The new agreement will increase revenue for the government while assuring a fair, predictable and beneficial long term basis for Newmont’s business in Ghana.
Government and Newmont Mining Corporation have announced the completion of the re-negotiation of Newmont Ghana’s Investment Agreement following good-faith negotiations.
The objective of the re-negotiation was to ensure that all major stakeholders, including the people of Ghana, mining companies and their investors equitably share in the benefits that mining brings while ensuring the long-term sustainability of the mining industry.
A statement signed by the Minister of Lands and Natural Resources, Nii Osah Mills, said the proposed changes are expected to improve benefits for the government and economy.
It would also increase revenue for the government while assuring a fair, predictable and beneficial long term basis for Newmont’s business in Ghana.
The statement said the renegotiated Investment Agreements, now consisting of two separate agreements, one for each Newmont Ghana entity operating in Ghana, were submitted to Parliament for ratification in June and ratified by Parliament in December 2015.
Nii Osah Mills said: “We believe the new agreements are fair, responsible and sustainable, as they address the long-term interests of the government and people of Ghana, while maintaining investment and fiscal policies that promote stability and predictability.”
Johan Ferreira, Regional Senior Vice President of Newmont’s Africa Operations, commended government and the people of Ghana for the patience and good faith shown during the negotiations to complete the investment agreements.
“With the mutually-agreed revisions to our investment agreements, we look forward to continuing our partnership with the government and people of Ghana to sustain the company’s economic and social contributions, for many years to come,” he said.
Newmont’s original Investment Agreement with the Government of Ghana was ratified by Parliament in December 2003.
Newmont has since invested more than $ 2.7 billion in Ghana to date; making the company the largest single investor in gold mining in Ghana.
Newmont Ghana has affirmed its long-term commitment to Ghana and says it will continue partnering with the government to bring sustainable value and opportunity for all stakeholders.
Government set up the Mining Review and Negotiating Committee in 2012 to review the country’s mining regime and to re-negotiate existing stability agreements, taking into account changes in the national economy and the mining industry over the past few years.