Govt, Newmont completes investment agreement
The government of Ghana and Newmont Mining Corporation have completed the renegotiation of Newmont Ghana’s Investment Agreement (NGIA) following good-faith negotiations.
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A statement signed by the Minister of Lands and Natural Resource, Nii Osah Mills, said the agreement was to ensure equitable sharing of benefits among stakeholders, including the people of Ghana, mining companies and their investors.
It would also ensure the long-term sustainability of the industry.
“We believe the agreements are fair, responsible and sustainable, as they address the long-term interest of the government and people of Ghana while maintaining investment and fiscal policies that promote stability and predictability, “ the statement quoted Nii Osah Mills as saying.
Proposed changes
The statement said proposed changes were expected to improve benefits for the government in terms of increases in revenues for the government, while assuring fair, predictable and beneficial long-term basis for Newmont’s business in Ghana.
The renegotiation consists of two separate agreements, which were submitted to Parliament for ratification in June and ratified by Parliament in December 2015.
Commendation
According to the statement, the Regional Senior Vice President of Newmont’s Africa Operations, Johan Ferreira, commended the Ghana government and the people of Ghana for their patience and good faith shown during the negotiations to complete the investment agreement.
“With the mutually-agreed revisions to our investment agreement, we look forward to continuing our partnership with government and people of Ghana to sustain the economy and social contributions, for many years to come, “ he said.
Newmont’s original investment agreement
Newmont’s original investment agreement with the government of Ghana was ratified by Parliament in December 2003. Since then, the mining company has invested more than $2.7 billion in Ghana to date, making the company the largest single investor in gold mining in the country.
The statement affirmed Newmont’s long-term commitment to Ghana and said it would continue to partner with the government and people of Ghana to bring sustainable value and opportunity for all stakeholders.
The Mining Review and Negotiation Committee was set up by the government in 2012 to review the country’s mining regime and to renegotiate existing stability agreement, taking into account changes in the national economy and the mining industry over the past few years.