‘Pay Chirano Farmers, Sefwi Residents’

Mike Hammah, Minister of Lands & Natural Resources, has given the Lands Valuation Board a two-week ultimatum to resolve issues regarding the payment of full compensation to some aggrieved farmers at Chirano and concerned citizens of Sefwi in the Western region.

Mr. Hammah gave the directive yesterday in Accra when a group calling itself ‘Concerned Citizens of Sefwi’ and some affected farmers in the Chirano Gold Mines operational area, presented a protest note to him.

Prince Eric Amoako Atta, spokesperson for the group, indicated that “the protest has become necessary because the frustration of farmers currently has reached bursting point.”

According to him, the leadership of the affected farmers has come under immense pressure as a result of the long delay in getting the compensation paid.

“The continuous building of the pressure threatens the existing process that aims at solving this impasse amicably with unpredictable but certainly disruptive consequences for the operations of the mining company.”

The gold mines, Mr Amoako Atta noted, risks losing lands it took from farmers if the payment is not effected immediately in accordance with the recommendation of the Lands Valuation Division.

On April 3, 2004, government granted Chirano Gold Mines Company Limited a mining lease after which it started gold production in 2005.

Between 2004 and 2006, Chirano Gold Mines paid compensation to some farmers based on GH¢2.50 per matured cocoa tree after falsely presenting to the farmers who were mostly illiterate, a Government of Ghana approved compensation rate of GH¢2.30 per matured cocoa tree.

But Government, in 2003, acting through the Lands Valuation Board, had approved a crop compensation rate of GH¢5.22.

“We therefore took the matter which borders on fraudulent and deceitful actions by the company to the Sefwi Wiawso High Court in 2006. The company, knowing that it will lose the case requested for an out-of-court settlement. We peacefully agreed to the company’s request.

“Unfortunately for us, the company did not stick to the process and deployed some delay mechanisms just to drag the process,” Mr Amoako Atta stated.

In 2007, he said they had to send the issue to the Fast Track High Court in Accra. The case was pending before court in 2009 when the then Minister of Lands & Natural Resources intervened in the matter and initiated a process to get the matter settled out of court.

The minister, in a letter dated May 17, 2012, advised Chirano Gold Mines to immediately pay all compensation assessed as provided in a payroll produced by the Lands Valuation Division taking due cognizance of earlier payments made in relation to the compensation claim.

“But this advice has not been heeded by the company. Instead, it has, once more, reverted to its delay tactics and has been dragging its feet since then.”

“We wrote the current minister on August 23, 2012 and urged him to take necessary actions which could include the withdrawal of the company’s licence to ensure immediate payment of the compensation-in- arrears. The situation has not changed much as our compensation-in-arrears continue to be in arrears while the company keeps digging gold.”

The compensation-in-arrears seekers omitted 2010 because the company in September 2010 changed ownership from Red Back Mining Inc. to Kinross Gold Corporation, making data gathering from these companies extremely difficult.