Gold Exploration in West Africa

[FL]

Newmont wants in on Ghana Stock Exchange action too!

[ See previous comment on the "sentimental" listing of AngloGold Ashanti stock on the Ghana Stock Exchange. The GSE is at http://www.gse.com.gh/ FL ]

Newmont to list soon on the Ghana Stock Exchange

Accra Daily Mail --- | Posted: Tuesday, November 20, 2007
Newmont Ghana Gold Limited (NGGL) says it will soon make an appearance on the Ghana Stock Exchange (GSE) where it hopes to open up for Ghanaians and local institutions to be part of the company.

He did not state an exact date, but gave the clearest impression yet that Newmont will list on the local bourse soon, where it hopes to spread its presence and share its gains with Ghanaians and strategic investors who so wish.

Briefing journalists at a media interaction over the weekend, Dr Chris Anderson, External Affairs Manager, Africa in an answer to a question if Newmont would consider listing on the GSE, said it was one of the initial points raised by Wayne Murdy, Newmont’s Chief Executive to President Agyekum Kufuor on one of his visits to the country.

He explained that it was something that was being examined and that at the appropriate time the company would make its position known.

He said the fact that documents on the company’s history and requirements for listing would not be cumbersome since; the GSE currently accepts documentations from a known established market. Newmont is the world’s biggest mining company is listed on the New York Stock Exchange and operates mines in Peru, Australia, Denver and Ahafo and Akyem in Ghana.

He was optimistic about the fortunes of the GSE and commended it for the significant achievements chalked over the years. The GSE, in its fourteenth year, is one of the most active and high performers in the sub-region.

Dr Anderson said Newmont believes in a long and endearing presence in Ghana and the West African sub-region, hence the company is conducting a major exploration exercises in a number of known mining area in Ghana, including the Northern and Ashanti Regions, stressing that, “we also have sights in the West African sub-region, where we think Guinea and Mali offer a major attractions.”

Industry players when contacted welcomed the idea saying, it would introduce a whole new dimension to the GSE, boosting market capitalization beyond the current limit of 11, 908.35 million Ghana Cedis.

Dr Anderson said Newmont has this year invested 600 million dollars in the Ahafo project and expects to invest an additional investment of over 600 million dollars, saying the company is on target to produce 425,000 to 450,000 ounces of gold this year.

He noted that the company which started pouring its first gold in July last year, has paid 2.3 million for the third quarter of this year representing a 61 per cent increase over the figure for the same period in 2006 and had since 18 July 2006 to September 30, 2007 paid 8.6 million to the government in the form of royalties.

On operating cost impacts, Dr Anderson said they were closely tracking increases in the gold price on the world market.

Dr Anderson said work is progressing steadily on its Akyem project saying 130 million has been spent on investment, “with an additional 700 million plus needed to develop the Akyem project as currently envisaged.”

He explained that the Akyem Environmental Impact study submitted to the Environmental Protection Agency in 205 has been withdrawn for revision in September 2006 due to project economics and certain EPA observations relating to pit backfill at closure, proximity of project to local communities, and the importance of land and farming. “Studies are also in progress to address enhanced social and environmental baseline studies to address outstanding issues such as water and social impact assessment.” He said the company has built an efficient communications channels and engaging its stakeholders to ensure a smooth and equal understanding of the issues both within and outside the company.

“We are looking forward to leaving a legacy of a high standard for building, operating and closing mines in Ghana, while contributing to the development of strong local communities where we operate,” Dr Anderson said.
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