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Ghana Companies May Sell Mines Over Power, Bullion Slips

Ghana Companies May Sell Mines Over Power, Bullion Slips

Written by Ekow Dontoh | From Bloomberg

Mining companies in Ghana are considering selling some gold mines because of an erratic power supply and a drop in the price of bullion, the chamber of mines said.

The chamber has asked the government to lower taxes on diesel, which is used to fuel generators, Chief Executive Officer Sulemanu Koney said Thursday in the capital, Accra. He declined to name the mining companies.

“I have heard of mines who are at the edge and are looking for buyers due to a combination of factors,” he said. Mining companies “can’t pile up other unplanned costs like using generators for long hours.”

Minister of Power Kwabena Donkor has vowed to resign if he can’t eliminate electricity cuts by January. The power shortage in Ghana has worsened because of a shortfall in natural gas, falling water levels at the hydroelectric dam and unexpected maintenance at plants. The government cuts power to factories for 48 hours at a time and to residences for at least 24 hours.

Read more at Bloomberg