The Gorno mine closure is not the only operation to impede production, as mines around the world have been thrown into uncertainty; 21-day nationwide lockdown in South Africa has unsettled the platinum group metals industry, with the country responsible for 75% of the world’s platinum production.
There are also fears that the Covid-19 pandemic could trigger a global recession, a turn of events that has historically hindered the mining industry. During the 2008 crash, gold prices immediately rose from $989 per ounce in December 2007 to $1,172 per ounce the following March as demand outpaced supply, but by October the price had collapsed to $872. With gold prices boosted in the short-term by the pandemic –gold prices per ounce increased from $1,489 to $1,570 over the course of a day – there could be a similar long-term decline following this outbreak.
Read more about the impacts of Covid-19 on mining here.