IFC considers financing for Newmont gold mine in Ghana
12 September 2005
On August 29, the International Finance Corporation indicated its intent to provide $125 million in loans to Newmont Gold Corporation, the largest gold producer in the world, for its development of two mining sites in the Brong Ahafo region of Ghana. Prior to the public announcement about proposed IFC support for the mining activities, local community members and civil society organizations in Ghana had expressed concern about Newmont's operations, community relations and the lasting environmental impacts of the open-pit gold mine.
With the disclosure of a project description and environmental impact assesssment on August 29, the IFC's proposal to lend $125 million to Newmont for gold mining operations in Ghana could come before the IFC Board of Directors for approval as soon as October 29th, or 60 days following the posting of project documents.
Tensions have mounted between Newmont and residents of Kenyasi in the Ahafo project area over the last several months. The residents' chief complaints center on the inadequacy of compensation for land and farms that will be destroyed in the construction and operation of the mine, dissatisfaction with the resettlement packages arranged for displaced community members, and fears about the contamination of local rivers, which serve as their chief sources of driking water, by the cyanide processing and tailings disposal from these open pit gold mines.
The following resources provide more information:
Documents listed on the IFC website
Information available on Newmont's Ghana projects webpage
Civil society statements regarding this and other Newmont operations
- Communities Affected By Newmont Speak Out, April 27, 2005 (No Dirty Gold website)
- Communities Urge Gold Miner Newmont to Reform , April 27,2005 (No Dirty Gold website)
- Ghana: Newmont Mining Urged to Cancel New Plans, World Rainforest Movement Bulletin, May 2005 (World Rainforest Movement website)
- Resolution of Participants at the Three Day Workshop Organised in Obuasi by the WASSA Assocation of Communities Affected by Mining (WACAM) and DKA from 2nd to the 4th June 2005 (Mines and Communities website)
- Petition Against the Payment of Crop Compensation by Newmont Gold Mining Company Limited - Kenyasi, Abdulai Darimani, Third World Network, July 10, 2003 (TWN Africa website)
Press articles