Newmont Ghana Gold Limited,(NGGL), the US gold explorer has eyed new equity reserves of 7.7 million ounces of gold in its Akyem mine project, a mining area located in the Eastern Region, B&FT has gathered.
The US$1 billion investment project has about 15 years mining life and is expected to produce between 480, 000 and 550, 000 ounces of gold a year for the first five years of its operation.
Production in the Akyem mine located in the Ajenua Bepo Forest of the Birim North District in the Eastern Region is expected to start in early 2014.
Newmont has recently been granted a mining lease and environmental permit from the Environmental Protection Agency to commence the Akyem project, and engineering for the project is about 70 percent complete.
Initial capital cost is estimated at between $70-million and $1-billion, in the infrastructure and compensation payment. Adiki Ofeibea Ayitevie, regional manager, communications who made this disclosure to B&FT in an interview explained that the project is currently in the planning phase, with feasibility studies under way to assess development requirements.
Following completion of further economic and power analysis to ensure sustainability, the project would advance to its next phase of development which will involve the building of the mining plant to pave way for the full scale mining production, She said.
“We are still engaged with the community to determine appropriate compensation. We are also undertaking a rapid access survey to help determine the real custodians of the land. It’s going to be to be a continuous process.”
Mrs. Ayitevie indicated that the company’s commitment to its social responsibility at the Akyem project has been studied extensively by international and national environmental experts, members of the communities living in the area, and by agencies and departments of government.
The Akyem project has for the past five years, been subject to a thorough environmental impact study, public consultation process and an independent review process.
“Newmont’s industry leading performance is reflected through Newmont Ghana’s high standards in environmental management, health and safety and creating value and opportunity for its host communities.
“In implementing our commitment, the company assures all individuals with farms and immovable properties, which have or will be impacted by our Akyem Project, that they will be duly compensated consistent with the express provisions in the Minerals and Mining Law and relevant provisions in the Constitution of Ghana.
“This will ensure that conflict at the mining community is minimised and also position the company as good corporate citizens.”
Meanwhile, the gold mining giant, has been facing stiff opposition from a civil society group and some farmers regarding its decision to mine gold commercially in the over 70 hectares of the protected Ajenua Bepo Forest Reserve.
The Wassa Association of Communities Affected by Mining (WACAM), the civil society group leading the campaign explained that its decision to lead a crusade against Newmont’s action is motivated by the fact that the project will displace over 1,000 people, and destroy the livelihoods of over 7,000 additional people.
Newmont’s Ahafo Mine and Akyem Project together have approximately 17.4 million equity ounces of proven and probable gold reserves, representing about 20 percent of Newmont’s global equity reserves of 86.5 million ounces of gold as at the end of the 2008.
The Ahafo mine poured its first gold in 2006 and commenced commercial production in the same year. Ahafo sold 202,000 ounces of gold in 2006 and was expected to produce between 410,000 and 450,000 ounces of gold in 2007 as the mine entered its first full year of production.
It currently produces about 500,000 ounces of gold annually from its three mining pit which also has 15 years of mine life.
Newmont purchased both the Ahafo and the Akyem projects as part of the Normandy Mining acquisition in February of 2002.
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