The Socioeconomic Effects of Large-Scale Gold Mining on Local Community in Ethiopia: Empirical Evidence from Lega Dambi Gold Mining Company

Abstract

This research describes the socioeconomic effects of a large scale gold mining on the local community in the Lega Dambi gold mining, Ethiopia. The study employed both qualitative and quantitative methods. A sample of 377 participants was selected from the local communities through systematic random sampling technique. Further, semi-structured interview was used to collect data from the investment office, and land administration office of Guji Zone; mining and energy office, social and labor affairs, land administration office, environmental protection, forest and climate change authority, and investment office of Odo Shakiso Woreda; and local elders (‘Abbaa Gadaa’ and religious leaders). The participants were selected purposively to elicit their views on the effects of gold mining on the local community. Also, two focus group discussions which consist of eight participants were held with landholders and artisans. Furthermore, a descriptive case study research design was employed. The finding of this research reveals that Lega Dambi large scale gold mining, albeit it generates foreign currency at the national level, has negative effects on the local community. Those effects are a miscarriage in pregnant women and animals, reduction quality of livelihood of landholders and artisans, eviction of landholders from their lands without any compensation, reduction of the current income of the landholders, the death of the local community and their animals, and the loose relationship between the local community and the company. The researcher concluded that Lega Dambi large scale gold mining withered the welfares and livelihoods of the local community by releasing hazardous chemicals—Cyanide and Mercury—into the surrounding environment which was responsible for the current termination of the company. The researcher recommended that formal agreements such as community development agreement, social license to operate, and regional corporate social responsibility should be designed and incorporated into the legal framework of the country and implemented practically. It is also recommended that compensation should be paid as remedial actions for landholders who were expropriated from their lands without compensation and victims who were affected by released chemicals from the Company.