Bloomberg writes that when SA mining companies are allowed to recall all their workers as lockdown restrictions ease further on Monday, full production will remain elusive as the pandemic upends operating practices.
Social distancing, screening and testing will hamper the country’s deep-level mines, which have been operating with half their workforce since a five-week shutdown ended at the beginning of May. Virus flare-ups are temporarily closing individual gold, platinum and chrome operations. This new normal could curb output and erode profitability. “We could see a reset in South African mine production capacity lower, even once government mandated employment capacity restrictions have been lifted,” RMB Morgan Stanley analysts noted. Johan Theron, spokesman for Impala Platinum, commented as follows: “Even in a perfect situation with all our workers safely back at work, given the precautionary measures under which we now operate, it is hard to see a return to full operational efficiency.” With transport to the mines beginning as early as 4am, it takes four to five hours to get tens of thousands of workers underground as screenings and other health protocols slow the start of the morning shift. Given the current operational challenges, the industry’s future may hinge on a global solution being found to neutralize the virus, commented Sibanye Stillwater spokesperson James Wellsted.
- Read the full original of the report in the above regard at Mining Weekly
- Read too, SA’s underground mining embarks on extraordinary game of cat and mouse with Covid-19, at Miningmx
Get other news reports at the SA Labour News home page