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This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Summary of Project Information (SPI)
Project number 23338
Project nameAhafo
Company nameNewmont Ghana Gold Ltd
Environmental categoryA
Date SPI disclosedAugust 29, 2005
Projected board dateDecember 22, 2005
Previous EventsInvested: December 30, 2008
Signed: July 3, 2006
Approved: January 31, 2006

Project sponsor and major shareholders of project company
The Sponsor is Newmont Mining Gold Corporation (Newmont), a company listed on the New York Stock Exchange and with parallel listings in Canada and Australia. It has a market capitalization of about $17.5 billion with producing operations in the US, Canada, Mexico, Bolivia, Peru, Uzbekistan, Indonesia, Australia, and New Zealand. In 2004, Newmont produced about 7 million ounces of gold from these countries, representing 9% of global mine supply, at an average cash cost of $231/oz. It earned revenue and net income of $4,524 million and $434 million respectively, and cash flow from operations was $1,557 million. At the end of 2004, Newmont’s gold reserves stood at 92.4 million ounces, it had $1.6 billion in long-term debt (Rated BBB+ by Standard and Poors), and over $2.1 billion in cash and marketable securities. Newmont’s current exploration efforts are focused on Peru, Ghana, Nevada and Australia.

Total project cost and proposed IFC investment
The total project cost is estimated at $470 million. The proposed IFC investment is a $75 million A loan for IFC’s own account and a $50 million syndicated B loan.

IFC investment as approved by Board
75 million (USD)
Product LineIFC Investment (million USD)
Risk Management 

Location of project and description of site
The project site is located in the Asutifi district, in the Brong Ahafo Region, 300 km northwest of the capital city Accra, in Ghana. It is approximately 42 km from the nearby Sunyani town (Sunyani is a major regional center – with a modern hospital, schools, banks and a post office) and close to the twin towns of Kenyase (Kenyase 1 and Kenyase 2). The dominant activity in the area is primarily subsistence farming.

Description of company and purpose of project
The project companies are Newmont Ghana Gold Limited (NGGL) and Rank Mining Company (Rank Mining), both wholly owned Ghanaian subsidiaries of Newmont Gold Corporation (Newmont). The project involves the development of two mining leases: the Ahafo lease owned by NGGL and the Rank mining lease owned by Rank Mining. Newmont gained control of the two leases (via NGGL and Rank Mining) after its merger with Normandy in 2002. The project involves the construction of a greenfield open cast gold mine and associated facilities (the mill facility, a tailings storage facility, a water storage facility, construction camp and access roadways) to mine, process and extract gold. It will have an estimated mine life of 20 years producing approximately 500,000 oz. of gold per annum at an estimated cash cost of $225/oz. The project’s reserves currently stand at 11.7 million ounces (157 million tonnes grading 2.31 g/tonne) with a further 15.4 million ounces of resources (217 million tones grading 2.22 g/tonne). It is expected to start producing gold in mid 2006.

Environmental and social issues - Category A
This is a category A project according to IFC's Environmental and Social Review Procedure. The key environmental and social issue which is associated with this project, and which has been reviewed in detail during project appraisal, is ensuring broad community support (particularly relating to resettlement and livelihood restoration). The sensitivity of the project is the reason three separate appraisal missions have been undertaken. These missions provided adequate assurance that Newmont are planning and designing their approach within WBG Policies & Guidelines.

The project extends over a strike length of about 16km although the known ore deposits extend to about 70 km, trending in a SW-NE direction. Initially, a processing plant and four southern pits will be developed, and an ESIA has been completed covering these deposits. Later, NGGL may develop ore deposits further north along the strike, which may include up to ten new pits. Should NGGL decide to proceed to develop the north deposits, a full ESIA in accordance with IFC Policies and Guidelines would be prepared and disclosed.

The southern deposits and the reserves further north are bisected by a narrow strip of gazetted forest reserve. Newmont is implementing a bio-diversity management plan to ensure that its operations do not cause any significant degradation or conversion of critical natural habitats.

Other significant issues with this mining development will include those common to all large gold mining operations, including handling of cyanide and other hazardous materials, and tailings facility management.

NGGL is committed to implement a socially responsible business model and to improve the economic situation of local communities through the mining operation. Consultation with local groups have been taking place since early 2003. NGGL staff work hard to ensure that good relations are maintained with local communities. NGGL has a capable local team of competent staff working together with partners including local NGOs, international development NGOs (OICI), and Ghanaian communication professionals (StratCom).

The development of the project involves 3,111 hectares of total mine area and is expected to result in the physical or economic displacement of 1,701 households.

The resettlement planning efforts have been a collaborative process with project-affected persons. Resettlement principles, policies, procedures, and compensation rates have been determined through multi-stakeholder involvement in a Resettlement Negotiation Committee (RNC), which includes representatives of villages, traditional authorities, local government, and non-governmental organizations, and NGGL. This has resulted in a Resettlement Action Plan that will be disclosed publicly.

In order to achieve livelihood restoration, resettlement and community development programs include programs geared toward job training and creation as well as an ongoing search for both ways to enhance agricultural productivity on underutilized land and identification of replacement land through traditional systems in coordination with traditional leaders.

These efforts are complemented by community development initiatives including provision of water, sanitation, upgrading of the local clinics and training centers, and small and medium enterprise (SME) activities that can enhance the sustainability of positive economic impacts of the project. NGGL has also launched an HIV/AIDS program for workers and their families and a program on malaria prevention. IFC’s SME program is developing linkage programs that can further maximize the local development impact.

To view the environmental documents for this project, click here

Location of environmental documents in locally affected community
Hard copies of the project documents will be available at the following locations:

- At NGGL Kenyase Office;
- At NGGL Office, Accra;
- At the Land Valuation Board office (Resettlement Action Plan);
- At the Brong-Ahafo Regional Coordinating Council Office;
- Offices of the Traditional Authorities at: Kenyase 1 and 2; Ntotoroso; Gyedu; and (iv) Wamahinso;
- At the Asutifi District Assembly;
- At the Town and Country Planning National Office, Regional Office, and District Office;
- At the Brong Ahafo Regional Coordinating Council Office;
- Newmont Mining Corporation Web Site:

To contact the project company, please write to:
Questions concerning this project should be referred to:

Newmont Mining Corporation
Director of Social Responsibility and Sustainable Development
Colorado, USA Telephone: + (1) 303 – 837 – 5215

Newmont Ghana Gold Limited
Director External Affairs – Europe and Africa
Ghana Telephone: + (233) 21 – 7011852
Or by visiting Newmont Ghana Gold limited Accra Office at 825 / 26 Lagos Avenue, East Legon, Accra, Ghana

Newmont Ghana Gold Limited
Communication Manager
Ghana Telephone: + (233) 21 – 7011852 Extension 50044
Or by visiting Newmont Ghana Gold limited Accra Office at 825 / 26 Lagos Avenue, East Legon, Accra, Ghana

Newmont Ghana Gold Limited
External Affairs Manager
Ahafo Project
Ghana Telephone + (233) 21 – 7011852 Extension 51022
Or by visiting Newmont Ghana Gold Limited office in Kenyase No. 2, Asutifi District of Brong Ahafo District.

Newmont Ghana Gold Limited
StratComm Africa Senior Communications Officer
Ahafo Project
Ghana Telephone + (233) 21 – 7011852 Extension 51056
Or by visiting Newmont Ghana Gold Limited office in Kenyase No. 2, Asutifi District of Brong Ahafo District.

Email inquiries can also be submitted to:

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