Ebola no longer a risk, it’s a threat: Bristow

[miningmx.com] – RANDGOLD Resources CEO, Mark Bristow, said the spread of the Ebola virus – its worst outbreak ever – was a direct threat to the company, adding that the international health authorities had been “slow off the mark” dealing with the contagion

“Right now, we are not affected but it’s more than a risk, this is a threat,” said Bristow whose company operates gold mines in Mali, the Democratic Republic of Congo (DRC) and Ivory Coast as well as an exploration portfolio across sub-Saharan Africa.

The virus has now gained a foothold in Nigeria with five cases confirmed in Lagos, a city with a population of 21 million people, a development that has compelled Nigeria’s health minister to declare a health emergency. The World Health Organisation has called the outbreak a global health emergency, said Reuters.

“The international health authorities were slow off the mark,” said Bristow. “This is not a regional or isolated thing. The disease itself warrants global attention,” he said.

The death toll from Ebola now totals just short of 1,000 people as the disease has spread throughout Guinea, Sierra Leone and Liberia with consequences for the mining companies operating in these regions.

The share prices of UK-listed African Minerals, London Mining and Sierra Rutile have fallen between 15% to 33% in the past week.

The suspension of flights by some air carriers to the Ebola-affected cities of Monrovia in Liberia and Freetown in Sierra Leone is expected to have some logistical consequences for miners operating in the region.

An announcement by Sierra Rutile that it had taken precautionary measures to reduce risks to its employees and operation, including limiting access of non- essential visitors to its operations, has been interpreted as the thin end of the wedge by Macquarie Research.

It said in a note to clients that it couldn’t rule out future operational disruptions should containment efforts fail.

“At the very least flight suspensions are likely to make it very difficult for senior management located outside the region to visit operations,’ it said.

Getting important supplies to mine and prospecting sites is another potential risk as bulk carriers arriving to collect cargoes may refuse to berth at or near affected ports.
To date, British Airways and Emirates Airlines have suspended flights to Guinea, Sierra Leone and Liberia as well as regional carriers Arik Air and Asky Airlines.

The latest company to respond to the health threat was Tawana Resources which said in an announcement to the Johannesburg Stock Exchange today that it had suspended all non-essential field activities in Liberia.

“Whilst the current drilling program has been temporarily suspended, all other
activities associated with the pre-feasibility study not requiring direct field presence, will continue both in Liberia and Australia,” it said.

“All non-essential local staff, contractors and expatriate staff will return to their
homes in the coming week,” Tawana said.