ALTERNATIVE COMMUNITY

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Golden Star Resources Limited
ALTERNATIVE COMMUNITY LIVELIHOOD
PROGRAMME INITIATIVE BY GOLDEN STAR RESOURCES
(THE GSOPP CASE ) December, 2006
Mary Ankomah Boakye Boateng GOLDEN STAR OIL PALM
PLANTATIONS LTD P O Box 16070 Airport Post
Office Accra, Ghana Tel office (site) 233 362
20469 Tel-mobile [phone] Fax [phone]
700 Fax [phone] Email maame35_at_hotmail.com
Golden Star Resources Ltd.
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Golden Star Limited

• Canadian international mining company, head
  office in Denver, Colorado
• Has 2 operating mines in Ghana 1) Wasa mine, 2)
  Bogoso/Prestea mines
• Production of 200,000 ounces of gold in 2005
• Golden Star Oil Palm Plantations Limited (GSOPP)
  has been established by Golden Star Resources Ltd
  to use the smallholder concept of oil palm
  development as part of its corporate social
  responsibility efforts.
• Women and youth are the primary target groups.
• Traditional authorities provide land and local
  people are paid for their labour to develop the
  project.
• GSOPP provides development capital operating
  funds (loans to smallholder farmers).
• GSOPP provides technical support.
• GSOPP purchases the fruit.
• After 3 years, farmers will be trained to operate
  the small plots and will then be beneficiaries of
  plots (4 ha).

Golden Star Resources Ltd.
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Golden Star Limited

• Corporate Social Responsibility Strategy
  Evaluation
• Community needs assessment 1) Rural
  infrastructure 2) Services available
• The rural economy 1) Farming ( livestock/crop)
  2) Commerce
• Measured poverty related issues include
• Cash incomes
• Health maternal, other disease prevalence
  levels
• Education -- how many children are in school
• Identified agriculture as the base economy
• Crops grown cash crops, tree crops
• Level of production subsistence
• Measured level of unemployment
• 50 of youth unemployed
• 20 of youth engaged in mining company
• 30 of youth engaged in illegal mini

Golden Star Resources Ltd.
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Golden Star Limited

• What do we monitor?
• 1. Positive Economic effects
• Income levels of farmers
• Number of employees
• Spin-offs
• 2. Expected Adverse effects and mitigation
  factors
• Environmental impact assessment conducted.
• Mitigating factors adressed.
• Dangers of mono-culture addressed guaranteed
  market through palm oil processing (in the case
  of pest and disease, the research institutions
  and the existing have the capacity/expertise to
  deal with it)
• End-use of tailings dam will reduce waste lands
  to enhance economic activity

Golden Star Resources Ltd.
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Golden Star Limited

• How do we monitor?
• Baseline socio-economic survey
• Determine demorgraphic factors
• Determine income levels of potential
  beneficiaries
• Employment statistics
• The rural economic growth rate
• 2. Who will do it?
• Local expertise
• Feedback from local chiefs, opinion leaders and
  the communities.

Golden Star Resources Ltd.
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Golden Star Limited
Set up parameter indicators/checklists

• Incomes
• Local employment what of local labour employed
  and wages earned local suppliers
• Farmers income levels of yield, production costs
  and margins.
• Employment statistics
• The rural economic growth rate
• Agricultural indicators
• Soil and water management- nutrient levels, ph
  levels,etc
• Biodiversity
• Yields and production

Golden Star Resources Ltd.
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Golden Star Limited

• Lesson Learned
• TO ADDRESS ISSUES IDENTIFIED
• There is need for a business with a simple model
  that leverages the stakeholders skills to
  provide continuing employment and regular income.
• Palm Oil cultivation using the smallholder
  concept was found to be the most sustainable and
  impactful option that will contribute broadly to
  both the local and national economies.

Golden Star Resources Ltd.