Mining sector did well: Lewins

THE mining sector has performed well in the country, K92 Mining Limited chief executive officer John Lewins says.
“When you consider the challenges that we have faced with the Coronavirus (Covid-19) pandemic last year, I would suggest that overall production in country was probably 10 per cent to 20 per cent below what it would have been without Covid-19, while costs were at least 10 per cent higher than they would have been,” he said.
“Metal prices have stayed relatively strong, so revenue has been maintained even though production and costs have been under pressure.
“The industry also had to deal with supply chain issues including shortages of spares and consumables which are also a result of Covid-19 and now increasing inflation which is putting pressure on costs.”
Mineral Resources Authority (MRA) managing director Jerry Garry said earlier that the greatest challenge for the mining sector had been the Covid-19 pandemic.
He said the cost of doing business had escalated and “consequently last year we saw some slight reduction in the production of metals”.
He said, however, the mining sector believed that with the relaxation of Covid-19 restrictions across the globe, there would be some improvement in production output.
“For the industry, we are looking at some slight improvement this year,” Garry said.
He added that travel restrictions had also impacted exploration.
“We might however see some slight improvement the mining exploration sector.
“It is difficult to predict with the Coronavirus pandemic still around.
“People who travelled had to be quarantined and some for over a month.”