RE: billy/shape8 Apr 2021 23:45
The copper mining hub of Chile is grappling with a large second wave of coronavirus infections amid a national lockdown, yet the mining sector could be poised to push through the crisis largely unimpeded.
Chile implemented renewed border restrictions across major municipalities as the country approached 1 million confirmed cases of COVID-19, which it surpassed at the start of April. While Chile is ahead of most countries in vaccinating its public in pursuit of herd immunity, officials are fearful that the national health system could reach capacity due to the heightened viral spread.
Amid the health panic, the mining sector is likely to be one of the industries least affected by the lockdowns, S&P Global Ratings senior economist Elijah Oliveros-Rosen said in an interview. There may be some delays in transporting staff, but goods will be unimpeded by the restrictions.
"It will have some impact, but I think it's negligible compared to the rest of the economy," Oliveros-Rosen said.
Chile had the highest estimated tonnage of copper production in the world in 2020, totaling 5.7 million tonnes, estimated to decrease to 5.4 million tonnes in 2021, according to S&P Global Market Intelligence data. The country is home to some of the largest copper mines on the planet and a top copper miner, state-owned Codelco. The country was ranked second globally in 2019 for production of lithium, a prized battery metal, and hosts reserves of bulk commodities such as iron ore and coal.