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Newmont to spend US$7m on local suppliers

NEWMONT

Newmont Akyem Mines plans to source more than US$7 million worth of its supplies from local businesses in its operational businesses.

The mining firm has by the end of August this year spent about US$ 5.2 million on local supply business chains which most provide transport services, sanitation and contractors in the value chain.

The plan is to ensure that the mining operator acquires more than half of its supplies locally by 2015.

Communications and External Relations Manager of Newmont Akyem, Mr Marfo Oduro- Kwarteng, said this in an interaction with the Journalists for Business Advocacy (JBA) who were on a mining tour of the Akyem operations of Newmont in the Eastern Region.

He said “about 70 per cent of mining expenditure goes into the supply-chain area, hence the need to support the growth of local businesses to increase the provision of basic materials to mining companies. We need to develop a national vision on local content in the mining industry, if we want to derive full benefit from mining”.

This, he said, was to avoid the “resource curse” by giving back some of the mineral cash to the communities.

“As a responsible mining company, we want our operations to have a positive impact on the communities in which we operate”, he said.

“We want to engage them in the value chain so that we can stimulate other sectors of the economy”.

The suppliers of lime, grinding media, HDPE and PVC pipes, cement and cement products, tyre-retreading, general and special lubricants, explosives and caustic soda have also benefited from the largess of mining to also create other economic actors.

Employment of locals

The company, which has about 274 of its 630 workers directly from the local communities, which constitutes 43 per cent of the workforce while 332 or 53 per cent of the workers hailed from other parts of the country. Expatriates constitute only four per cent of 24 of the workforce.

He stated, “An adoption of proper local content policy obviously holds the prospect of improving the image of mining companies.

Mr Oduro-Kwarteng said Newmont intended to be the most respected mining company in Ghana in terms of optimising the value of in-country spend and the development of sustainable local businesses.

“To deliver price and quality competitive goods and services, safely and in a timely manner to meet the needs of the business on a lowest total cost basis while providing transparent opportunities for local companies to secure contracts”, he said.

Source: http://graphic.com.gh/business/business-news/51072-newmont-to-spend-us-7m-on-local-suppliers.html#sthash.Pkn8pqn0.dpuf

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Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
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