The Parliament of Ghana has unanimously approved a foreign investment agreement with
The agreement establishes fixed royalty and tax rates for Newmont’s projects in the country, as well as the company’s commitments regarding job training for locals, community development and environmental protection.
Newmont will spend about US$350 million building the open-pit mine, which is expected to produce 425,000-475,000 equity ounces annually at a total cash cost of US$175-185 per oz. over a mine life of 15 years. Construction will begin early in 2004, and the first gold pour is planned for the second half of 2006.
At the end of 2002, Ahafo had proven and probable reserves of 53 million tons grading 0.074 oz. gold per ton, equivalent to 3.9 million equity ounces. Additional, unclassified material amounted to about 56.9 million tons grading 0.054 oz. per ton.
Newmont also owns 85% of the Akyem project, in the Birim North district of eastern Ghana. There, the major plans to spend US$220-245 million building an open-pit mine capable of producing 350,000-400,000 equity ounces of gold annually for 13 years. Total cash costs are pegged at US$155 per oz.
At the end of 2002, Akyem had proven and probable reserves of 25.8 million tons grading 0.061 oz. gold, or 1.6 million equity ounces. An additional 61 million tonnes of mineralized material averages 0.053 oz. gold.
The mine is expected to begin production in 2007.
Newmont acquired both projects via its takeover of Australian-based Normandy Mining in 2002. Kenbert Mines, based in Ghana, holds the remaining 15% of Akyem. Both projects are subject to the government’s 10% carried interest after the return of capital.
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