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Impact of Covid-19 on the Mining Sector and Raw Materials Security in Selected European Countries

Author

Listed:
  • Andrzej Gałaś

    (Division of Mineral Policy, Mineral and Energy Economy Research Institute, Polish Academy of Science, Wybickiego 7A, 31-261 Krakow, Poland)

  • Alicja Kot-Niewiadomska

    (Division of Mineral Policy, Mineral and Energy Economy Research Institute, Polish Academy of Science, Wybickiego 7A, 31-261 Krakow, Poland)

  • Hubert Czerw

    (Division of Mineral Policy, Mineral and Energy Economy Research Institute, Polish Academy of Science, Wybickiego 7A, 31-261 Krakow, Poland)

  • Vladimir Simić

    (Faculty of Mining and Geology, University of Belgrade, 11000 Belgrade, Serbia)

  • Michael Tost

    (Department of Mineral Resources Engineering, Montanuniversität Leoben, 8700 Leoben, Austria)

  • Linda Wårell

    (Economics Unit, Luleå University of Technolgy, 971 87 Luleå, Sweden)

  • Slávka Gałaś

    (Faculty of Geology, Geophysics and Environmental Protection, AGH University of Science and Technology, al. Mickiewicza 30, 30-059 Krakow, Poland)

Abstract

Events that change the global economy rapidly, without warning, in principle strongly affect mining, which is one of the pillars of global development. After the first months of the Covid-19 pandemic, the mining pillar seems to be relatively stable. In this study, thanks to the meeting of an international team, it was possible to collect and compare a set of data on the impact on mining. In contrast to the general assessments of the stability of the mining sector, the authors decided to assess the impact of Covid-19 at individual stages of the mining project life cycle. In this way, it was possible to identify the most impacted fragments of the mining pillar. It was assessed that the highest influence of Covid-19 is observed in projects implementing feasibility studies and in projects for the development of new mines. The same is true of extracting residual resources in mines prior to the closure decision. The medium impact was confirmed at the exploration and discovery stage. The authors conclude that the impact on the current mining production is smaller and the effects in this case are short term, which is mainly due to a continued strong demand for minerals in China, which has balanced the weaker demand in other parts of the world. On the other hand, stopping the exploration and development of new mines will have a long-term impact, including an increased possibility of disruption of the future security of supplies of raw materials.

Suggested Citation

  • Andrzej Gałaś & Alicja Kot-Niewiadomska & Hubert Czerw & Vladimir Simić & Michael Tost & Linda Wårell & Slávka Gałaś, 2021. "Impact of Covid-19 on the Mining Sector and Raw Materials Security in Selected European Countries," Resources, MDPI, vol. 10(5), pages 1-23, April.
    • Handle: RePEc:gam:jresou:v:10:y:2021:i:5:p:39-:d:542028
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    References listed on IDEAS

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    Cited by:

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    2. Dogan, Eyup & Majeed, Muhammad Tariq & Luni, Tania, 2022. "Analyzing the nexus of COVID-19 and natural resources and commodities: Evidence from time-varying causality," Resources Policy, Elsevier, vol. 77(C).
    3. Solangi, Yasir Ahmed & Jianguo, Du, 2023. "Examining challenges and solutions for environmental and natural resource management with a focus on mineral resources," Resources Policy, Elsevier, vol. 86(PA).
    4. Yıldız, Taşkın Deniz, 2022. "Considering the recent increase in license fees in Turkey, how can the negative effect of the fees on the mining operating costs be reduced?," Resources Policy, Elsevier, vol. 77(C).
    5. Yıldız, Taşkın Deniz, 2022. "Supervisor fund expectation for the guarantee of salaries in the presence of the effect of permanent supervisor salaries on mining operating costs in Turkey," Resources Policy, Elsevier, vol. 77(C).
    6. Fuhmei Wang & Jung-Der Wang, 2022. "Estimating US Earnings Loss Associated with COVID-19 Based on Human Capital Calculation," IJERPH, MDPI, vol. 19(2), pages 1-10, January.

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