Bushveld Minerals Ltd (LON:BMN) is to close all its mining operations on care and maintenance from 26 March, following an edict from the South African government that mines nationwide must shut for three weeks due to the coronavirus pandemic.
Bushveld owns the Vametco operations and Vanchem operations. These will be put on care and maintenance in such a manner as to allow for a safe and timely ramp up once the lock-down period ends.
To date Bushveld’s supply chains have continued to operate as normal with deliveries of product continued around the world, while the company's ability to source consumables and equipment has not been affected to any material degree.
With regards to the vanadium market outlook, the virus has had a negative effect on the global growth outlook.
"Having witnessed health systems of more developed first world countries get overwhelmed by the pandemic with tragic consequences, South Africa's decisive and bold intervention announced by the government this early in the epidemic's cycle is an existential necessity,” said Fortune Mojapelo, chief executive of Bushveld Minerals.
“It is costly. Yet the costs of inaction are unimaginable. I am encouraged by the comprehensive set of measures, including fiscal ones, that will help cushion both employers and employees.
"I am pleased that our Covid-19 Task Team has shown tremendous leadership in ensuring that the company is best prepared to weather this storm through a comprehensive awareness, prevention, and intervention programme, which includes critical business continuity measures to ensure that once the lock down passes we are able to ramp up our production quickly.
"An important priority of the Company is to ensure that the company's cash reserves and available facilities available to it are sufficient to not only see the company through the lockdown period but ensure a speedy ramp up once the lock down period ends.”