Global Mining Disruptions Likely to Escalate Further

SEATTLE (Scrap Monster): The latest research report published by Fitch Solutions foresees elevated chances of disruptions in mine operations due to COVID-19, which in turn may lead to reduced mineral output.

Although a good majority of the mines are located in remote areas, there are increasing chances for less number of workers reporting for duty. In addition, the supply chain restrictions on account of restrictions imposed by increasing number of countries are likely to lead to reduction or halt in mine production.

The spread of the virus outside of China is likely to impact global mineral production. For instance, the emergency measures declared by the Peru government authorities are likely to reduce the country’s mineral production by at least 4% from the previous year. It must be noted that Chinese MMG has already reduced its operations at its Las Bambas copper mine in response to the 15-day emergency isolation measures announced by the government.

Elsewhere, in Chile, Anglo American had recently announced its decision to scale down operations at its Los Bronces copper mine.

According to Fitch report, mining operations across the globe are facing increasing risks, which could hamper output. The agency maintained downside risks to its 2020 forecasts.