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Newmont Ghana delivers US$360m added value

  • SOURCE: | Editor
  • NEWMONTNewmont Ghana’s Ahafo Mine has created a total value of US$360 million within the Ghanaian economy for its 2011 spending, through various linkages in household income, profits and savings of local entrepreneurs, tax payments and the full-time employment the mine creates.

    In 2011, Newmont Ghana spent more than US$412 million in the Ghanaian economy; resulting in US$360 million of value addition to the Ghanaian economy, half of which was in the form of government income.

    Of the Ahafo Mine’s US$412 million spending in Ghana, US$182 million was spent on procurement of products and services within the country, with a total of US$33 million spending in Brong-Ahafo Region alone, out of which US$18 million was spent on suppliers.

    ­These findings were contained in Newmont Ghana’s second socio-economic impact assessment of the Ahafo Mine, in the Brong Ahafo Region.

    The study reveals that the mining giant’s Ahafo Mine through linkages with other sectors of the Ghanaian economy, supported value addition, beyond its widely recognised Newmont Ahafo Development Foundation (NADeF), which rather amplifies the economic impacts with another 23 per cent value added.

    The study, conducted from March 2012 to April 2013, traced the ripple effects of the Ahafo Mine’s 2011 spending in the Brong Ahafo Region and in the larger economy. It is a follow up to a similar study in 2010.

    Steward Redqueen, an internationally renowned strategy consultancy firm, carried out the study with the support of a Ghanaian consulting firm, PAB Consult.

    “The study reinforces the fact that the Ahafo mine is a significant contributor to the Ghanaian economy. With the coming on board of our Akyem Mine, we hope to create more opportunities that will continue to benefit the national and local economies over the longer term,” the Regional Senior Vice-President, Newmont Africa, Mr Johan Ferreira, said of the findings.

    Creating linkages
    The findings support the long held view of mining and extractives experts who posit that the real impact of mining and other such extractive industry activities depends on the linkages with local suppliers.

    The study further revealed that in 2011, the mining giant paid US$160 million in taxes, while suppliers paid an additional US$18 million, representing a five-fold increase in tax payments since 2009.

    As of 2011, Newmont had directly employed 2,229 people, as its presence in the Ahafo mine supported another 39,000 jobs in the country, thus helping to generate a total of 41,000 jobs. The Asutifi District where the Ahafo Mine is located, contributed 9,000 of the labour.

    The report does not include the impact of the Newmont Ahafo Development Foundation, the company supports with one dollar for every ounce of gold mined and one per cent of pre-tax profits.
    The fund has so far accrued about US$23 million and has been used for many sustainable development programmes in the 10 host communities of the Ahafo mine.

    The study, however, showed an increasing dependence on the presence of the Ahafo mine and the need to institute entrepreneurial capacity building initiatives for businesses within the Asutifi District and the broader Brong Ahafo Region.
    According to the study, such an approach would diversify the local business environment and ensure that the market economy remains vibrant long after the closure of the mine.

    “In collaboration with our stakeholders, we will continue to explore opportunities that will increase local content participation, as well as enhance the entrepreneurial capacity of our host communities,” Mr Ferreira added. — GB

    Source: http://graphic.com.gh/business/business-news/44427-newmont-ghana-delivers-us-360m-added-value.html#sthash.Oe2eD1QD.dpuf

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