Accra, Dec. 19, GNA - The Ghana government and Newmont Gold Company Limited have signed an investment agreement under which the latter will invest 700 million dollars in constructing a mine in the Brong Ahafo and Eastern Regions.
The agreement, which was ratified by Parliament with a vote of 168 for, with no abstentions, would see construction starting next March. Newmont is Ghana's newest gold mining company with concessions in Akyem in the Birim North District of the Eastern Region and Ahafo in the Brong Ahafo Region.
Mr Wayne Murdy, Chairman and Chief Executive of Newmont Gold, briefing Journalists on Thursday night in Accra in a pre-departure interview described the signing and ratification of the agreement as the crowning efforts of two years of committed negotiations. He said there would be an initial capital investment of 350 million dollars in the Ahafo area capable of producing 500 million ounces of gold a year.
Actual construction, Mr Murdy said would be completed in the next 22 months.
Mr Murdy described Ghana's new exploration area as most exciting and the next core operating district for the company. Newmont holds an 85.6 per cent equity interest in Ahafo and reserves of 3.3 million equity ounces. At Akyem, Newmont reported the first reserves for this 85 per cent owned project totalling 1.6 million equity ounces at year-end 2003.
For 2003, the two projects, which are currently at exploratory stages, have a budget of five million dollars to increase its reserve base and to continue with development and optimisation.
Mr Yaw Osafo Maafo, Minister of Finance and Economic Planning was upbeat about the investment agreement saying the government was keen on it.
"In this regard we have ensured stability clauses which would ensure that mutual benefits are carried through to all the parties. Mr Osafo Maafo said the 10 per cent carried interest of government has not helped since none of the mining companies has made any payments in the last three years.
On the issue of mining in forest reserves, the Finance Minister said, care had been taken to ensure that the right thing was done. "What we have done is to ensure that the mining companies pay royalties of 3 per cent on their total earnings if they mine in non-forest zones and 3.6 in forest areas."
Mrs Cecilia Bannerman, Minister of Mines, explained that the law required mining companies to start claiming land the same size as what they are about to mine.
"Therefore, at every given time, the mining companies are in the process of reclaiming land and planting trees which are akin to the community they are working in."
