Mining industry sneezes as Covid-19 wreaks havoc
THE lockdown of China due to the outbreak of the coronavirus (Covid-19) is likely to lead to a drastic plunge in production in the mining industry as most players in the country rely on the Far Eastern giant for the procurement of machinery and components.
Zvishavane-Mberengwa Miners Association (ZMMA) chairperson Mr Themba Sibanda said the outbreak of Covid-19 in China would have a negative impact in the mining sector, particularly in the production of gold.
“Despite the turbulent economic challenges which we are facing as a country including the mining sector, we are being faced with another calamity, which is likely to have a drastic effect on our production as miners in the form of the coronavirus outbreak.
“As you are aware most mining players especially small-scale miners import their mining equipment and consumables from
China and with that country under lockdown, we are likely to suffer due to lack of machinery, back-up spares and unavailability of strategic consumables in mineral extraction,” he said.
Mr Sibanda said despite a myriad of challenges being faced by players in the mining sector smallscale miners especially gold producers were envisaging increased production in the absence of extreme rainfall during the rainy season.
“As small-scale miners we had set sights on improved production since most of us didn’t have their operations hindered by rains but we also witnessed an upsurge of mining wrangles and violent attacks by machete wielding thugs that disrupted production at a number of mines across the country and this negatively impacted on our anticipated deliveries to Fidelity Printers and Refineries (FPR),” he said.
Mr Sibanda applauded the Government for its stance in weeding out violence and efforts of bringing sanity to the gold sector.
“We commend the Government for its efforts in flushing out unruly elements that were perpetrating violence at most gold mining areas as well as its role in formalising artisanal and small-scale miners’ operations,” he said.
ZMMA is one of the biggest contributors of gold to FPR and in 2017 the association contributed 62 kilogrammes to the country’s gold reserve. Its members are also the biggest producers of chrome accounting for 69 000 tonnes in the same year.
An expert in the mining sector and FPR’s Gold Initiative Development Fund head Mr Matthew Chidavaenzi said if the effects of Covid-19 are to persist it was most likely to affect the country’s mining industry especially small-scale miners’ operations.
Mines and Mining Development Deputy Minister Polite Kambamura, however, said the country was not solely reliant on China for the supply of mining equipment and consumables but it also had local manufacturers that have the capacity to fill the void.
“We don’t depend only on Chinese mining equipment but we have local industry that also manufactures and sells mining equipment. This (engineering) industry is in competition with Chinese imports. Mining equipment is also available in neighbouring countries like South Africa,” he said.