USAID, NEWMONT AND GOLD FIELDS GHANA SIGN AGREEMENT    PROMOTING COMMUNITY DEVELOPMENT IN MINING AREAS

The U.S. Agency for International Development (USAID), Newmont Ghana Gold Limited and Gold Fields Ghana have signed a Memorandum of Understanding to strengthen local governance, identify and establish viable economic opportunities for residents, and share best environmental management and social impact practices in Ghana. The alliance will focus efforts in the two mining areas of Asutifi District in the Brong Ahafo Region and Wassa West District in the Western Region.

The agreement for the Ghana Responsible Mining Alliance commits the members to collaborate in implementing development activities with the overall aim of promoting beneficial and interactive relationships between the mining industry, host communities, civil society and local governments. In addition, the alliance members will share lessons and best practices in environmental stewardship and social development with communities in Ghana and other West African nations facing similar challenges.

The cost, over four years, of the combined development activities in Wassa West and Asutifi mining areas is estimated at over $9.5 million, including USAID/Ghana's contribution of $1.25 million. This includes both existing and new programs that will enable the local governments and civil society organizations to jointly plan and implement community development activities and economic opportunities, and expand local productivity. It is expected that information on mining-related issues such as social impact assessment and public consultation, resettlement, rehabilitation and closure of mines, and community relations and governance will be shared and discussed with rural communities in Ghana and the West Africa sub-region.

The Memorandum of Understanding was signed in Accra on May 24, 2006. The managing directors of Gold Fields Ghana, Mr. Alan Ashworth, and Newmont Ghana, Mr. Bill Zisch, signed for their companies, while Ms. Sharon L. Cromer, USAID/Ghana Mission Director, signed for her agency. The event was witnessed by Hon. Dominic Fobih, Minister of Lands, Forestry and Mines; and Her Excellency Pamela Bridgewater, U.S. Ambassador to Ghana.

"This alliance brings together members who have the will, financial resources and development expertise to commit to this country and its people" Ambassador Bridgewater said. "This signing today commits each of the alliance members to work together with stakeholders to ensure that people living in and around the affected mining communities enjoy its benefits as well," she added.

The Minister of Lands, Forestry and Mines, Professor Fobih noted "This alliance is not only unique but also a clear demonstration of the myriad of opportunities that public-private partnership can harness to fight poverty and underdevelopment which are common features of our mining communities."

Gold Fields Ghana has operational mines in Tarkwa and Damang, both in the Wassa West District. Newmont Ghana Gold initiated Asutifi District preparation in 2003, and expects to begin producing gold by mid-2006. USAID is working in both districts to strengthen the ability of citizen groups to constructively engage the local governments and mining companies on issues of common concern, and build the capacity of the local governments to respond to civic input.