Government receives Ghs 159m dividend from Gold Fields
Government has received Ghs 159 million from Gold Fields Ghana Limited as interim dividends for the 2021 financial year.
Alfred Baku, the executive vice-president and head of Gold Fields West Africa, presented the cheques on behalf of Gold Fields to Finance Minister Ken Ofori-Atta, at a brief ceremony in Accra.
Mr Baku said, “the Government of Ghana owns 10% share in Gold Fields Ghana through a free-carry interest. So, the government’s share of the interim dividend is almost US$25 million (GHC146 million), which we are presenting today. So, in total we actually declared US$250 million.”
He further indicated that “… the Damang one is about US$2.2 million being the Guaranteed Advance Payment for the 2020 financial year.”
In accordance with clause 6.2 of the ratified Development Agreement between Abosso Goldfields Limited, (AGL) Damang Mine and the Government of Ghana, Gold Fields pays the 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.
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This is because, in 2017, Gold Fields took a decision to reinvest approximately US$1 billion in the mine as part of the mine’s Development Agreement with the government.
Mr Baku lauded the government for supporting the Gold Fields-Damang Mine, during the period of financial distress and noted that “the reinvestment project started in 2017, and after three years of hard work, we have achieved more progress than anticipated.
The Finance Minister, Ken Ofori-Atta on his part, reemphasised the need for Ghana as the largest gold exporter in Africa to have its own gold refinery to process its gold before export.
“For us as Ghana the largest exporter of gold in Africa, indeed for the past three, four or five years and we don’t have any refinery in Tema. If we were to refine 10% of all the goals that leave here, we will end up with about fifty million dollars of profit,” he stated.
