Covid-19 has impacted the mining industry across the
globe as governments enforce lockdowns and quarantines and companies halt
operations because workers and contractors can’t get on-site due to
restrictions.
S&P Global Market Intelligence in a new report tallies the impact
of these mine closures, showing Africa and the Americas hardest hit in terms of
the number of suspended operations.
South Africa had closed 54 mines as at the end of last week, the
US shut 42 and Mexico and Canada 29 and 28 apiece. In total, production at 260
mines in 33 countries has been halted since early March.
The most affected commodity in terms of the
percentage of annual output suspended is uranium – with nearly 12% at 21 mines
affected. Closures at 12 platinum mines have affected 3.3% of output over the
period, while 100 silver- producing mine closures have already impacted 2.4% of
global annual production.
S&P Global points out, however, that at-risk production has
started to level off with the notable exception of platinum – four mines were
added to the at-risk category last week.
The US-based mining analytics firm cautions that it is “too
early in the pandemic’s spread to fully quantify impacts on the supply of
commodities”:
Miners are making additional announcements daily, companies
continue to withdraw 2020 guidance in light of the uncertainties, extensions to
many suspensions are likely, and limited disruptions at certain mines may not
even impact full-year production.
Mining.com