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Project Drawbacks mini-due diligence:
The company’s eTV station and its radio stations may not reach the project’s target communities in Western and Central regions and may also not be readily watched or
listened to by the target group i.e. the fisher folks. This is because their programs are
more centered on the youth.
Point of Contact:
Martin Ankrah Head, Business Development
T: +233 302 912071-4 M: +233 20 8848032 20 2222055
E: mankrahgmaworld.com Website:
www.gmaworld.com
Interview Summary: Gold Fields Ghana
Gold Fields Ghana Limited
Business SectorIndustry:
Mining
Location of OperationsProduction: Tarkwa and Damang, Ghana
Date of Interview: May 13, 2015
Location of Interview: Accra, Ghana
Company FocusProduct:
Gold Fields is a significant unhedged producer of gold with attributable annualized production of approximately 2.0 million gold equivalent ounces from six operating mines in Australia, Ghana, Peru
and South Africa.
Gold Fields has total managed gold-equivalent Mineral Reserves of 64 million ounces and Mineral Resources of 155 million ounces.
Gold Fields is listed on the JSE Limited, South Africa primary listing, the New York Stock Exchange NYSE, NASDAQ Dubai Limited, Euronext in Brussels NYX and the Swiss Exchange
SWX.
Gold Fields Ghana Limited is part of Gold Fields parent company as such follows the global policies of the parent company.
Gold Fields Ghana Limited GFGL was incorporated in Ghana in 1993 as the legal
entity holding the Tarkwa concession mining rights.
The government of Ghana holds a 10 free carried interest in the company, as
required under the mining law of Ghana.
The Tarkwa Gold Mine operates under seven mining leases covering a total area of
approximately 20,825 hectares and produces the finest gold in Ghana.
The company has 3 pillars guiding its operations – 1 Safety of personnel and
environment, 2 Community relation i.e. shared value and 3 Governance.
Gold Fields Ghana engages about 5,612 Ghanaians in direct employment. The values of safety, responsibility, honesty, respect, innovation and delivery are the
core of Gold Fields’ business and the bases of interactions with communities in
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which it operates and its stakeholders.
Business Interests:
Gold Fields Ghana interest is to create the greatest enduring value from gold mining
for all stakeholders employees, communities, shareholders and government.
Gold Fields Ghana is very interested in attaining a million ounces of gold with no Lost Time Injuries LTI at US1,300 per ounce.
Gold Fields Ghana is also interested in structuring the business to generate at least a 15 All In Sustaining Cost AISC Free Cash Flow Margin at any gold price. US1
from each respective margin will go into community development as part of their
Corporate Social Responsibility.
The company is passionate about measuring their performance against its commitments to create “Shared Value” - build communities and reduce operational
impact on the environment
Business Challenges:
High cost of production which has been triggered by the power crisis. Continuous decline of gold price on the world market which is affecting revenue.
No Stability Agreement between Gold Fields Ghana and Government of Ghana making the company to pay 35 as corporate taxes.
Activities of illegal miners on the company’s mining concessions creating rift
between the company and community members.
The activities of illegal miners pollute the environment and sometimes the pollution
is assigned to the company by the regulatory authorities.
CSR if any:
Gold Fields Ghana has established the Gold Fields Ghana Foundation. The Foundation has disbursedinvested almost US26 million in CSR activities since its
establishment. The firm has supported communities within its catchment area in agribusiness
development through capacity building in oil palm production, vegetable cultivation and animal rearing.
There exists a partnership between Gold Fields Ghana and Benso Oil Palm Plantation Development where the latter train oil palm farmers in good agricultural
practices. Provided scholarships to brilliant but needy students in their catchment area.
Provided water infrastructures and undertaken community education on healthy living, sanitation and hygiene.
The firm has reclaimed a decommissioned waste dam into fertile land and cultivated oil palm and citrus which have been handed over to the community members to
manage and generate income.
Provided capacity building to community members in master apprenticeship in areas like metal fabrication. This initiative was undertaken with support from
Opportunities Industrialization Centre Ghana.
Gold Fields Ghana is also planning to partner with German Development Cooperation GIZ to recycle used car tyres. This knowledge will then be transferred
to the community folks as an income generating activity if the initiative becomes
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successful, feasible and viable.
AlliancePartnership Potential highmediumlow: Medium
Program Areas Project Overlap:
Gold Fields Ghana is poised to help the communities in its mining areas i.e. Tarkwa and Damang all in Western Region in oil palm business through capacity building
and provision of seedlings as part of its CSR.
Company assets:
Committed to environmental protection and sustainability; Proven expertise in sustainable gold mining; and
Access to finance.
Previouscurrent engagement with USAID if any: None
Drawbacks mini-due diligence:
The company is reluctant to engage in fish farming aquaculture as part of its CSR
due to the collapse of such initiatives in the past.
Point of Contact:
David Johnson Vice President Head of Stakeholder Relations West Africa
T: +233 302 7701899091 M: +233 50 132 8998
E: david.johnsongoldfields.com.gh Website:
