communities and acts as a consultative group channeling information between the Company and the communities to ensure that there is a formal and credible information flow. In addition, the Committee provides advisory resources to the Company so that efforts are appropriately directed.

CCC membership reflects the range of interest groups within the communities in the immediate mine area (Nkroful, Teleku Bokazo, Anwia, Salman, Akango, Duale, Aluku, Kikam and Akropong) and includes traditional leaders (Chiefs, Queen Mother and Elders), youth group representatives, women representatives, Assembly members, Unit Committee members, local opinion leaders, District Assembly Officials and Endeavour Mining representatives.

The Committee has been meeting quarterly since its inception in 2006, up until December 2011 when it was decided to meet twice a year, in June and December.

The Salman resettlement site of 250 acres was purchased in 2008 (one year before project construction began and two years after the formation of the Community Consultative Committee). Negotiations for the resettlement were an integral part of the mine approval process and were conducted between the Company and the community over a two year period, beginning in 2008 and culminating in the signing of the Resettlement Agreement in May 2010.

The approach to the Salman resettlement was based on Ghanaian Environmental Protection Authority (EPA) standards, as well as experience gained from previous resettlement projects in Ghana. It is a ‘like-for-like’ resettlement, with additional terms agreed with the Community that go beyond statutory minimum requirements. These include the establishment of a police station and medical clinic in the village, verandas on all houses, larger room sizes compared to standard practice and electrical distribution throughout the village. Endeavour recognises that access to electricity will mitigate health issues associated with indoor-use of kerosene lamps and allow the people in Salman to focus on more gainful and productive pursuits.

Additionally, the building construction material used (Hydraform) has significant advantages over the traditional sandcrete brick, which further enhanced the aesthetic and practical benefits of the new village.

Following the establishment of the Resettlement Agreement, a number of other items of concern to the local community were discussed and resolved, and these formed the text of a Memorandum of Understanding (MOU) between the Community, the Company and the Western Regional Government. This MOU, which was signed on 28 October 2010, allowed for the acceleration of building works while initial mining commenced on schedule.

As an extension of the CCC, a Community Information Centre was completed in March 2010 which houses the Company’s Community Relations Team. The Information Centre allows open access for villagers to meet and discuss community issues with Company representatives.