Aim-listed Caledonia Mining Corporation has been granted permission for the Blanket gold mine, in Zimbabwe, to continue with its operations at a reduced level during the nationwide lockdown of Zimbabwe to restrict the spread of Covid-19, while it awaits a full verdict on its application for exemption from this.
President Emmerson Mnangagwa on March 27 announced the lockdown, which entails that all commercial activities other than "essential services" suspend operations from March 30, for a period of 21 days.
Although the Zimbabwe authorities have confirmed that gold mining is not an essential service, Blanket is currently permitted to continue with its operations, as the authorities will grant exemptions for businesses that demonstrate they can operate in a manner that contributes to the management of the spread of Covid-19.
Blanket mine has applied for such an exemption on the grounds that the mine and its employee village can be quarantined from the surrounding area; and that the mine will reconfigure its operations to reduce the risk of infections being transmitted among its employees.
A key measure to reduce the risk of infections among the mine's workforce will be to increase the "social-distancing" of employees as they enter and leave the underground workings.
This will reduce the number of employees who can work underground and will result in daily production running at about 70% to 80% of the target production rate.
Blanket is permitted to continue operations at the reduced level until its application for exemption is dealt with by the authorities.