Business News of 2014-02-25

Goldfields suspends projects due to financial difficulty

Goldfields Ghana Limited (GGL), Tarkwa mine has suspended some of its community development projects due to cash flow difficulties resulting from the slump in gold price on the world market.

Some of the suspended projects include the construction of hostel facility for the University of Mines and Technology (UMaT) and a maternity unit for Huniso Clinic.

Mr Robert Siaw, Sustainable Development Manager at GGL said this when the company interacted with its stakeholder communities on the new development.

He said the fall in gold price had also increased cost of production, adding that, contribution that flowed to the Goldfields Ghana fund had reduced.

Mr. Siaw emphasized that though the year 2013 was challenging, GGL Tarkwa mine was able to complete most of its projects including constructing junior high school blocks, up-grading of community centers, rehabilitation of portions of roads, potable pipe borne water, Information Communication Technology centers, canteens, supply of furniture, connection of the Tarkwa Nsuaem education office to the National Electricity Grid and tarring of the Samahu-Pepesa Road.

The Sustainable Development manager said an amount of 2,339,917.51 United States dollars had been spent on education, health, water and sanitation, agriculture and other projects in the year under review.

Mr Siaw assured GGL stakeholder communities that the company would complete all the suspended projects and even add more when the gold price increased.