Minerals Council delivers sobering warning on COVID-19 saying ‘business as usual’ not possible

IT would not be ‘business as usual’ when the South African mining sector emerged from the COVID-19 lockdown, said the Minerals Council South Africa.

Declining to speculate on the resumption of the industry’s full productive capacity, the council said the mining sector would take its cue from the national approach adopted by the South African government.

The government imposed a 21-day lockdown from March 27 to April 17 in terms of the National Disaster Act, and has not given any indication yet of whether the lockdown would be extended. Its intention to ‘flatten the curve’ in the spread of COVID-19 appears to have had some effect based on the current data drawn from available testing.

Current mining operations underway were a consequence of companies having applied to the Department of Mineral Resources & Energy (DMRE) as suppliers of an essential service, or having shown that it was unwise to ‘switch off’ or discontinue operations owing to the highly specialised function of their operations, said the council.

But it had sobering news regarding the economic impact of COVID-19 on the sector confirming the views of analysts who have factored in hits to cash flow for the initial three week lockdown, a possible extension of the lockdown, as well as the likelihood that production build-up will be gradual. The council cited experts who believe the COVID-19 virus peak in South Africa might not be until June.

“When operations do resume, the industry will be well-placed to enter into this new phase of operating in a COVID-19 constrained environment,” said the council. “Our approach to dealing with COVID-19 before the lock-down was risk-based, and it would continue to be so,” it said.

When mines resumed work, procedures would be adopted to protect employee health in line with World Health Organisation protocols. This would include assessing possible symptoms, travel history and recent contacts. “Proper social distancing and face covers in some circumstances would be adhered to during this time,” the council said.

Mines would scale up depending on whether they were surface or underground operations as well as the availability of employees owing to the migrant nature of the workforce. The restart of operations would also be affected by procedures required, for instance, in ‘making safe’ the underground operating environment.

The priority of operations would be to protect employees and could include putting some employees into quarantine whilst providing medical care for employees, families and communities where it was possible, the council said.

“The industry’s approach remains an integrated holistic approach that recognises that fighting this disease is a national and industry imperative,” it said.