Newmont launches report on socio economic impact at Ghana mine
Newmont Ghana Gold Limited (NGGL), has launched a 58-page study report on its socio economic impact, aimed at assessing its mining operations in the Brong Ahafo Region.
The report described the socio economic impact of NGGL Ahafo Mine on the communities in which it operates and examines the level of impact and benefit derived by both the host communities and the nation.
The study report seeks to see how spending by the Ahafo Mine translate into jobs, household’s incomes, tax revenues and local suppliers, who provide Newmont Ghana with goods and services.
The study report was undertaken by an independent international research team from ISEAD Business School Paris and a team from Steward Redqueen, a strategic consulting firm in Netherlands.
Information from the Statistical Service, Bank of Ghana, Newmont Ghana and key suppliers were also used.
Launching the study report on Thursday in Accra, Professor Ethan Kapstein of INSEAD Business School report said Newmont Ghana had directly and indirectly provided employment to about 48, 000 people in the country, provided 99 local companies with nearly $6 million in contracts and supported more than 400 jobs, excluding direct mine employment.
He said the company had spent more than $42 million on environmental management and mitigation measures over the period of three years and accrued $38 million in the final reclamation cost to date.
He said Newmont had received an outstanding recognition from Global Business Coalition on HIV/AIDS and Malaria Control, describing their programme and contribution as exceptional in the control of diseases.
“Newmont had provided health equipments to some health institution as well as the construction of nurse’s quarters and community health compounds in the host communities, to enable them to enjoy better health services” Prof Kapstein said.
On agriculture, he said Newmont had spent about 4.8 million on farm yields, under the Agriculture Improvement and Land Access Programme, adding that, the study also indicated that the programme paid GH¢1 million to about 4,000 farmers to assist them technically and re-initiate productive farming.
“Cocoa, plantain and maize production shot up by 300 percent through the initiative and thus increasing the nation’s farm yields”, he said.
Prof Kapstein called on government to ensure that revenue from natural resources, serve both current and future generations, with meaningful portion placed in trust funds.
He urged government to ensure continuity in the regimes governing natural resources extraction and avoid short-run approaches that may undermine long-term investment by domestic and foreign firms.
Dr Joyce Aryee, Chief Executive of the Ghana Chamber and Mines said the perception that the mining industry did not contribute adequately to the national kitty was not supported by the facts and statistics, both in the public domain and within the industry.
“The industry’s contribution to the national economy has been increasing appreciably over the years”.
She said the significantly high proportion of mineral revenue returned to the country underscored the extent to which the mining industry positively affected the local economy.
“In 2010, the industry spent $865 million, representing about 27 per cent of its total funds, to procure inputs locally, including diesel and power”.
Dr Aryee said the Chamber would continue to advocate that mining should be seen as a catalyst for development since the $865 million spent in the country in 2010 alone could have been an impetus for deeper and broader value creation beyond the fiscal amount paid to the state.
Source: GNA