Newmont Africa’s third largest mine project in Ghana-Ahafo North Mine is making significant progress as teething problems holding back its full-scale production are almost dealt with.
To this end, the project, which is located about 380 kilometres northwest of Accra and 50 kilometres north of the company’s existing Ahafo South mine, would start commercial production of gold from 2025, according to senior officials of the mining company.
Gold production is assured
The Newmont Africa’s Ahafo North Project Director, Andries Havenga told journalists that the company would move into full-scale production as soon as all the problems are solved.
He added: “We are also excited about the prospects of the Ahafo North project because it will provide about 550 jobs when mining begins, and we will see about 1,800 jobs at the construction stage, and the majority of those will be recruited from the local community”.
The project which covers five major communities- Yamfo, Adrobaa, Techire, Susuanso and Afrisipakrom in the Tano North Municipality of the Ahafo Region, according to Mr Havenga could turn the fortunes of the communities and the country large around soon.
This is because a large percentage of employment in the mine, and businesses would be given to people in the five host communities first before considering those outside, he assured.
Compensation packages
Interacting with the journalists who are all members of Journalists for Business Advocacy (JBA) on Monday in Sunyani, Mr Havenga disclosed that an amount of $14 million had been allocated for the resettlement package.
Part of this package would also be used to resettle local businesses such as barbering, hairdresser and carpentry shops, poultry farms, among others.
Additionally, the mining giant paid over GHS40 million as a relief package to owners of 800 speculative structures on the land.
Also, an amount of GHS186.2 million had been paid for crop compensation while some 25 recalcitrant farmers are refusing to accept the compensation for their crops and farms.
That is the only problem which is only holding back the project.
However, the Senior Manager, Sustainability and External Relations of the project, Joseph Danso assured that the company is working assiduously to engage the concerned farmers to bring an amicable solution to the impasse.
Critical stakeholder engagements
Knowing the criticality of stakeholder engagements, Mr Danso and his team never put a break on engaging their stakeholders to pave the way for the smooth take off for the project.
“We have engaged various stakeholder groups (communities, government, traditional leaders, farmers, youth etc.) in our bid to execute the project”, he said.
They also adopted a collaborative approach with communities for deliberations/negotiations. True to their strong environmental and safety values, they held EIS Public Hearing as far as in December 2019.
Mr Danso further stated they established complaints & grievance mechanisms to help address complaints and other grievances.
Touching on land access processes, he stated that they have secured regulatory permits to progress land acquisition hence the development of the project.
The Ahafo North project Mr Danso noted was declared a Mining Area in 2017 indicating the potential of gold.
The project is operating within all relevant laws of the country including Environmental Protection Agency (EPA) permit which grants the company to start gold production.
Road diversion
The concession which runs into portions of the Kumasi-Sunyani highway is being diverted to make way for the development of the mine.
At the time of the tour of the area, workers were seen busily working on the diversion part of the road which started in 2022.
The 8.5 kilometre stretch of road from Afrisipakrom to the Terchire highway is constructed by Alexiboam Company Limited at a cost of $22 million. It is being financed by Newmont Africa.
To this end, a memorandum of understanding between the mining company and the Ghana Highway Authority (GHA) had been signed some months ago.
GHA is therefore supervising the re-routing project for motorists and commuters heading from Accra, Kumasi, and other parts of the country to Sunyani and some parts of the Bono regions and beyond.
Conducting members of the JBA and officials of the Ghana Chamber of Mines around the road diversion at Afrisipakrom, Senior Engineer at Newmont Ahafo North project, Ankomah Bosomtwi assured that the construction of the alternative route is to ensure public safety.
“We do not want people running through the mine when it is in operation,” he explained.
The road project, according to him, would be completed in 12 months and would include street lighting and other road links.
Other facilities including clinics, security barracks, fuel, maintenance infrastructure amongst other essentials are also under construction.
An information technology tower which is critical has been constructed to improve internet connectivity at the mine and its surrounding communities.
More ounces are coming
The Communications and External Affairs Manager for the Newmont Ahafo North and South Mines, Samuel Osei said between 275,000 and 325,000 ounces of gold annually are expected to be produced from the Ahafo North mine when it comes on stream.
This, he noted, would stimulate the local economy as well as the national economy for shared growth and shared prosperity for all.
The Ahafo Site Supply Chain Manager, Kofi Owusu added that a huge chunk of the company’s procurement budget would be spent on local businesses in the host communities.
Fiscal contribution to economy
Newmont Africa recently announced that its Ghana operations (Ahafo South and Akyem mines) paid a total of GHS 2.76 billion in taxes, royalties, levies, and carried interest to the Government of Ghana in 2022, through the Ghana Revenue Authority, Forestry Commission, and Ministry of Finance.
For the full year (2022), the company paid GHS 1.53 billion as Corporate Income Tax, GHS 548.3 million as Mineral Royalties, GHS 261.3 million as Pay As You Earn (PAYE), GHS 164.5 million as Withholding Tax, GHS 222.1 million as Carried Interest, and GHS 35.5 million as Forestry Levy.
So, when the Ahafo North project, which is expected to produce 3.3 million ounces of gold over its 13-year mine life, begins production, Newmont Africa’s contribution to Ghana would be massive. according to industry experts.
The Director of Communications and External Affairs at the Ghana Chamber of Mines, Ahmed Nangtomah who was a key member of the tour noted the mining sector is currently the one number contributor to Ghana’s tax revenues.
He added that the government’s Gold For Oil Policy which aims to stablise the freefall of the Ghana currency against its major trading currencies-US dollar and British Pound Sterling is being made possible due to gold mining.
Two-day visit to the Newmont Ahafo North Project site, led by the JBA’s President, Sulemana Mustapha, was sponsored by the Ghana Chamber of Mines.
It was undertaken as a follow-up to an earlier tour in September 2022 to enable the journalists from Accra and the Ahafo Region to be abreast of the emerging issues related to the project.
By Masahudu Ankiilu Kunateh, back from Ahafo Region, Ghana
