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

Mining is vital for the economic and social growth of many developing countries, especially in West Africa.

In sub-Saharan Africa, mining significantly contributes to the global economy through foreign exchange.

Gold is a non-renewable resource. Its extraction requires a focus on sustainable development and community benefits. This ensures long-term well-being in mining areas like Obuasi.

Mining companies have adopted various approaches to support local communities. However, many believe that mining has not benefited resource-rich countries. The Obuasi Mine has operated since 1897 and has been managed by AngloGold Ashanti since 2004.

AngloGold Ashanti Ghana (AGAG) recognizes this issue. They have adopted a sustainable approach to develop Obuasi, considering gold's exhaustible nature.

In 2012, AGAG launched the AngloGold Ashanti Obuasi Community Trust Fund. This was part of a stability agreement with the Government of Ghana to contribute 1% of profit after tax. Under a revised agreement signed in 2018, the mine pledged $2 for each ounce of gold produced into the Trust Fund for community development.

The AGA Trust Fund is seen as a key driver of community development in Obuasi. It facilitates positive change within the mining town.

An independent board governs the Obuasi Community Trust Fund. A steering committee includes community representatives and AGA members to ensure oversight and participation in fund operations.

Since its start, the Fund has initiated impactful projects in education, health, water provision, sanitation, and livelihood programs.

Some notable projects include:

1. Maternity Block at Obuasi Government Hospital: In June 2021, AGAG built a 16-bed maternity block at a cost of GHS 1,116,191. This facility includes an operating theatre, delivery room, examination room, recovery room, neonatal intensive care unit, and more.

2. Mamiriwa CHPS Compound (ongoing): The Fund is constructing Mamiriwa No.2 CHPS compound and Nurses' Quarters to improve healthcare access for local residents.

3. Educational Facilities: The Fund constructed two fully furnished kindergarten blocks at Dokyiwaa and Binsere at a cost of GH¢1,076,239.28 to enhance early education access.

4. Sanitation Support: To improve water and sanitation around the mine area, several water projects were commissioned in 2022 for communities like Bidieso and Biakoyeden.

5. Modern Toilet Facilities: The trust fund has also built modern toilet facilities across AGA's host communities.

6. Educational Grants: The Fund supports brilliant but needy students through educational grants. About 200 students have benefited from this scheme since the 2019/2020 academic year.

7. Skills Development & Youth Empowerment: Approximately 150 community members have received training in leather works and fashion under the Skills Development Programme. Recently, 48 graduates received toolkits to start their businesses.