AngloGold Ashanti claims exemption from royalty payment review

Mining firm AngloGold Ashanti says it is exempted from the recent review in the royalties payable by mining firms operating in the country.

According to officials, the review does not apply to the firm.

Government in the 2011 budget announced an upward review of the royalties for mining firms from 3 to 6 percent.

It follows increasing pressure from civil society and other groups that the country has not benefitted much from the exploitation of its natural resources such as gold.

AngloGold Ashanti’s Senior Vice-President, Dr. Toby Bradbury however told Joy Business his firm is protected by its stability agreement with government.

“We are quite comfortable with the status of the stability agreement that is providing us with the protection that it was intended to do and we are continuing with business as usual,” he said.

He noted the review in revenue in the 2011 Budget does not affect the company.

The stability agreement bars government from increasing AngloGold Ashanti’s royalty payments.

Source: Joy Business/Ghana