Background

Golden Star Oil Palm Plantation (GSOPP) is a multi-award winning social enterprise programme, established as a non-profit subsidiary of Golden Star Wassa Ltd (GSWL), now a member of Chifeng Gold (Chifeng). It involves partnerships with traditional authorities, affected farmers, and the agro-forestry industry to support the development of oil palm plantations in GSWL host communities using the smallholder concept. 

GSWL funds the programme through US$1 per ounce of gold produced, and as at year-end 2021, Golden Star had directed over US$9.6 million to this important initiative. 

With 16 years of demonstrated commercial viability and growth, GSOPP is unique among social investment initiatives, in terms of its longevity, sustained funding commitment, future value potential and ultimately, its sustainability. 

Since the acquisition of GSWL by Chifeng in January 2022, Chifeng has demonstrated its vision to ‘Benefit more people with the development of Chifeng Gold’by the continued support to the objectives of GSOPP. 

To that end, GSOPP and its smallholders, with the support of United Nations Industrial Development Organization (UNIDO) was able to complete audits, processes and trainings to gain international certification from the Round Table on Sustainable Palm Oil (RSPO) in May 2022. This is the highest certification in the world for palm oil cultivation. 

Objectives

Through GSOPP, GSWL contributes to environmental restoration and advances its business objectives of creating alternative livelihoods;

1. To reduce poverty and promote wealth through sustainable Agribusiness

2. To stimulate economic activities in Golden Star Wassa Ltd communities. 3. To restore the environment after mining activities

4. To support the Sustainable Development Goals (SDGs)

Impact 

1. To reduce poverty and promote wealth through sustainable Agri business 

- In 2021, GSWL invested $1,169,145 into GSOPP expansion for new farmlands, signing on new participants and supporting fledging farms. Life to date, GSWL has directed over US$9.6 million to the GSOPP programme. This investment enables GSOPP to tap into Industry-leading practice in alternative livelihoods. 

- Annually, GSOPP directly employs 806 contract workers and smallholder farmers across 10 communities. Averagely, each employee has five dependents, meaning on an annual basis, GSOPP benefit 4,836 people (employees and dependents) in our catchment communities directly. 

- Participating farmers gain agronomic knowledge, training and technology transfer. 

- Capacity training, including banking (100% of GSOPP farmers have bank accounts), savings, pension planning, health and security. 

- Access to Credit using the cooperative approach. The majority of small-scale farmers in Ghana, the mainstay of the agriculture industry, operate on the fringes of the economy. They lack access to financial institutions to expand or even develop their businesses. In a downgrading economic context, where interest rates presently exceed 30%, means even where funds are available, most farmers could not fund loan repayments. GSOPP provides interest free loans to its farmers, avoiding issues associated with access to capital and initial operating expenditures. Loans repayment commences when yields reach nominated levels of maturity, to ensure that farmers have sufficient revenue to maintain an appropriate standard of living. 

- On average, traditional councils receive US$56,119 every year as landowners of GSOPP 

- In 2021, the minimum wage in Ghana was GH¢4,059 per annum. GSOPP farmers with high- yielding palms, under good plantation management practices, earned GH¢30,261 per annum (7.45 times the minimum wage for small holders). 

- GSOPP has enrolled about 98% of farmers and farm workers onto the National Health Insurance Scheme (NHIS) in Ghana, where farmers can have access to healthcare.

2. Environmental restoration after mining activities 

- GSOPP programme has resulted in the conversion of 107 hectares from formerly mined lands to commercial oil palm plantations under a sequential land use system. 

- Another 125 hectares of the plantation were cultivated on disturbed lands (galamsey), restoring them for agricultural use. 

- Biomass from palms plants continue to improve soil fertility. 

- Where plantation is to be cultivated over existing farms, oil palm is established within the existing farms to not displace food crops. As food crops are harvested, the oil palm is extended into these areas, and farmers gradually convert to the new cropping regime. This process avoids displacement, and enables farmers to integrate into the plantation concept at a manageable rate.

