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Glencore update on COVID-19

Published by , Editorial Assistant
World Coal,

Glencore has provided an update on the impact of COVID-19 on its operations. Various governments have imposed far-reaching restrictions to daily life and economic activity, and we have been engaging with the relevant authorities, unions and other stakeholders to understand the impact of these measures on the company’s operations.

We have introduced a number of precautionary measures across the company’s offices and industrial assets in response to COVID-19. This includes the implementation of enhanced hygiene and cleaning measures, application of social distancing and identification of higher risk groups. The company’s goal is to operate only when we can keep the company’s people safe and healthy, while safeguarding jobs and providing support to the company’s local communities.

To date, the company’s larger operations have not been materially impacted, however a number of the company’s smaller assets have had to restrict or stop operations.


The government of Quebec has ordered all non-essential businesses to close in an attempt to slow the spread of COVID-19. Accordingly, the company’s Raglan (nickel) and Matagami (zinc) operations in Quebec will be on care and maintenance for the next three weeks. In Ontario, the government has issued a similar decree, but mining has been designated an essential business and therefore the company’s assets can continue to operate.


Due to the disruptions to international mobility, transportation and supply chains, Glencore’s subsidiary, PetroChad (Mangara) Limited (PCM) has taken steps to commence ceasing production at its Badila and Mangara oil fields. The facilities at the fields will be secured and remain on care and maintenance while PCM monitors the situation. The transition to care and maintenance is expected to complete towards the end of April 2020.


In Colombia, the President imposed a 19 day quarantine for the country from 25 March. Although the Presidential decree has exempted mining, growing community tensions and restrictions on logistics have made it very difficult to ensure the continued and safe operation of Prodeco (coal) and the security of its host communities. Accordingly, Prodeco has transitioned to care and maintenance. The port will continue to operate.

South Africa

The South African government has announced a nationwide lockdown for 21 days from 26 March. We have been engaging with the authorities to understand the impact of the lock-down on the company’s operations. In accordance with the guidance received from the authorities:

  • The company’s ferroalloys operations in South Africa will transition to care and maintenance with effect from 26 March.
  • The majority of the company’s South African coal operations supply Eskom under a variety of contracts. During the nationwide lockdown, we will continue to supply coal to Eskom under the guidelines issued by the Department of Mineral Resources. Any export of coal will need to be approved by the Department of Mineral Resources. With effect from midnight tonight, the Middleburg and Graspan coal operations will be on care and maintenance, supported by skeleton crews to maintain essential services.

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