Journey Towards Sustainability: The Case of the
Newmont Ahafo Development Foundation
Presented in New York – USA – March 2010
By Nick Cotts & Joseph Danso
Overview
 Commitment to Sustainable Community Development
 Ahafo Social Responsibility Forum
 Community Agreements
 Newmont Ahafo Development Foundation (NADeF)
 Vision and Mission
 Governance structure
 Funding
 Allocation of Funds/Development Focus
 Articulation/Alignment
 Foundation’s Activities
 Challenges
 NADeF Linkages to Newmont, COM DEV and Local Government
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Newmont’s Commitment to Sustainable Community Development
 Create value with a wider set of stakeholders through
the alignment and linkage of our business and our
social responsibilities
 Balance economic considerations with
social/environmental consequences to
understand how our actions today may affect future
generations
 Fundamental understanding that community
acceptance is paramount to a sustainable business
model
 Seek to maximize training, employment and business
opportunities using fair and transparent processes that
provide the opportunity for local communities to
articulate their needs and aspirations
 Maximize opportunities to leverage community
development projects and empower other sectors
through partnerships are sought out and encouraged
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Ahafo Social Responsibility Forum
 Community/Company initiative: Multi-stakeholder group of 55 members;
independent moderator and co-moderator
 Traditional Leaders, Youth, Women’s Groups, Regional Gov’t, Local Gov’t,
Local NGOs, Farmer Groups, Newmont
 Forum for discussion and decision-making between stakeholders on issues
related to community development and the business
 Forum met over 20 times during a 2 year period
 Standing Committee Purpose/Function
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Ahafo Social Responsibility Agreements
Three agreements encompassing ten
communities in the Ahafo mine area:
Relationship Agreement: roles and
responsibilities on how the Company
and Community will engage
Employment Agreement: guidelines in
the hiring of local workforce
Foundation Agreement: Creation of the
Newmont Ahafo Development
Foundation (NADeF) as a structure to
fund and support sustainable
community development programs
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Newmont Ahafo Development Foundation (NADeF)
Vision: To achieve community prosperity and self-reliance.
Mission: Our mission is to empower communities through grants,
knowledge-sharing, partnership and capacity building to achieve
sustainable development.
Stakeholders Vision for NADeF: Our vision for NADeF is to be a
recognized and trusted development partner in the Ahafo Communities.
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NADeF is registered under laws of Ghana.
NADeF Agreement signed between Newmont and Ahafo Mine
Communities in May 2008.
NADeF Secretariat established with offices located in one of the Mine
Communities
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Governance Structure
Board of Trustees
 Nine-member Board (4-Comapany and 4-Community + Chairperson)
established by the Agreement to manage and control the funds of the
Foundation
 After 6 years additional community members will be appointed, including
Chairperson
Secretariat
 Established with 4 main employees (Exec Sec, Project Coordinator, Fin
Controller, Admin Assist) and 4 supporting staff (1 driver, 1
housekeeper and 2 security guards)
 Administer day-to-day activities
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Governance Structure (cont)
Tender Board
 Nine-member Board (2-Traditional Leaders, 2-Local Government Reps, 2-Youth
Reps, 2-Newmont Reps and 1 member appointed by BOT as Chairman)
 Responsible for any tendering process in accordance with the Ghana
Procurement Act
Sustainable Development Committees (SDC)
 Seven-member community-based committees in each of the ten communities
(1-Youth Rep, 1-Women Rep, 1-Unit Committee Rep, 2-Trad Leaders Reps, 1Assembly person and 1 community member nominated by the Traditional
Leaders)
 Responsible for planning development projects at the community level
and submission of community proposals to the Secretariat through the District
Assembly
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Foundation Funding
 Foundation is supported by $1 per oz &1% net profit from Ahafo
Operation (about $4.7 Mn YE 2009)
 Model is to partner with external donors locally, nationally and
internationally
 Endowment provision funded via the annual contribution (10% - first
5yrs; 15% - second 5yrs; 20% - third 5yrs; and 25% - fourth 5yrs).
 Partnership funding and leveraging resources is opportunities are being
evaluated
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Allocation of Fund/Focus Areas
 Social Responsibility Forum established allocation system aligned with selfdetermined development
 Ongoing projects in the communities include: Construction of Teachers’
Quarters, Construction of Library, Drilling and mechanization of water bores,
Construction of classroom blocks etc.
 Funds are allocated to communities based on set criteria using impact,
population, land size in mining lease area, commitment etc.
Development Area
Allocation (%)
Human Resource Development
24
Infrastructure Development
23
Social Amenities
18
Economic Empowerment
17
Natural Resource Protection
12
Cultural Heritage and Sports
6
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Articulation/Alignment with Development Partners
 SDCs liaise with the District Assembly in the identification of community
projects
 Final approval of community proposals to the Foundation is done by the District
Assembly – to ensure projects are aligned to the District Development Plan
 Technical supervision of all projects are done by the District Assembly
engineers
 Completed projects and programs are handed over to relevant government
agency and the community
 Ahafo Com Dev is coordinating the setting up of the Foundation Secretariat
and capacity building for the SDCs
 Ahafo Com Dev discussing possibility of existing projects that could be aligned
to the Foundation agenda and possible implementation by Foundation
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Journey Towards Sustainability
 Projects supported under NADeF are aligned to the District Government’s
Development Plan
 Broader community participation in the planning, decision making and the
implementation process creates sense of ownership
 Governance structure separate from the company – individuals serving on
committee as equal partners
 Possibility of supporting projects with community resources – land, labour
etc.
 Infrastructure projects handed over include operations and maintenance plan
 Endowment supports future of the Foundation after mine closure
 Leveraging resources through partnership approach
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Foundation’s Activities
List and Photos of key activities / some NADeF projects
SDC Training Workshop
Teachers Quarters @ Gyedu
SDC Refresher Training
Mechanized water @ Ntotoroso
Classroom Block @ Wamahinso WC Toilet @ Ntotoroso
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Our Challenges
 Dependency: Newmont Ahafo cannot meet everyone’s needs!
 Continuous pressure to “act” as the local government
 Building a long-term vision with local communities and government
 Secretariat capacity, network and partnerships
 Alignment/agreement of priorities vs. resource availability
 Capacity of community to engage with Foundation and provide timely
feedback
 Managing expectations of stakeholders on community development issues
 Defining sustainability and creating a shared vision
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