The Third World Network (TWN) is challenging mining firm Goldfields Ghana Limited to publicly disclose fully its investments plan for the new development agreement it secured from government.
According to TWN, development agreements are for future investment of not less than 500 million dollars which should be justified with a business plan.
[contextly_sidebar id=”DIAjz1hY6oxBbWPbgjnHUVXz9rhI0BOq”]The call comes after Third World Network described as illegal and a breach of section 49 of the minerals and mining Act 2006 (Act 703) on development agreement.
Speaking to Citi Business News Coordinator of the Third World Network Dr. Yao Graham said the agreement serves as a dangerous precedent for the industry.
“We need to know what Goldfields is planning to invest in because you only get a development agreement in respect of prospective investments not because you have been around a long time or the kind of pension award no prospective investments”, he said.
“Where is the text or the terms of the 500 million or more dollars investment that Goldfields is going to make which justifies the development agreement because everything that the goldfields executives, have said, have been very clear that, they are not making any commitment’.
Dr. Yao Graham adds that Goldfields is not already to do the kind of investments required of them after sealing the development agreement deal.
This he says means the government has given an agreement based on assumptions and the people of Ghana need to know what the terms of the agreement are.
“We believe that this is an illegality which sets a very dangerous precedent because every company which in the mining sector is distressed by gold prices and also paves a bad way for the industry.
We therefore challenge the government to prove that the stability agreement fiscal terms, the sliding scale, reduction in sliding royalty rate and the reduction in corporate tax offering must be made public by Goldfields”. He said.
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By: Norvan Acquah-Hayford/citibusinessnews.com/Ghana