DUMASI RESETTLEMENT PROJECT

Historical Introduction: Mining Development and Relations with Dumasi Community

Bogoso Gold Limited (BGL) acquired surface mining rights to the Bogoso Concession through two mining leases in 1987 and 1988 and to the Prestea Concession in 2001. Operations at Bogoso were conceived as being the mining and processing of refractory ores from three main pits on the concession, with the sulphide ore being processed through a roaster and CIL plant situated at approximately the centre of the concession.
Operations started in 1990, but by 1994 the continuous problems experienced by the processing plant (principally relating to the low levels of sulphur in the flotation concentrate being insufficient to maintain autogenous roasting in the roaster) resulted in the roaster section being closed down. Since then, the mine has operated primarily on oxide ores found along the length of the concession, interspersed with periods of mining and processing of transition ores, which lie between the oxides and the deeper sulphides.
In 1999, we acquired BGL, which was later renamed Golden Star (Bogoso/Prestea) Ltd. (GSBPL). We started on a study to investigate the resumption of sulphide ore mining and processing, which progressed to feasibility study stage, and finally led to the Bogoso Sulphide Expansion Project (BSEP), which was permitted in June 2005.
The Dumasi pit was part of the original project back in 1990 and still is considered an important source of refractory ore for the BIOX® plant. We recognized the need to develop the mineral resources found in Dumasi pit to provide sulphides ores for the BIOX® processing plant. However, we left it out of the original EIS for the BSEP to allow us enough time to assess and resolve the socioeconomic issues involved in developing the pit close to the Dumasi village..
Subsequently, we submitted a scoping report to the EPA to initiate the environmental impact assessment process to re-start mining of Dumasi pit for sulphide ores. The key features of the Dumasi Project are:

• Reopening and expansion of Dumasi open pit
• Limited external oxide dump
• Haulage along the existing haul road leading from Dumasi pit, through to the existing ROM pad at the GSBPL plant site
• Relocation/resettlement of all or part of the Dumasi village
• Diversion of about 1 km of Bogoso-Prestea public road

Because the Dumasi pit lies adjacent to the Dumasi village, which would be affected by our mining operation, some degree of resettlement may be required for the Dumasi community. This involves preparing a formal resettlement action plan (RAP) and then negotiating with the Dumasi community to reach a resettlement agreement acceptable to all stakeholders. Before 2006, we carried out some limited formal consultation with the Dumasi community on the possible expansion of the Dumasi pit and the resettlement of Dumasi. However, we did not enter resettlement negotiations with the Dumasi community, which created uncertainty and caused frustration among the Dumasi community, along with speculative activities in anticipation of resettlement and/or compensation.

The Dumasi Community

Dumasi is a small community in the Prestea-Huni Valley District of the Western Region of Ghana. It straddles the road linking the towns of Bogoso and Prestea and is about 2 km north of our Bogoso/Prestea mine site entrance. The planned Dumasi pit lies to the east of the Dumasi community a distance of between 200 m and 400 m. Current estimates of the number of houses and the population are 760 and 2500 to 3000, respectively.

A New Approach - 2007 - 2008

In March 2007, we appointed rePlan Mining Consultants Ltd (“rePlan”) to undertake extensive consultations, negotiations and planning for the resettlement of the Dumasi community. As part of the new approach to overcome the uncertainty and to provide complete transparency in the resettlement, Golden Star adopted the IFC performance standards for resettlement (performance standard PS 5), which is summarized in the text box below and can be researched in full at the following link:
http://www.ifc.org/ifcext/enviro.nsf/Content/EnvSocStandards.

Relationship and communications with Dumasi community

As our representatives, rePlan started by improving communications with the community and working together with the company to address some pending grievances that were identified during discussions. We felt that resolving these grievances would ease the path to resettlement consultations. By recognizing the outstanding grievances and making efforts to address them we demonstrated our determination to work with the community and to start a new era of best practice.

The grievances, and their resolutions, are summarized in the following table

We also developed a pro-active complaints and grievances mechanism, which we implemented for all our stakeholder communities, including Dumasi. With this process we aimed to understand and address grievances raised by the Dumasi community as early as possible:

• Immediate verbal response, or response after consideration, within 30 days or in advance of next meeting
• Response in writing, typically after receiving a written complaint, within 30 days
• Addressing valid concerns in the draft RAP, usually through identification of appropriate mitigation measures or compensation
• Further consultations and discussion on matter of concern

