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Newmont to agree to changes investment contract

newmont Mining firm Newmont says it may agree to a review of its investment agreement with government although it has a firm contract in place already.

Chief Executive Richard O’Brien disclosed this to miningweekly.com in Toronto, Canada on Tuesday.

The current investment agreement was entered into before development of the Ahafo mine began, and also includes Akyem.

Newmont, according to its CEO, currently enjoys protection against changes in tax levels or structures and upward changes in royalties.

Government has however indicated it wants to review its agreement with the mining firms.

In the 2010 budget, it announced an upward review in the royalties due from the mining firms to 6 percent from 3 percent even though a firm agreement is yet to be reached.

The Newmont boss says the company is willing to renegotiate the terms with government in the interest of good corporate-government relations.

Mr. O’Brien has, meanwhile, reiterated Newmont will not be impacted directly by any changes introduced in Ghana that affect other companies.

He says while the company will try to assure shareholders of a return, if the current high gold price prevails, they will also make sure they do reflect some additional return back to Ghana.

Source: Myjoyonline

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