Anglogold Ashanti Obuasi Community Trust Fund: The special vehicle driving grassroot development in Obuasi

Mining has played an essential role in the economic and social development of many developing countries, particularly in West Africa. The contributions of mining to the global economy have been enormous through foreign exchange in emerging nations in sub-Saharan Africa

As gold is a non-renewable resource, its extraction through mining necessitates a focus on sustainable development and community benefits to ensure long-term well-being in mining areas, including Obuasi.

Different approaches have been adopted by mining companies to support the development of their host communities yet, many believe mining has not been beneficial to resource rich countries. The Obuasi Mine has been in existence since 1897 and has been operated by AngloGold Ashanti since 2004.

Conscious of this, AngloGold Ashanti Ghana (AGAG) adopted a sustainable approach towards developing Obuasi having in mind that, Gold is an exhaustive natural resource.

AGAG launched the Anglogold Ashanti Obuasi Community Trust Fund in 2012 as per the stability agreement between the mining firm and the Government of Ghana to contribute 1% of profit after tax. As part of the revised agreement under the Development Agreement signed with the Government of Ghana in 2018, the mine pledged to contribute $ 2 of each ounce of gold produced into the Trust Fund to develop communities within its catchment area.

The AGA Trust Fund approach, however, has been touted as the vehicle that drives development at the community level in Obuasi and as a tool or resource that facilitates positive change and progress within the mining town.

The Obuasi Community Trust Fund is governed by an independent board and a steering committee, with community representatives and AGA representatives ensuring community participation and oversight of the fund’s operations and spending.

Since its inception, the Fund has been responsible for many groundbreakings and highly impactful initiatives which stems from education, health, provision of potable water and toilet facilities as well as livelihood programmes.

Some of them include;

• Maternity block at the Obuasi Government Hospital: As part of its commitment to contribute towards improving access to quality healthcare delivery in communities around the mine area, Anglogold Ashanti Obuasi Community Trust Fund in June 2021 constructed a 16- bed capacity Maternity block for the Obuasi Government Hospital at a cost of GHS 1,116,191.00 from the US$200,000.00 operational support provided by AGA Obuasi Mine as part of the Redevelopment process. The facility comprised of an Operating theatre room, a Delivery room, an Examination room, a Recovery room, Anesthetic room, a Sluice room, a Neo-natal Intensive care unit, 2- Post- natal ward with 8-bed capacity each, Doctor and Nurses’ office, Washrooms and reception area.

• Mamiriwa CHPS Compound (ongoing): The Fund quests to extend access to quality healthcare at the doorsteps of the people has birthed the Mamiriwa No.2 CHPS compound and Nurses’ Quarters. When completed, the facilities would reduce the travelling distance of the people from seeking health care at long distances.

• Educational facilities: Anglogold Ashanti Obuasi Community Trust Fund (AGA-OCTF) in its efforts to improve access to quality education at the foundational level constructed and handed over 2 fully furnished KG blocks to Dokyiwaa and Binsere in the Obuasi Municipality. The commissioned 2-unit KG blocks were built at a cost of GH¢1,076,239.28.

• Improvement of Sanitation Support: The need to improve the water and sanitation situation in communities around the mine area, has led to the commissioning of several water projects in Obuasi and surrounding areas. In 2022 alone, the Fund commissioned and handed over community water systems for Bidieso, Biakoyeden and Wioso communities. Bidiem, Kokoteasua, Ntonsua and other communities have also benefited from the water system projects.
Additionally, the trust fund has built several modern water closet toilet facilities scattered around AGA ‘s host communities.

• Award of educational grant: A landmark contribution of the Fund to the development of education in AngloGold Ashanti’s host communities is the educational grant, instituted to support the education of brilliant but needy students. About 200 students have so far benefited from the Tertiary Education Grant Scheme of the Fund since the 2019/2020 academic year with several others in the offing.

• Skills Development & Youth Empowerment: Under the AngloGold Ashanti Obuasi Community Trust Fund’s Skills Development Programme, about 150 community members have been trained in leather works, bead craft, and fashion. Recently 48 outstanding graduands who trained under the Obuasi Community Trust Fund were graduated and given toolkits to Kick-start their entrepreneurial journeys.