Business News of Mon, 5 Jan 20040

Newmont to start work on Ghana project

Denver-based Newmont Mining Corporation has announced that, following approval of its foreign investment agreement by the government of Ghana, it would proceed with development of the Ahafo project.

The costs of development are estimated at approximately $350-million, with gold production expected to start in the second half of 2006. The company expects Ahafo to be the first of at least two Ghanaian operations that together will form Newmont’s next core operating district.

Announcing the Ahafo development decision from the capital city of Accra, Newmont chairperson and CEO Wayne W Murdy said: “We have worked hard to build a positive and mutually beneficial relationship with the government and people of Ghana, and we are excited to begin development activities at Ahafo. Based on the recently updated feasibility study, the Ahafo project will generate steady-state annual gold sales of approximately 500 000 equity ounces, with higher production in the initial years”.

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The agreement establishes fixed royalty and tax rates for the lives of Newmont’s projects, and reflects commitments on the part of Newmont with respect to job training for local citizens, community development and environmental protection.

“Ghana has a long and proud mining history and Newmont looks forward to being a significant, long-term participant in its mining future,” Murdy stated.

Source: MinningWeekly

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