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Business News of Wednesday, 5 August 2020

Source: thebftonline.com

Gold offers economy hope amid coronavirus crisis

The firm price of gold in the face of the Coronavirus pandemic offers significant hope to the economy, a former Chief Executive Officer of the Minerals Commission, Dr. Toni Aubynn, has said.

Speaking during a webinar on how mining could help to mitigate the adverse impact of the pandemic on African economies and revenue mobilization for African governments, Mr. Aubynn said the sector has remained firm and as such is well-positioned to cushion the economy against the negative effects of the pandemic.

“You have industry that contributes significantly to the economy and fortunately for us, our flagship mineral, gold, has been seeing a significant uptake in price. So Ghana may be in a position to sort of cushion its fiscal side, as well as, the balance of payment side,” he explained.

Themed: Mining, a Key Fiscal Revenue Contributor to Africa’s Post Covid-19 Economy, the event was organised G&G and Associates, private legal firm and a firm advocate of local content in mineral resource management in Africa and Africa MaxMining Services Company (AMSC), a mining solutions provider.

The precious metal has soared roughly 30percent in 2020 with more gains predicted in the current economic climate. Its price on the international market has averaged about US$1,800/ounce this year, with many market watchers expecting it to close the year at a milestone mark of US$2,000/ounce, especially if a cure for the virus is not found.

It is this bullish performance that makes Mr. Aubynn believes gold, which forms about 90 percent of the value of all minerals mined in the country, will be a key contributor to Ghana’s economy, especially in area of revenue and in the face of the slowdown in other sectors due to the pandemic.

Mr. Aubynns comments were corroborated by Sulemanu Kone, Chief Executive Officer of Ghana Chamber of Mines, who expects gold prices to remain firm.

He, however, wants the conservation to shift from how much the sector can give in terms of revenue to how the whole economy be catalysed around mining. He said value addition and making sector sustainable and attractive to investors are equally of great importance.

Other speakers include Leoncio Amada Nze Nlang – Executive President, African Energy Chamber CEMAC Zone and CEO, APEX Industries, Joana Gyan Cudjoe – President, Golden Empire Legacy, Yaw Appiah Lartey – Financial Advisor, Associate Director West Africa, Deloitte and Rakesh Himmatbhai Dudhat – Founder and CMD, Golden Swan G.E.S.L and Industrias G.E.S.A.

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