Coronavirus to cut South Africa’s 2020 mining output by 8-10%

South Africa’s mining manufacturing is more likely to fall by between 8% and 10% this yr as a result of Covid-19 pandemic, the CEO of business physique the Minerals Council stated on Tuesday.

Mines throughout South Africa, the world’s largest producer of platinum and chrome and a number one producer of gold and diamonds, had been compelled to close quickly when a nationwide lockdown to comprise the virus started in late March.

“The impact is very big; it’s probably going to end up being something like an 8 to 10% hit on mining production for this year,” Minerals Council CEO Roger Baxter stated throughout a digital panel dialogue between mining chiefs concerning the business.

Harmony Gold CEO Peter Steenkamp stated it will take a month for its mines to completely ramp up from June 1 when the nation will permit all mines to function once more at full capability.

Open-cast mines have been allowed to work at full capability once more since May 1, whereas deep-level mines – the place social distancing is tougher – had been restricted to 50%.

Steenkamp stated he expects Harmony’s acquisition of AngloGold Ashanti’s Mponeng mine to be accomplished by the top of July, a month later than beforehand scheduled.

Some 196 employees at Mponeng have examined positive for Covid-19, and the mine shut on Sunday consequently.

Steenkamp stated a few of Harmony’s mines are designed for a bigger capability than they’re working at at the moment, making it simpler to implement Covid-19 safety measures.

“The size of the cages allows us to have more distancing,” he stated, including nevertheless that there are some areas the place social distancing can’t be maintained.

“There are mines that have high levels of infections but we have been quite lucky so far,” he added. Harmony Gold has thus far stated two staff of a contractor at its Kalgold mine examined positive for Covid-19.