LETTER: Right mining policies allow Ghana to overtake self-defeating SA
Corporations looking to move out of the country as it has become hard for them to compete from here
Another kick in the butt and humiliation for SA. This time it’s the gold mining industry. We all know the industry was struggling and suffering for years, but having Ghana overtake us?
There are valid reasons why Ghana has overtaken us: the right mining policies, no militant unions, lower-cost mines, new development projects and cheaper and easier-to-mine deposits.
The authorities have developed a sound business environment. Ghana’s gold output thus rose 12% during 2018, while SA’s dipped 10.8% in the first quarter of 2019 alone.
What hurts our gold industry most is that our gold mining corporations, such as Anglo Gold Ashanti and Gold Fields, are looking to move out of SA to greener pastures — including Ghana — as it has become so difficult for them to compete.
They must overcome stringent legislation, a toxic political environment and huge capex demands as they go deeper and deeper to extract the precious metal. This is anything but conducive to new investment.
The SA gold industry is entering the final stages of a slow death.
Jean Michel Bouvier