According to them, the falling price of gold on the world market was affecting the sustainability of the mining companies and over 3,000 mine workers have been laid off by mining companies in the country due to the decline in the price of gold on the world market. Four hundred workers are also expected to be laid off early this year.
The situation requires that players in the mining sector reposition themselves in the face of possible mines closure and redundancies, Ankrah said.
Ankrah said the situation could worsen if nothing changes, urging the mining companies to learn their lessons and adjust to the situation.
Analysts have predicted that the price of gold will average US$1,000 in 2014 and US$840 in 2015, because a stronger U.S. economy will limit the appeal of gold.
The President promised to ensure the relevant ministries forge closer relations with the association’s executive body to deal more effectively with issues, and to determine what assistance the government could render.
“We have already started work to create nurseries…we will help those very small miners to reclaim so that they wouldn’t have that expense. The GGMC will be part of that. For the medium-scale people we will try our best to provide the materials for them to do so, but the large miners will have to do it themselves,” the President said.
He also committed to granting duty-free concessions to miners for the acquisition of new technologies that will minimise, if not eliminate, the use of harmful substances such as mercury in the sector. He also informed that his government can positively consider the reduction of property rentals.
Experts have indicated that every 10 years there would be a significant drop in gold prices and therefore miners should gear and prepare themselves during the good times to meet the challenges of this price cycle.