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Economy

BoG buys 26,000 ounces of gold from Newmont Africa

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The Director of Communications at Newmont Africa, David Johnson has disclosed that the Bank of Ghana (BoG) has procured 26,000 ounces of gold between May and November 2022 from Newmont Africa.

The purchase of gold by the central bank is part of the Domestic Gold Purchasing Programme aimed at shoring up Ghana’s foreign reserves.

In May this year, Newmont Ghana announced that it successfully sold 3,500 ounces of gold to the BoG, making the mining company the first to respond to the programme. Mr. Johnson announced at a press soiree in Sunyani that Newmont has subsequently sold 22,500 ounces to the BoG between October and November this year.

“By this, we become the first mining company to respond to the Central Bank’s novel initiative which is a very significant milestone in the fiscal history of the country”, an earlier statement from Newmont said.

The BoG’s domestic gold purchasing programme was launched in June 2021 with the primary objective of increasing its gold reserves. Subsequently, the Central Bank initiated discussions with the Ghana Chamber of Mines about its intention to purchase refined gold from mining companies in the country.

While mining companies in Ghana were prepared to support the programme, there was the need to ensure that the initiative met the governance, risk, compliance, and supply chain requirements of their various companies.

According to Newmont, it proactively engaged the BoG on the governance, risk, compliance, and supply chain requirements associated with the deal, after which it signed an agreement that met all the requirements of both parties in December 2021.

Under the programme, the Central Bank is requiring an estimated amount of 10koz of gold annually from members of the Chamber of Mines over the next four to five years.

“Newmont will provide about 30% of the required amount annually, based on its market share within the mining industry in Ghana. The company’s first sale of refined gold occurred in May 2022 following on meeting of the terms and conditions in the agreement reached”, the statement said

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.