Newmont announces start of gold production in Ahafo

Accra, July 4, GNA - Newmont Ghana Gold Limited on Tuesday announced the start of gold operations at Ahafo in the Brong Ahafo Region following progress in ongoing testing and commissioning of the gold processing plant.

Ms Mawuena Dumor, Communication Manager of the Company, said it initially proposed July 4 2006 as the day to pour the first gold but this had to be postponed for two weeks to "tighten the bolts of the plant".

She said the processing facility had an average capacity of 7.5 million tonnes of ore annually mentioning that it was the largest of it kind in Africa.

"This is an exciting time for Newmont; producing gold in our first project on the Continent of Africa.

=93We are proud of the collective efforts of all those, who have enabled us to reach this milestone, particularly the local communities, the Government of Ghana as well as all our employees and contractors, who have worked very hard to bring this project to fruition," Ms Dumor quoted Mr William Zisch, Vice President of Newmont Operations in Africa and Central Asia.

She said the current life of the Ahafo Project was about 20 years, noting that during the peak construction stage, the project employed more than 3,000 people, of whom 95 per cent were Ghanaians. The Ahafo Project, she said, had continued to record increase reserve for the last four years pointing out that four million ounces of gold were established as reserves in 2002 and 12 million ounces in reserve currently.

The capital expenditure for Ahafo Project was 450 million dollars and average annual gold sales were estimated at 500,000 to 550,000 ounces, Ms Dumor said Ms Dumor reinforced the Company's commitment to use dialogue to solve problems especially in their encounter with people in the communities where they operated.

According to the Communications Manager, it was anticipated that the entire Project would be formally inaugurated in November 2006. "We are especially pleased to have brought best practices in social and environmental responsibility to our Ahafo Project. We acknowledge the support of all our stakeholders. They have worked with us to bring value to our shareholders while sustaining economic, intellectual and social value creation in the neighbouring communities," Ms Dumor said. 4 July 06