Coronavirus company news summary: Mining at forefront of Rwanda recovery – Chinese long steel exports to rise – Pandemic effect on cobalt mining

5 January 2021 (Last Updated January 5th, 2021 10:08)

5 January

Rwanda has given priority to the mining sector under its Covid-19 recovery plan. The country is granting new mining licenses and offering incentive packages to attract investors. Rwanda is aiming to become a regional hub for mineral processing and trading, which will help in job creation and increase export revenues.

Metallic mining production in Peru declined by 3.06% in November last year, compared with the corresponding period in 2019. The decline was registered despite increase in production of tin, zinc and iron by 30%, 21% and 7% respectively. The country’s mining industry bore the brunt of Covid-19 pandemic, especially in the first two months of the outbreak.

Chinese long steel exports are projected to increase early this year continuing Q4 recovery, despite decline in construction activity in the country’s northern region in winter and also due to decreasing competition in Asia-Pacific region. The Asian giant’s wire rod exports surged in November as the prices became competitive and worldwide steel demand bounced back after Covid-19 pandemic induced demand slump.

The mining and shipment of cobalt hydroxide in DRC Congo and South Africa was adversely affected as Covid-19 related lockdowns led to suspension of operations in April and May. The supply of cobalt continued to remain low as the recovery in activity was lower-than-expected vis-à-vis shipments and logistics. Cobalt miners are expected to chase raw materials as they are anticipating supply restrictions to continue in 2021.