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Business News Sat, 6 Jun 2015

Newmont Ghana delivers $360m added value to the economy

Newmont Ghana delivers $360 million added value to the Ghanaian economy study reveals

Accra, Ghana: 5th June, 2015: Newmont Ghana has released findings of its second socio-economic impact assessment of the Ahafo Mine in the Brong Ahafo Region.

The study reveals that Newmont Ghana’s Ahafo Mine through linkages with other sectors of the Ghanaian economy supports value added, in terms of household income, profits & savings and tax payments, of $360 million besides the full-time employment it creates. It’s widely recognised Newmont Ahafo Development Foundation (NADeF) amplifies this economic effect with another 23% in terms of value added.

The study, conducted from March 2012 to April 2013 traced the ripple effects of the Ahafo Mine’s 2011 spending in Ghana and Brong-Ahafo Region. It is a follow up to an earlier study in 2010 which focused on the impact of the spending of Newmont Ghana’s Ahafo mine in 2009 on the national economy.

The study was carried out by Steward Redqueen, an internationally renowned strategy consultancy firm supported by PAB Consult, a Ghanaian consulting firm.

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Commenting on the study, the Regional Senior Vice President, Newmont Africa, Johan Ferreira, said “the study reinforces the fact that the Ahafo mine is a significant contributor to the Ghanaian economy. With the coming on board of our Akyem Mine, we hope to create more opportunities that will continue to benefit the national and local economies over the longer term.”

Highlights of the report findings include the following:

• In 2011, Newmont Ghana expended more than $412 million in the Ghanaian economy; resulting in $360 million of value added to the Ghanaian economy, half of which was in the form of government income.

• Newmont paid $160 million in taxes while suppliers paid an additional $18 million, representing a five-fold increase in tax payments since 2009.

• Of the Ahafo Mine’s $412 million spending in Ghana, $182 million was spent on procurement of products and services in Ghana. Total spending in the Brong-Ahafo Region was $33 million of which $18 million was spent on suppliers.

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• Newmont directly employed 2,229 people while the presence of the Ahafo mine supported another 39,000 jobs in the country resulting in a total of 41,000 jobs.

• 9,000 jobs out of the 41,000 jobs created were in the Asutifi district where the Ahafo Mine is located.

The report does not include the impact of the Newmont Ahafo Development Foundation, the company supports with one dollar for every ounce of gold mined and one per cent of pre-tax profits. The Fund has so far accrued about $23 million and has been used for several sustainable development programmes in the 10 host communities of the Ahafo mine.

The study however showed an increasing dependence on the presence of the Ahafo mine and the need to institute entrepreneurial capacity building initiatives for businesses within the Asutifi district and the broader Brong Ahafo Region. Taking this approach will diversify the local business environment and ensure that the market economy remains vibrant long after the closure of the mine.

“In collaboration with our stakeholders, we will continue to explore opportunities that will increase local content participation as well as enhance the entrepreneurial capacity of our host communities,” Mr.Ferreira added.

Source: Abigail Naa Karley Clegg