2022: Newmont pays ₵2.76bn to Ghana gov’t in taxes, royalty, carried interest

Mining giant Newmont made a total payment of GHS2.76 billion to the government of Ghana for the full-year 2022.

The amount includes corporate tax (GHS1.530.9 million), mineral royalty (GHS548.3 million), and carried interest (GHS222.1 million).

The rest include PAYE (GHS261.3 million), withholding tax (GHS164.5 million) and forestry levy (GHS35.5 million).

Newmont, in an advertorial, said: “During the fourth quarter of 2022, our Ghana operations (Ahafo and Akyem mines) paid a total of GHS1.04 billion in taxes and carried interest to the government of Ghana through the Ghana Revenue Authority, Forestry Commission and Ministry of Finance”.

“This brings the total payment, as of the end of December 2022, to GHS2.76 billion”.

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Newmont Africa was recently commended by Ghana’s Minister of Finance, Mr Ken Ofori-Atta, for its compliance with governmental tax and other financial requirements.

Newmont executives, led by Mr David Thornton, Regional Senior Vice President for Africa, presented a cheque for GHS 184.6 million in January 2023 to the government of Ghana as dividend for 2022.

The amount represented the government’s carried interest in operating the Akyem mine.

Mr Thornton thanked the government for its continuous support of Newmont Africa’s Ahafo and Akyem mines and reiterated the company’s commitment to continuing responsible mining operations while looking to expand Newmont Africa’s work in Ghana with the Ahafo North project.

“Our Ahafo North project remains a key strategic growth prospect for Newmont Africa, and its successful construction and subsequent operation will have immense benefits to our host communities, the local economy and the broader economy of Ghana, in terms of employment creation, local supply chain opportunities as well as taxes, royalties and dividend payments to the government”, Mr Thornton said.

After the cheque presentation, Mr Ofori-Atta thanked Newmont Africa for its prompt payment of taxes and acknowledged the potential benefits of the Ahafo North project.

“We welcome payments such as these, especially during these challenging times, and we wish to commend you for being prompt with your payments, be they taxes, royalties or dividends. We are aware that the Ghana Revenue Authority has recognised you, on several occasions, for your tax compliance. We look forward to the resumption of your Ahafo North project this year, which will bring in even more revenue to the state”, the minister noted.

Beyond statutory payments, Mr Thornton spoke about Newmont’s direct support, in the past year, of the Ghanaian economy.

For instance, on the government’s gold-buying programme, he said: “Despite economic challenges that had negatively impacted businesses globally, Newmont Africa was the first mining company to support the government’s gold-buying programme by selling 3,500 ounces of gold to the government through the Bank of Ghana (BoG) in May 2022”.

“An additional 22,500 ounces of gold were sold to the BoG in October and November 2022, making a total of 26,000 ounces of gold sold to the government in 2022”, Mr Thornton added.

Through a combination of tax payments in U.S. dollars, as well as making foreign exchange available to the BoG, Newmont Africa has supported and impacted foreign exchange availability to the government of Ghana.

Source: ClassFMonline.com