Newmont pays GHC1.295billion in taxes to govt for first quarter

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April 25, 2024
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Newmont’s Business Unit in Africa says its operations at Ahafo South and Akyem mines paid a total of GH₵1.295 billion in taxes, royalties, levies and carried interest to the Ghanaian government in the first quarter of 2024.

The payment was made through the Ghana Revenue Authority (GRA), Forestry Commission and the Ministry of Finance.

This comes on the back of the recent publication of its 2023 full-year fiscal payment which announced that its operations in Ghana paid GHC3.965 billion, representing a 43.6% increase in fiscal payments over the same period in 2022.

A statement from Newmont outlined a breakdown of the payments made, saying “for the first quarter of 2024, Newmont’s Ahafo South operation contributed GHC1.105 billion while its Akyem operation contributed GHC190 million.”

“From January to March 2024, the breakdown shows that Newmont paid a total of GHC672 million as Corporate Tax; GHC291 million as Mineral Royalties; GHC99 million as Pay-As-You-Earn; GHC97 million as Withholding Tax; GHC122 million as Carried Interest; and GHC14 million as Forestry Levy,” it explained.

Portions of the statement further indicated that in Ghana, the company is advancing its Ahafo North project, which includes four open pit mines and a standalone mill located approximately 30 kilometres (km) from our Ahafo South operation.

The project, according to the statement, is expected to add approximately 300,000 ounces per year to its production in Ghana.

The statement also included the impact of its presence in Ghana, disclosing that “with a direct employees and contractor workforce of over 9,000 in Ghana, Newmont continues to deliver on its objectives safely, creating long-term value for its stakeholders, host communities and the local economy.”

The company also has well-resourced development foundations at both operational sites leading social development in the host communities.

Newmont remains the world’s leading gold company and a producer of copper, silver, zinc and lead.

The company’s world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices.

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September 16, 2024
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3 minutes Read

Ghana Link’s ICUMS Introduce Advanced Weighbridge System at Ports…

Ghana Link Network Services Ltd has completed the construction of four weighbridges at Tema Port GPHA Terminal 1 and two at the Atlantic Terminal Services in Takoradi.

While all the weighbridges provide Gross, Tare, and Net weights (i.e. standard weights) of cargoes, some of the weighbridges are multideck.

Outside the standard weights’ measurements, a multi-deck weighbridge also provides axle weights of trucks which is of interest to the Highway Authority.

The weighbridges have been integrated into ICUMS (Integrated Customs Management System), marking a significant step forward in the country’s efforts to modernize its ports and enhance revenue collection.

The move is expected to benefit multiple stakeholders, including Ghana’s Customs Division, the Ghana Ports and Harbours Authority (GPHA) with respect to the net weights, and axle weights for the Ghana Highway Authority for the protection of the nation’s road infrastructure.

The new weighbridge system, operational at both the Atlantic Terminal in Takoradi Port and at the country’s biggest port Tema Port, is designed to accurately measure imports and exports cargo weights. This precision is crucial for the proper calculation of duties and taxes on all consignments.

Norvan Acquah-Hayford, PR Manager of Ghana Link Network Services, spoke to the Media about the initiative.

“Our goal with this new module is to bring greater transparency and efficiency to Ghana’s import processes,” he stated. “By providing accurate weight measurements, we’re not only enhancing revenue collection but also contributing to fair trade practices.”

The implementation of the weighbridge system comes at a critical time for Ghana. In 2022, Ghana’s ports handled over 25 million metric tonnes of cargo, underscoring the potential impact of even small improvements in measurement accuracy.

The new system is not just about revenue, however. It also addresses a long-standing issue of road degradation caused by overloaded trucks.

By providing accurate weight information to the Ghana Highway Authority, the system will help enforce load limits, potentially saving millions in road repair costs.

The weighbridge module is integrated with the existing ICUMS, which Ghana Link introduced in 2020 to replace the previous port systems.

ICUMS has been credited with streamlining customs processes and improving revenue collection, despite initial implementation challenges.

Industry experts see the addition of the weighbridge module as a logical next step in Ghana’s digitalization journey. The system also aligns with the goals of the African Continental Free Trade Area (AfCFTA), which aims to boost intra-African trade. By providing accurate and transparent weight measurements, Ghana is setting a standard that could be emulated across the continent.

As a key transit point for landlocked countries like Burkina Faso, Niger, and Mali, Ghana’s ports play a crucial role in regional trade. The accurate weighing of transit goods will facilitate smoother cross-border transportation and potentially reduce disputes over cargo weights at inland borders.

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September 5, 2024
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3 minutes Read

Government launches restructuring offer for $13bn of its bonds

Ghana invited holders of roughly $13 billion of its international bonds to swap their holdings for new instruments on Thursday, more than two months after reaching a preliminary restructuring agreement with two bondholder groups.

Bondholders have until Sept. 30 to accept the offer though those who agree to do so before an early deadline on Sept. 20 will be eligible for a 1% consent fee, the government said in its “exchange offer and consent solicitation” published in a regulatory statement on the London Stock Exchange.

The gold and cocoa producer defaulted on most of its $30 billion of international debt in 2022, as the strain of the COVID pandemic, war in Ukraine and higher global interest rates tipped it into crisis.

It is overhauling its debt under the G20 Common Framework, which has seen Zambia and Chad also reach agreements.

Ethiopia is expected to be next, but the setup has been widely criticised for being slow and cumbersome.

A committee of Ghana’s international bondholders said in a statement that it supported the restructuring offer. It said it was important for Ghana to sustain economic reforms to eventually regain access to international financial markets.

A regional group representing holders of over 25% of the bonds said in a statement they too supported the offer, adding that they will “continue to invest and contribute towards creating a more dynamic economy”.

Bondholders will have the chance to swap their holdings for a so-called “disco” bond, offering an interest rate of 5% climbing to 6% after mid-2028, and with maturities across three instruments ranging between 2026-2029.

That option will come with a writedown of principal of 37%.

The second is a par bond option capped at $1.6 billion with three instruments, of which the main one will pay a coupon of 1.5% and mature in 2037 with no haircut apart from a writedown of past due interest. The offer will last for 21 days.

The agreement will see Ghana’s bondholders forego about $4.7 billion of their loans and provide cash flow relief of about $4.4 billion up until 2026 when the country’s current International Monetary Fund programme ends.

Godfred Bokpin, an economist and finance professor at the University of Ghana, said Thursday’s announcement was an important milestone in the country’s restructuring efforts.

“With this, investors now have a fair understanding of their losses and they can move on,” he told Reuters.

The new bonds will be issued on Oct. 9, the government statement said.

Holders of the Ghana 2030 international bond that was partially guaranteed by the World Bank and is also part of the restructuring would receive their guarantee payment the same day or as soon as possible thereafter.