Kenyase, Brong Ahafo Region, November 11, 2017//-Newmont Ahafo Mine of Newmont Ghana Gold Limited (NGGL) has started an underground mining in June 2017 at the Subika pit which will add 150,000 to 200,000 ounces of gold to its annual production.
The Acting General Manager of the Newmont Ahafo Mine, Daniel Egya-Mensah, disclosed this during an interaction with members of the Journalists for Business Advocacy (JBA) at company’s mining site at Kenyasi in the Asutifi North District of the Brong-Ahafo Region.
The day’s visit led by the President of JBA, Mustapha Suleiman was organized by the JBA with support from the Ghana Chamber of Mines.
The selected members of the JBA were at the company’s mining plant on a familiarization tour to acquaint themselves with its operations .
Egya-Mensah explained that the company was investing between $160million to $200million into the construction and development of the Subika underground mining pit which is said to be the second underground mining pit in the country.
“We are even prepared to invest more into the pit because of it economic potential”, Mr Egya-Mensah told the journalists and senior managers of the company.
He further disclosed that the Ahafo Mill Expansion project which is expected to add 75,000 to 100,000 ounces of gold will take off in 2019 as construction work at the time of visit was far advanced. To this end, an amount of $180million has been budgeted for the project, Mr Egya-Mensah added.
The Ahafo Mine which began in 2006 with current capital investments of $1.8billion, is producing between 315,000 and 345,000 ounces of gold annually. Its production is expected to jump to around 550,000 and 600,000 ounces by 2018.
Touching on royalties, Mr Egya-Mensah revealed that the multinational mining giant raked in $1.03 billion proceeds in 2016, and paid $78million to the government as royalties and taxes.
The company paid $36million and $42million as royalties and taxes respectively, while an amount $363million was spent on the country’s economy, he told the journalists.
” NGGL’s ability to explore, develop and operate mines near communities around the world is depended on its ability to do so in a manner that creates social and economic benefits in the surrounding communities”.
Mr Egya-Mensah was quick to add that the company is committed to strong governance, multi-stakeholder engagement, and transparency around payments to local and national governments in order to increase accountability, develop trust, create mutual value and reduce corruption.
Senior Manager, Sustainability and External of the Newmont Ahafo Mine, Derek Boateng disclosed that the company was embarking on concurrent reclamation, stressing that 125 hectares of land had so far been reclaimed with Odum, Oframa, Mahogany and other tree species, since 2007.
He mentioned illegal mining popularly called ‘galamsey’ in Ghana as a key challenge, but adding that the company was collaborating with the government, other stakeholders and all relevant institutions to bring the situation under control.
According to him, although the company employed about 43 per cent of the local workforce, community employment expectations and resettlement challenges remained high.
The Chief Executive Officer of the Ghana Chamber of Mines, Sulemana Koney, noted that sustainability and responsibility remained critical values in the mining industry, saying that the chamber mining companies are religiously adhering to laws in the payment of royalties and taxes to the government.
He emphasised that in 2016, 50 per cent of capital of mining companies went into local content because that is the surest way of linking up the mining industry with other industries.
“The mining industry is for development and we need to link up the industry with other sectors for sustainable wealth creation”.
Mr Koney also lamented about the delays in the issuance of permit for exploration and multiple taxes are making the country’s mining industry unattractive to investors. He therefore urged the government to do something about the problems.
He observed that environmental responsibility is a global phenomenon and therefore asked civil society organizations, policy-makers, regulators, among other stakeholders to contribute towards environmental sustainability in Ghana and other parts of the world.
The Manager, Communications and External Relations of the Newmont Ahafo Mine, Agbeko Azumah, said that just last year the Mine contributed about $935,000 to the Ahafo Development Foundation (NADeF) and Newmont Akyem Development Foundation (NAkDeF) for mining community projects.
NADeF is the company’s flagship social responsibility fund set up to support development projects in the 10 communities affected by the Mine.
These 10 host communities are in Asutifi North and Tano North districts of the Brong Ahafo Region. There are Ntotroso, Kenyasi No. 1, Kenyasi No. 2, Gyedu, Wamahinso, Susuanso, Terchire, Yamfo, Afirisipakrom and Adrobaa.
The Foundation established by the Mine set aside $1 per ounce of gold sold and one per cent of annual net profit to be channeled into the Foundation for sustainable development projects in the communities.
Since its establishment in 2007, the company has contributed a total of $24.5million into the Foundation, Mr Azumah revealed.
Later, Mr. Azumah, and other senior managers company conducted journalists around the Subika pit site, the Mine’s tailings dam, reclamation areas and the processing facility.
By Masahudu Ankiilu Kunateh, African Eye Report
