The Policy Monetary Policy Research Centre (PMRC) says decision taken by government to constitute a team of cabinet ministers, technical experts and trade unionists to look at the sustainability of the mining sector during and beyond COVID-19 is a step in the right direction.
Centre Executive Director, Bernadette Zulu told Money FM News in a statement that while protection and sustainability of mining sector jobs is vital the team needs to ensure that immediate focus is placed on the protection of health and safety of employees though striving to keep mines functioning as effectively as possible.
Ms Zulu said this can be achieved through the deployment of crisis response units for critical decision making to monitor financial health of the mines to maintain cash flows in efforts to ensure continuity in operations and supply chains.
She further urged government to mitigate risks to disruption by instituting early warning mechanisms and implementing measures to protect industry cash flows by deferring tax obligations, considering extension of deadlines and suspension of tax measures that have potential to stall mining and supply chain operations.
“As easing of restrictions around the world is rolled out, government is also urged to prioritize and maintain safety and well-being of employees in the face of possible COVID-19 risks timing of the sector’s recovery period is likely to vary across the globe and there’s need to plan how this will affect operations and business processes with the possibility of restricted travel,” Ms Zulu said.
“Government is urged to institute a fiscal regime that will respond to the prevailing times and attract greater investment to spur a quick rebound,” she said.
She further urged Government to ensure minimal disruptions to the supply chain especially critical supplies and consumables that keep the mining sector functional.
“The effects of the pandemic may inflict changes that in some cases maybe permanent and it is therefore important for industry players to re-think strategies around commodity demand and pricing, work space layout, social distancing and response to future crises,” She explained.
“Given the economic impacts of the crisis mining sector players are urged to prioritize local suppliers while establishing a fair balance with international suppliers.”

She noted that many industries with big challenges to future growth as change is being driven in mining by technology, innovations, better processes, social demands and even new opportunities.
“The unprecedented impact and scale of the COVID-19 pandemic has negatively affected many worlds over and disrupted livelihoods the situation continues to be dynamic and calls for rapid solutions and effective monitoring,” she explained.
“Government is urged to consider the immediate priorities and forecast the future of the mining industry and its evolution, this is one sure way to designing smart strategies to gain competitive advantage and staying ahead,” she said.