How is Covid-19 Taking a Heavy Toll on the Mining Industry?

How is Covid-19 Taking a Heavy Toll on the Mining Industry?

Coronavirus’ impact is visible throughout the world. The number of deaths and confirmed cases is increasing with every single minute passing. In this scenario, how this deadly virus is impacting the mining industry?

FREMONT, CA: The World Health Organization (WHO) has declared the outbreak of Covid-19 a pandemic. Even the most optimistic are scared that the world is heading towards a global recession. Numerous mining enterprises have been deeply impacted by Covid-19 outbreaks, and several global restrictions to encourage social distancing have caused many mining projects to either slow or shut down. The following is a rundown of some of the ways the Covid-19 crises have affected the global mining industry.

Production Problems

Restrictions imposed by the governments with the objective of delaying or containing the spread of Covid-19 have posed significant challenges in front of mining companies that are operating in affected nations. In Italy, which is the worst impacted country outside of China, the national lockdown presently in effect has resulted in the companies closing down the production of many of their flagship products.

Many global mining giants have reported that their production has slowed down because of coronavirus-related restrictions.

Confirmed Cases

The companies whose workers have been tested positive for Covid-19 are being placed in quarantine as a precautionary measure after interacting with the worker. 

Previously, the endeavor was screening workers as a precaution; however, these measures failed to detect that the employee was infected. While some companies suspended construction activities at their projects, other enterprises, for enhancing safety measures, are requiring all non-essential staff to work from home.   

Several companies, outside of mine sites, are shuttering their offices, taking into account the hazardous coronavirus outbreak.

Ominous Outlook

The majority of the companies are coy regarding their outlook for the upcoming year. When it came to announcing entire year results for 2019, some organizations announced that their outlook for 2020 would be considered precise until the real impacts of coronavirus. With the continuous spreading of the virus, companies have begun to get nervous.

In many nations, workers coming back to work after personal or business travel to particular regions or nations have been suggested to notify their manager and work from home for fourteen days.

Mining enterprises are, unfortunately, not immune to the freefalling stock markets. Besides, some might find that all the preparedness in the world is not sufficient.

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