Business News of Monday, 28 December 2015
Government is hopeful that its new partnership with Newmont will not only transform and improve mining in the country but will help introduce best practices in the country.
It follows government’s negotiations of its Investment Agreement with mining giant Newmont, guaranteeing improved benefits for Ghana.
A statement from the Lands and Natural Resources Ministry says the new deal will also ensure long term sustainability of the mining industry.
The objective of the re-negotiation Is to ensure that all major stakeholders, including Ghanaians, mining companies and their investors equitably share in the benefits that mining brings.
The proposed changes are expected to improve benefits for Government and economy and increase revenues while assuring a fair, predictable and beneficial long term basis for Newmont’s business in Ghana.
The re-negotiated 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 this week.
Newmont’s original Investment Agreement with the Government of Ghana was ratified by Parliament in December 2003.
Newmont has since invested more than US$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 and people to bring sustainable value and opportunity for all stakeholders.
The Newmont deal with government has in the past been criticized for being too lopsided in favor of the mining firm.
The Government of Ghana set up the Government Mining Review & Negotiating Committee (MRC) 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.