Alfred Baku - Executive Vice President & Head of Gold Fields West Africa

Gold Fields Ghana has paid a ¢159 million dividend to government on November 12, at a short ceremony at the Finance Ministry. 

Out of the total payment made to the government, ¢146 million came from its Tarkwa Mines and 13 million from its Damang Mines.

The first cheque is the interim dividend for the 2021 financial year in relation to Gold Fields’ Tarkwa Mine.

The second cheque is for over ¢13 million, being the Guaranteed Advance Payment for the 2020 financial year, in respect of Abosso Goldfields Limited, Damang Mine.

Ghana government owns a 10% share in Gold Fields Ghana through a free-carry interest.

So, government’s share of the interim dividend is almost ¢146 million ($25m), which we are presenting today.

Presenting the cheques to the Finance Minister, Alfred Baku noted that Gold Fields Ghana has an enviable reputation for meeting its financial obligations and is committed to sustaining operations to create value for all stakeholders.

“This includes shareholders, government, host communities and employees,” Mr Baku added.

Mr Baku also revealed that due to the Ratified Development Agreement between Abosso Goldfields Limited, (AGL) Damang Mine and the government of Ghana, Gold Fields pays government an annual Guaranteed Advance Payment of 5% of profit after tax in case it is not in a position to pay its normal dividend.

“This is because Gold Fields decided to reinvest approximately $1 billion in the mine as part of our Development Agreement with the government”, the Executive Vice President Added.

He noted that the reinvestment project started in 2017, and after three years of hard work, we have achieved more progress than anticipated

 The Vice Present and Head of Goldfields West Africa Added that Gold Fields is a major contributor to national development, and in 2020, the company contributed:

o   $170 million in corporate income tax and royalties
o   $23 million as employee pay-as-you-earn
o   $20.9 million in dividends to government
o   Over $2.3 million in COVID-19 support to employees, host communities and government (2020 & 2021)

Finance Minister on Goldfields Ghana’s Dividend
Receiving the dividend finance minister, Ken Ofori Atta made a strong case for more local licensed Gold Refinery firms to be established in Ghana (LBMC) because of its broader impact on the economy.  

“If we are able to refine about 10 per cent of all the Gold that we produce in the country, we can imagine the impact on the economy.”

He also added that the time has come for all the mining firms to look at how to be compliant with carbon emissions on the 2030 and 2050 deadlines.

However, noted that this comes with its own cost to the economy as well. The minister praised Goldfields for the timely presentation of the dividend.

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