The COVID-19 pandemic will be recorded as one of the most devastating Black Swan events ever in modern history. No industry will emerge from this period unaffected, and in some cases absolutely ruined.
Everyday the mining the global mining industry issues reports and statement regarding the status of their operations with several in Africa resorting to care and maintenance protocols.
It seems the Democratic Republic of Congo will bear the greatest risk burden.
The country is one of the largest contributors to global mining production when ranked by the sheer monetary value of the mining sector.
The DRC has significant foreign involvement, with at least 25 international mining companies operating in it.
There have been 48 confirmed cases of COVID-19 in the country since the first confirmed case on 10 March – one of the smaller totals on the continent.
Jacques Kyabula, the governor of Haut-Katanga province has since issued a lockdown order. This is significant as the province is a copper and cobalt heartland.
When combined with Lualaba province Haut-Katanga accounts for almost all the country’s cobalt production.
This is a huge concern for the country which is on the brink on becoming a mining superpower.
From a global perspective the lowering of commodity price assumptions by Fitch Ratings has unsettled miners and their relative markets.
Nobody knows for certain, amidst a sea of speculation, what the immediate and long-term future scenarios are for a prolonged lockdown or, hopefully, resuming business and beginning to recover from the Blackest of The Black Swan events.
Read more about COVID-19
If you’re interested to read more about Modern Black Swan events (see list below) and the effects they had on the world – click here.
1997: Asian Financial Crisis
2000: The Dot-Com Crash
2001: Crash of 9/11
2008: Global Financial Meltdown
2009: European Sovereign Debt Crisis
2011: Fukushima Nuclear Disaster
2014: Crude Oil Crisis
2015: Black Monday China