Gold mining remains among the most significant economic activities for Ghana, a country once known as the Gold Coast. Not only is the mining sector the largest tax contributor of the country, it also accounts for about 40 percent of mechanized exports, while attracting US$780 million of investment in 2011 and directly employing more than 14,000 people.
Newmont’s presence in Ghana includes the Ahafo mine in the Brong Ahafo region and the Akyem operation in the Eastern region near New Abirem. Newmont Ghana Gold Limited (NGGL) started mining operations at Ahafo in 2006 and later, a second mine, operated by NGGL’s sister company, Newmont Golden Ridge Limited, started operations in Akyem in 2013.
A recently released national and regional socio-economic impact assessment found that the Ahafo mine:
- Directly and indirectly supports 41,000 jobs in Ghana (0.39 percent of the total labor force in Ghana), of which 1,921 jobs are directly attributable to NGGL (0.02 percent of Ghana’s total labor force).
- Is a major contributor to Ghana’s economy, generating nearly 18.8 percent of the nation’s total gold revenue and US$360 million value added in terms of economic activity representing 0.9 percent of Ghana’s GDP.
- Directly contributes US$160 million to government tax income (2.56 percent of national tax revenues), US$39 million to household incomes and US$31 million as carried interest income to the government.
Although the economic activity generated by NGGL is the most notable impact on the district, according to the report, the Newmont Ahafo Development Foundation (NADeF) is most likely to improve the overall socio-economic conditions in the communities most affected by the mine. The NADeF is a community development foundation established and supported by NGGL, with 1 percent of NGGL’s after-tax profit and US$1 for every ounce of gold sold. Since NADeF’s establishment in 2008, NGGL has contributed almost US$13 million to the foundation.
NADeF invests 10 percent of NGGL’s contribution into a capital endowment, with the remainder spent on skills development, infrastructure, social amenities, economic empowerment, natural resource management, cultural heritage and sports activities for local communities. So far, the foundation has spent about US$9 million on scholarships and projects like the building of schools, community houses, water boreholes, and the provision of tools and equipment.
NGGL has made and continues to make a positive impact in the Asutifi District of the Brong Ahafo region in Ghana where its mine is located. The mine generates about 8 percent of value added and employs approximately 10 percent of the workforce in the region.
In addition, social amenities and services that were nonexistent before the mine have been developed and continue to be supported through the Newmont Ahafo Development Foundation.
To learn more about our operations in Ghana, please visit our website.