Newmont expects $250 million revenue

Accra, March 27, GNA - Newmont Ghana Gold Limited said on Tuesday that it expected total revenues of over $250 million from its Ahafo gold sales based on an assumed average realized gold price of at least $600 per ounce.

A statement issued in Accra said Newmont expected that about two-thirds of Ahafo's 2007 operating costs would be spent directly in Ghana on expenditures in the form of payments to employees and contractors, locally sourced goods and services.

Others are consumables such as fuel and energy and royalties paid to the government.

"These expenditures mean that over 50 per cent of total revenues from mine operations will stay in Ghana. The remainder of Ahafo's 2007 revenues are expected to be allocated to capital investment, interest expenses and exploration," the statement said.

Newmont said by the end of 2007, it would have invested over 665 million dollars in Ghana on the Ahafo project.

"Over two-thirds of Newmont's cumulative investment in Ghana has been spent on the construction of the Ahafo project, with the remaining spent on start-up and production-related expenditures." Additionally, it said, in 2007, the company anticipated spending over eight million dollars on social and environmental projects, including funds allocated to the Land Access, Vulnerable, Re-establishment of Economic Livelihoods programmes as well as environmental management, monitoring and restoration programmes. It said by the end of the year, almost one million dollars would have been contributed to the Social Responsibility Fund for local communities to utilize for infrastructure, capacity building and other sustainable development activities.