Newmont Goldcorp’s Akyem Mine Boosts Local Economies Through Its Local Content Drive  

Dr Osenkor Gogo, Acting Communications and External Relations Manager at Newmont Goldcorps’ Akyem Mine

Accra, Ghana, October 14, 2019//-Newmont Goldcorp’s Akyem Mine is investing in the communities it operates by supporting local businesses to take part in the value chain of the mining company.

This remarkable development has boosted the local economies of the Akyem Mine areas and its surrounding communities in the Eastern Region of Ghana.

 The Akyem mine has 420 local businesses that it does business with. It also has capacity building programmes that it rolls out to ensure that these local businesses are capable of helping the mine to meet its objectives.

Just last year, the Akyem mine along spent over $8 million on the local businesses which provide various services including transportation, wielding, and reclamation activities to the company. For a project like this it is important to have every part of the construction done correctly, that´s why these welding professionals should be contacted for their expert services.

post weld heat treatment complies with all the recent welding codes and other mandatory requirements for certain metals. The welding codes often apply to metals like stainless steel, carbon steel, work-hardened steel, and high alloy steel.

Exceed local content target

 The Acting Communications and External Relations Manager of Newmont Goldcorp’s Akyem Mine, Dr Osenkor Gogo who shared this fascinating story, said: “In 2018, our local content target was $7 million for Akyem mine. But we exceeded that target and spent $8.8 million on local businesses alone”.

In 2019, we set an even higher target of $9 million and we are working very hard to ensure that we meet that target”.

Why such commitment

 Dr Gogo explained further that, “As a company we are committed to developing the local economies through local content”.

To this end, the company, according to her complies fully with all laws and regulations around local procurement in the West African country.

“We make it a point to ensure that local businesses are considered for all contracts in a fair and transparent manner”.

 “We also try to build up local businesses to help them meet our stands as well as industry wide standards, so that they are able to support the business and the industry”, Dr Gogo told African Eye Report at the Akyem mine site located in the Eastern Region.

Some of these businesses are already capable of providing the services, but if we realize that the companies have potential but are not there yet then we put in place training programmes to bring them up to scratch so that they are able to grow, employ more people and then build up the local economies, she emphasized.

 Key areas

“We have a lot of local vendors along our value chain. These include transportation, welding, and some of them are also suppliers.

So, for instance, GOIL Company Limited is the supplier of our fuel products onsite. Although is not local local-business, but it is a national business”.

Generally, the company relies on the local businesses for its reclamation programme that it does and all the other different services including reforestation programme.

Creating value and improving lives

 Dr Gogo reiterated that, “As a company, our purpose is to create value and improve lives through sustainable and responsible mining.

So, in line with this purpose, this is why we always look out for opportunities to find local companies that can lend their support to the mine so that we can build them up, improve their lives and businesses and promote sustainable development in our communities and by extension the nation”.

 What local content beneficiaries are saying?

 Richmond Obeng Mensah, Managing Director of Tubingen Company Limited, a local company which does branding, welding and other supply services to the mine praised Newmont Goldcorp’s Akyem Mine highly for their unflinching support.

“If not for their support, I won’t have been able to grow my company to the point of employing over 15 indigenes from the communities”, he said.

In his own words: “Right now, I employed eight permanent workers and another eight casual workers. They are casual because the reclamation activities are done in quarterly basses. So, every quarter when there is a contract I call them to come and work”.

Richmond Obeng Mensah, Managing Director of Tubingen Company Limited

But the eight onsite at the Akyem mine are permanent. I pay their SSNIT contributions every month. Mr Mensah told African Eye Report.

 “I’m earning very good payments from Newmont. Even the exposure along is something to be proud of”.

Besides, the Tubingen Company Limited, S.K Boafo company which provides transportation services for the Akyem mine, and Obaapa’s Golden Plaza Hotel in the New Abirem are among the 420 local content beneficiaries of the mine.

 Local content is the pathway

It is important to acknowledge that local content is the key pathway through which the minerals and mining sector interacts with the non-mining economy to spur national development. It is also the vehicle in which it ploughs back of minerals export receipts and expenditure of same in-country.

In addition to the fiscal contributions, the mining industry continues to create significant value to its various stakeholders, particularly suppliers of goods and services into supply chain, according to the Director of External Relations and Communications of the Ghana Chamber of Mine, Ahmed Nantogmah.

For instance, in 2018, the producing member companies of the Ghana Chamber of Mine returned $2.882 billion out of their realized export receipts of $3.858 billion into the country through the commercial banks.

This translates into 74.7 per cent of mineral export revenue, which compares favourably with the outturn of 70 per cent in 2017. The returned mineral receipts were spent on procurement of goods and services, payment of salaries as well as honouring obligations to the state and mining communities, according to the Chamber’s 2018 annual report.

In 2018, the total amount of funds expended on the purchase of inputs sourced from in-country suppliers or manufacturers stood at $2.270 billion. This comprised expenditure on diesel ($320.599 million), electricity ($ 246.999 million) as well as goods and services ($1.702 billion).

The 2018 outturn, which is equivalent to 58.5 per cent of mineral export receipts, was 24.2 per cent higher than the corresponding amount of US$ 1.827 billion recorded in 2017.

In discrete terms, the expenditure on diesel, electricity as well as goods and services represents 8 per cent, 6 per cent and 44 per cent of mineral export receipts respectively.

In line with the Chamber’s efforts to leverage the mining industry to stimulate the local economy, the proportion of mineral export revenue spent on imported consumables declined from 6 per cent in 2017 to 5 per cent in 2018.

Over the period, mining companies’ expenditure on locally sourced goods and services has increased year-onyear while that of imported consumables has progressively decreased.

By Masahudu Ankiilu Kunateh, African Eye Report

 

 

 

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