Coronavirus company news summary – Ghana estimates increased gold output – Namibian diamond venture granted tax holiday – Zinc prices hits 18-month high

23 November 2020 (Last Updated November 23rd, 2020 09:29)

The Ghanaian government expects  gold production in 2020 to exceed last year’s output of four million oz. The prediction is based on the resumption of operations at the Obuasi mine, which is one of the largest gold mines in the world, and the fact that Ghana did not mandate the suspension of mining activities during the height of the pandemic.

The Namibian mining ministry gave a tax moratorium on royalty to Namdeb, a diamond joint venture between De Beers Group and the Namibian government, to save the country’s deteriorating mining industry. The company is currently paying 55% corporate tax and 10% royalty on its profit to the government. The diamond mining industry has been operational in the country for more than a century, but land-based mining could be closed permanently by 2023 due to financial feasibility issues.

The price of zinc on the London Metal Exchange (LME) reached $2,793 per tonne, overtaking copper and reaching its highest value in around 18 months. The price rise is attributed to the Gambsberg mine in South Africa suspending operations, as mine shutdowns are disrupting the material’s supply chain.