Takoradi, Dec 31, GNA- Goldfields Ghana Limited is to expand its Tarkwa mill at a cost of 175 million US dollars next year, Dr. Tony Obeng, Head of the Company's Corporate Affairs and Social Development, announced on Friday.

He was speaking at a reception organised by the Tarkwa Mine of the Company for media personnel at Takoradi.

Dr. Obeng said the Board of Directors of the Company have approved the expansion project, which is expected to lead to an increase of production by one million ounces of gold in the long term. He said the mill expansion project would not have a negative impact on the environment.

Dr. Obeng said the company has also earmarked 1.5 million US dollars for social development projects in communities within its catchments area next year.

He said projects would be undertaken in the area of education, health, sanitation as well as income enhancement businesses such agro processing.

Dr. Obeng said the income enhancement project is to stop the communities from developing a dependence syndrome. He said the company wants to develop a real partnership with the communities and assist them to stand on their feet.

Dr. Obeng said the company has been transparent in its operations and accountable to the government and the communities in which they operate, and also pay its taxes and royalties.

It would also ensure safety at the mines and be committed to development.

"The company would also continue supporting the National football team, the Black Stars by assisting to prepare them for the CAN 2008". Mr. Stephen Yerenkyi, Head of Public Relations at the Tarkwa Mine of Goldfields Ghana Limited, said reclaimed and restored lands on the company's concession could be used for agriculture.

He said Goldfields has decided to establish oil palm plantations on some reclaimed lands in support of the country's agriculture development.

Mr. Yerenkyi said an employment committee has been set up to ensure that 90 per cent of the workforce for the mill expansion project is local people. 31 Dec 06