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Ghana, As Global Gold Prices Surge, Production Boost Local Economy
Posted On 13 Jun 2020
By Richard Adorsu-
Photo Credit: Energy Ghana
NEW AFRICA BUSINESS NEWS (NABN) Accra, Ghana- 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 this week.
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.
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.
Speaking to media, 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 to 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.
“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”.
In 2019, Ghana took the top spot as Africa’s largest gold producer. Moreover, the country hosts more estimated reserves than key gold-producing countries like Peru and Papua New Guinea.
Those factors make gold mining in Ghana a pursuit with great potential. In fact, Southern Ghana has been considered one of the world’s most prolific regions for gold discoveries for some time, with both gold producers and explorers enjoying success there.
For New Africa Business News Richard Adorsu Reports, Africa Correspondent
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