Developing a Public Consultation & Disclosure Plan

rePlan developed a Public Consultation & Disclosure Plan (PCDP) document early on in the Project’s life, so demonstrating our commitment to pro-active and ongoing communication with all interested regulatory authorities, the Traditional Authorities, organizations, and individuals. The goal of the PCDP is to address issues in a way that is transparent, provides timely, accurate information to affected people and other stakeholders, and allows sufficient opportunity for stakeholder input and exchange. Consultation specific to resettlement planning, in turn, has the following specific goals:

• Formation of a representative and inclusive Consultation Committee
• Formation of a representative and inclusive Resettlement Negotiation Committee
• Develop agreements on compensation principles
• Alleviate stakeholder fears and provide information on the resettlement
• Address stakeholder concerns in project planning and mitigation efforts
• Engender broad community support

Our PCDP outlines and documents our consultation and disclosure practices for the Dumasi project and includes details of public involvement activities with the Community that will occur:

• During the feasibility assessment stages of the Dumasi Pit expansion and Dumasi community resettlement
• During development of the Pit
• Continuing throughout the life of the Pit

The PCDP aims to improve and ease decision-making and further the community’s understanding of the entire resettlement project by promoting the involvement of individuals, groups, and organizations that can affect, or be affected by, development of the Dumasi Pit.
Following the PCDP allows us to carry out formal communications in an objective and simple manner focusing on improving communications between all interested parties, more particularly the Dumasi community.
The PCDP is a living document that evolves based on the ongoing development of the communications and the results obtained. Therefore, the PCDP remains in draft form throughout the Project and is updated and adapted as communications progress.

Identifying all the Stakeholders

The Dumasi Resettlement Project involves a variety of stakeholders: Dumasi residents, farmers, business people, regulatory authorities, Traditional Authorities and organizations that could be directly or indirectly affected by the resettlement. In order to develop an effective stakeholder involvement program, we first identified the various stakeholder groups using different outreach methods required for each group (formal discussions with government agencies and opinion leaders; community meetings and forums; and focus groups with key groups such as women, youth, religious leaders, civic leaders and farmers). Through this process, we found that primary concerns differ between the various stakeholder groups.

Communications with Regulatory Authorities

We send our key regulatory authorities (local, regional, and national) stakeholder updates so that they remain informed about developments on the Dumasi project.
We held Initial briefings for the following regulatory authorities (local regional and central) and leaders:

• Member of Parliament
• National Ministries/agencies:
• Environmental Protection Agency
• Lands, Forestry & Mines
• Lands Commission
• Land Valuation Board
• Local Government and Rural Development
• Regional Ministries, officials and agencies
• District & local officials and agencies

We continue providing briefings to project stakeholders via meetings or through written correspondence, as appropriate.

Consultations in Dumasi community (the Community)

Our key goals of the community consultation process include:

• Provision of resettlement-related information, including our policies, resettlement project details, answers to frequently asked questions, and rights and responsibilities of affected people, presented as required in a manner consistent with local cultural norms
• Articulation and delivery of clear, consistent messages from our staff to the public and stakeholders
• Communication undertaken in both Twi (the local language) and English
• Regular meetings and forums documented by our team to present resettlement‑related information, answer questions, and address concerns
• An open-door policy for interaction with our team such that stakeholders feel comfortable approaching the team directly to ask questions, discuss matters, and raise concerns
• Creation and implementation of a responsive management system for recording and responding to comments and concerns in a constructive and timely manner

At the initial stage of the process, we used the following methods to improve community awareness about their rights and the steps required in the resettlement negotiations:

• Public meetings / community forums
• Focus groups
• Interviews with key people/groups
• Dumasi Oversight Committee
• Community information centre (InfoCentre)
• Community notice board
• Community events

In the early part of 2007, following community forums and focus group discussions, a CCC was formed, with members nominated and agreed from all identified stakeholder groups. Capacity building sessions were held with the CCC, agreeing the Committee’s modus operandi and we held a series of workshops on resettlement issues. The CCC was then replaced by a new Dumasi Oversight Committee, formed to include natives who live outside Dumasi.
The Dumasi Oversight Committee, which has been representing the community on resettlement issues from July 2007 closed the Info Centre and since then, we have directed all resettlement consultations and communications through them. 

Table of Consultation Activities Completed in 2007 - 2008

Baseline Data Collection

In order to progress to the negotiations phase, we need to complete the baseline, which consists of a socioeconomic evaluation and asset survey. The DOC members also indicated that socioeconomic and asset surveys would be required as baseline information before resettlement negotiations could start, and encouraged us should carry out a socioeconomic survey while continuing with further consultations. To initiate this work, we provided the detailed work plan to the DOC and incorporated all their changes into the program. However, we are still waiting for the go-ahead for the socioeconomic survey from the DOC. Additionally, the DOC requested to have legal council to support the community in the socioeconomic survey. We have offered to pay for the cost of the legal council through the process.