Development agreement concluded in Ghana
Johannesburg, 29 March 2016: Gold Fields Limited (Gold Fields) (JSE, NYSE: GFI) is pleased to announce that it has concluded a development agreement with the Government of Ghana for both the Tarkwa and Damang mines. The highlights of the agreement include:
- A reduction in the corporate tax rate from 35.0% to 32.5%, effective 17 March 2016.
- A change in the royalty rate from a flat 5% of revenue to a sliding scale royalty based on the gold price (as per table below), with effect from 1 January 2017.
|Royalty rate||Gold price|
|3.0%||US$0 - 1,300/oz|
|3.5%||US$1,300 - 1,449.99/oz|
|4.0%||US$1,450 - 2,299.99/oz|
|5.0%||US$2,300/oz - unlimited|
The term of the agreement, effective from 17 March 2016, will be for a period of 11 years for Tarkwa and nine years for Damang, each renewable for an additional five years.
Ghana continues to be a key region for Gold Fields and we commend the Government of Ghana for creating a fair and competitive environment in the country.
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