COVID-19 drives slump in Mexico mining output

Mexico’s mining output dropped by a quarter in April as the COVID-19 lockdown hit operations.

Total production fell 25.1% compared to the same month last year, statistics agency Inegi said.

The fall is by far the biggest registered since the start of 2018 – double the previous record 12.5% drop in April 2019.

Output was down 4.4% in March.

Lockdown measures aimed at stemming the spread of COVID-19 saw most Mexican mining operations halted in early April.

Mining activities only restarted around the start of June after the government deemed the industry essential.

MIXED IMPACT

The Inegi report shows massive variations in the impact of the lockdown on output of different minerals.

Gold – Mexico’s biggest mining export by value – fell by 40.9% to 3,349kg (107,670oz).

The decline was much smaller for copper, down 10.8% to 41,145t, with silver around midway between the two, falling 21.1% to 183,833kg.

Non-coking coal production saw the biggest drop, down 85.4% to 73,976t, followed by lead, down 53.3% to 5,473t and zinc, down 49.6% to 14,367t.

The smaller impact on copper reflects the fact that much of the metal is produced from leaching plants, which cannot be suspended.

Some mining companies, such as Fresnillo and Minera Frisco, are also reported to have secured exemptions to the lockdown, allowing their operations to continue, although this was not confirmed by either company.

Sulfur was the only mineral to increase, with output up 1.2% to 29,967t.

Coke production was down 36.1% to 57,488t, with iron pellet output dropping 22.5% to 463,312t, fluorspar by 15.0% to 88,723t and gypsum by 14.4% to 413,767t.