The latest data released by the Australian Bureau of Statistics highlighted the significance of the mining sector in boosting the country’s economy. The mining industry’s GDP surged by 4.9% in 2019-20, totalling $202bn, while the economy was contracting due to the Covid-19 pandemic. Mining emerged as the biggest industry in the country accounting for 10.4% of the economy.
Anglo-Swiss miner Glencore registered robust production during Q3. Copper production increased by 17.6% compared to Q2 as Covid-19 related lockdown restrictions were lifted. The company, however, has cut its coal output guidance by 5.7% in 2020. Glencore’s coal production declined by 20% year-to-date at 83.5mt due to the union strike at its Cerrejon mine in Colombia for the past two months.
Canadian gold and silver miner McEwen Mining reported an increase in output during Q3. McEwen’s mines were shut down in Q2 due to the pandemic but were able to resume going into Q3. Aluminium production is projected to increase by 2% in 2021 as prices rebound after the coronavirus pandemic, which led producers to reduce output. Total production from its four mines during Q3 was 23,100oz of gold and 575,000oz of silver.
Aluminium will be in oversupply thanks to production overtaking consumption in 2020, according to a report by Fitch Solutions Country Risk & Industry Research. The oversupply of the mineral, however, will start contracting from 2021 and the trend will continue for the next four years before expanding in 2025.