Business in Ghana

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Posts Tagged ‘Gold’

Anglogold Bites Bullet At Troubled Obuasi

Posted by Business in Ghana on May 20, 2014

By Brendan Ryan, Business Day Live

AngloGold Ashanti intends shutting down underground operations temporarily as part of a drastic final attempt to turn troubled mine around

HAVING lost more than $1bn on the Obuasi mine in Ghana since it took it over in 2003, AngloGold Ashanti now intends shutting down the underground operations temporarily as part of a drastic final attempt to turn the troubled mine around.

Announcing the decision at the group’s March quarterly briefing on Monday, CEO Srinivasan Venkatakrishnan outlined sweeping measures, including the retrenchment of most of the 6,500-strong workforce, to ensure Obuasi’s long-term future.

Mr Venkatakrishnan also said AngloGold Ashanti “was considering other strategic alternatives for its Ghana business”.

SBG Securities mining analyst David Davis said: “At long last they have bitten the bullet at Obuasi, but in a constructive manner.”

Mr Venkatakrishnan said $600m had been pumped into Obuasi from AngloGold Ashanti’s corporate funds, a nd $500m more had been invested through funds generated by Obuasi itself.

Asked to elaborate, Mr Venkatakrishnan said it was possible that a partner could be found to invest in Obuasi once the problems had been sorted out. Read the rest of this entry »

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With greater transparency, Ghana could increase its earnings from mining and oil

Posted by Business in Ghana on May 19, 2013

 ACCRA, May 15, 2013  Ghana has taken important steps to improve mining governance and limit corruption, but the government still fails to give citizens the information they need to make sure they are getting a good deal from mining companies, according to a new governance index released today.

Revenue Watch Institutes Resource Governance Index measures the quality of governance in the oil, gas and mining sector of 58 countries worldwide. Each country on the Index, from top-ranked Norway to last-place Myanmar, is judged on four criteria: legal framework, transparency levels, checks and balances and its broader governance context.

Ghana ranked 15th out of 58 countries and earned the highest score in sub-Saharan Africa, reflecting major reforms to improve competition and transparency in the mining sector. However, while lawmakers are required to oversee the industry, they often lack the resources to do so effectively, and contracts between mining companies and the government are still kept secret from the public. Read the rest of this entry »

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Why Government of Ghana Must Implement New Taxes in 2012

Posted by Business in Ghana on June 5, 2012

By Alhassan Atta-Quayson, TWN-Africa, Source: NCOM Newsletter Volume 2.1

In October, 2011, the government of Ghana made a promise that it will increase profit tax paid by mining companies, collect _windfall profit_ tax, and implement a uniform regime for capital allowance of 20% for five years. The government deemed these as some of the steps required to obtain a fair share from the benefits of the country_s non-renewable mineral resources. Given the government_s own concession that _the economic and social benefits that the sector provides are not commensurate with our expectations_, the anticipation has been that those initiatives were going to be implemented fully and in a timely manner. While the budget was approved a few weeks after its presentation, regulations to back these mining sector initiatives are yet to be tabled in Parliament for discussion and approval. It is even reported in the media (such as Ghana_s TV3 Network) that the government has, altogether, shelved the initiatives, at least for the year 2012 when they are most needed. Read the rest of this entry »

Posted in Financial Services, Uncategorized | Tagged: , , , , | 2 Comments »

Ghanas Mining Taxes: Are they New and Adequate?

Posted by Business in Ghana on December 17, 2011

By Alhassan Atta-Quayson, Third World Network  Africa

Ghanas 2012 National Budget Statement and Economic Policy proposed, among others, to bring the following changes to mining operations in the country: increase corporate tax rate from 25% to 35%; install a windfall tax of 10%; and implement a uniform regime for capital allowance of 20% for five years. It also sought to review the principle of ring-fencing to prevent companies undertaking a series of projects from deducting costs from new projects against profitable ventures yielding taxable income. This was commended by the National Coalition on Mining and the Ghana Mineworkers Union as part of steps urgently needed to improve the contribution of the sector to the economy and people of Ghana. However the Chamber of Mines have gone on the offensive, indicating that the mining sector is already over-taxed and such initiatives are only inimical to their operations. But are these taxes really new as the industry would want Ghanaians to believe and more importantly adequate in ensuring equitable distribution of Ghanas mineral wealth? I offer my opinion Read the rest of this entry »

Posted in Trade and Industry, Uncategorized | Tagged: , , , | 1 Comment »