By KENNEDY MUPESENI  –

in London, UK
MINING investors in Africa should start hedging the prices of minerals and embrace prudent management to offset the impact of low metal prices on the international market.
Ghanaian Lands and Natural Resources minister, Nii Mills said investors should seek alternatives to keep  mining operations running regardless of the levels of commodity volatility.
“The recent developments in the metal prices have affected many African countries especially that we rely heavily on minerals but mining companies could still continue if they pursue alternatives such
as hedging and prudent management of mining firms by keeping windfalls,” Mr Mills said.
He said in an interview here.
Mr Mills said in the last three years, the firms were enjoying super profits which they could have kept to offset the impact of the current low prices of metals.
He said African countries should also look at diversifying their economies saying over dependence on copper and other minerals was causing havoc to the  running of economies.
The Ghanaian Government has introduced training to mining workers who have been retrenched so that they could effectively run business ventures and still contribute significantly to the economic
development of that country.
The London Metal Exchange  (LME) has, however, blamed low activity in the hedging market on  shareholder rigidity on dividend expectations.
LME managing director – sales, Paul Macgregor, said hedging and futures in the metal market was affected by rigidity on the part of shareholders who he accused of having limited expectation on dividends.
He said this in a presentation at the just-ended Mining On Top : African Summit dubbed African Commodities Outlook ,Benefits of Hedging on the LME.
“Shareholders tag prices to products where they want it to be, they are mostly not flexible and it is hindering participation in the market,” Mr Macgregor said.