Obuasi Mine Dispute: Unrest Surrounding Ghana’s Golden Treasure

Obuasi Mine Conflict: When the Golden Goose Sparks Fury

If gold could talk, the Obuasi mines would surely narrate tales of pride and pain, wealth and woe. But, alas, the golden goose remains mute as its guardians and intruders clash in a perennial tussle. The latest episode, which unfolded on the night of January 18, 2025, has once again thrust Ghana’s mining industry into the spotlight, albeit for all the wrong reasons. Eight lives have been lost, countless others wounded, and questions linger in the air like the morning mist over the Pra River.

At the heart of the matter is the clash between illegal miners, known locally as “galamsey operators,” and the soldiers tasked with guarding the AngloGold Ashanti (AGA) concession. 60 miners, armed with makeshift weapons, reportedly attempted to breach the company’s grounds. The result was a firefight that left devastation in its wake.

President Mahama has since ordered an investigation and tasked AGA with covering medical bills for the injured and funeral expenses for the deceased.

The Glittering Legacy of Obuasi Mines

Obuasi, like Johannesburg in South Africa, is synonymous with gold and large-scale mining, though the two cities differ greatly in development. Long before mechanized mining arrived in 1897, artisanal miners had worked the Offin and Pra basins for over 500 years, earning the area a reputation for its rich gold deposits.

In 1875, French trader Joseph Bonnat secured the first recorded concession, but it wasn’t commercially developed. Later, two Fante merchants, Joseph E. Ellis and Joseph E. Biney, acquired 265 square kilometers in 1890 and established the Ellis Mine. Despite being profitable, their venture lacked the capital to expand, leading to the concession’s transfer to Edwin Arthur Cade in 1895.

Cade’s efforts led to the establishment of the Cote d’Or Mining Company in 1896, with the agreement signed at Cape Coast Castle and ratified by the British Government. On June 11, 1897, Ashanti Goldfields Company (AGC) was formed, absorbing Cote d’Or’s assets and liabilities and marking the beginning of what is today AngloGold Ashanti.

Obuasi’s transformation from artisanal beginnings to industrial powerhouse highlights its golden legacy, a story of immense wealth and unfulfilled potential.

The Stretch of Gold: Obuasi’s Concessionary Tale

The vast expanse of AngloGold Ashanti’s concession is a tale of both grandeur and grievance. Though its heartbeat thumps in Obuasi, the reach of its veins stretches far beyond, covering an impressive 485 square kilometers in its early days. Like a king surveying his kingdom, this concession sprawled into the Adansi areas, brushing shoulders with Bekwai.

History scholars like Ofosu-Mensah remind us that this wasn’t a casual affair. Chiefs from Adansi and Bekwai, with all the solemnity of their titles, stood witness when the sacred lands were handed over to Edwin Arthur Cade on August 16, 1895. It was an agreement that gave the Ashanti Goldfields Company exclusive rights, effectively sealing off the entire Adanse and Bekwai enclave from any rival aspirations.

But herein lies the paradox: for 500 years before the advent of mechanized mining, artisanal miners had toiled under the sun and stars, finding their daily bread in the golden earth. Their unbroken bond with the land was suddenly severed when the concessionary rights were handed over. Small-scale miners became wanderers in their own homeland, denied access to the riches that once sustained them.

It wasn’t until 2016, a full century and more later, that the tides began to shift. AngloGold Ashanti, perhaps in a bid to heal old wounds, ceded 60% of its concession back to the government via the Minerals Commission. The relinquished 273 square kilometers, spanning Adansi North, Amansie Central, and Obuasi, was handed over for redistribution to small-scale miners.

Yet, this gesture, though significant, does not erase the scars left by decades of exclusion. The soil may be rich in gold, but it is also heavy with memories of people displaced, their connection to the land a shadow of what it once was. Such is the story of Obuasi, a city where the glimmer of gold is often eclipsed by the shadows of history.

