Stephen Osei-Bempah addressing the media
GOLD FIELDS Ghana Limited (GFGL), Tarkwa Mine in the Western Region, has clarified that its decision to opt for the contract model of mining was because it has so far been economically viable.
According to the mining company, the decision was also to ensure the longevity and sustainability of the mine.
In 2018, Gold Fields Ghana Limited (GFGL) transitioned from the owner model of mining to contract mining at its Tarkwa gold mine.
It allowed third-party mining contractors with partially or fully paid-off equipment fleet to assume operational and financial responsibility for the most critical mining activities including blasting, hauling and engineering, among others.
It also provided the mine with the needed flexibility to invest more in exploration and undertake the high cost of waste stripping, to expose more ore for operational sustainability.
Stephen Osei-Bempah, General Manager of the Tarkwa Mine, who disclosed this to journalists recently in the Western Region, said even though a number of workers were retrenched in the exercise, the owner mining model nonetheless, was unsustainable.
He said the company’s mining had operated for six years and its equipment were due for replacement.
“So investing in new equipment for that six years, it was difficult to pay back the investment. Also, at that time lots of contractors didn’t have jobs but had equipment packed.”
“So it was easier opting for the contract mining model “, he indicated.
He, however, mentioned that when the company is able to grow it reserve, nothing will stop it from switching back to the owner mining model in future.
Robert Siaw, the Sustainable Development Manager of Gold Fields advised that people should not be looking at businesses as non-governmental organizations.
He said there is no business that is making profit with a model that will change that model.
“So if a business like gold fields was changing a model, then it meant something seriously needed to be done “, he stressed.
FROM Emmanuel Opoku, Tarkwa