GLOBAL NEWS •
GLOBAL:
PANDEMIC SLOWS MINE
DEVELOPMENT
According to data and analytics company GlobalData the
share of worldwide mining projects that progressed to their
next stage of development has decreased from 3.8% in
quarter (Q) four of 2019 to 2.8% in Q1 2020, and is expected
to slow significantly in Q2 2020 as a result of the outbreak
of the Covid-19 pandemic.
Vinneth Bajaj, mining analyst at GlobalData, says:
“With several countries entering complete lockdown,
mining companies have minimised their workforce
to temporarily suspend operations and development
activities. As of April 13, the progress of 35 mines currently
under construction globally was disrupted due to such
lockdowns. These projects account for about
9% of total mines under construction and around 10.5% of
total capacity as measured by run-of-mine (ROM),"
he says.
Anglo American slowed the development of its USD5.3-billion
Quellaveco copper mine in Peru, withdrawing employees and
contractors amid the country’s lockdown. The company also
temporarily put Woodsmith, its newly acquired potash
project in the UK, on hold from March 27. In Canada,
Vale initially placed its Voisey’s Bay mine on care and
maintenance for four weeks but has since extended this
for up to three months – delaying the development of its
mine expansion project and transition
from open pit to underground mining.
Similarly, in Chile, Teck Resources has
suspended construction works at its
Quebrada Blanca Phase 2 in the wake of
the country’s lockdown measures. On
the other hand, the updated feasibility
study work of the Prieska copper-zinc
project in South Africa is undergoing the
study remotely, with the site being shutdown
temporarily.
According to Bajaj, about 76 mineral
projects advanced in Q1 2020, down
from the 101 projects in Q4 2019. Assets
moving forward into construction
include the El Pilar copper project
in Mexico, the Zaldivar coppermolybdenum
in Chile, and North star
iron ore in Australia. •
www. africanmining.co.za
African Mining Publication
African Mining
African Mining • May 2020 • 13