Newmont Gold Ghana Limited (NGGL) has set up a community development fund (CDF) and deposited an initial sum of $3.98 million into it solely for development activities in 10 communities in the Ahafo area.
Fact sheets made available to the Ghana News Agency said the amount is the sum total of one per cent of Newmont's net profit per year plus one dollar on every ounce of gold mined in its Ahafo mines.
The company had, in collaboration with stakeholders in the area, established the Newmont Ahafo Development Foundation (NADF), to manage the fund, the fact sheet said.
The foundation is an off-shoot of the Ahafo Social Responsibility Forum (ASDF) that was set up in 2006 under the Ahafo Social Responsibility
Agreement (ASRG)The forum comprises representative of Newmont, the Ahafo Traditional
Council, the Asutifi and Tano North District assemblies, community groups and non-governmental organisations (NGOs) working in the area.
The forum, according officials of Newmont, met recently and legalised the agreement and also earmarked specific percentages of the funds available to specific project areas.
Human development project would take 24 per cent, infrastructural projects, 23 per cent, social amenities projects, 18 per cent, economic
empowerment projects, 17 per cent, natural resource protection, 12 per cent and cultural heritage and sports, six per cent.
The human development projects will include scholarship and pre-job training, infrastructure would include water, electricity, roads, health
facilities, schools, toilets facilities and incinerators.
Social amenities comprise community centres, police posts, community libraries, economic empowerment, employment (skilled and unskilled labour),
factories and cottage industries, credit facilities, market stalls and support for cultural heritage and sports.
There will also be support for festivals, upgrade of palaces, support for cross cultural activities and protocols and support for sports.
For the first five years of the foundation, 90 per cent of the year's funds accruing to the foundation would be disbursed for projects and the remaining 10 per cent would be invested.
"In the second five years, 85 per cent will be disbursed and 15 per cent invested in the third five years, 80 per cent will be disbursed and 20 per cent invested and in the fourth five years it would 75 per cent for disbursement and 25 per cent for investment," the fact sheet said.
The foundation would be run by a nine-member board of trustees comprising four persons from Newmont, two each from the two district assemblies and a chairperson to be nominated with approval from Newmont.
This, according to Newmont officials, was to ensure transparency and greater community participation in the disbursement and applications of the funds "The foundation would also set up a tender board which shall be responsible for the approval of proposals and funding of projects," it said.
The fact sheets said all communities and towns within the area had been urged to establish Sustainable Development Committees (SDC) through which to access funds for projects in their specific areas.
An official of Newmont told the GNA that consultative meetings were ongoing within the communities for the establishment of their SDCs.
"The SDCs, in collaboration with the district assemblies, shall be responsible for the submission of proposals for infrastructural and
non-infrastructural projects to the foundation by June of each year for consideration and approval and funding," it said.