Newmont Ghana Gold Limited - Ahafo Mine Process Solution Overflow Event -
January 2010 Status Update
Newmont Ghana has been providing updates regarding the status of the Ahafo
Mine process solution overflow consistent with its commitment to transparency
and public disclosure. Newmont reiterates our regret and apology for the
overflow and is committed to operating with high standards and accepts
responsibility for any failure to meet those standards.
As indicated in our December 2009 update, the company continued to engage
with the Ministerial Panel appointed to review the causes of the overflow and
its impacts. Since the time of the overflow, water sampling has
continued to confirm that there is no threat from cyanide to human health or
residual environmental impact. NGGL remains engaged with the local
hamlets to ensure their wellbeing and to provide fresh water. In
addition, Newmont Ghana implemented a number of corrective measures to ensure
an accidental release of this nature does not happen again.
Newmont Ghana rigorously reviewed and modified its control systems and
monitoring procedures, with the participation of regulatory agencies. As
a result, the company implemented a number of measures to:
- Reduce the
risk of overfilling the event pond during mill shutdowns;
- Improve
the reliability of the instrumentation and level detection systems;
- Increase
the event pond pumping capacity to redirect process solution more quickly
during rain events;
- Improve
containment within the processing plant site in the event other systems
fail during a process water overflow;
- Improve
and accelerate communication with stakeholders; and,
- Improve
onsite protocols and procedures.
Newmont Ghana recently received a letter from the Minister of Environment,
Science & Technology along with a copy of a report from the Ministerial
Panel. The company is in the process of reviewing the report and will be engaging
with the Minister to discuss the Panel's recommendations.
In recognition of the overflow's impact, the company made initial
compensation proposals to the Panel. While the report of the Panel
recognized that there was no regulatory framework by which to assess
compensation or penalties relating such incidents, it recommended that
substantial compensation be paid and Newmont Ghana has stated its intention to
meet its compensation obligations, once the process is complete.
The report concludes that there were a number of factors including
operational supervision failures, along with numerous systems and mechanical
failures, that were the primary causes of the accidental release.
Similarly, those failures resulted in regulatory agencies not being immediately
notified, which may have inadvertently created an appearance of an alleged
"cover-up." Newmont Ghana reaffirms that there was no intention
to behave in any manner other than being fully transparent and cooperative with
the government and the communities.
Newmont reiterates our apology to the regulatory authorities for the delayed
notification about the overflow, and we have acknowledged this was a mistake on
our behalf. The failure to communicate immediately was not deliberate.
Rather, it was due to the fact that our initial assessments mistakenly
determined that the overflow was contained within the process plant area.
Nevertheless, we should have notified the regulatory authorities immediately,
and we have committed to working with them to improve our reporting protocols
and also to review our emergency response mechanisms to ensure improved
performance.
The panel's report also provides a number of recommendations which are
focused on strengthening risk awareness, incident classification and notification
criteria, and enhancing capacity to recognize and respond to emergency
situations.
Newmont Ghana apologized for the fish mortality that resulted from the
overflow and for any anxiety caused in the local community regarding the safety
of their drinking water.
The company is continuing to engage with regulators to review the causes of
the overflow, its impacts and will implement any additional recommendations to
ensure an accidental release of this nature does not occur again.
Newmont Ghana remains committed to improving its processes and to reassuring
local communities of the company's ongoing commitment to their safety, while
re-establishing confidence in our environmental controls and reporting
mechanisms,
Newmont's first priority remains the safety of our neighbors, employees and
the environment.
Media Contact: Adiki O. Ayitevie
Regional Manager, Communications
024 4330870
adiki.ayitevie@newmont.com
