Anglo American is withdrawing its 10 000-strong construction workforce at the Quellaveco project, in Peru.
Diversified major Anglo American has withdrawn the majority of employees and contractors from its $5.3-billion Quellaveco copper project, in Peru, to comply with a 15-day national quarantine announced to curb the spread of the pandemic.
The 10 000-strong construction workforce is being demobilised and work on the project will be slowed, with only critical areas of the project continuing until workers can safely return.
“The health and safely of everyone must come first, ever more so at times such as these,” said CEO Mark Cutifani.
He noted that the development of the project had progressed ahead of schedule and within its budget and that it would be able to accommodate the slowdown within its market guidance.
The Quellaveco copper project is expected to begin production in 2022, with an expected capital cost of $5-billion to $5.3-billion. During the first ten years of full production, Quellaveco is expected to produce approximately 300 000 t/y at a cash cost of $1.05/lb.
On Sunday, President Martin Vizcarra declared a national state of emergency and called on citizens to self-quarantine for 15 days. The country had closed its borders to curb the spread of the coronavirus.
On Monday, Peru had 89 confirmed cases of Covid-19.
Mining companies are stepping up precautions as the virus spreads across the globe, with 148 countries now reporting cases. Diversified major Rio Tinto has also announced a slowdown in the construction of the Oyu Tolgoi copper/gold project, in Mongolia, to comply with that country’s measures around Covid-19.
Globally, there are 168 000 confirmed cases, which caused 6 610 deaths.