Goldfields Ghana presents $5.8m dividend to government

Goldfields Ghana Limited has presented a cheque for $5.8 million as dividend to government on its 2016 account.

The amount represents government’s 10 per cent carried interest in the Tarkwa and Damang mines, which is operated by the mining company. 

Mr Alfred Baku, Executive Vice-President and Head of West Africa of Goldfields, who presented the cheque, said the company last year faced many challenges, including a fall in gold prices and inadequate power supply.

Amidst these challenges, the company said had to consider the closure of the Damang mine to ensure operations are sustainable and profitable.

However, he said the Board had taken a decision to reinvest $1.4 billion within the next eight years into the Damang mine, beginning this year.
 
This, Mr. Baku noted, would save more than 2,000 workers from losing their jobs.

While gold prices are going up on the world market, Mr Baku said although not as high as expected, it was needed to keep the business afloat.

Goldfields, he said, would continue to contribute significantly to the country’s development by investing in their communities of operation and fulfil its commitment to the government and all stakeholders.

Mr. Ken Ofori-Atta, Minister of Finance, expressed the government’s appreciation to Goldfields for consistently paying dividends and satisfying all other financial obligations to the country.

He said the government expected to receive GH¢60 million as dividends from all State Owned Enterprises, adding, the dividends would facilitate the execution of policies and plans outlined in the government’s budget.

The Finance Minister assured the company of government’s support in achieving its corporate goals and objectives.

Source: GNA