Skillings Mining Review June 2020 : June 2020 offered a stark picture of mining’s uneven fortunes in the early months of the Covid-19 pandemic. In the Americas, demand signals diverged sharply. India’s low-grade iron ore exports surged on the back of resilient Chinese steel production, even as new mining projects slowed across the second quarter. Cliffs’ CEO expressed optimism that steel demand would rebound as automakers resumed operations, but layoffs—such as the 300 Powder River Basin coal workers—highlighted the fragility of energy-linked commodities. Concerns over transparency mounted, with federal secrecy cited as a warning sign for projects near the Boundary Waters Canoe Area.
Globally, financing and legal battles underscored the tension. Boliden secured a €100 million loan from the Nordic Investment Bank to expand its Kevitsa mine in Finland, while Fortescue Metals fought S&P in court over iron ore price publication. Meanwhile, iron ore prices rose sharply on China’s continued steel production, and stainless steel output in China hit a nine-month high, providing some market stability amid coal’s deeper slump.
On the equipment and operations front, the month was marked by both tragedy and innovation. Vale warned of increased seismic risks as mines dig deeper, and five miners lost their lives in a coal mine explosion in Laos. Safety remained paramount, with open-pit wireless detonation systems deployed to reduce risk and enhance productivity. Yet Covid-19 disruptions continued, forcing closures such as at Assore’s chrome mine in South Africa. Elsewhere, collaboration expanded: India and Russia partnered on deep-sea mineral mining, while Orica lifted profits but cut dividends to conserve cash.
The global section revealed geopolitical and technological pivots. Ted Cruz called for U.S. independence from Chinese critical minerals, while Rio Tinto pursued M&A opportunities to navigate pandemic uncertainty. Papua New Guinea’s takeover of Barrick Gold’s Porgera mine marked a flashpoint in resource nationalism. Technology advanced rapidly in China, where Shandong Gold installed 5G underground and Yangquan Coal Mine rolled out 5G-enabled mining operations, setting new benchmarks for connectivity and safety. At the same time, Matrix Design launched a new equipment division to support underground coal mines, and De Beers earned recognition for its safety record.
The statistics of the month provided sobering context. April 2020 crude steel production figures reflected sharp declines, while interim economic statements painted a cautious outlook for steel demand recovery. Silver production was among the hardest hit by shutdowns, while gold fared relatively better—underscoring once again the divergent impact of the pandemic across commodities.
The June 2020 edition captures an industry at a crossroads: bracing for layoffs and shutdowns, leveraging technology and cross-border collaboration, and seeking pathways to recovery in one of the most volatile quarters in modern mining history.
