Wednesday, March 5, 2014

Goldfields suspends community development



Goldfields Ghana Limited’s (GGL) Tarkwa Mine has suspended some of its community development projects due to cash flow difficulties resulting from the slump in gold price on the world market.
 
Some of the suspended projects include construction of a hostel facility for the University of Mines and Technology (UMaT) and a maternity unit for Huniso Clinic.

Mr. Robert Siaw, Sustainable Development Manager at GGL, said this when the company met with representatives of the beneficiary communities on the new development.

He said it is almost impossible for the company to continue financing the development projects in view of its financial situation.

He said the fall in gold price has also increased cost of production, and has consequently led to dwindling of the company’s resources.

Mr. Siaw emphasised that though the year 2013 was challenging, GGL Tarkwa Mine was able to complete most of its projects including constructing junior high school blocks, up-grading of community centres, rehabilitating portions of roads, potable pipe-borne water, Information Communication Technology centres, canteens, supply of furniture, connection of the Tarkwa Nsuaem education office to the National Electricity Grid, and tarring of the Samahu-Pepesa Road.

Mr. Siaw indicated the company spent US$2.4million was spent on education, health, water and sanitation, agriculture and other projects last year.

He assured stakeholder communities that the company will complete all the suspended projects and even add more when the situation improves.

Gold Fields Ghana (GFG) is presently the number-one gold mining company and largest gold producer in Ghana, with annual production in excess of 935,000 ounces from its two operating mines at Damang and Tarkwa.

 Gold Fields Ghana spends over US$2million annually in direct support for its community development activities in the key areas of agriculture, health, water and sanitation, education and general infrastructure.

This is in line with the company’s policy on environment, the Tarkwa and Damang Mines are ISO 14001 certified.

Gold Fields manages gold mineral resources in Damang and Tarkwa totalling16.9 million ounces as at December 31, 2013 as against 23.0 million ounces during the same month the year before. ­­

Its gold mineral reserves in the Western Region as at last year was 8.3 million ounces compared to 14.2 million ounces in 2012. ­­

The mineral reserves at Damang were reduced from 4.1 million ounces to 1.1 million ounces during 2013, as production from the Main Pit Cutback 2 is not economically viable at US$1,300 per ounce in its current configuration.­­

At Tarkwa, the exclusion of underground mineral resources and downsized pit shells due to a lower gold price impacted adversely on the declaration, it said.­­

The Group’s operations cover Australiasia, South Africa, the Americas and West Africa.­­ Gold Fields Limited’s overall managed gold mineral resources totalled 136.7 million ounces and mineral reserves 52.6 million ounces as at December 31, 2013. ­­

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