Newmont CEO Tom Palmer emphasized the importance of fiscal stability and fair tax and royalty systems for attracting mining investment as the company inaugurated its $900 million Ahafo North mine in Ghana.
Speaking to Reuters, Palmer said Newmont’s investment decisions depend on “very stable fiscal regimes” and “robust, fair tax and royalty systems.” “It is important that we see a regime that is fair and transparent… If not, capital will go elsewhere,” he added.
Ghana is currently the only African country where Newmont operates. The company offers stability agreements in the country, allowing firms to lock in royalties for five to 15 years, even as the government plans tighter oversight of mining operations. The Ahafo North mine is Newmont’s second in Ghana, following the sale of the Akyem mine to China’s Zijin last year.
Reuters recently reported that Ghana, Africa’s top gold producer, has ordered comprehensive audits of mining companies, including U.S.-based Newmont, AngloGold Ashanti, Gold Fields, and China’s Zijin. In addition, the country is preparing major legal reforms as West African states seek greater control over natural resources amid a global commodity boom.
Despite these changes, Palmer said Ghana remains an attractive investment destination. “Ghana is a key place,” he said. “We’re in Australia, Canada, the United States, Peru, Argentina, Mexico, Suriname, all of those locations are very deliberately chosen and all of those locations we choose to go there for the very long term because we can be confident that we can build and maintain lasting relationships.”
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Newmont now operates two mines in Ghana, Ahafo South and Ahafo North, which Palmer described as “cornerstones” of the company’s global portfolio. “We’ve been here 30 years. I expect Newmont will be here at least another 30.”
Ghana’s Vice President Jane Naana Opoku-Agyemang noted that the opening of Ahafo North represents a new phase of inclusive growth for the nation’s economy. “This partnership must go beyond profit. It must deliver lasting value to the people of Ghana, especially those in the host communities,” she said.
Compared with other African regions, Ghana’s regulatory environment is relatively stable. Military-led governments in Burkina Faso, Mali, Niger, and Guinea, also rich in gold, uranium, bauxite, lithium, and iron ore, are tightening fiscal regimes to increase state revenues. Spot gold prices reached a record high above $4,380 a troy ounce on October 20, further boosting miners’ revenue.
Located 30 km (19 miles) from Newmont’s Ahafo South operation, the Ahafo North mine is projected to produce 50,000 ounces of gold this year, with annual production ramping up to 275,000–325,000 ounces over its 13-year lifespan. Palmer said the mine will employ about 1,000 permanent workers, while Newmont produced roughly 800,000 ounces of gold in Ghana in 2024.
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Image Credit: Reuters
