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275 mines around the world are affected by the disruption of the epidemic and focus more on the demand side.
Jul 16,2020 14:38CST
The content below was translated by Tencent automatically for reference.

SMM7 March 16: a few days ago, it was reported that the operation of at least 275 mining projects around the world had been interrupted by the outbreak of Xinguan pneumonia.

As of June 25, the top three commodities most affected were gold (111 mines), silver (101 mines) and copper (51 mines), with Latin America being the most affected region, the report said.

Peru, Chile and Mexico are the three countries with the highest risk of mining revenue in the world, with total risk income from affected mining projects estimated at more than $8.8 billion, according to the report.

Mining industries in Latin America, Canada, South Africa and most other regions have been declared "essential industries" because of their economic dependence on mining, so even if outbreaks occur in some mining areas, it has not led to mine closure or affected production. For example, in April this year, it was reported that an epidemic occurred in Norilsk's (Norilsk) business in northern Russia, which did not lead to mine closure, while Chile's national copper company (Codelco) reported a confirmed new crown case since mining was declared a necessary industry, but production activity did not stagnate widely, but was only temporarily suspended. Similarly, Brazil's Vale also reported new crown cases at the mine, but did not cause further production disruptions.

Although the new regional coronavirus outbreak has not yet affected the global mining industry, if the situation deteriorates, it is still possible that more mines will be closed as a result. The report concludes that for now, the supply-side story is basically over, and the impact of the new crown outbreak on the mining industry is now increasingly focused on the demand side.

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