Sustained production to boost revenue as gold prices surge – Chamber of Mines

The Ghana Chamber of Mines says it is important for the country to sustain its gold production if government is to make enough revenue from the commodity.

Although many sectors of the economy have been hit amidst the coronavirus pandemic, gold prices have seen a surge, hitting 1,715 dollars an ounce as at June 4, 2020.

Even though COVID-19 has disrupted many economic activities around the world leading to slow economic growth, a few sectors have rather gained from the pandemic.

The precious metal witnessed a dramatic change in prices as more investors move their funds from venerable investment portfolios into gold, which is considered a safe haven.

Speaking to Citi Business News, the Chief Executive of the Ghana Chamber of Mines, Sulemanu Koney, said gold is a major foreign exchange earner for Ghana.

“Gold is a safe haven for investors. It has natural demand and once demand goes up and you have stable supply then price goes up. That is the reason why we must sustain the production level,” he said.

Mr. Koney said Ghana has been a leading producer of gold for decades, which has supported its economy by bringing in billions of dollars.

He maintained that there is the need sustain activities in the sector by deliberately supporting mining companies.

Giving some recommendations, Mr. Koney said mining companies have been hit by some of the challenges posed by COVID-19 causing them to spend more.

Stressing that no worker has been layed off, Mr. Koney said mining companies are still fully paying workers who are home to help reduce the numbers at the workplace.

“Mining companies were still paying workers during the partial lockdown period and even now as some companies have asked some workers to stay home to observe the social distancing protocols”.