Migori gold miners feel the weight of coronavirus uncertainty

Miners in Migori have been forced to close down sites after the government issued restrictions on large gatherings, which has seen prices nosedive.

At Osiri gold mines, the stay-at-home order has been obeyed with most of the miners opting for other ventures to earn a living.

Gold prices had also reduced from the normal Sh4,500 per gramme to a low of Sh3,200 as of Wednesday March 25.

According to Osiri Matanda Gold Miners Association’s Kephas Ojuka, the miners are now selling gold for between Sh3,200 and Sh3,500 per gramme.

“We have been hit hard in the gold mines as buyers and dealers have reduced or stopped buying gold over uncertainty,” Mr Odoyo said.

A spot check on Tuesday at Komito mines in Rongo Sub County revealed that the number of miners has reduced from more than 200 to only 20, most of them resorting to farming.

INTERNATIONAL MARKETS

Ezekiel Otieno, the chairman of Komito Miners Association, said the cost of supplies like mercury had shot from Sh15,000 per kilo to Sh20,000, thus reducing profits.

“When countries like Italy and Europe went on lockdown and flights were stopped, we knew it was coming down on us,” Mr Otieno said.

“We have lost our client base since nobody wants to buy gold owing to the economic uncertainty. The virus outbreak has scared off potential clients and several international markets have remained inaccessible,” he noted.

Felix Okwanyo, a gold trader in Migori said most buyers budget to buy at least five grammes of gold from miners before selling to dealers.

It was, however, a different case altogether in Kakamega County where villagers are still trooping to gold mining sites unfazed by the government directive to stay at home and keep safe following the outbreak of the coronavirus pandemic.

Report by Ian Byron, Benson Amadala and Gaitano Pessa