Measures taken by mining industry to contain Covid-19 will reduce copper production by 5.5% this year

According to a study by the consulting firm Plusmining, the main factors that influence are the cuts in staff and the focus on productive continuity, which delays development work.

In recent weeks, the mining companies have been announcing different contingency plans, with the aim of having operational continuity in their tasks and reducing the risks of contagion from Covid-19.

Most of them chose to reduce their staff and have already reduced their workforce by between 30% and 60%. Another measure has been to prioritize mineral extraction, postponing developments such as investment projects, a decision already made by Teck mining company, with the Quebrada Blanca Phase 2 project, and Codelco, with three initiatives under construction: Chuquicamata Subterránea, Traspaso Andina and the works early Rajo Inca.

Despite the fact that the crisis is still ongoing and that the effects cannot yet be fully determined, the consultancy Plusmining estimated the effect that all these measures will have on copper production for this year. According to that analysis, if the measures adopted by the mining companies extend for a month, the national copper production would decrease by 5.5% this year, that is, about 320 thousand tons of copper less than originally expected.

Source: La Tercera

Translated with Google Translator