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Boost for BoG gold purchase programme; Newmont makes 1st supply of 3,500 ounces

BY: Maxwell Akalaare Adombila
Boost for BoG gold purchase programme : Newmont makes 1st supply of 3,500 ounces
Boost for BoG gold purchase programme : Newmont makes 1st supply of 3,500 ounces

The Bank of Ghana (BoG) has purchased 3,500 ounces of gold from Newmont Ghana Gold Limited under its domestic gold purchasing programme meant to shore up its gold reserves.

The mining company sold the gold to the central bank last month as part of a commitment to help make the programme a success.

In an update to its Board of Directors, a copy of which is available to the Daily Graphic, Newmont added that the company had also committed to supply 30 per cent of the central bank's gold requirements.

The update was issued by the Regional Senior Vice President of Newmont Ghana, Dave Thornton.

Mr Thornton said in the update that "I am pleased to announce that we have successfully sold 3,500 ounces of gold to BoG under the central bank’s domestic gold purchasing programme launched in June 2021.

"By this, we become the first mining company to respond to the central bank’s novel initiative which is a very significant milestone in the fiscal history of the country," the Regional Vice President of Newmont said.

He also added that the company was ready to supply 30 per cent of BoG's requirement as part of its commitment to make the programme a success.

Background

In June last year, BoG launched its domestic gold purchasing programme aimed at increasing its gold reserves.

Following the launch, the central bank initiated discussions with the Ghana Chamber of Mines (GCM) about its intention to purchase refined gold from mining companies in the country.

BoG said it required an estimated amount of 10,000 ounces of gold annually from members of the Chamber of Mines over the next four to five years.

The press release said while mining companies were prepared to support the programme, there was the need to ensure that the initiative met the governance, risk, compliance, and supply chain requirements of their various companies.

"Newmont proactively engaged the BoG on the governance, risk, compliance, and supply chain requirements associated with the deal, following which it signed an agreement that met all the requirements of both parties in December 2021," the statement said.

Assurance

The statement said "Newmont will provide about 30 per cent of the required amount annually based on its market share within the mining industry in Ghana.

"The company’s first sale of refined gold occurred in May, 2022 after meeting the terms and conditions in the agreement reached," the statement added.

It said Newmont’s pioneering leadership in such a gold sale agreement was expected to be emulated by other mining firms in the country.

"It is also a further demonstration of Newmont’s commitment to creating value and its contribution towards maintaining the fiscal stability of the country.

" Indeed, Ghana’s Vice-President, Dr Mahamudu Bawumia, during the just ended West Africa Mining and Power Conference and Exhibition, lauded the company for its trailblazing role and contributions towards the development of the country.

What next?

The statement said Newmont Africa intended to leverage the reputational value of the historic feat by widely publicising across internal and external channels to affirm its value creation credentials and contributions.

Mr Thornton also commended the board of Newmont "for the continuous support in helping us steer the region in the right direction of sustainable value creation through responsible mining."