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AngloGold’s reopened mine may not bring development to Obuasi – Baffoe Intsiful

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AngloGold’s reopened mine may not bring development to Obuasi – Baffoe Intsiful

AngloGold’s reopened mine may not bring development to Obuasi – Baffoe Intsiful

Kwasi Baffoe Intsiful, a Law Lecturer at the Ghana Institute of Management and Public Administration, GIMPA, has said the reopened AngloGold Obuasi Mine may not deliver the development residents are expecting especially in the area infrastructure.

Speaking on Citi TV/Citi FM‘s news analysis programme, The Big Issue on Saturday, Mr. Intsiful said the prospects are not as high as it looks because mining in Obuasi has not resulted in any major infrastructural and economic development of the town.

This he said is because policymakers fail to use revenue from mining to develop the mineral areas.

“I think we should slow down on the expectation. The President is talking about development, then they have to do a whole lot of work, because if you look at the current legal framework, in terms of development, I do not see anything new, I see the same old thing, if you look at Tarkwa, if you look at Prestea, it is the same because the paradigm hasn’t shifted,” he said.

He said until changes are made in the areas mentioned, there isn’t going to be any proper change in Obuasi to bring it to anything close to Johannesburg, South Africa.

On January 22, 2019, President Nana Akufo-Addo said the circumstances that led to the shut down of the AngloGold Ashanti Company Limited at Obuasi in the Ashanti Region would not reoccur under the watch of his administration.

He said this at the re-opening of the AngloGold Ashanti gold mine which had been closed since 2014.

“I assure management and staff of the mine that the sequence of events that led to the closure of the mine will not recur under the watch of this Government. The days of forceful encroachment on the concession of the company, as witnessed between 2010 and 2016, are over.”

AngloGold Ashanti’s Obuasi Mine shut down in 2014 because it was operating behind a development schedule for three years.

Gov’t targets US$2.2 billion in taxes from reopened AngloGold Ashanti Mine

Government is expected to receive direct taxes of about $2.2 billion from the reopened Anglogold Ashanti Gold Mine, should they meet the target of producing an estimated 500,000 ounces of gold each year.

This follows plans by the company to also invest about Ghc881 million into its initial redevelopment stage which will span for over two decades.

The total investment for the redevelopment of the Obuasi Gold mine is 1.6 billion dollars for the 22-year period.

Speaking on Citi Breakfast Show, Chief Executive Officer (CEO) of AngloGold Ashanti, Eric Asubonteng, maintained that the firm has restrategized to revamp its operation; hence these targets are likely to be attained to develop the country.

“So we are going to invest about 881 million over the initial period which we define as the first six years. By then we would have put in place all the necessary infrastructure and investment that we require for the remaining years of mine. We are currently looking at a life of mine for over 20 years.”

“On an average in the land mine, we are looking at between 400,000 to 500,000 ounces per annum. With this, we are estimating that US$5.3 billion will be retained in the country. This amount includes direct taxes to government, support to local businesses, corporate social responsibilities expenses and others.”

“The direct taxes to government will be about US$2.2 billion over this period. If you look at the total revenue that the mine is going to generate over the life of mine, this US$5.3 represents just over 51 percent of the revenue pie that is going to be retained in the country. The rest goes into paying off the initial capital investment and then shareholder returns.”

Job creation

Meanwhile, it is expected that the resumption of the operations of the mining firm will also provide about 2,500 jobs.

Mr. Asubonteng also disclosed that several other people will be employed on a temporary basis in the course of production.

“Now that we have changed our mining method to a mechanized and automated manner, the number of employees we are going to hire wouldn’t be high. But at an early stage of the production stage, we are looking at about 2,000 and 2,500 people to be engaged. The scale of production will definitely be higher than when we suspended operations. We will then go through a construction period of about two years. During that period, other people will be engaged on a short contract basis temporarily.”

Obuasi Mine redevelopment

The redevelopment project is scheduled to take approximately 30 months to deliver with an approximately 22-year life of mine to produce four hundred thousand ounces of gold per annum.

The project phase also includes the redesigned underground mine, refurbished and upgraded underground and surface infrastructure to support efficient operations.

Source: citinewsroom.com

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Suame Municipality generates GH¢1.2 million as revenue

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Suame Municipality generates GH¢1.2 million as revenue

The Suame Municipal Assembly in the Ashanti Region raked in a total of GH¢1, 213, 040.54 as revenue for the year 2018.

This represented 85.42 per cent of the targeted revenue of GH¢1, 420, 112.19.

Dr John Osei Bobie Boahin, the Municipal Chief Executive (MCE), who disclosed this said for the first quarter of this year, the Assembly had collected an amount of GH¢625, 179.70 from the various revenue sources.

