African Mining May 2020 | Page 26

• COUNTRY IN FOCUS production levels, based on exemptions under the provisions of Annexure B to the Disaster Management Regulations, measures that have been implemented to fight COVID-19, such as social distancing, could have been implemented, without significant challenges. However, once the lockdown was lifted and the situation normalised, a key question is whether these mines can continue to implement the basic measures including social distancing, appropriate hand sanitizers, and sanitizing of high volume personal protective equipment such as cap lamps, and self-contained self-rescuers. Mines also rely on the ability to get large numbers of workers underground, to the working areas, as quickly as possible by means of the high-volume conveyances. With the ever-increasing depth of many South African mines, and the distance of working faces from the shafts, getting mine workers to the faces, quickly, can mean the difference between a viable and a non-viable mine. Ensuring health and safety Under South Africa’s Health and Safety Laws, and in particular, the Mine Health and Safety Act, No. 29 of 1996 (MHSA) which applies to South Africa’s mines, the holder of the right to mine is required to take reasonably practicable steps to ensure the health and safety of employees and other persons who may be directly affected by the mining operations. The responsibility includes providing a workplace which is without risk to the health or safety or employees. Mining companies are also required to provide adequate personal protective equipment to protect the health and safety of employees. Once things normalise it is going to take a huge effort from all mining stakeholders, including the mining companies, employees, trade unions, service providers, and government, to ensure that mining operations can continue, safely and in such a way that the health of employees, including potential exposure to further outbreaks of COVID-19, is prevented. The return of large numbers of employees who, as a matter of necessity, work in close proximity to one another, will be a significant challenge, and the various measures that have been identified to prevent the contraction and spread of COVID-19 (or for that matter, any other viruses), will still need to be rigorously implemented and complied with. metals, the reduced transportation by road, rail and river, and in certain cases, the seizure of mining operations, altogether. These countries will, like South Africa, face significant challenges when situations normalise. Whether in South Africa or in any African country, it is going to be a long, hard road to recovery, with the immediate focus being on survival. It is unlikely that many of the expansion projects which were contemplated prior to Covid-19 will be implemented, in the short- to medium-term, and the focus is likely to be on maintaining the integrity and readiness of current operations, so that operations can be ramped up to meet increased global demand as and when that occurs. The relatively busy mergers and acquisition activities and other corporate activities that were contemplated or beginning, at the start of Covid-19, are also likely to be reviewed, cautiously, and it is likely that this activity will slow down, significantly, in the coming months. Investor focus is likely to follow a cashpreservation and a ‘wait and see’ approach. Unfortunately there are also likely to be other consequences, including litigation arising out of the issuing of force majeure notifications, as a result of Covid-19 and the lockdown, both domestically and internationally, particularly where bilateral treaties are involved (such as global marketing agreements). Covid-19 and the lockdown has also exposed the fragility of various business models and structures, and the leadership teams, in many businesses. The ‘blame game’ may also start, and the resilience that South Africans are known for, is going to be tested even further. South Africans are resilient, and like everything, Covid-19 will pass, and it is more important to focus on how, as South Africans we can survive and ultimately thrive. It seems that South Africa has had some advantages in its fight against COVID-19, including its compulsory vaccination programmes and, particularly in the mining and natural resources sector, the sector’s fight against Tuberculosis and the successful management of Tuberculosis, one of the primary occupational diseases that compromise the immune system. South Africa’s mining and natural resources sector has also implemented comprehensive management programmes regarding HIV and AIDS, and these programmes may, certainly in respect of mine workers, place mine workers in a better position to prevent the contraction of Covid-19 and manage the threat of Covid-19, including its spread, in workplaces. The mining sector in other African countries will be faced with the same challenges, and there is one challenge which is common to many African jurisdictions, including South Africa – illegal mining. In this unregulated sub-sector, there is no control, and programmes that are implemented for the protection of health and safety of employees are, understandably, not rolled out, to include illegal miners. The illegal mining community, which is often driven by socio-economic need, remains at risk, not only to themselves, but also the broader community with which they come in contact. It seems that mining in many African jurisdictions have not been hard hit by COVID-19 and there can be various reasons for this, including the reduced global demand for, in particular, precious 24 • African Mining •May 2020 Leon Louw Small scale mines and quarries are key players in any developing country’s economy, and the government should pay more attention to their needs. www. africanmining.co.za