The Long-Standing Feud: Gold, Poverty, and the Obuasi Paradox

For decades, the relationship between the people of Obuasi and the mighty gold mine has been anything but golden. It’s a tale as old as the hills that cradle the mine; a long-standing feud that seems to have no end in sight. The locals claim the mine, with its sprawling concessions, has swallowed up their lands, leaving no room for farming or small-scale mining, the very lifelines of the community. The result? Joblessness and poverty in the shadow of one of Ghana’s most valuable gold deposits. Ironically, the wealth beneath their feet has birthed what scholars like Ofosu-Mensah have dubbed the “gold-poverty paradox.”

But poverty is not the only price the residents say they are paying. Scholars such as Akabzaa and Agbesinyale have long documented the heavy environmental toll of mining in Obuasi. Water bodies, once the lifeblood of local farming and daily sustenance, have been contaminated.

Fertile lands are no longer fit to grow crops, and the air they breathe seems laden with more than the weight of despair. For many, the health of their bodies and the well-being of their families hang precariously in the balance. To the residents, the mine is a double-edged sword—bringing untold riches to some while exacting a steep social cost from those who call Obuasi home.

Clashes and Resistance: A Tale of Defiance

The people of Obuasi are no strangers to resistance. From the days of the Ashanti Empire to today’s embattled youth, the fight for their rights has remained unwavering. Desperation has often driven the youth and other residents to breach the mine’s concessions, hoping to eke out a living by mining for scraps of gold.

For some, the gamble is worth the risk. But for others, it has led to skirmishes, injuries, and even death. And when they are not digging, they sometimes invade the settlements of mine workers, forcing them to flee their homes in fear.

History reminds us that these clashes are not a 21st-century phenomenon. Back in the 1890s, the Ashantis resisted British colonial rule, opposing the ratification of mining concessions. The struggle intensified with the annexation of the Ashanti Empire, and the rift between the people and the mine has lingered ever since. The literature and the scars on the land point to countless moments of defiance, each etched into the annals of Obuasi’s fraught history with the mine.

The latest incident is but one chapter in a long book of resistance, one punctuated by clashes, destruction, and loss. Over the years, the confrontations have only amplified, fueled by a growing sense of despair and a dwindling hope for resolution. The table of historical clashes paints a vivid picture of a community at odds with the giant in its midst—each confrontation a tragic reminder of a rift yet to be healed.

YEAR INCIDENT
2022 A group of illegal miners invaded the northern part of the concession of AGA. They were arrested by the mine’s security. In a video that went viral subsequently, the military was seen brutalizing these illegal miners. The illegal miners were made to lie prostrate in a muddy water body while the military stood over them with guns issuing instructions.
2016 This clash led to the death of Corporate Affairs Manager of AGA, John Owusu. The late manager led a group of reporters to inspect sites of the concession invaded by illegal miners. In the course of the exercise, they were ambushed by the same illegal miners who pelted them with stones. In the heat of the moment, John Owusu was run over by a car leading to his death.
2013 Armed illegal miners attacked the anti-galamsey security team of AngloGold on the company’s concession in Obuasi
2011 Illegal miners shot and killed by AGA security
2010 Illegal miners attacked and injured two AGA security personnel who were patrolling the concession of the mines
2004 An alleged illegal miner was arrested by AGA security but he later died in custody. The family suspected he was beaten to death.
2002/2001 Guard dogs were released on illegal miners operating on the concession of AGA.
2002 Artisanal miners set on fire a poultry farm belonging to AGA. They are made away with a number of valuables from the mine’s staff
1997 Illegal miner was killed by the security of mines. Later in the same year dogs were released on 16 gold miners, wounding them in the process.
1996 A clash between illegal miners and mine security led to the destruction of AGA assets estimated to be over $1 million (Okoh, 2014). A similar clash the same year resulted in the destruction of assets valued at $10 million.
1994 Military, police and mine’s security killed a total of 3 illegal miners.

The Court Redress

The severity of the clashes between AngloGold Ashanti (AGA) and illegal miners reached a boiling point in 2016, compelling the company to seek legal recourse against the Government of Ghana at the International Centre for Settlement of Investment Disputes (ICSID). AGA alleged that the government had failed in its obligation to protect the company’s concession, leading to continuous invasions by illegal miners.

