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01.09.2008 Business & Finance

Newmont Ghana takes lead in responsible mining

01.09.2008 LISTEN
By The Statesman

Newmont Operations in Ghana is a success story; not only does the company create local employment through gold production, but it also focuses on developing the capacity and skills of mine-affected people in order to improve living standards.

For the past two years, Newmont, Ghana's new mining explorer has invested over US$40 million into social, environmental and human skill and capacity development exercises in host communities, as part of initiatives to equal the living standard of inhabitants to the developed world. 

Newmont's social responsibility programmes cut across all areas of life, ranging from agricultural improvement and land access programmes, livelihood enhancement and community development initiatives, to programmes aimed at improving livelihood in vulnerable mining communities. 

In Newmont Ghana, compensation for land and properties has gone beyond cash to livelihood enhancement of inhabitants of mining communities.

Under its corporate investment drive, Newmont also established an Ahafo Linkages programme for micro, small-scale business development, in partnership with International Finance Corporation (IFC).

Through dialogue, district chief executives, chiefs, community leaders and assembly members have initiated business development programmes to maximize the business opportunities of local micro small and medium scale enterprise.

The dialogue towards the creation of Ahafo Linkages initiative has vastly helped support development of local non-mining business environment for local enterprises in the Brong Ahafo region.  Today, Newmont spends US$6 million a year in purchasing vegetables, safety gear and food, amongst other things, locally, as part of a move to promote the sales of made-in-Ghana goods.

The initiative has helped over 52 MSMES execute transactions, amounting to US$653, an increase of over 200% in the past year. The agricultural improvement and land access programme, along with the post-resettlement initiative established to assist farmers directly affected by the mines, have helped farmers to create a new life and generate revenue from the agricultural land, improving their wellbeing. 

The dream shared between Newmont, local communities and the Ghanaian government in the Ahafo area has gone a long way to enhance the socio-economic wellbeing of the people of Asutifi and Tano North Districts. It has led to their health improvement, created education and training opportunities for the youth in the area.

Beyond this, the project is also developing social programs and infrastructures to improve quality of life and promote community empowerment in those areas that have experienced secondary or indirect impacts from the development of the Ahafo project.

Furthermore, monitory assistance given to farmers for land acquisition, clearance and maintenance of farming inputs and seedlings has gone a long way in increasing the level of agricultural produce, product yield and market access in the region.  The steps have contributed to the development of citrus, and oil palm plantation and has created an avenue for farmers to cultivate non-traditional commodities.

Under its livelihood enhancement and community empowerment programme,  Newmont aims to improve the livelihoods of over 2000 inhabitants, through crop and animal production training, micro enterprise development training, vocational and technical skills, as well as water sanitation capacity building, within two years.

As the world mining giant begins exploring the Noryem concession, it has put pragmatic plans in place to protect and enhance forest reserves within its catchments area to greatly minimize the impact of mining on biodiversity.

As part of the measures, Newmont plans to reforest three hectors of land per hector graded within the Ajemuado Forest Reserve in the eastern region, found in its Akyem mines.

Environmentalists have regarded the Ajemuado forest reserve as the most degraded reserve in the country, in terms of the lifespan of its trees. They believe that the effort of Newmont in reforesting the reserve whilst mining could help transform it, encouraging natural life for biodiversity conservation.

As it prepares to explore more than 8 million ounces of gold from an allocated 74 hectors of land within the Ajemuado Forest Reserve, when granted operational license this year, Newmont plans to bring life and hope back into the youth of the surrounding areas with some educational, capacity building, environmental development and employment packages.

Special initiatives such as the Youth Achievers and the Junior Achievers Awards have also been developed with stakeholders to create hope among the youth, by rewarding the talent, handiwork, and excellence of distinguished students, teachers, young entrepreneurs and professionals for their remarkable roles played in shaping the nation.

At NewMont, officials attribute their successful work experience in Ghana to the strong relationship it has created with the communities in the operational areas.

Stewardship of the environment is one of the company's core values. For this reason, Newmont was among the first gold mining companies to become certified under the International Cyanide Management Code, which provides an independent certification of the safe transportation, use and storage of cyanide.

Newmont has been involved in programmes such as the community-based ecotourism initiative with Nature Conservation Research Centre in Ghana and Earth Watch in the UK. It is also partnering USAID and Conservation International to promote biodiversity, forest protection, environment management and monitoring, as well as several other restoration programs which ensure that pre- and post-mining operations do not irreparably damage, but rather enhance, the environment it operates in.

Newmont Ghana's goal is to be well known as the gold mining company of choice, which conducts its operations in the most responsible manner with respect to safety, environmental stewardship, and social commitment and delivery.

Newmont is clearly in more than just extracting gold from the ground. It is creating value for communities in Ghana that will no doubt outlive the specific mining projects.

The goal is ultimately to leave a legacy of increased prosperity, especially in the neighbouring communities so that the positive changes and value created live on beyond mine closure.

Newmont began active operation in Ghana in January 2006 at the Ahafo Mines which is located in the Brong Ahafo Region where it targets about 500,000 ounces of gold annually. Its Akyem Project which is located in New Abirem district of the Eastern Region of Ghana is currently preparing for active operations immediately it is granted license by the government of Ghana by the end of the year.

Stewardship of the Environment

Stewardship of the environment is one of the company's core values as a company. For this reason, Newmont was among the first gold mining companies to become certified under the International Cyanide Management Code, which provides an independent certification of the safe transportation, use and storage of cyanide.

The community-based Ecotourism program with Earth watch UK and Ghana Nature Conservation Research Centre, the company's Biodiversity and forest protection partnership with Conservation International and Newmont Ghana's participation in the Ghana Responsible Mining Alliance with USAID and Goldfields Ghana indicate its commitment to environment management, monitoring and restoration programs which ensure that pre and post mining operations do not irreparably damage but rather enhance the environment it operate.

Newmont Ghana's goal is to be well known as the gold mining company of choice which conducts its operations in the most responsible manner with respect to safety, environmental stewardship, and social commitment and delivery.

Newmont is clearly in more than just extracting gold from the ground. It is creating value for communities in Ghana that will no doubt outlive the specific mining projects.

The goal is ultimately to leave a legacy of increased prosperity, especially in the neighboring communities so that the positive changes and value created live on beyond mine closure.

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