Newmont's Ghana mine project seen starting in Aug

ACCRA, Feb 14 (Reuters) - The world's top gold producer, Newmont Mining , will in August start developing two mines in Ghana where it hopes to produce a total 7.4 million ounces of gold, the West African country's authorities said.

Ghanaian President John Kufuor said late on Thursday Newmont would be granted a licence to operate the two mines, including one in a forest reserve.

Newmont is expected to invest $450 million in pre-mining activities. Actual gold production at the concessions of Yamfo in Brong Ahafo and Ntronang in the Eastern Region is scheduled for 2006.

"Newmont is to start operating in August, and we're confident that the exploitation of the gold would be done with a lot of sensitivity to the environment," Kufuor said in a state of the nation address to parliament.

The project will produce a total of 7.4 million ounces of gold, according to the Minerals Commission, the country's mining regulator.

Newmont's local manager Mark Flemming told Reuters construction would begin in the fourth quarter, subject to a final endorsement from the company's board.

Flemming said a team of Ghanaian ministers and advisers had toured Newmont's concession within the Ntronang reserve.

"(They) concluded that the forest isn't a pristine area, and mining there won't have any impact on forestation. It's encouraging," he said.

The estimated life of the project is 10 years at Yamfo and 13 years at Ntronang. Ghana is Africa's second largest gold producer.