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Saturday, June 25, 2022

Newmont sells gold to BoG to boost country’s reserves

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File photo: Gold Bars

Newmont Ghana has announced that it has successfully sold 3,500 ounces of gold to the Bank of Ghana (BoG) under the central bank’s Domestic Gold Purchasing programme launched in June 2021.

A statement from the mining company said it went through the transaction with the Central Bank as part of efforts by the BoG to increase its gold reserves.

“By this, we become the first mining company to respond to the Central Bank’s novel initiative which is a very significant milestone in the fiscal history of the country,” the statement said.

The BoG’s domestic gold purchasing programme was launched in June 2021 with the primary objective of increasing its gold reserves. Subsequently, the Central Bank initiated discussions with the Ghana Chamber of Mines about its intention to purchase refined gold from mining companies in the country.

While mining companies in Ghana were prepared to support the programme, there was the need to ensure that the initiative met the governance, risk, compliance, and supply chain requirements of their various companies.

According to Newmont, it proactively engaged the Bank of Ghana on the governance, risk, compliance, and supply chain requirements associated with the deal, after which it signed an agreement that met all the requirements of both parties in December 2021.

Under the programme, the Central Bank is requiring an estimated amount of 10koz of gold annually from members of the Chamber of Mines over the next four to five years.

“Newmont will provide about 30% of the required amount annually, based on its market share within the mining industry in Ghana. The company’s first sale of refined gold occurred in May 2022 following on meeting of the terms and conditions in the agreement reached,” the statement said.

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