(Alliance News) - Hochschild Mining PLC has halted operations at two of its Peruvian gold mines, the company said on Wednesday.
Shares were 6.2% lower on Wednesday morning in London at a price of 94.75 pence each.
The decision to temporarily stop mining at the Pallancata and Inmaculada comes after the Peruvian government enacted a state of emergency to try to stop the spread of Covid-19.
According to a Peruvian health ministry update given on Tuesday, the country has had 117 confirmed cases of Covid-19. The vast majority are in the capital city of Lima.
The state of emergency took effect on Monday and is expected to last for 15 days. Hochschild plans to restart mining as soon as it is lifted.
The two mines are expected to make up around two-thirds of Hochschild's gold production in 2020.
Chief Executive Ignacio Bustamante said: "The health and safety of our employees, communities and partners is our number one priority and we are closely monitoring the dynamic situation regarding coronavirus and have acted in line with recently-issued Peruvian government response regulations. We will liaise with all stakeholders if there are further developments that specifically impact them.
"Internally, we have already implemented a number of measures including actively monitoring the health of all personnel at our mines and offices, cancelling international travel and introducing arrangements for employees to work from home. All these actions are being coordinated with the support of our in-house medical teams."
By George Collard; georgecollard@alliancenews.com
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Hochschild (HOC)