Newmont pays US$883m tax in 10 years

…as its capital investments hit US$3.2bn

In the last decade, Newmont Ghana Gold Limited (NGGL) has paid a total of US$883million in taxes, royalties and levies to the state, making it one of the leading taxpayers in the country.

In 2016 alone, the company paid US$78million into government’s coffers (US$36 in million royalties and US$42million in taxes). The Ghana Revenue Authority (GRA) adjudged Newmont the second-Best Taxpayer under the large taxpayer office.

The NGGL started operations in 2002 and has since committed US$3.2billion as capital investments at Ahafo and Akyem Mines, rising from an initial investment of US$500million. Currently, Newmont is the largest gold producer in the country – contributing about 32% of total national gold production.

Newmont Ahafo Mine has so far produced 5.2million ounces, while the Akyem Mine has poured 1.8million ounces. The Ahafo Mine is estimated to produce between 315 to 345 thousand ounces in 2017 (consolidated production), as against output of the Akyem mine projected between 455 and 485 thousand ounces.

The total production of the two Newmont mines in Ghana – Ahafo and Akyem – represents 15% of the estimated global production level of the Newmont Corporation. Currently, NGGL is the only operational mine in Africa; Newmont has a global portfolio of 12 mines in four regions. North America is expected to contribute 41%, Australia 31% and South America 13%.

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The figures were released to journalists during a visit to the Newmont Ahafo Mine by members of Journalists for Business Advocacy (JBA).

The interaction formed part of a familiarisation visit of JBA to the company’s plant site at Kenyasi as well as inspection of some socio-economic development projects within the mine’s operational area.

The Acting General Manager of Newmont Ahafo Mine, Daniel Egya-Mensah, said there are upcoming brown-field projects at Ahafo and Akyem Mines expected to increase its production significantly in the near future, saying: “That is where the excitement is; that is what will take us to the next level”.

He mentioned underground exploration at Akyem, Ahafo Mill expansion, Subika underground, and Ahafo south underground as the brown-field projects.

Currently, Newmont Ahafo Mine only has one operational pit – Subika. The company shut down its three other pits due to economic reasons. The Ahafo Mine Manager, Okyere Yaw Ntrama, explained that economic-wise it was prudent for the company to put on hold mining at the three closed pits – but was quick to add that they have potential and will be explored in future.

He revealed that the mine’s workforce stands at 3,500 including contract staff, of which 43% represents locals while 2-3% are expatriates.

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To achieve operational excellence, he noted the company has prioritised other key enablers such as safety.

“We don’t compromise on safety. We are investing in fatality and fatigue risk management as well as collision avoidance technology. The company has developed a health exposure reduction plan to reduce exposure to airborne agents.”

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