Ghanaian owned mining company, Takoradi Gold Ghana Limited (TGGL) through parliamentary ratification has secured a 15-year mining lease to operate in Nsuta- Kutukrom of the Prestea-Huni Valley and the Nzema East municipalities

The official approval by Parliament means the mining company has satisfied every requirement of the law in terms of mining exploitation in the country.

Speaking in a Takoradi based radio station on the development, TGGL’s Chief Executive Officer, David Anthony Nicol-Sey revealed that operations is expected to yield about $535 million in corporate taxes to the State in a decade.

He further mentioned that the company will over the same period pay in total of about $39 million mineral royalties which should contribute enormously to the country’s economic growth.

“Our projection is to treat about 500 tons of materials a day, for 10 years. Per our feasibility studies, this will translate in us paying $3 million of mineral royalties per annum, as well as $ 53,500,000 in corporate taxes every year,” he said. 

He stated that their expectation as a company is to meet government’s expectation of them in terms of bringing development to the Kutukrom area through their mining activities.

“Our expectation is to exploit the defined gold resource that we have identified – which is over 600, 000 ounces, based on our feasibility report. This is in addition to the development that will bring to the area because of the mining that is being brought there.

“More so, I’m from the Western Region, and I’m delighted to be bringing this to the Region I hail from, which will see us contributing directly, and enormously towards the development of the economy of my home region,” he stated.

Background

On January 20, 2020, government through the then Lands and Natural Resource Minister, Kwaku Asomah Kyeremeh granted a 15 years mining lease to the Takoradi Gold Ghana Limited.

According to the lease letter from the Lands and Natural Resources Ministry, should the mining company satisfy certain requirement, in terms of human resources, and had declare its willingness to engage in mining in Ghana, government will grant it the rights to mine.

“Government hereby grants to the Company mining rights to all that piece of land described in the schedule hereto and more particularly delineated on the map attached (hereinafter called ‘The lease Area’) for a term of 15 years from the date of this mining lease. The term may be renewed from time to time in accordance with the Minerals and Mining Act, 2006 (Act 703),” the letter stated. 

The mining lease which is in respect of a 13.85 square kilometers concession in Kutukrom, dated January 13, 2020, signifies the beginning of the development of an underground mine in the Kutukrom area of Prestea in the Prestea Huni-Valley Municipality, Western Region.

The concession is made of three distinct blocks namely: Tintinnah Block (5.35 sq. km); Bonzer Block (4.40 sq. km) and Kutukrom Block (4.18 sq. km).

However, in pursuance to Article 268 (1) of the 1992 constitution, the 15 years Mining Lease Agreement involving Takoradi Gold Ghana Limited and government was laid before Parliament and eventually passed in December 2020.

“Parliament at its 13th sitting of the third meeting held on Tuesday, December 22, 2020, approved by resolution, the Mining Lease Agreement between the government represented by the Ministry of Lands and Natural Resources and Takoradi Gold Ghana Limited in respect of the Nsuta- Kutukrom lease area,” the letter from the Parliamentary Service read.