Comprehensive  Ghana Oil and Gas news, information, updates, analysis


News in Brief

Ghana gives Gold Fields tax, royalty concessions

  • SOURCE: | Editor
  • 1.8838576Johannesburg Stock Exchange- and New York Stock Exchange-listed Gold Fields Limited has concluded a development agreement with the Government of Ghana for both the Tarkwa and Damang mines.


    The highlights of the agreement include:

    • A reduction in the corporate tax rate from 35.0% to 32.5%, effective 17 March 2016.

    • A change in the royalty rate from a flat 5% of revenue to a sliding scale royalty based on the gold price (as per table below), with effect from 1 January 2017.

    Gold Fields said the terms of the agreement will be for a period of 11 years for Tarkwa and nine years for Damang, each renewable for an additional five years.

    The miner said Ghana continues to be a key region for its operations and has commended the Government of Ghana for “creating a fair and competitive environment in the country”.

    The agreed royalty rates and corresponding prices are as follows:

    Royalty rate Gold price

    3.0% US$0 – 1,300/oz
    3.5% US$1,300 – 1,449.99/oz
    4.0% US$1,450 – 2,299.99/oz
    5.0% US$2,300/oz – unlimited

    Damang Gold Mine

    Mineral Resources: 5.3 million ounces

    Mineral Reserves: 1.2 million ounces

    • Turnaround at Damang was sustained through 2014

    • Re-assessing all options at Damang across the entire mining lease to derive a strategy to drive the best cash-generative plan

    • The full mining lease underwent a prospectivity assessment in 2014 to identify and rank brownfield opportunities. A strike of 8km contiguous to the Damang pit provides upside potential with a further 15km of strike trending south-west toward Tarkwa reflecting a prospective corridor for ongoing near-mine exploration. Following this assessment, a three-year phased exploration programme has been profiled that will commence in 2015.

    • LoM extended to 2020 (six years).

    Tarkwa Gold Mine

    Mineral Resources: 9.6 million ounces

    Mineral Reserves: 7.5 million ounces

    • Solid and consistent anchor for growth in the West Africa region

    • Owner-operated, high-volume, grade-driven surface operation

    • Low-margin reserves removed from the plan

    • Maintaining capital waste strip rates to secure a steady flow of consistent grade ore

    • Focus on maintaining high mining fleet and processing efficiencies

    • Life-of-Mine extends to 2031 (17 years).

    Gold Fields’ West Africa region – Damang and Tarkwa – accounts for 14% of the gold mineral resource and 17% of the gold mineral reserve base, excluding growth projects. Gold Fields also has mines in the Americas, Australasia, South Africa and the Netherlands.



    Source: http://classfmonline.com/1.8852252

    Share this article

    Leave a reply

    Personality of the Month
    Poll

    Do You Think ExxonMobil's Arrival Is Going To Make Significant Contribution Towards Our Oil Sector?

    Follow Us Online
    About Us
    Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
    Events Calendar
    << Dec 2018 >>
    MTWTFSS
    26 27 28 29 30 1 2
    3 4 5 6 7 8 9
    10 11 12 13 14 15 16
    17 18 19 20 21 22 23
    24 25 26 27 28 29 30
    31 1 2 3 4 5 6
    Twitter Activity Stream
     

    Partners We are proud to be associated with:

    Skip to toolbar