Accra, Nov. 10, GNA - Newmont Ghana Gold Limited is in the process of signing a social responsibility pact, which will spell out the support that the company could provide communities within its operational area.

The Memorandum of Understanding, which is currently being discussed with various stakeholders, is likely to be signed with community leaders on November 17 as part of the highlights of activities to mark the official launch of the Ahafo project, Mr Stephen Baffoe, Principal Communication Officer, Ahafo Project told journalists on visit to the project site.

President John Agyekum Kufuor is expected to commission the 470 million-dollar mine on the theme: "Partnership for development." It is Newmont's first project in Africa.

Mr Baffoe said the implementation of projects agreed with the communities in the social responsibility pact would be financed through a dollar deduction on every ounce of gold sold and one per cent of the company's annual gross profit.

He said Newmont was adopting a consultative process with members of the communities to enable them to define their needs. "Newmont does not want to impose its views on the communities. We believe that decisions reached through the consultative forum will best be implemented by the communities," he said.

Discussions so far have indicated that the communities' priority centred on human resource development and health among others. On compensation to farmers, Mr Baffoe said the company had so far paid 16 million dollars for crops within the mine-take area. He said Newmont had also finished negotiations for crop compensation for 2006, adding that both the officials of the company and the resettlement committee agreed to adjust the compensation rates by 14 per cent, which would be operational until 2008.

Mr Baffoe also touched on programme outlined by the company to assist vulnerable households in the communities, saying such people would be provided with food ration, free access to health care while their children would be supported in schools and to also acquire various vocational skills.

"Newmont will continue to support such families until it is proven that they can stand on their own," he said. Mr Baffoe said the company was adopting stringent measures to ensure that cyanide was managed responsibly and that any accidental spillage would be contained in the mine-take area. The company is a signatory to the International Cyanide management Code.

The 500,000 ounce-a-year mine is one of two projects being undertaken by Newmont in Ghana. It has a 20-year lifespan and is capable of processing seven million metric tons of ore yearly. The other one at Akyem has its operations delayed. 10 Nov 06