Newmont Golden Ridge Ltd. (Akyem Mine) has paid dividend of over GHc 110M to the government of Ghana for the year 2021 in respect of its carried interest in the company.
This follows a declaration of dividend by the Board of Directors of Newmont Ghana at its second quarter meeting of 2021, after considering all future capital commitments.
A global leader in mining, Newmont operates the Ahafo and Akyem mines in Ghana and is the country’s leading producer of gold.
At a short ceremony in Accra, the Regional Senior Vice President - Africa Operations, Francois Hardy, led a delegation of Newmont officials to present a symbolic cheque to the Minister for Lands and Natural Resources, John Abu Jinapor. He thanked the government for its continuous support to the company as it strives to create value and improve lives through sustainable and responsible mining.
According to Mr. Hardy, Newmont Ghana takes its fiscal responsibilities seriously and will continue to demonstrate transparency through publishing what it pays.
“In 2020, our Ahafo and Akyem mines paid GHc1.83bn in Corporate Income Tax, Mineral Royalty, PAYE and others. Again, in July this year, we published our 2021 half year taxes and royalty payments made (i.e. from January to June 2021). Altogether, Newmont Ghana’s Ahafo and Akyem Mines paid over GHc947M to the Ghana Revenue Authority,” he stated.
COVID-19 Impacts on Operations
Touching on the impact of COVID-19 on Newmont’s operations in Ghana, Mr. Hardy said, although the pandemic significantly impacted the mining sector, Newmont Ghana put in place the necessary interventions to keep its workforce and communities safe. He said, the company continued operating during the pandemic - with its leaders and teams adjusting time and again as conditions changed.
“In the end and thankfully, the impacts on people, production and other operational outcomes were moderate and we had a solid year supported by favourable gold price. Again, lessons learnt during the pandemic have exposed us to new ways of operating and the opportunities with technology,” he added.
Beyond safeguarding the safety of its over 6,000 employees across its three operational sites, Newmont says it complied with the various Government COVID-19 protocols and has spent over
$2.2m to support the Chamber of Mines’ efforts; assist its host communities with much needed medical supplies to the local hospitals, virtual learning via radio and helping government institutions and health institutions across the country over the period.
Newmont’s Growth and Sustainability in Ghana
The Regional Senior Vice President for Newmont’s Africa Operations used the opportunity to reiterate Newmont’s commitment to Ghana and growing its operations in the country to create more value for all stakeholders. Recently, Newmont Corporation’s Board of Directors’ approved funding between $750 to $850 million capital investment to develop a new mine in the Tano North district of the Ahafo Region. This investment will upscale the company’s operation in the Ahafo Region building a mining complex which unlocks Newmont Ghana’s true potential to become an even bigger aspect of a global gold mining leader – with associated and exciting new technologies.
This investment in the Ahafo Region, according to the company, will potentially create additional jobs, higher dividend, royalties and taxes payments for Government and other stakeholders. There will also be focus and commitment to local content and ensuring opportunities for Ghanaian companies to, on their own or in partnership with others, join an expanded value chain to provide more inputs and services.
Mr. Hardy expressed gratitude to the Ministry of Lands and Natural Resources, Minerals Commission, other regulators, and Government for the support extended to the company since the start of the COVID 19 pandemic and asked for even more support from government as the company “works through the processes to bring this very exciting project into being in the next few years.”
Minister Receives Dividend on behalf of Government
Receiving the cheque on behalf of government, Hon. John Jinapor lauded Newmont’s numerous contributions to national development and urged other mining companies to emulate the company’s example.
He said Government was desirous of making Ghana the mining hub of Africa and assured of his ministry’s support to create a conducive environment for mining operations.