Diversified miner Glencore, with operations internationally, is winding down most of its operations and putting them on temporary care and maintenance as lockdowns are enforced in various countries to slow the spread of Covid-19.
The company has stated that till date, its larger operations have not been materially impacted, however several smaller assets have had to be restricted or stopped operations.
South Africa
The South African government has announced a nationwide lockdown for 21 days from 26 March. In accordance with the guidance received from the authorities:
The company’s ferroalloys operations in South Africa will transition to care and maintenance with effect from 26 March 2020
In case of coal, the company’s majority of coal operations are dedicated to Eskom (power utility firm) under a variety of contracts. Thus, during the nationwide lockdown, the miner will continue to supply coal to Eskom under the guidelines issued by the Department of Mineral Resources. Any export of coal will need to be approved by the Department of Mineral Resources whereas Middleburg and Graspan coal operations will be on care and maintenance, supported by skeleton crews to maintain essential services.
Colombia
In Colombia, the President imposed a 19-day quarantine for the country from 25 March. Although the Presidential decree has exempted mining, growing community tensions and restrictions on logistics have made it very difficult to ensure the continued and safe operation of Prodeco (coal) and the security of its host communities. Accordingly, Prodeco has transitioned to care and maintenance whereas the port will continue to operate.
Canada
The government of Quebec has ordered all non-essential businesses to close in an attempt to slow the spread of COVID-19.
Accordingly, Glencore’s Raglan (nickel) and Matagami (zinc) operations in Quebec will be on care and maintenance for the next three weeks. In Ontario, the government has issued a similar decree, but mining has been designated an essential business and therefore its assets can continue to operate.
Chad
Due to the disruptions to international mobility, transportation and supply chains, Glencore’s wholly-owned subsidiary, PetroChad (Mangara) (“PCM”) has taken steps to commence ceasing production at its Badila and Mangara oil fields.
The facilities at the fields will be secured and remain on care and maintenance while PCM monitors the situation. The transition to care and maintenance is expected to complete towards the end of April.
Leave a Reply