Covid-19 affects K92 operations

THE impact of the Coronavirus (Covid-19) on the K92 Mining Ltd’s operation has been significant this year, with a week’s closure reducing production by 2,000 ounces of gold, and revenue by K10 million.
Chief executive officer John Lewins said the surge in the Covid-19 cases early last year resulted in major disruptions to the mine.
They included the suspension of travel and shortages in key personnel which reduced the 2020 production by 10 to 15 per cent.
“As we pay a significant amount of tax to Government, having already paid K50 million in corporate tax this year, this will reduce the amount of tax we pay not only corporate tax but also employee tax, import duties, GST (goods and service tax),” Lewins said.
“The current lockdown provisions still allow for mines to operate, although some restrictions can result in shortages of staff at times.”
He said as cases increased, “which they unfortunately will with this highly contagious and dangerous Delta variant, we will suffer further shortages due to personnel becoming sick”.
“We have incurred additional costs for the quarantine of employees, increased medical facilities and capacity, travel restrictions, deferment of projects and at times reduced production,” he said.
“Other impacts include disruption of supply lines requiring increased stock levels, increased demurrage, disruption of exports, increased costs for shipping.”