South Africa: Major Chrome Ore Miner Tharisa Stops Mining Amidst Lockdown

Tharisa PLC on Tuesday said it will cease all of its South African mining operations after the night shift on Wednesday, Mar 25th in response to the 21 days lockdown declared by President Cyril Ramaphosa.

President Cyril Ramaphosa announced that South Africa will close its mines for 21 days, as part of a nationwide lockdown until 16th April, in a race, to curb the outspread of the coronavirus. "Companies with operations that require continuous processes, such as furnaces [and] underground mine operations, will be required to make arrangements for care and maintenance to avoid damage to their continuous operations," he said.

"The company fully supports the initiative of lockdown government in dealing with the Covid-19 pandemic and will implement all measures as directed by the government", said Tharisa. The company said it will proceed with a systematic procedure of placing its assets on care and maintenance while ensuring both the health and wellbeing of its employees, and that its assets are protected.

Meanwhile, Tharisa also stated that existing chrome ore shipments will continue as long as permissible and Platinum group metals concentrate produced will be delivered prior to shutting down. However, ongoing projects will be suspended. Additionally, Tharisa said it is planning to commence production with effect of the morning shift on April 17.

Force Majeure
South African mining companies held emergency meetings across the country this morning and are expecting a wave of force majeure declarations. Meanwhile, the state transport operator, Transnet has confirmed the bulk terminals closure to mineral shipments under 21 days lockdown imposed by the government. Official declarations of force majeure will probably be delivered soon.

Future Outlook
In 2019, the total imports of Chrome Ore by China stood at 15.92 MnT, out of which South Africa contributed 12.56 MnT. Meanwhile, as China is majorly dependent on South Africa for Chrome ore concentrates and India for Ferro Chrome, the successive lockdown in both South Africa and India will undoubtedly have a severe impact on import-dependent users like China.