ESTABLISH ADR MECHANISMS ...To settle mining disputes (PAGE 23)

Participants at a forum on mining have appealed to the government to establish alternative dispute resolution mechanisms to settle disputes arising from the payment of compensation to communities affected by mining.
The participants were of the view that the practice whereby mining disputes, especially those arising from post disbursement of compensation, were sent to the law courts tended to slow down business and drive away investors from the mining industry.
The participants made the suggestions at a forum held at Dodowa in the Greater Accra Region on Tuesday. The theme for the forum was: “Establishment of Standards of Compensation for the Mining Industry in Ghana’’.
The establishment of alternative dispute resolution, they argued, would help to establish a standard for the payment of compensation and maintain a good working relationship between the communities and the mining companies.
Mr Stephen Piedu, Deputy Chief Inspector of Mines of the Minerals Commission, observed that the social upheavals that occurred in mining areas started with the post disbursement of compensations.
He said that the post disbursement dispute resolution and training should be well addressed and made clear so that those compensated would not turn round later to demand more compensation after they had squandered their monies.
Mr Piedu suggested that the payment of compensation should be made in two parts, first a lump sum and the rest spread over a long term to forestall the situation where communities continually demanded money from mining companies after they had received compensation. This, he said, sometimes resulted in squabbles that stalled operations of the mining companies.
Mr Daniel Owiredu, Vice-President (Operations) of the Ghana Golden Star Resource Ltd, also called for the creation of alternative livelihood plans in addition to the payment of compensation to prevent communities from harassing mining companies.
He underscored the need for communities to be educated on the fact that mining resources were finite and could be exhausted and, therefore, explore other alternatives for their livelihood instead of blaming the mining companies for their plight.
Mr Owiredu cited the case of Bibiani as a clear example of a town which was bustling with commercial activities but suddenly became a ghost town after the mining operations came to an end.
Mr Ambrose Yennah, Chief Executive Officer of Africa Integrated Development and Communications, who undertook a study to collate views for the review of the regulations of the Mineral and Mining Act 2006, said some of the communities visited were of the view that the payment of compensation was their, which could not be denied by the mining companies.
Mr Yennah said the forum was therefore organised to seek the views of all stakeholders so that a consensus could be reached on whether or not compensation should be paid in lump sum or in instalments.
The Chief Executive Officer said the study found out that compensation on crops could be paid in lump sum, while that on land, which ran into millions could be spread over a period so that future generations could also benefit.