COMMENT •
Leon Louw - Editor • @LeonLouw3 • [email protected]
IN THE AFTERMATH
OF COVID-19
Covid-19 has turned the world on its head. In this
month’s issue we focus on the pandemic, its impact
on the mining industry and the road to recovery.
One of the people I interviewed for this special issue was
Breton Scott, owner of Bowline Professional Services.
Scott writes that remedial measures are critical for
recovery. He says:
“The world was caught off-guard by the pandemic, and
governments responded swiftly with lockdown measures. This
impacted severely on any activity that was not deemed to be an
essential service, including some mining activities. Depending
on the measures put in place and requirements, operations were
either restricted to limited production or had to be placed on
care-and-maintenance for the duration of the lockdown period.
“Mining houses petitioned governments of their host countries
to allow operations to be resumed. Mining houses are making
every effort to structure the care-and-maintenance in a manner
that would allow the quickest ramp-up time once operations
can resume. This is also true for all industries affected by the
global lockdowns and pandemic precautions.
“Based on the reaction from industry and clients, it was clear
to Bowline Professional Services that the mining sector was in
dire need of developing quick remedial measures to recover.
The ideal time for the development post-lockdown measures
was during the lockdown period, but logistical and technical
constraints, especially with remote sites, hampered efforts.
A total or near-total lockdown as the result of a pandemic
impacting all activities in the mine value chain is not considered
in most risk assessments or business continuation plans.
Associate Mining Engineers of Bowline, Gerrie Bezuidenhout
and Dave Wright, agree that strategic and tactical responses will
make the difference in the success of any size operation postlockdown.
It is expected that most plans will be termed 'restartup'
philosophies with reduced on-site staff personnel, operators
and increased hygiene and health screening.
In the aftermath of the lockdown, it is expected that most
mining operations will require additional funds that may take
the form of loans, investments or working capital allocations.
Bowline has developed proprietary methods to develop
business plans in preparation for fund raising and evaluation
of company valuations that small or medium size enterprises
would require. The development of new codes of practice and
standard operating procedures will be one of the main focus
areas, says Gayle Roberts, associated documentation specialist
with Bowline. It is essential that these documents be developed
fast, but without sacrificing quality and requiring third party
review,” he adds.
Inevitably some mining operations will not be able to recover.
These operations will likely be considered or targeted for merger
or acquisition opportunities. Like some other businesses the
Bowline team is preparing for an uptick in the next couple of
months. •
Leon
www. africanmining.co.za
African Mining Publication
African Mining
African Mining • May 2020 • 1