At least seven people have been killed in a clash with soldiers on duty at a mine in the central Ashanti region, according to the army.
The Ghana Armed Forces said about 60 illegal miners had forced their way into the mine run by global giant AngloGold Ashanti and had fired upon the soldiers when they were intercepted.
This prompted the soldiers “to retaliate in self-defence”, leading to the deaths and injuries, it said in a statement.
A representative of the miners denied that they had been armed.
Following news of the deaths, there were protests in Obuasi town where several buses were set on fire.
Angry residents poured onto the company’s grounds following the killings, burning at least three vehicles and other equipment belonging to the company.
President John Mahama has ordered investigations into the matter, saying anyone found to have acted unlawfully will be brought to justice.
A statement from the presidency indicated that eight people had died.
The government has asked the mining company, AngloGold Ashanti, to cover the medical expenses of the injured and the burial costs, while tasking security agencies to ensure peace in the area.
AngloGold Ashanti said the situation had since calmed down and it was working closely with the authorities.
It said its main concern was “the safety and health of our employees and those in our community” who were affected by the incident.
The local chairman of the Ghana National Association of Small Scale Miners, Kofi Adams, was quoted by the Reuters news agency as saying that the violence was “unprecedented”.
He said that nine people had died and 14 severely injured adding that it was “difficult to understand why it had happened”.
In the past, he said, warning shots had been fired to ward off intruders. He also disputed the allegation by the military that the people had been armed.
The army said the “illegal miners were wielding locally manufactured rifles, pump action guns” and other weapons. It said it had a duty to defend itself, innocent civilians and property, including by using lethal force.
There have been tensions between AngloGold Ashanti and residents who accuse them of exploiting mineral resources without doing much to develop the area or create jobs.
Some local small-scale mining associations have been asking to be given some of the company’s mining concessions.
The company insists it has been doing a lot for the local communities.
On Monday, some schools built and managed by the company in the area announced a two-day shutdown following the disturbances.
There have been several conflicts between security officers and mining communities in the past, but the situation has been exacerbated by the country’s current economic problems.
Ghana is going through its worst economic crisis in a generation with high public debt, high inflation and unemployment.
Amid the economic crisis, there has been a rise in small-scale mining, including unregulated sites that have been accused of having a devastating impact on the environment.