Gold Fields Damang mine saves 2,000 jobs

Mining giant Gold Fields Ghana Limited has disclosed that some 2,000 jobs will be protected with the approval of US$1.5 billion by the company’s board as reinvestment at its Damang Mine, according to the Executive President and Head of West Africa, Gold Fields Alfred Baku.

The Damang Mine of Gold Fields with the current investment is expected to be in operation for 8 years or more.

Gold Fields in 2015 announced it may be forced to lay off over 2,000 Ghanaian workers if gold prices on the global market do not recover.

The dismissals, thebftonline.com gathered, would have happened if the mining giant had gone ahead with plans to shut down the Damang mine in the Western Region which had issues.

Due to this, more than 400 workers were retrenched as the mine was put in “Maintenance Care” mode.

But speaking to the thebftonline.com during the presentation of a $5.8 million dividend to the government at the Ministry of Finance, Mr. Baku said Gold Fields Ghana is excited about its ability to protect about 2,000 jobs following the board’s decision to reinvest in the Damang Mines.

“Gold Fields is excited about its ability to protect about 2,000 jobs following the board’s decision to reinvest US$1.4 billion in the Damang Mines, which was close to being shut down. In the West Africa region, we have two operations which are all in Ghana; Tarkwa and Damang mines. The Tarkwa mine is the largest gold producer in the country at the moment. We have invested close to US$2.5 billion over the years of our existence in Ghana.”

He also disclosed that Gold Fields is currently tarring the 29-kilometre road between Tarkwa and Damang, which is to cost the company about $18 million.

The mining giant which has been operating in Ghana for the past 20 years is said to have invested some US$2.5 billion in its operation in Tarkwa and Damang.

On his part the Minister of Finance who received the dividend on behalf of government in respect of government’s 10 percent carried interest in the company, commended Gold Fields for consistently paying dividends to government despite challenges in the mining sector and the fall in gold prices on the world market over the past few years.

“Let me take this opportunity to congratulate Gold Fields for consistently paying dividends despite the challenges in the sector especially the fall in prices of gold for the past years. It is worth noting for us that for the past 6 years Gold Fields has paid over US$32 million from its operations both in Tarkwa and Damang mines and these payments excludes today’s. If you add today’s it comes up to about $38 million but beyond that they have also ensured that they have carried out their social corporate responsibility.”

He said the government expected to receive some GH¢60 million as dividends from all State-Owned Enterprises, adding, the dividends would facilitate the execution of policies and plans outlined in the government’s budget.

Meanwhile the Finance Minister assured Gold Fields of government’s support in achieving its corporate goals and objectives.