3. Support of Sustainable Development Goals 

- SDG 1 No poverty: GSOPP reduces poverty and promotes wealth through sustainable agri – business. This is done in partnership with traditional authorities, affected farmers, and the agroforestry industry to support the development of oil palm plantations in GSWL host communities using the smallholder concept. 

- SDG 9 Industry, Innovation and Infrastructure: At GSOPP, only seedlings of proven varieties are used and not wild harvested seedlings. Varieties are selected on a site-by-site basis on the assessment of climatic and soil conditions. In addition to the specialist technical agronomic advice of the GSOPP team, farmers also benefit from extension support provided by Wilmar BOPP and Solidaridad West Africa. 

- SDG 12 Responsible production and consumption: Transport to Market. In Ghana, some plantations are established without good road support networks. As the main fruit production season coincides with high rain, this has resulted in cases where fruit is not collected, and rots, leading to loss of income to farmers. At GSOPP, road maintenance forms an integral part of the plantation maintenance cycle, ensuring access for fruit collection and sales. 

- SDG 12 Responsible production and consumption: Leading Practice and Industry Standards. GSOPP applies Best Management Practices (BMP) for its oil palm operations. Farmers Tenancy Agreements require application of these standards. As a result, the GSOPP smallholder plantations now achieve 18 mt/ha, three times the Ghanaian average and on par with world average production for plantations. Most importantly, this translates to better returns for farmers, and demonstrates the attractiveness of oil palm as a livelihood. Finally, the adherence to these best practices contributed greatly to GSOPP’s certification by the RSPO. 

- SDG 17. Partnership for the goals: International Development Support. GSOPP has the ongoing support of Royal Gold, Wilmar BOPP organization, Southampton University and two major international development agencies, Solidaridad West Africa and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). Royal Gold in consideration of the long-standing relationship with the Wassa mine, in 2021 committed to provide financial support for the activities of GSOPP through an annual contribution of US$150,000 for five years. Wilmar BOPP and Solidaridad provide agricultural extension support to GSOPP and participant farmers, including agricultural extension trials, demonstration plots, as well as soil and crop nutrient content testing. GIZ, using a major baseline study and poverty impact assessment for GSOPP, further supports with farmer business schools that provide training on savings, pension planning and other financial management skills development. All GSOPP participant farmers have bank accounts where their salaries and other payments are made. Southampton University provides periodic carbon dioxide removal monitoring through ongoing studies on our tailings facilities including those that have oil palm cultivated on them.

The model 

Land Acquisition 

GSOPP has developed a unique approach to land acquisition. Through extensive community engagement and consultations, GSOPP solicits lands from local chiefs, and/or landlords who offer their lands and in return benefit directly from the oil palm cultivation. This is a form of partnership arrangement, which promotes more productive use of the land, resulting in long term employment and income generation in the catchment. Farmer selection is based on impact and resident status within the host community. 

Tenancy agreements established with the farmers incorporate loan re-payment and obligations for maintenance, harvesting and sale of farm proceeds minimizing conflicts that traditionally arise from changing expectations. 

With this concept of partnership, the major issues confronting land tenure associated with large-scale agricultural developments are to a greater extent minimized. Additionally, as the plantations are supervised by GSOPP, all parties benefit from higher yields, resulting in ongoing support for the use of the land for this purpose.

Sequential land use 

Even though mining companies have shown that they can revegetate formerly mined lands, few have shown that these land uses can be sustained. Areas reclaimed to plantation forest are frequently felled for firewood or charcoal, those reclaimed to secondary forest are prone to illegal mining incursions or are clear felled for farmlands. 

Only GSOPP has demonstrated true sustainability. As a high value cash crop, managed for commercial scale production and yield, the revenues are significant, benefitting farmers, workers and traditional landowners alike, thus limiting incursion from low value or unstainable land uses. 

