Mexican mining industry to fully reopen
( June 2th, 2020)
Edited By David Peng
The mining industry in Mexico-including the world's largest gold mine-is expected to be fully restarted today after the government closed the mine on April 2 in response to the COVID-19 pandemic.
Since the government announced its reopening on May 18, 80% of the mines have resumed operations. Subject to safety agreements (such as mandatory virus testing and social isolation measures), even if someone conducts a positive test of COVID-19 at the site, the mine will still be allowed to operate.
Restarting the mining industry is unlikely to prevent the expected economic growth contraction of 6-8% this year, which is second only to Venezuela’s recession. Given that 50% of the workforce belongs to the informal sector without any social security support or employment protection, layoffs are expected to push 22 million Mexicans into poverty.
At this stage, further government stimulus is unlikely to alleviate the economic downturn. President Andres Manuel Lopez Obrador is unwilling to increase debt. Moderate economic stimulus measures-accounting for 0.5% of GDP, the second lowest in Latin America-are mainly aimed at low-income people. In addition, $10 billion in aid to SMEs is negligible. Instead, Lopez Obrador relied on China's weak economy to attract foreign investment to Mexico. Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours.