Newmont Ghana pays more than $47m to government 2011 third quarter

Newmont Ghana Gold Limited has paid more than $47 million (GH¢71.44 million) to government for the third quarter of the year.

The amount comprises $39 million for Corporate Income Tax, $6 million for the National Fiscal Stabilisation Levy, and $2 million as Mineral Royalties for September.

The Corporate Income Tax paid represents an increase of 30 per cent over what the company paid for the previous quarter.

Newmont is the only mining company, which has complied with the request to pay taxes in foreign currency.

This came to light when the company presented a cheque to the Large Taxpayer Office (LTO) in Accra last week.

The money presented to the LTO, is the single largest Corporate Income Tax payment the country has ever received.

The Deputy Commissioner in charge of LTO, Kwame Ofosuhene Apenteng, expressed satisfaction with the contribution of Newmont.

He said the tax collected from Newmont in the previous quarter represented more than 25 per cent of the total collections in the quarter.

Mr Apenteng was also pleased that Newmont has been proactive in paying taxes in foreign currency and also volunteered to pay mineral royalties monthly although the law to enforce that policy has not been passed.

He described the contribution of Newmont and the mining sector in general to the national kitty as very significant.

Mr Appenteng expressed the hope that Newmont will continue to live up to its responsibility and hopefully pay more to the state in the future.

The Director of Tax at Newmont Ghana Gold, Mr Edwin Allotey Acquaye, explained that the tax paid was significantly higher than that of the previous quarter because of the surge in the price of gold.

He added that as a result of the high gold prices, the company revised its profit forecast and therefore forecasted higher taxes for 2011.

Mr Acquaye said the surge in gold price has led to the increase in prices of inputs for gold production.

The Tax Director said Newmont is a responsible corporate citizen hence its decision to grant the request to pay its taxes in foreign currency and also volunteered to adopt the proposed changes in the new mineral royalty payment schedule.

Mr Allotey Acquaye noted that Newmont Ghana’s payment of its taxes in foreign currency was a clear testimony of the company’s commitment to the development of the Ghanaian economy.

He also spoke about the enormous contribution of mining to Ghana and urged the LTO to constantly update the public of the funds mobilised from large taxpayers for the people to have a clear idea of the contribution of mining to the economy.

In addition to the direct financial obligations, Newmont Ghana has also been supporting communities within its catchment area through its Foundation-Newmont Ahafo Development Foundation.

It employs about 5,000 Ghanaians and contractors engaged in other development programmes outside its operational enclave.

Source: GNA