The introduction of GSOPP as the next land use in former tailings storage facilities expands this significance, by demonstrating that post-mining land uses need not be unsustainable – post-mining land uses can sustain livelihoods. At present, 107 hectares have been developed on former mined lands.

Multiple land use 

Most mining companies compensate and secure large tracts of land around their mining areas to prohibit conflicting land uses in these areas. This often leads to large areas of land that are disused and potentially poorly managed. A natural tension arises between the host community who want land for farming, and the mining company that cannot risk intrusion into these areas for risk of speculation, future compensation and risk. 

The introduction of GSOPP as a multiple land use in such buffer areas ensures high value use of the land, community participation in the management of this land, provides an additional source of revenue for landowners and most importantly, provides an opportunity for employment for host communities. At present, 250 hectares have been developed on mine buffer lands.

Governance 

GSWL complies with all mining and mining related laws of Ghana. This approach is extended to the governance of GSOPP through policies that provide a framework for its operations. GSOPP’s adherence to these policies contributed to the certification it received from RSPO in May 2022. Some of the policies governing GSOPP include; 

o Prevention of Child and Forced Labour 

This Policy reflects GSOPP's commitment to the protection of Human Rights and fundamental freedoms through GSOPP's Policies. 

Child labour or forced labour will not be tolerated and is unconditionally prohibited and condemned by GSOPP. 

o Anti-Harassment Policy 

GSOPP is committed to providing a safe, inclusive and rewarding work environment for all. Implicit in this commitment is that our workplaces will be free from discrimination and harassment of any type with zero tolerance to any deviations. 

o Inclusion, Diversity and Equal Opportunity 

Golden Star Oil Palm Plantations Limited (GSOPP) is committed to promoting equality in the workplace by providing equal opportunities for all people to contribute to their fullest potential. 

o Human Rights 

This Policy reflects GSOPP's commitment to the protection of Human Rights, fundamental freedoms and Human Rights Violations will not be tolerated. GSOPP supports and respects the protection of International Human Rights, within its sphere of influence and is committed to. 

o Grievance 

GSOPP is committed to being a part of the community in which it operates and will achieve this by maintaining and building strong relationships with other members of the community, through engagement that is based on mutual respect and recognition of each other's rights. 

An integral component of this engagement is the provision of avenues for stakeholders to raise grievances and the systems to protect, respect and remedy impacts. 

o Safety, Health and Wellbeing 

Golden Star Oil Palm Plantations (GSOPP) values and is committed to safety and employee's wellbeing. We believe job related injuries and illness is unacceptable. 

o Environment 

Golden Star Oil Palm Plantations Limited (GSOPP) is committed to meeting or surpassing regulatory requirements in all of its plantation development while safeguarding the local environment for our stakeholder communities and future generations. 

o Riparian Zone Management Policy 

This policy is to protect and safeguard all riparian zones in proximity to GSOPP's proposed and existing operational areas, through the establishment of buffers and other management controls with the intent of maintaining and enhancing the natural and human services functions of the riparian zones for the ecosystem. 

GSOPP is committed to meeting or surpassing regulatory requirements in all of its development and operating activities while safeguarding the local environment for our stakeholder communities and future generations.

o Prevention of Open Burning Policy 

This policy is to ensure that open burning does not occur in the GSOPP operational areas and that GSOPP activities do not entail or lead to open burning of any form. 

Additionally, the policy provides a platform for GSOPP to take a leadership position in educating persons involved in GSOPP on the environmental, health and safety impacts and risks of open burning in order to influence the behaviour of our stakeholders in a wider context. 

Golden Star Oil Palm Plantations Limited (GSOPP) is committed to safety and wellbeing of our workforce, safeguarding the local environment for our stakeholder communities and future generations and supporting the achievement of the Paris Accord goals. 

o Protection of High Conservation Values 

This policy further applies to all GSOPP employees, contractors, smallholders, and other persons visiting or accessing GSOPP operational areas as well as to GSOPP activities from plantation development through to plantation closure. 

