Comprehensive  Ghana Oil and Gas news, information, updates, analysis


News in Brief

Minerals Commission fears collapse of mining sector

  • SOURCE: | Editor
  • mineralsThe Minerals Commission has expressed fears of a possible complete shutdown of gold mining in Ghana should the price of the precious metal go down any further.

    The plunge of gold prices globally in the past year has resulted in a significant drop in government revenues, temporary shutdown of some mines and massive layoff of workers.

    Some analysts have predicted that gold will continue to drop to a price as low as 1100 dollars by next year, a value lower than what it is now.

    Chief Executive officer of the Minerals Commission, Ben Aryeah bemoaned that even with the current price, the industry is in crises.

    A further drop beyond the sustainable levels of the mining companies could lead to complete shutdown of the industry.

    He noted that there is an “adjustment process which takes place in every mine and the mines will adjust to mine only what is profitable to them and nothing more than that so there is the concept of the cut off grade below which you will not make losses.

    So if it gets to a point where the price is too low to mine, in the short term, they might continue to mine just to continue to take care of cost but over the longer term, they will suspend operations and possibly shut down.”

    Source: Citi Business

    Get the latest news and updates on Ghana’s oil and gas value chain by following us Reporting Oil and Gas on twitter @oilgasghana and like our facebook page and get at us on Google+. Subscribe to our group to get updates.

     

    Share this article

    Leave a reply

    Personality of the Month
    Poll

    Do you think the President should fund the free SHS with oil revenue?

    Follow Us Online
    About Us
    Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
    Events Calendar
    << Jul 2018 >>
    MTWTFSS
    25 26 27 28 29 30 1
    2 3 4 5 6 7 8
    9 10 11 12 13 14 15
    16 17 18 19 20 21 22
    23 24 25 26 27 28 29
    30 31 1 2 3 4 5
    Twitter Activity Stream
     

    Partners We are proud to be associated with:

    Skip to toolbar