Business News of 2014-05-23

Power crisis blamed for slump in mining production

Chief Executive Officer of the Minerals Commission Dr Tony Aubyn says the downturn in production in the mining sector is as a result of the power crisis the country is suffering.

He said most of the mining companies have complained about the insufficient power provided by the national grid, saying most of them are toying with the idea of shutting down their concessions to move out of the country.

Coupled with a drop in gold prices on the international market, the power situation is, according to the companies, creating a huge deficit between investment and output.

They are not getting value for money, said Dr Aubyn, who disclosed these on TV3’s News @ 10 on Thursday, May 22 in a reaction to the retrenchment of over 200 workers by Anglo Ashanti Ghana Limited, one of the leading gold-mining companies in the country.

The announcement was made by the company's Vice President, Mark Morcombe, at a special durbar for workers.

Dr Aubyn said most mining companies have confided in him that they will be reducing their workforce, as a short-term measure, as a result of the country’s erratic power supply.

The Former Chief Executive of the Chamber of Mines, therefore, called on government to speed up efforts in solving the energy crisis.

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