GSOPP is committed to meeting or surpassing regulatory requirements in all of its development and operating activities while safeguarding the local environment for our stakeholder communities and future generations. Integral to this commitment is the identification and designation of high conservation value (HCV) areas, to protect and maintain their ecological integrity as well as services that they provide to local communities. 

o Fresh Fruit Bunch Pricing 

Golden Star Oil Palm Plantations (GSOPP) respects the rights of smallholder farmers to obtain fair and competitive prices for the sale of their fresh fruit bunches (FFB) to GSOPP's buyers.

Awards and Recognitions 

GSOPP has widely been acclaimed as a landmark CSR programme with recognition from both national and international bodies. 

- In 2021, Golden Star received the inaugural ESG Award for Producers at the Mines and Money Outstanding Achievement Awards. The judging criteria for the award focused on how well companies have developed and implemented a long-term sustainable ESG strategy. 

- In 2018, Golden Star was awarded Best Corporate Social Investment for GSOPP at the Ghana Mining Industry Awards. 

- Also in 2018, Golden Star received the Prospector’s and Developers Association of Canada (PDAC) Environment and Social Responsibility Award. In citing the award, the PDAC Board of Directors made specific reference to the Golden Star Oil Palm Plantation and commended the work of the company in evolving the concept to former mined lands enabling smallholder farmers to “manage and harvest palm oil from plantations established on decommissioned tailings facilities for generations to come.” 

- A 2016 review by the European Centre for Development Policy Management funded by the UK Department for International Development, found that Golden Star has a “pragmatic way of working in the communities” and that GSOPP is a “sophisticated initiative.” 

- In 2014, 2017 and 2018, the Ghana Ministry of Food and Agriculture awarded the Golden Star Farmers’ Association the Best Farm-based Organization Award for the District. 

- In 2008, Golden Star was awarded the prestigious Nedbank Capital Green Mining Award in recognition of the creation of and continuing efforts on GSOPP. Golden Star was the first non-South African company to receive a Nedbank Capital Green Mining award in any category.

Sustainability 

Golden Star has established a number of guidelines to ensure continuous viability of GSOPP. These include; 

- Source of funding: 

o Golden Star has committed to funding the not for profit GSOPP with US$1 per every ounce of gold produced. 

o Through judicious management, as smallholders’ plots become viable, they commence repayment of their ‘interest-free’ development loans, and also provide ongoing income for GSOPP expansion and management. 

o In consideration of the long-standing relationship with the GSWL, and by extension the Wassa operations host communities, Royal Gold in 2021 committed to provide financial support for the activities of GSOPP through an annual contribution of US$150,000 for five years. This contribution is to support further development of the plantations around Wassa as well as activities to grow GSOPP including assessment of downstream processing opportunities. 

- Location suitability: 

o GSOPP plantations are only developed in the ‘Oil Palm Belt’ of West Africa. Oil palm is indigenous to the area and self-propagates. Major studies of oil palm conducted illustrate that the GSOPP business and future potential expansion areas (committed land) are located in the Districts of Ghana classified as being of highest suitability—both for climate and soil suitability. 

- Land access and security: 

o GSOPP has developed a unique approach to land acquisition. Through extensive community engagement and consultations, GSOPP solicits lands from local chiefs, and/or landlords who offer their lands and in return benefit directly from the oil palm cultivation. This is a form of partnership arrangement, which promotes more productive use of the land, resulting in long-term employment and income generation in the catchment. 

o Tenancy agreements established with the farmers incorporate loan re-payment and obligations for maintenance, harvesting and sale of farm proceeds minimizing conflicts that traditionally arise from changing expectations. 

o With this concept of partnership, the major issues confronting land tenure associated with large-scale agricultural developments are to a greater extent minimized. Additionally, as the plantations are supervised by GSOPP, all parties benefit from higher yields, resulting in ongoing support for the use of the land for this purpose.

