The Minerals Council of South Africa said if mining operations were to resume after 21-day lockdown, annual production would be 5 percent lower than in 2019.
The Minerals Council issued a statement on Wednesday night saying a longer period of lockdown could result in annual mining production declining by more than 15 percent for the year.
The Minerals Council warned that continued lockdown would result in closure of mines, job losses and a negative impact on the economy.
“Preliminary estimates for a 21-day lockdown scenario suggests that 10,000 jobs would be at risk,” the council said, “a longer lockdown period, with lower production and no mechanisms in place to support the industry, could put 10 percent of the workforce or 45,000 direct jobs at risk. This excludes jobs in supplier industries.”
“The Minerals Council and its members believe that it is possible to get mining back to work at production levels higher than 50 percent while ensuring that all the preventative and mitigating measures are in place to safeguard the health of employees,” said the Council.
They called for the improved licensing requirements for exploration, access to environmental trust funds and possible tax relief.
