Covid-19 to slow mining industry development project momentum
The share of global mining projects that progressed to their next stage of development has decreased from 3.8% in the fourth quarter of 2019 to 2.8% in the first quarter of this year, and is expected to slow further in the second quarter as a result of the coronavirus outbreak, says data and analytics company GlobalData.
“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 around 9% of total mines under construction and around 10.5% of total capacity as measured by run-of-mine (RoM),” comments GlobalData mining analyst Vinneth Bajaj.
Anglo American slowed development on its $5.3-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 openpit to underground mining.
Similarly, in Chile, Teck Resources has suspended construction works at its Quebrada Blanca Phase 2 project 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 continuing remotely, with the site having been temporarily shut down.
“Around 76 mineral projects advanced in the first quarter of this year, down from the 101 projects in the fourth quarter of 2019. Assets moving forward into construction include the El Pilar copper project, in Mexico; the Zaldivar copper/molybdenum mine, in Chile; and North star iron-ore, in Australia,” indicates Bajaj.
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