- Avoiding displacement: 

In 16 years of operations at GSOPP, there have been no recorded cases of displacement. GSOPP only establishes plantations with the explicit support and under agreement with the traditional landowners. This prevents compulsory acquisition and involuntary resettlement of any type. 

o The GSOPP approach to land acquisition ensures that any tenant farmers on land to be converted to plantation have the right to become GSOPP participant farmers. Farmer selection is based on impact and resident status within the host community. 

o Where plantation is to be established over existing farms, oil palm is established within the existing farms to not displace food crops. As food crops are harvested, the oil palm is extended into these areas, and farmers gradually convert to the new cropping regime. This process avoids displacement, and enables farmers to integrate into the plantation concept at a manageable rate. 

- Access to Credit: 

o GSOPP farmers enjoy soft loans from a microcredit scheme they established in 2018. The microcredit model also provides access to capital for smallholder business expansion, acting as a savings model to support smallholders in future replanting. 

o The majority of small-scale farmers in Ghana, the mainstay of the agriculture industry, operate on the fringes of the economy and hence lack access to financial institutions to expand or even develop their businesses. In a downgrading economic context, interest rates in Ghana presently exceed 30%, meaning that even were access to funds is available, most farmers could not fund loan repayments regardless. 

o GSOPP provides interest free loans to its farmers avoiding issues associated with access to capital and initial operating expenditures. Loans repayment commences when yields reach nominated levels of maturity, to ensure that first and foremost, farmers have sufficient revenue to maintain an appropriate standard of living. 

- Transport to Market: 

o At GSOPP, road maintenance forms an integral part of the plantation maintenance cycle, ensuring access for fruit collection and sales. This is especially important in Ghana where there is history of plantations being established without good road support networks. As the main fruit production season coincides with high rain, this has resulted in cases where fruit is not collected, and rots, leading to loss of income to farmers. 

- Planting Materials:

The Ghana Oil Palm Master Plan Study found that many farmers in Ghana planted oil palm of dubious origin, impacting on production and yields. At GSOPP, only seedlings of proven varieties are used and not wild harvested seedlings. Varieties are selected on a site-by-site basis on the assessment of climatic and soil conditions. In addition to the specialist technical agronomic advice of the GSOPP team, farmers also benefit from extension support provided by Wilmar BOPP and Solidaridad West Africa. 

- Human Rights: 

All GSOPP employees and participant farmers have access to a number of forums of engagement and exchange. These include plantation meetings, agronomic extension sessions and programs, and sessions to develop farmer business schools. In addition to route communication forums, extensive dedicated meetings are held annually with all farmers to communicate and engage on progress against GSOPP annual action plans, and to provide an open and transparent forum for exchange of ideas. 

- International Development Support: 

o GSOPP has the ongoing support of the Wilmar BOPP organization, and two major international development agencies, Solidaridad West Africa and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). 

o Wilmar BOPP and Solidaridad provide agricultural extension support to GSOPP and participant farmers, including agricultural extension trials, demonstration plots, as well as soil and crop nutrient content testing. 

o GIZ conducted a major baseline study and poverty impact assessment for GSOPP, and have further supported the establishment of the farmer business schools including training on savings, pension planning and other financial management skills development. All GSOPP participant farmers have bank accounts that GSOPP helped to have established, and farmers are paid into these account. 

o Southampton University - periodic carbon dioxide removal monitoring. 

- Leading Practice and Industry Standards: 

GSOPP applies Best Management Practices (BMP) for its oil palm operations, and farmers Tenancy Agreements require application of these standards. As a result, the GSOPP smallholder plantations now achieve 18 mt/ha, three times the Ghanaian average and on par with world average production for plantations. Most importantly, this translates to better returns for farmers, and demonstrates the attractiveness of oil palm as a livelihood. 

With the support of the United Nations Industrial Development Organization (UNIDO), GSOPP Smallholders have completed trainings processes and audits to gain certification by the Roundtable on Sustainable Palm Oil (RSPO) - the highest level of international sustainability certification for Oil Palm. With this, GSOPP becomes the first Smallholder group in Ghana and second in Africa to achieve this feat.