PERTH (miningweekly.com) – Diversified miner Rio Tinto has donated $1-million to the Chinese Red Cross Foundation to support a nation-wide medical effort to support those impacted by the coronavirus outbreak.

The funds will be used by the Red Cross Foundation, the Chinese government’s preferred foreign donor, to support hospital upgrades and the purchase of medical supplies in the areas most affected by the outbreak.

The foundation regularly contributes to China’s medical aid programmes, and has been actively raising funds to strengthen medical resources in the affected areas.

“It is deeply concerning to see events unfolding in relation to the coronavirus outbreak, and our thoughts are with the people and families impacted. Many of our Chinese partners are playing a vital role on the frontline of containing the outbreak and, as a company with a long-standing partnership with China, we are committed to helping those who need help right now,” said Rio CEO Jean-Sebastian Jacques.

In addition to the donation, Rio is working with Chinese partners to identify other practical ways the company could be able to offer support.

The novel coronavirus was diagnosed in late 2019 in China, originating in the capital city of Hubei Province.

The Chinese government has taken a number of measures to contain the spread of the virus, including placing all the cities in Hubei Province under quarantine and extending the Chinese New Year holiday. Trains and flights have been cancelled while checkpoints have been set up on roads, significantly impacting land freight.

Market analysts HIS Markit has estimated that the coronavirus will have a larger negative effect on the global economy than the SARS outbreak in 2003, saying in a statement on Thurs that if the current and unprecedented confinement measures in China stay in place until the end of February, and are lifted progressively beginning in March, the resulting economic impact will be concentrated in the first half of 2020, with a reduction of global real gross domestic product of 0.8% in the first quarter and 0.5% in the second quarter.