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Gold Fields hits back at TWN; describes allegation as untrue - Citifmonline

Wednesday, 6 April 2016

Gold Fields Ghana Limited has described as untrue a publication by Third World Network that the mining company has been granted a development agreement without an investment plan.

According to the company, it has planned to invest in excess of one billion dollars in two of its mines in Tarkwa and Damang.

The reaction comes at a time that a civil society group, Third World Network (TWN) is challenging Gold Fields Ghana Limited to publicly disclose its investment plans for the new development agreement it secured from government.

According to TWN, development agreements are for future investment of not less than 500 million dollars which should be justified with a business plan.

Speaking to Citi Business News Senior Vice-President and Head of Gold Fields’ West Africa Region, Alfred Baku insisted that Gold Fields is over qualified to be granted a development agreement as future investments in the mine will exceed the required 500 million dollars.

“Dr Graham all he is trying to say is that everything is things that have happened in the past and therefore the qualification should be going forward. But with us going forward we are looking to invest over the 500 million dollar mark and we got all that show”, he said.

He contended that the remaining life span of its mine at Tarkwa and Damang, have investment in excess of two billion.

“So it is on that basis that we believe that we are over qualified to be given a development agreement. All that we are saying is that we have spent in the past we are not counting them. The amount we are calling is the amount we are going to invest going forward and we think that between the two operations that we have in Ghana, we are going to invest in excess of the 500 million”, he stressed.

He therefore stated that the development is a win-win for both parties and will save jobs and revenues for the country.

“So what this development agreement is going to do to Gold Fields and to Ghana is that it is going to guarantee jobs because if we were not to get it and we continued to struggle, what would have happened was that we were going to close the mine as we have got at Obuase, put it on care and maintenance”, he said.

He explained that over 2,000 jobs would be lost if the agreement is canceled based on what the TWN is proposing.

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