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Compensation for land use deprivation in mining: an analysis of the laws and practices relating to land use deprivation compensa

Author/s: Effah Amponsah, Chris Eves, Dulani Halvitigala, Hyemi Hwang

Date Published: 04/05/2021

Published in: Volume 27 - 2021 Issue 2 (pages 145 - 160)

Abstract

This article examines the laws and valuation methods that valuers apply in assessing compensation for land use deprivation in Ghana’s mining sector using two mining companies as case studies. We argue that analysing the valuation techniques applied in assessing compensation for land use deprivation in the context of current legal provisions facilitates a better understanding of the issues fuelling community dissatisfaction with compensation awards. Data produced through document analysis and interviews with 39 farmers, government officials, chiefs, private valuers, and officials of Newmont Goldcorp’s Ahafo Mine and Asanko Gold Ghana Limited were analysed in the context of the current legal framework for expropriation. Interview transcripts were coded based on themes and analysed using the constant comparison method. The findings reveal that the valuation techniques for assessing compensation for land use deprivation disregard fundamental compensation principles outlined under law. The study also exposes the weaknesses in the valuation techniques in assessing compensation for farmlands that mining may impair permanently. Towards ensuring fairness in compensating mining-impacted farmers, this study recommends additional legal directives to streamline the methods for assessing compensation for land use deprivation. The consequences of the limitations in the valuation methods on expropriated farmers are also discussed.

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Keywords

Compensation - Deprivation of Land Use - Expropriation - Mining - Project Affected Persons - Valuation

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