Peru miners restart pandemic-hit operations with mass testing, isolating workers
18/06/2020 11:00
By Marco Aquino
LIMA, June 18 (Reuters) - Peru's miners are revving up
stalled operations with mass testing, isolation periods and
revamped shift patterns, setting up the world's No. 2 copper
producer to hit 80% of production capacity by the end of June,
industry officials said.
The restart is key to Peru's economic engine and metals
output which was devastated by the coronavirus pandemic and a
nationwide lockdown. But unions for mine workers have voiced
concerns that some planned shifts are too long while testing and
protective measures need to be strengthened.
The mining and hydrocarbons industry, the top driver of
Peru's exports, fell over 40% in April, with output of copper,
gold, zinc and silver down sharply. Companies are scrambling to
avoid falling further behind larger neighboring producer Chile,
which has maintained production through the pandemic.
At least 41 large Peruvian firms have put in place
government-mandated hygiene protocols as they seek to reach full
production capacity in the third quarter, industry sources said.
"Around the end of June I think we should be reaching 80% of
production levels that we were at before the quarantine," Pablo
de la Flor, executive director of industry body the National
Society of Mining, Petroleum and Energy, told Reuters this week.
He said every company was carrying out rapid tests on
workers before deploying them, with around 90,000 such tests
done so far. That had allowed an estimated 160,000-170,000
miners to return to operations out of 210,000 formal workers.
"Some tests have come out positive, but the important thing
is that cases are identified before workers arrive at the
camps," he said.
Shift systems had been reorganized he added. Distancing
rules of 1-1.5 meters was a challenge at the mines, which was
something the sector was "trying to solve".
Industry concern had centered on the massive Antamina mine,
controlled by BHP and Glencore GLEN.L , which reported 210
COVID-19 infections in April. It was the biggest mining outbreak
in the country and one of the worst worldwide.
"Antamina must have been a world record," said José de
Echave, a former vice minister at Peru's environment ministry
who now works at local NGO CooperAcción.
"That created a suspicion around mining protocols."
VULNERABLE WORKERS
Mine workers have staged sit-in protests at some mines
demanding stronger protective measures, Jorge Juárez, leader of
Peru's mining and steel workers' federation told Reuters.
Juárez said unions objected to 42-day shifts that some firms
were imposing, with 21-day breaks. He said the federation was
pushing for more checks to ensure worker safety. He added rapid
coronavirus tests didn't always work.
"Rapid tests aren't reliable so we want molecular tests that
give more accurate diagnosis," he said, adding there were 821
confirmed cases in the sector. "Workers want to work, of course.
We only ask for guarantees they can work in a safe environment."
Mining companies defended their plans.
"We have rigorous distancing protocols in transport vehicles
and dining rooms. Also, all personnel who could be vulnerable
due to age or illness have been removed," said Raúl Jacob, vice
president of finance at Southern Copper SCCO.N .
"Operating capacity today is above 90%," he added during a
virtual call with Reuters and other analysts and reporters in
early June. Southern Copper, which said one worker was infected
while outside work, is part of Grupo México GMEXICOB.MX .
Peru's government in May allowed mines to resume
larger-scale operation, expected to now drive a recovery in
output. Smaller mines have also since been given the green
light.
As for Antamina, the firm said in a recent internal memo
seen by Reuters and later posted online that workers who tested
negative for COVID-19 would be isolated before starting their
shifts and distancing of 1.5-2 meters would be maintained.
SHIFT PATTERNS
Peru has some 240,000 confirmed cases of coronavirus, the
second highest in Latin America after Brazil, and among the top
10 globally, according to a Reuters count.
The Andean country was among the first in the region to
impose a quarantine in March and has extended it until June 30,
though it also has moved to allow the restart of several key
sectors to reactivate the economy.
Industry sources said some important mines were up and
running, including the Las Bambas copper project operated by MMG
1208.HK and Toromocho controlled by Aluminum Corp of China
601600.SS . Nexa Resources NEXA.N said this month it was
operating its Peruvian mines at near full capacity.
Víctor Gobitz, general manager of precious metals producer
Buenaventura BVN.N , said the length of shifts had been doubled
to 28 days with 14 days off. At some sites workers are now being
housed with their families to reduce the amount of travel.
"We're organizing groups of 5 to 10 people and if there's
any suspicion of contagion, the cell withdraws and another cell
enters," Gobitz said in a virtual conference with international
reporters in late May.
"That way the entire workforce is not put at risk."
(Reporting by Marco Aquino; Editing by Adam Jourdan and Dave
Gregorio)
((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters
Messaging: adam.jourdan.thomsonreuters.com@reuters.net))