Gold Fields Pays Dividend To Gov’t

Gold Fields Ghana, the country’s largest gold producer and highest tax payer, with mines in Tarkwa and Damang both in the Western Region, has paid US$ 10.3million to the government as dividend for 2014.

The amount represents the government’s portion of dividends declared by the company for the period. The government of Ghana holds a 10 per cent free carried interest in Gold Fields Ghana.

The payment was made to Deputy Finance Minister, Cassiel Ato Forson, by the Executive Vice President and Head of West Africa for Gold Fields, Alfred Baku.

In outlining some of the challenges that confront the mining industry, and Gold Fields in particular, Mr. Baku noted that high power tariffs and diesel costs, as well as the tight fiscal environment, have impacted negatively on the company’s operations and expansion.

He said, “the decline in the world gold price and the increasing cost of production continues to threaten the company’s ability to expand and deliver maximum value to stakeholders, including the government, communities, and investors.”

He argued that a more favourable fiscal regime will make it possible for the company to increase production, generate more employment, increase community investment, and ultimately pay even more dividends to the government and other shareholders.

Mr. Baku, however, expressed the company’s continued commitment to the country and said that Gold Fields is investing over US$180million in its Tarkwa and Damang operations, this year.

Mr. Forson was impressed about the company’s commitment to its corporate responsibility in terms of payment of dividends, royalties and taxes among others, in spite of the problems in the mining industry.

He assured that the power challenges the mining sector is facing would be a thing of the past, when the gas project at Atuabo commences production.

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