INVESTORS AND MEDIA In the news
South Africa will close its mines for an unprecedented 21 days as part of a nationwide lockdown announced by President Cyril Ramaphosa in a race to contain the coronavirus.
The move provides a stark reminder of the severity of the developing health crisis in a nation whose economy was built on gold mining. While that industry has declined, South Africa accounts for 75% of the world’s platinum and 38% of palladium supply, and also produces minerals from gold and manganese to chrome and iron ore.
This would be unprecedented in the history of mining in South Africa, aid Roger Baxter, the chief executive officer of the Minerals Council South Africa, the main industry group. “There were certain times when components of the industry were closed, for example during the second world war, but this is unprecedented.
South Africa’s army will help the police to enforce the lockdown that will start midnight Thursday, Ramaphosa said in a televised address. Grocers, pharmacies, banks and filling stations will be allowed to remain open, while the Johannesburg Stock Exchange and other essential services can continue operating.
Palladium and platinum prices extended gains amid a broader rise in the precious metals basket on Monday. “Companies whose operations require continuous processes such as furnaces, underground mine operations will be required to make arrangements for care and maintenance to avoid damage to their continuous operations,” Ramaphosa said.