Mining sector holds firm amidst coronavirus chaos

The mining sector is confident of improving on last year’s production of over 4 million ounces of gold, despite the devastating effects of the novel Coronavirus, the Ghana Chamber of Mines, has assured.

Although the Chamber is still in the process of collating production guidance from the various mining firms, it said it expects production from member firms to be higher than 2019’s figure.

The assertion, according to its Chief Executive Officer, Sulemanu Koney, is based on the coming on stream of AngloGold Ashanti’s Obuasi Mine, a ramp up by some miners and the strong demand for gold on the international market, as investors seek refuge from the Covid-19  induced global economic crisis.

Last year, large scale miners – Chamber members – contributed over 2.8million ounces, with the rest of the country’s gold output coming from small scale and artisanal miners, according to industry watchers. However, this year’s production, according to Mr. Koney, will be higher baring any unforeseen hitches.

“No member company has suspended production and so we do not expect production to be different from the guidance that they have given the market,” he told the B&FT.

Mr. Koney who asked what impact Covid-19 pandemic has had on the domestic mining sector, explained that gold remains one of the commodities that has held firm despite the COVID-19 pandemic which has led to a lockdown of the global economy and a crash in stocks as well as a collapse in oil prices.

As of press time yesterday, the precious metal went for about US$1,703.95 per ounce, with a gram also going for US$54.78, while a kilo sold around US$54,783.26, with experts predicting an even higher value for it in the coming months.