On local mining firms’ preparedness and community response to Covid-19
In what ways has the Covid-19 pandemic impacted mining activities in Ghana?
ERIC ASUBONTENG: Because most mining companies in Ghana are part of global mining institutions, they have generally been somewhat ahead of the curve in terms of planning. Global capacity and experience have allowed them to be more proactive in taking preventive measures, even before Ghana reported its first case. Many companies already had business continuity and contingency plans in place, as well as health interventions, for example, restricting travel for employees both locally and internationally.
However, once cases were reported, the government began to introduce its own directives. At that stage, mining companies were impacted on a practical level, particularly by the lockdown and the international travel ban. That said, even under the lockdown, the government exempted mining companies, provided they take the necessary precautions. Mining workers could therefore move in and out of work easily.
Moreover, most mining companies are located in remote areas, and the lockdown mainly affected the two big cities of Accra and Kumasi. The fact that mining companies were exempted and the lockdown did not generally affect the movement of goods has been helpful for mining companies, and operations have carried on without too many challenges.
Mining companies are better prepared than other sectors of the economy, and even though no mining company in Ghana has suspended production, we do not know what lies ahead of us. Whatever contingency and continuity plans we have in place need to be under constant review and subject to change as we move forward.
How will the surge in gold prices affect the mining industry, and to what extent are sector players working with the government in response to the crisis?
ASUBONTENG: Oil prices have collapsed amid the pandemic. The importance of the mining sector, and gold in particular, is even more critical now. Even before this crisis, gold was a key contributor to Ghana’s economy. The increase in the price of gold certainly helps the government, particularly in terms of boosting revenue, taxes and royalties.
However, it is equally important during this time that we are able to maintain production. This means that, hopefully, we can avoid losing control during subsequent waves of the crisis.
Thus far we have managed, but the crisis comes with its own set of challenges and introduces its own unexpected costs, and we […]