Mr Kwaku Asomah-Cheremeh (2nd left), Minister of Lands and Natural resource, receiving the cheque on behalf of the government.

Chirano Mines pays $5 million dividend to govt

Emmanuel Bruce Business News Jan - 07 - 2020 , 10:47

Chirano Gold Mines Limited, a subsidiary of Kinross Gold Corporation, has declared dividend for the 2018 financial year for its shareholders, following what it described as a strong operational performance in the year under review.

For instance, the Government of Ghana, which has a 10 per cent carried interest in the company, was paid US$5 million as dividend.

The payment of the dividend for 2018 was approved by the Board of Directors of Kinross Chirano, which includes a representative from the Government of Ghana, based on financial criteria and operational performance.

The Communications Officer of Chirano Mines, Mr Kwabena Apratwum, said the dividend payment demonstrated the company’s continued commitment to create value for its shareholders, including the Government of Ghana.

With a focus on extending mine life, he said investments in Chirano included resuming open pit mining, developing existing and new underground operations and focusing on exploration, which had led to the discovery of additional gold reserves with the potential to extend the life of the mine beyond 2021.

Investments in Ghana

He said the company had also contributed more than US$2 billion to the economy of Ghana since 2011, of which US$400 million was paid as duties and other taxes while US$32 million was paid in royalties.

Focusing on local investment, he said US$280 million was spent in the local area and region of which US$140 million was on salaries, wages and benefits for its 99 per cent Ghanaian workforce.

“Chirano has prioritised local procurement, spending more than US$97 million for utilising the goods and services of Ghanaian contractors, with 83 per cent of all purchases made in the country as of September 2019.

In addition, the mine has committed to the development of our local communities through the provision of employment, health and educational infrastructure, sanitation services and potable water, benefitting more than 200,000 people,” he said.