Business News of 2014-06-08

Gold Fields earmarks US$180m investment this year

Gold Fields Ghana is investing over US$180million this year into its mining operations at both Tarkwa and Damang, according to Executive Vice President and Head of Gold Fields West Africa, Mr. Alfred Baku.

“Even in such a tough economic and fiscal environment, the company is still pumping over US$180million this year into its mining operations in the country.

“In 2013, we paid almost US$218million in taxes and royalties to the government. We continue to honour our legal obligations to government, and social commitment to our stakeholder communities,” Mr. Baku said.

He made this statement after receiving award when the mining giant was presented with a platinum award at the 10th Anniversary of the Ghana-Africa Business Awards, organised under the auspices of the Ministry of Foreign Affairs and Regional Integration.

The awards recognise the contributions businesses make toward the country’s development through the promotion of trade, investment, and other economic relations between Ghana and other African countries.

The company was awarded for its investment promotion in the mining sector, having spent over US$2.4billion in direct investments since it started operations.

This is apart from the over US$26million the company has spent on the socio-economic development of its stakeholder communities.

Gold Fields Ghana established a Foundation in 2004, the first to be set up by a mining company in Ghana, to serve as a vehicle for its social investment in stakeholder communities -- focusing mainly on education, agriculture, health, water and sanitation, and infrastructure.

For every ounce of gold produced Gold Fields Ghana donates a dollar to the Foundation, and tops it up with an additional 0.5% of the company’s pre-tax profit.

To ensure that community development does not peter-out when the mine eventually closes, the Foundation since 2008 has been depositing 10% of its annual allocation into a posterity account, the Legacy Account.

This 10% is invested in financial instruments and is meant to be used to continue community development -- after the mine’s life is over.