Goldfields injects US$1bn into national economy

Executive Vice President and Head of West Africa of Goldfields Limited, Mr Alfred Baku, has stated that the multi-national gold mining company makes a direct contribution to the national economy by paying a total of US$1billion in dividends to shareholders, since the beginning of its surface mining operations in 1998 in the country.

Of this amount, Mr Baku explained that the government of Ghana, having a 10% ownership through a free-carried interest, has earned in excess of US$100 million in dividend payments.

During the same period, he pointed out that Gold Fields has paid over US$1.2 billion directly to the government in corporate taxes and royalties.”

Mr Baku argued that Gold Fields’ impact should not only been seen in terms of direct tax and royalty payments. “Our Tarkwa and Damang mines create over 7,000 direct and indirect jobs annually for Ghanaians.

He added that the company spent a total of US$43.7 million to execute development projects and programmes in its host communities in the country.

The money, according to him, was used to support farmers, promote education, improve healthcare, ensure access to potable water, and deliver infrastructure to the people in its operational communities.

He recognised the government’s support to the mining sector, and called for continuous collaboration between government and mining sector players to address key national developmental issues.

Through these employment opportunities, he noted that the livelihoods of an additional 70,000 to 100,000 people are protected and sustained, year-in, year-out.

“We are currently busy with the upgrade of a 33km public road within our area of operation at a cost of over US$21million,” Mr Baku added.

Mr Baku made these known to Today on the sidelines while speaking at the launch of Goldfields’ 25 anniversary a couple of weeks ago in Tarkwa, to officially mark the beginning of the celebrations. This was followed by a media launch in Accra on May 28, 2018.

The celebrations will run throughout the rest of the year, and activities lined up include a special anniversary golf tournament, as well as the commissioning of the 33km road in December.

He noted that as Gold Fields celebrates its 25 years of operating in Ghana, the company headlined this year’s West Africa Mining and Power Expo (WAMPEX 2018), a major forum that attracted over 1,400 mining and power industry professionals, as well as companies from more than 16 countries.

Held at the Accra International Conference Centre (AICC), he explained that this year’s event was on the theme: “A responsible and sustainable mining industry: A partner for national development.

Commenting on the rationale for the sponsorship, Mr Baku said: “We’ve been supporting the Ghana Chamber of Mines in hosting exhibition and conference over the years because we see it as one of the ways of bringing key industry players together to discuss pertinent issues relating to the industry, as well as an opportunity to showcase the sector’s contribution to national development. ”

“This year, as we celebrate our 25 years of operating in Ghana, we wanted to communicate our own contribution to the development of our communities, as well as the nation, through our investment in community development initiatives and programmes, and our fiscal contribution to the national economy.

“At 25 years we look back at what we’ve done, and even more importantly, what more we can do to make an even greater positive impact to our communities and the state,” he averred.