At the heart of AGA’s grievance was the government’s withdrawal of military personnel in February 2016. This withdrawal, despite an existing memorandum of understanding that committed to securing the site, was described by the company as a breach of trust. AGA argued that the absence of security had left the mine vulnerable to invasions, resulting in widespread property damage, escalating lawlessness, and threats to the safety of its employees.

In its filing, AGA stressed that the unchecked activities of illegal miners posed an existential threat to the mine’s long-term viability. The company warned that beyond the operational risks, these invasions undermined Ghana’s broader reputation as a secure and reliable destination for mining investments. The ICSID case thus became a landmark attempt to address a recurring conflict that had plagued the company for years.

Similar Incidents at Other Mining Sites

The security challenges at the Obuasi Mine are not isolated; other large-scale mining sites across Ghana have faced similar turmoil. In one recent incident, an unknown individual attempted to breach security at Newmont’s Ahafo Ntotroso mining site, allegedly to steal gold scheduled for transport. The resulting confrontation tragically claimed three lives, with four others sustaining injuries.

In 2019, Newmont Ghana became the center of another controversy, as protests erupted over allegations of environmental pollution and inadequate compensation for displaced communities. These clashes highlighted the persistent tension between mining operations and host communities, with locals often feeling sidelined in decisions affecting their livelihoods.

Moreover, other prominent mining sites, including Tarkwa, Bogoso, Bibiani, Akwatia, and Damang, have not been spared from conflicts. Illegal miners, emboldened by desperation and the allure of quick wealth, frequently encroach on these concessions, sparking violent clashes and intensifying the already strained relationships between mining companies and local populations.

The litany of conflicts across Ghana’s mining regions is a reminder of the delicate balance required to manage large-scale mining operations, protect community interests, and uphold the nation’s reputation as a mining investment hub. The story of Obuasi is one chapter in a broader narrative that continues to shape Ghana’s mining landscape.

The Experts’ Judgement

Liam Morrissey is the Chief Executive Officer (CEO) of British risk consultancy firm, MS Risk Limited which supports natural resources, investors, and insurers. He has worked on a number of mining projects in Ghana and West Africa since the 1990s.

He believes considering how these illegal miners have become sophisticated in recent times, there is the possibility of an organized crime element. He suspects some financiers are funding these illegal miners with equipment and some weapons to arm themselves.

“They’re getting more organised and more emboldened,” Liam Morrissey indicated. He further opines that such acts of illegality indicate risks of corruption at local levels which will disrupt efforts of mitigation.

From his experience, he is convinced that anti-illegal mining operations are best conducted by the army or by law enforcement supported by military assets.  This is because the level of resistance and violence by illegal miners is escalating.

Vice President of IMANI Africa, Bright Simons also believes there is a political underpinning to the recent development. He is of the view that illegal miners, considering the flexible approach of the new government to issues of illegal mining, miscalculated that the government may withdraw the tight security that will give them leeway.

He said, “There was a misguided belief that the change of government would see a loosening of military protection due to the fact that the NDC government in its previous term was lax about enforcement.”

The So What! 

It is apparent these security threats, if left unchecked, have serious consequences for the country’s mining industry as well as the general business environment.

Liam Morrissey is therefore proposing a very deliberate, disciplined, and consistent approach on the part of the government to curb the situation. He says the government must also be very consistent with its approach calling for a more holistic strategy to address the menace.

“It’s going to take a very strong and focused effort.  Leadership needs insight to the growing threat,” he said in an interview with The High Street Journal.

He further suggests that the approach should also prioritize an agenda that will find persons behind these illegal miners who are fueling their actions. He believes that if the local financiers are dismantled, the illegal miners threatening these large-scale miners could be displaced.

“If you can disrupt them, then you can disrupt the organized gangsters that are behind them, and you can displace them. And if they’re always being displaced, and they’re always moving, you’ll never eradicate it, but you’ll reduce the effect they have,” he further suggested.  “This needs to be married to effective community engagement simultaneously,” he added.

It is however unclear the answer to the question of illegal mining will be by the new government. Industry players, as well as affected large-scale miners and the general public are very keen on the measures that will be implemented by the President Mahama-led administration in order to sanitize the country’s mining industry.

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