Agreement on sustainable development in Ahafo in August

Sunyani, May 15, GNA - The Ahafo Social Responsibility Forum of the Ahafo Project of Newmont Ghana Gold Limited is working on a 38-page draft agreement that would ensure a sustainable community development focus.

Professor D. Mireku Gyimah, Vice Chancellor of the University of Mines at Tarkwa who is the Moderator of the Forum, told newsmen in Sunyani the agreement would be signed between the company and the community in August.

The agreement would also provide for the establishment of the Ahafo Community Development Fund and define key issues that the company and the community would intend to address.

The Moderator said committees of the Forum were holding meetings with the wider public, civil society and other stakeholders, including the media, to discuss issues of concern and suggestions for enhanced benefits for consideration in the agreement.

The Forum was established in response to Newmont's commitment to the sustainable development of its areas of operation around the world. It is intended to provide the community with the opportunity to participate in the company's decisions and plans, deliberate on issues of mutual interest, help build strong communication and decide on how the Community Development Fund would be allocated.

The 53-member Forum includes a moderator and co-moderator, the Regional Minister, three Newmont managers, Ahafo Mine, the MPs of Tano North, Asutifi North and Asutifi South constituencies and the District Chief executives for Tano North and Asutifi.

Others are the Presiding Members of the two district assemblies, the chief and one other person from each of the 10 community towns, the chief farmers of Tano North and Asutifi districts and six elected representatives of women's groups (three from each district). The rest are one elected youth representative from each community town, one elected representative from a non-governmental organization in Tano North and Asutifi.

Professor Mireku Gyimah said in pursuance of the realization of the Forum's objectives, Newmont in December 2005 made a commitment that one dollar per ounce of gold sold and one per cent of net profit from the Ahafo Mine would be set aside in a Community Development Fund (CDF) for sustainable community development projects.

"The funds in the CDF will be calculated and accrued monthly on a cumulative calendar year basis and will be managed by a board of trustees elected by the Forum.

"The board will evaluate proposals for project funding and allocate funds in accordance with the principles as established by the Forum", the Moderator said.

Projects envisaged to be funded under the Fund include human resource development, provision of infrastructure such as roads, clinics, toilets, schools, provision of social amenities, economic empowerment in the form of assistance with establishing businesses, factories, credit facilities and market stalls.

Other projects are the protection of natural resources such as reforestation, environmental awareness programmes and support for cultural heritage including support for festivals, upgrading of palaces. Professor Mireku Gyimah reiterated that the Fund would be based on one US dollar for every ounce of gold sold by Newmont Ahafo, plus one per cent of the net profits of the Ahafo operation.

The Forum would also encourage additional contributions from Newmont contractors, development partners and NGOs, grants from donor agencies, support from district assemblies, government sources and others.

The company expects the Ahafo Mine to produce approximately 500,000 ounces of gold per year, barring any problems as shutdowns as a result of electricity shortage and this means that the Fund is expected to receive a minimum of 500,000 dollars per year, he said. Professor Mireku Gyimah said under the Fund, employment and training would also be offered to skilled citizens who have the best qualifications and experience.

He said Newmont and its contractors would employ validated citizens of community towns in unskilled positions, saying validation processes would be agreed on by the Forum. 15 May 07