Newmont Ghana pays GHS 2.7bn as taxes to Gov’t
Newmont Africa’s Ghana operations have made a significant contribution to the country’s economy in 2022, according to the company’s latest financial report. The mining company announced that it had paid a total of ¢2.76 billion in taxes, royalties, levies, and carried interest to the government of Ghana through the Ghana Revenue Authority, Forestry Commission, and Ministry of Finance.
Newmont Africa’s contribution to the Ghanaian economy is noteworthy as the country’s mining sector is a significant contributor to the economy, with gold accounting for more than 90% of Ghana’s mineral exports. In 2020, Ghana’s gold output reached a record high of 4.1 million ounces, earning the country over $6 billion in export revenue. Therefore, the contribution of Newmont Africa’s Ghana operations is vital to the continued growth and development of the country.
The breakdown of the payments made by Newmont Africa in 2022 shows that the company paid ¢1.53 billion as Corporate Income Tax, ¢548.3 million as Mineral Royalties, ¢261.3 million as Pay As You Earn, ¢164.5 million as Withholding Tax, ¢222.1 million as Carried Interest, and ¢35.5 million as Forestry Levy. The company’s payment to the government of Ghana in the last quarter of the year (September to December 2022) amounted to GHS 1.04 billion, across its two operations, the Ahafo South and Akyem mines.
The Akyem operation, in particular, contributed significantly to the company’s tax payments, accounting for ¢1.54 billion, while the Ahafo operation contributed ¢1.22 billion. According to the company’s Regional Chief Financial Officer, Danquah Addo-Yobo, Newmont Africa has been recognised as a compliant and significant taxpayer in Ghana over the years and has been duly acknowledged as such by the Ministry of Finance and its revenue agency, the Ghana Revenue Authority.
Newmont Africa’s contribution to Ghana’s economy goes beyond meeting its tax obligations to the government. The company also supports the nation’s growth through employment opportunities, local supply chain development, and social investment, among others. As a significant employer in the country, Newmont Africa provides jobs for thousands of Ghanaians directly and indirectly, which contributes to the country’s economic growth.
Moreover, the company’s investment in local supply chain development has helped to build local capacity, providing opportunities for local businesses to participate in the mining sector. This, in turn, promotes economic diversification and reduces the country’s dependence on the mining sector. Additionally, the company’s social investment initiatives have supported local communities, promoting sustainable development and improving the livelihoods of Ghanaians.
Beyond these contributions, Newmont Africa has played a crucial role in the government’s gold purchasing programme aimed at shoring up the country’s gold reserves and stabilising the national currency. The programme, launched in 2018, seeks to support the Bank of Ghana’s efforts to increase the country’s international reserves and enhance its ability to manage external shocks. The gold purchased by the Bank of Ghana is also used to finance the country’s development projects.
Newmont Africa’s Ghana operations have made a substantial contribution to the country’s economy in 2022. The company’s payment of ¢2.76 billion in taxes, royalties, levies, and carried interest to the government of Ghana, its investment in local supply chain development, social investment, and participation in the government’s gold purchasing programme are all crucial to the continued growth and development of Ghana’s economy.
