Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The world’s top metal producers are limiting their operations as governments take steps to contain the coronavirus, dimming the supply outlook.
Peru, the world’s second-largest copper miner and third-biggest silver producer, declared a state of emergency for 15 days, closing its borders and ordering a nationwide lockdown to stem the spread of the coronavirus. As a result, Freeport-McMoRan and Newmont are curbing their operations in the country.
The impact of the pandemic goes far beyond Peru. In Canada, Vale SA said it’s putting its Voisey Bay mine under temporary care and maintenance in a move that’s seen trimming the company’s copper output. In Mongolia, Rio Tinto Group’s multi-billion project to develop an underground mine at the Oyu Tolgoi copper-gold site has also been slowed.
The global pandemic that has killed more than 7,400 has forced governments to limit the movement of people to contain the coronavirus, disrupting supply chains and economic activity. Companies including metal producers have curbed their operations to critical activities, while cutting non-essential travel of its office employees to protect their workers against the disease. Below are the impact on their operations:
(By Yvonne Yue Li, with assistance from David Stringer)
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