By Edward Adjei FRIMPONG
Newmont Ghana, in fulfillment of its tax obligations made a total tax payment of GH¢1.869 billion to the government of Ghana in 2021.
The figure shows a marginal increase over the previous year’s payment. In 2020, Newmont paid a tune of GH¢1.83 billion as tax to the state.
The 2021 tax sum of the mining giant comprises of GH¢1.066 billion corporate tax, GH¢364 million mineral royalty, GH¢185 million pay as you earn (PAYE), GH¢140 million carried interest, GH¢90 million withholding tax and GH¢24 million as forestry levy.
Communications and External Relations Manager of Newmont Ahafo Mine, Samuel Osei, who disclosed this, said that the payment covers proceeds from the two operational mines of the company in the country-Ahafo and Akyem Mines.
Besides tax payment to the government, Mr. Osei added that Newmont Ghana through its Foundations for Ahafo and Akyem mines has been making significant impact across all socioeconomic development spectrum in the host communities.
As at 2021, Newmont Ahafo Development Foundation (NADeF), the company’s flagship social development vehicle in the ten Ahafo Mine host communities had released about $34.1 million for varied projects of which 127 infrastructural projects were completed and handed over for use
“Newmont Ahafo Mine contributes $1 per each ounce of gold sold and 1% of its net profit into NADeF.
The company’s tax obligation, as well as contributions to the activities of the foundation is expected to increase when the Ahafo North project becomes operational. We are committed to being a catalyst for socio-economic development and wellbeing of our host communities and Ghana,” he said.
The Ahafo North Project is part of the main Ahafo lease which started operations in 2006. It is located near Sunyani and about 50 kilometres north of the existing Ahafo south operations. The project consists of seven mineralised areas, 3.35 million ounces of reserves a further 0.95 million ounces of resources.
In July 2021, the board of directors of the company approved an initial investment fund of $750 to $850 million for the project. Newmont acquired permits from the Environmental Protection Agency (EPA) for both the Main and Tailings Storage Facility and Water Infrastructure (TSF/WI) in April and December 2021 respectively.
The company is working around the clock to secure the remaining regulatory permits and pay compensations to occupants on the mining area to pave way for construction and operations accordingly.