Newmont Ghana yesterday announced that gold production has started at the Ahafo project in the Brong Ahafo region.

This follows significant progress in the on-going testing and commissioning of the gold processing plant facility.

It is anticipated that the first gold ore bars will be produced within the next two to three weeks.

Quoting Newmont's Vice President for Africa and Central Asian operations, William Zisch, the Communications Manager of Newmont Ghana, Mawuena Dumor, said "This is an exciting time for Newmont for producing gold in our first project on the continent of Africa. We are proud of the collective efforts of all those who have enabled us to reach this milestone, particularly the local communities, the government of Ghana, as well as all our employees and contractors who have worked very hard to bring the project to fruition."

Mawuena Dumor said the Ahafo project has continued to record increased reserves for the last four years. In 2002, four million ounces of gold were established as reserves, and now the project currently has 12 million ounces in reserves.

Newmont's capital expenditure for the Ahafo project was $450 million.

Average annual gold sales are estimated at 500,000-550,000 ounces.

The processing facility has an average capacity of 7.5 million metric tonnes of ore annually and is one of the largest of its kind in Africa. The current life of the Ahafo project mine is about 20 years. She said during the peak of the construction stage, the project employed over 3,000 people, 95% of whom are Ghanaians exceeding their target of 1,500 employees.

"It is anticipated that the entire project will be formally inaugurated in the last quarter of 2006 when events to acknowledge the inputs of various stakeholders will take place," she added.

Mr. Zisch further noted, "We are especially pleased to have brought best practices in social and environmental responsibility to our Ahafo project".

Miss Dumor acknowledged with gratitude the support of all stakeholders. "They have worked with us to bring value to our shareholders, while supporting sustainable economic, intellectual and social value creation in the neighbouring communities."