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Gold companies bemoan impact of utility hikes

  • SOURCE: | Editor
  • miningGold Mining companies in Ghana are bemoaning the impact of recent electricity hikes on their survival.

    Mining companies have in the past year faced a major challenge of survival after the price of gold fell by over 25 percent.

    This has forced most of them to embark on massive retrenchment plans leading to huge job losses.

    But it appears their woes are not over. Electricity tariffs at the beginning of this month increased by about 79% and this is expected to further cripple the industry.

    One of the companies hardest hit is AngloGold Ashanti.

    Its Vice President-Sustainability, Fred Atta Kuma told Citi Business News the increase only makes the situation worse.

    “It is something that hits your bottom-line directly, so any increase has a direct repercussion on operating cost. If you compare Ghana to many of the mining jurisdictions around the world, with the exception of those running on diesel powered generators, power tariffs are already high for mining industries.”

    “So any additional increase only makes our situation even much direr given the issues around price, etc. So the increases will have a major impact and will throw us into a more difficult financial situation,” he added.

    Source: citifmonline.com

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