COVID-19 has provided miners with an opportunity to restart their operations. Companies that emphasize environmental, safety, and governance concerns can improve their LTO (License to Operate) and get a competitive advantage in the capital market.
FREMONT, CA : COVID-19 was unquestionably the most critical topic in 2020, with implications for all industries through 2021, including mining and metals. Some markets are showing signs of recovery at the time of writing, but others, particularly many major mining areas, are still severely damaged by the virus. This article focuses on COVID-19's impact on the industry, demonstrating how the pandemic has increased several dangers while simultaneously creating new opportunities.
Productivity and Rising Costs
As the complexity of mining grows and commodities prices face pressure from disrupted supply and the impact of prolonged economic uncertainty on demand, rising costs and productivity remain a concern. COVID-19 has had a mixed effect, with some restrictions imposing new, unanticipated expenses and others reducing barriers that hampered production. In the long run, we believe that effectively addressing this issue would necessitate a real end-to-end emphasis on costs and productivity throughout the value chain.
Decarbonization and Green Agenda
As social responsibility and broader stakeholder demands rise in the aftermath of the epidemic, decarbonization and the green agenda have become more prominent issues. Although the quantity of Greenhouse Gas (GHG) supplied varies by commodity, the demand to minimize GHG emissions remains the most pressing environmental concern for mining and metals firms. Although many existing emission reduction targets do not line with the Paris Agreement, and few miners understand the real environmental effect of their whole value chain, leading firms are laying out their plans to decarbonize direct emissions. COVID-19 has provided miners with an opportunity to restart their operations. Companies that emphasize environmental, safety, and governance concerns can improve their LTO (License to Operate) and get a competitive advantage in the capital market.