South African mines to ramp up as lockdown eases

All of South Africa's open cast mines can resume full production once the country's Covid-19 lockdown period ends on 30 April, while all other mines will operate at 50pc of capacity.

Currently, only those mines supplying coal to state-owned utility Eskom are operating at full capacity because electricity provision is classified as an essential service under the country's regulations aimed at limiting the spread of the Covid-19 pandemic.

Most other mines are operating at a 50pc capacity, unless they have obtained special permission from mining and energy minister Gwede Mantashe to operate at a higher production level.

President Cyril Ramaphosa yesterday outlined a phased, risk-adjusted plan for South Africa to restart its economy, which will see a limited number of sectors resume operations next week.

This comes after Ramaphosa announced a wide-ranging R500bn stimulus package on 21 April, along with an extensive range of tax relief measures. Amongst these was a three-month deferral for the filing and first payment of carbon tax liabilities to 31 October 2020.

"Our economic strategy going forward will require a new social compact among all role players — business, labour, community and government — to restructure the economy and achieve inclusive growth," Ramaphosa said when he announced the package.

Finance minister Tito Mboweni will shortly table a revised budget bill to parliament to deal with all the measures that were announced.

"To manage the health risks of this extremely contagious disease, international experience suggests that a phased approach to the normalisation of economic activity is required, Mboweni said.

Very little is known about how comorbidity factors affect infection and mortality rates, and with existing health problems, cramped living conditions and poverty within the South African, caution is warranted, he said.

South Africa has eight million people infected with AIDS and 300,000 tuberculosis sufferers, which increases its population's vulnerability to Covid-19.

But the longer that growth remains weak, the greater the risk that there will be permanent destruction of economic capacity, which in turn will have serious implications for the income streams of households and companies, Mboweni warned.

Next week, only those sectors with a low rate of Covid-19 transmission and high economic or social value will be allowed to resume. All businesses including mines will have to maintain strict health and safety protocols, including disease surveillance, infection prevention and stringent social distancing measures where possible.

Staff will be screened daily for Covid-19 symptoms, including a temperature assessment. All employees will have to wear cloth masks. Employers have to make sanitisers available or hand washing facilities with soap. Workers older than 60 and those with comorbidities will be allowed to work from home or remain on leave with full pay.

Going forward, economic restrictions will be adapted according to infection levels and the health system's readiness, and may need to be relaxed and tightened in different periods, Ramaphosa said.

An alert system has be created with clearly defined levels of restriction, with five being the highest and one being the lowest. The government will impose these as necessary and, where risks begin to emerge, targeted lockdowns may need to be re-imposed

On 1 May, the country will transition from alert level five to alert level four. Under level four, all essential services plus a limited number of sectors will be allowed to resume.

Borders will remain closed for all goods transportation apart from essential items and no international passenger travel will be allowed except for South African nationals returning or foreign nationals being repatriated.

Only when the country's level of alert is scaled down to two, defined by a moderate spread of the virus combined with high readiness of the health system, can all mines resume operating at 100pc of their capacity.

Once the lowest alert level of one is reached, when virus spread becomes low and the health system is in high readiness, can all sectors resume 100pc of operation and interprovincial movement will be allowed again. And only at this level will a 7pm-5am curfew that will apply across the country be lifted. But international travel remains restricted.

The South African Chamber of Commerce and Industry (SACCI) commended the government's "well thought-out" plan to gradually reopen particular economic sectors, while continuing to mitigate against the pandemic.

To date South Africa has confirmed just under 4,000 Covid-19 cases and 75 deaths. The spread of the virus in the country is expected to peak in September.

By Elaine Mills