Impact of COVID-19 on the mining industry
Impact of COVID-19 (McKinsey):
Production decreased by ~42%. Planned production reduction for 2020 was ~30%. Reasons for this decrease are a reduction in demand and limited workforce.
Most operating costs increased by ~16%. Reasons are additional infrastructure and transportation costs.
Capital costs Half of all operations have decreased their 2020 budgets. The main reasons cited were “cancelations” and “pause of expansions”.