Newmont Generates 10% of Ghana’s Export Print

Newmont GhanaGold Limited- (NGGL) has stated that it currently generates nearly 10% of Ghana’s total export revenue. In addition, the company says it has provided 99 local companies with six million dollars worth of contracts. So far the company has pro­vided, employment to about, 48,000 people directly and indi­rectly in the country including more than 400 indirect mine em­ployment in 2010. These were contained in a research carried out on the socio-economic impact of the company's operations in the Ahafo area of the Brong Ahafo Region by the INSEAD Business School of France.

The report also says the com­pany supported farmers in Ahafo area with GHc l million to build technical capacity and to re-ini­tiate productive farming. Speaking at the launch of the report in Accra last Thursday, Professor Ethan Kaptein of INSEAD Business School stated that the study was an extensive one which was done at the local level over a six-month period. He said interest as a research institute is to enrich the debate for the private sector to lead in development.

The objective of the study was to find out how spending by the Ahafo Mine translates into jobs,, household incomes, tax revenues and local supplier who provide Newmont with goods and services.

Prof, Kaptein indicated that it is necessary for the local people be aware that every mining activity has a life span, therefore they cannot depend on it for ever and would have to plan for the  future when, the mine closes.  The study recommended that NGGL set up endowment fund for the future and put structure in place for the community after, the Mine; NGGL should work with local banks to mobilize capital for small and medium-size enterprises it must also make good on its pledges of land recla­mation and environmental stewardship, among others. It's recommendations to the government include be­ing transparent with the use of the funds accruing from the mining sector; ensuring con­tinuity in the regimes govern­ing natural resource extrac­tion, avoiding short run popu­list approaches that my un­dermine long term investment by domestic and foreign firm, working with the private sector to maintain the competiveness of Ghana's manufacturing sector and its local suppliers.

Launching the report, the Deputy Minister of Lands and Natural Resources, Mr. Henry Ford Kamel, raised questions as to how the re­search study conducted by the NGGI will impact on local content.  He said though the study is a bold initiative by the com­pany and encourages other mining companies to follow suit to enable them compare and know which company is doing well, "the government is serious about how the ac­tivities of mining-companies impact both positively and negative on the local commu­nities. One would want to know the extent of destruction on environment and its effect on the local people", he said.

He commended NGGL for the study and said it will be used as a, reference, material and hoped it will impact on policy decision. He also indicated that, though the study shows that the company is doing well, there is room for improvement. The CEO of the Ghana Chamber of Mines, Ms. Joyce Aryee, in her welcome ad­dress stated that the extrac­tives sector has always been perceived to extract the good leaving the host country poor and dry with few people benefiting from it. The product of mining indeed forms the foundation of human life.

Everything 'we do depends on minerals and metals from Agriculture through Science and Technology to manufacturing constructions, aviation,  dentistry, medicine, arts, communications, among others.
According to her the mining industry has been a major contributor to national development since the Minerals and Mining Law, PNDC Law 153 of1986 was enacted. The Mining industry is a very strategic sector which provides direct employment to about 15,861 out of which 98% are Ghanaians and 2% expatriate. The industry returned 68% of the $3.7 billion it earned in 2010 into the country", she said.

Ms. Aryee noted that the out­come of the research is expected to inform other stakeholders of impact of mining on the economy of Ghana as a whole and that Ghana has a potential to become an economic power in Africa if it optimally harness the economic opportunities that the mining in­dustry offers.