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Akyem Signs Foundation Agreement with Host Communities

Earning our social license to operate means effectively engaging with communities to address their concerns and working together to provide meaningful, long-term benefits.

NAkDeF-Board-of-Trustees
NAkDeF Board of Trustees.

Recently, Newmont’s Akyem mine in Ghana and its 10 host communities signed the Newmont Akyem Development Foundation (NAkDeF) Agreement. The Foundation Agreement is the vehicle through which many of Newmont’s social responsibility commitments to our host communities near Akyem will be realized and it also documents the structure and management of NAkDeF, its funds and related resources.

Sustainable social investments to be funded by the Foundation will include: educational scholarships to secondary, vocational and tertiary training institutions; infrastructural and social amenities; youth development; promotion of culture; business development; and economic empowerment, among others.

Newmont will contribute to NAkDeF to fund social investments in two ways:

  • 1 percent of Newmont’s Akyem mine pre-tax profits
  • US$1 per ounce of gold sold from the mine

The Akyem mine went into operation in October 2013, and as of March 14, 2014, the Foundation had already accumulated about US$813,000.

NAkDeF’s nine-member Board of Trustees, which includes representatives from Newmont and the nearby communities, supervises the work of a Secretariat headed by an Executive Secretary. The Board has three Standing Committees: Finance and Administration, Projects and Tender Board. A seven-member Sustainable Development Committee (SDC) will be established in each community to plan, implement and manage sustainable development projects in their towns. Professor Gyimah Boadi, Senior Lecturer of Political Science at the University of Ghana and Executive Director of the Center for Democratic Development, will serve as the Foundation’s Chairman.

NAkDeF was modeled after the Newmont Ahafo Development Foundation (NADeF) which was established in May 2008. To date, Newmont has provided approximately US$17.5 million to NADeF, enabling the Foundation to complete more than 60 infrastructure projects for communities near our Ahafo mine.

The-NAkDeF-key-stakeholders-signing-the-agreement-at-the-Program
The NAkDeF key stakeholders signing the agreement at the Program.

The NAkDeF Agreement signing event, which took place in June 2014, was graced by several Ghanaian dignitaries including the Minister for Lands and Natural Resources, Alhaji Inusah Fuseini; the Eastern Regional Deputy Minister, Mavis Ama Frimpong; the Paramount Queen Mother of the Kotoku Traditional Area, Nana Akua Asantewaa III, who chaired the program; and the Traditional Leaders of the Akyem mine area.

In his keynote address, Alhaji Inusah Fuseini, Minister for Lands and Natural Resources, said he is optimistic that Newmont would continuously strive to create a shared legacy through partnerships with its host communities and with the District Assembly and other government agencies as such collaborative efforts are critical for the sustainable development of the communities near Akyem.

He commended Newmont for funding a road improvement project from the Adausena diversion to New Abirem.

Newmont’s Senior Vice President, Africa, Johan Ferreira, who also attended the signing event, stated that the company’s clear intention was to leave the communities in which it operates better off than before operations began.

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