Minsur has announced that it will suspend its operations to comply with the Peruvian government’s lock down to prevent the spread of COVID-19.
As the spread of the novel coronavirus (COVID-19) increases, countries and companies are beginning to lock down to prevent infections.
In Peru, President Martin Vizcarra announced a complete quarantine of the country on 15 March to prevent the spread of the virus. Since then, major mining companies, including Anglo American and MMG, have put operations on hold.
Major tin producer Minsur has now announced similar measures. Its administration staff have been operating from home since 16 March, but mining and smelting operations have now been wound down and demobilised.
Our view: In 2019, Minsur produced some 19,600 tonnes of refined tin. The 15-day quarantine period could cause a loss of an estimated 800 tonnes of refined tin production, although it will likely be extended further. The closure of its Peruvian operations does not affect Minsur’s subsidiary Taboca.
Minsur is the second company to reduce production as a result of the COVID-19 outbreak outside of China. Last week, PT Timah announced that it would cut monthly production by some 20-30% and will delay exports.