A Ghanaian large scale gold company, Takoradi Gold Ghana Limited (TGGL) has secured parliamentary ratification for its 15 years mining lease in respect of Nsuta-Kutukrom mining site, in the Prestea-Huni Valley and Nzema East municipalities of the Western Region.
The ratification follows the company’s successful fulfilment of the requirement of Ghana’s mining exploitation law.
The mining lease, according to a letter from the Parliamentary Service, was approved by Parliament at its 30th sitting of the Third Meeting held on Tuesday, December 22, 2020.
“Parliament at the thirtieth sitting of the Third Meeting held on Tuesday, December 22, 2020, approved by resolution, the Mining Lease Agreement between the Government of the Republic of Ghana represented by the Ministry of Lands and Natural Resources, and Takoradi Gold Ghana Limited in respect of the Nsuta-Kutukrom Lease Area,” the letter stated.
The Company was granted a fifteen-year mining lease by the Ministry of Lands and Natural Resources last year, making it one of the few Ghanaian owned mining companies in Ghana engaged in large scale gold exploitation in the country.
However, per the laws of Ghana, specifically Article 268 (1) of the Constitution, any transaction, contract or undertaking involving the grant or a right of concession by or on behalf of any person or body of persons howsoever described, for the exploitation of any mineral, water of other natural resources of Ghana made or entered after the coming into force of the Constitution is made subject to ratification by Parliament.
This is why the 15 years Mining Lease Agreement involving Takoradi Gold Ghana Limited and the Government of Ghana was laid before Parliament last year.
“In pursuance of the said Article 268 (1) of the Constitution, the Government of Ghana has caused to be laid before Parliament through the Minister responsible for Lands and Natural Resources the Mining Lease Agreement between the Government of the Republic of Ghana (represented by the Ministry of Lands and Natural Resources) and Takoradi Gold Ghana Limited in respect of the Nsuta-Kutukrom Lease Area,” the letter from the Parliamentary Service noted.
Responding to the ratification, the Chief Executive Officer of Takoradi Gold Ghana Limited (TGGL), David Anthony Nicol-Sey, who hails from the Western Region said that their operations will yield about $535 million in corporate taxes to the State, over a period of ten years.
Additionally, he mentioned that his company will, over the same period, pay in total of about thirty-nine million dollars in mineral royalties.
“Our projection is to treat about 500 tons of materials a day, for ten (10) years. Per our feasibility studies, this will translate in us paying three (3) million dollars of mineral royalties per annum, as well as fifty-three million, five hundred thousand dollars in corporate taxes every year. This will translate into thirty-nine million dollars in royalties, and five hundred and thirty-five million dollars over a ten-year period,” he said.
He stated that their expectation as a company is to meet government’s expectation of them in terms of bringing development to the Kutukrom area through their mining activities.
“Our expectation is to exploit the defined gold resource that we have identified – which is over 600,000 ounces, based on our feasibility report. This is in addition to the development that we will bring to the area because of the mining that is being brought there. More so, I’m from the Western Region, and I’m delighted to be bringing this to the Region I hail from, which will see us contributing directly, and enormously towards the development of the economy of my home region,” he added.
The mining lease covers a 13.85 square kilometres concession. The concession is made of three distinct blocks namely: Tintinnah Block (5.35 sq. km); Bonzer Block (4.40 sq. km) and Kutukrom Block (4.18 sq. km).
The ratification signifies the beginning of the planned development of an underground mine in the Kutukrom area of Prestea in the Prestea Huni-Valley Municipality of the Western Region.
Citinewsroom