Addressing the first ordinary meeting of the Second Session of the Assembly at Suame, he indicated that the figure represented 25. 83 per cent of the targeted revenue of GH¢2, 420, 688. 77.

“If the trend proceeds as planned, the Assembly is likely to exceed its revenue target by the end of 2019,” the MCE noted, saying the authorities were determined to mobilize the needed revenue for development purposes.

For that reason, he said, the Assembly had engaged Messrs Heinz Integrated Systems, a private data and revenue collection firm to collect the needed data on all payable properties in the Municipality, using the latest data collection software for effective service delivery.

“As I speak, progress of work on the data collection exercise is at an advanced stage. The consultant is gradually meeting the deliverables within the framework of the project scope and specifications,” Dr. Osei Bobie Bohin noted.

The MCE stated that collection of the data would enable the Assembly to make appropriate projections and forecast regarding the revenue inflows.

On agriculture, he hinted that the Assembly was facilitating access of farmers and agro-processors to processing machines and equipment produced at Suame Magazine.

This is aimed at reducing the importation of agricultural machinery and equipment to mechanics at the Magazine in order to move Ghana beyond aid.

Source: ghananewsagency.org

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SSNIT engages government on GH¢1bn arrears

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SSNIT engages government on GH¢1bn arrears

The Social Security and National Insurance Trust (SSNIT) says it is confident of accessing claims due it from the government to aid its operations.

As at last year (2018), the outstanding claims that the government was expected to give to the pension management firm, was estimated at one billion cedis.

Some industry watchers have attributed the development to the constraint faced by SSNIT in meeting the needs of its contributors and undertake other investment ventures.

But the Director General of SSNIT, Dr. John Ofori Tenkorang maintains that there are discussions with the Finance Ministry to access the outstanding payments.

He was speaking at a media engagement on the Trust’s operations over the weekend.

“We are engaged with the Ministry of Finance to come up with a solution and that we have agreed would have to involve some kind of cash payments and bonds that are issue…The people in charge of the Trust’s investment portfolio have made a case that there is the need to invest in some fixed incomes and the best issuer of bonds when the yield is right in terms of credit is the government,” he explained.

Dr. Tenkorang added that their ability to redeem the money on time should facilitate the cash flow required for a portfolio of their magnitude.

“So if we get the arrears paid to us in some kind of financial instrument that is acceptable to us, I think it will be okay for us. I am confident that the short term cash flow issues will be resolve and we will get our bonds.”

Meanwhile SSNIT has denied allegations that it is cheating out contributors of their benefits based on the Scheme’s flawed computation system.

A committee of the Trade Unions Congress (TUC) identified gaps in SSNIT’s computation of pension benefits for its contributors.

The Committee reported that SSNIT misinterprets what constitutes annual salary, early retirement reduction factor and annuity factor on lump sum which ultimately affects the contributor.

Though SSNIT admits that there may indeed be a fundamental flaw with the legal regime on pensions, it maintains that the Scheme is not cheating.

“Both parties have acknowledged that and have embarked on a process to correct these and it will probably end up in some list of amendments that we would seek to be legislated so that it governs the way we do things,” Director-General of SSNIT, Dr. John Ofori Tenkorang affirmed in an interview with Citi News.

Source: citibusinessnews.com

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Founder of Angel group ranked among top 100 influential company owners globally

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Founder of Angel group ranked among top 100 influential company owners globally

Founder of Angel group ranked among top 100 influential company owners globally

The President and Founder of the Angel Group of Companies, Dr. Kwaku Oteng has been ranked among the 100 most influential company owners worldwide.

At an event held at Institute of Directors, London by the Achievements Forum, the business mogul was celebrated among the top 100 influential company owners whose activities have affected their countries of origin positively.

Under the auspices of the Europe Business Assembly (EBA) Oxford, UK, Dr Kwaku Oteng was nominated for an award for his influence and contribution to Ghana and the world as a whole.

They were elated for his consistency in growing the Adonko brand within the shortest space of time with other nominees from countries like Canada, USA, UK, Malaysia, Nigeria, India, Philippines, Switzerland, Tanzania, Ivory Coast and China being recognized.

The Achievements Forum is a unique platform for international business and professional communication, sharing of the best practices in managing companies, institutions and cities, as well as promoting goods and services, and the opportunity for a comprehensive improvement of any business processes.

Achievements Forum’ has grown through a combination of international cooperation and positive commercial outcomes. Grounded in, and attracting high profile delegates from the real world of business, the function is a key driver in the development of practical commercial exchanges.

Top executives, business gurus, senior state officials, as well as educational management experts and academic professionals use the motivational opportunity to be present among the figures of their own stature.

Source: mynewsgh.com

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