Griffin Mining Ltd (LON:GFM) have suspended their operations in China following fears that the coronavirus could disrupt operations and supply chains.
Griffin said that work at its Caijiaying mine has been held following an announcement from the Chinese Government telling businesses to suspend “non-essential business”.
The mine, which provides gold, zinc, silver and lead has been stopped temporarily following the turn of the Chinese new year.
The firm said:
“Further to the announcement made by Griffin Mining Limited on 29th January 2020 concerning operations at the Caijiaying Mine, Chinese Government decrees have now restricted all non-essential businesses activities until 9th February 2020 as efforts are made to contain the Coronavirus outbreak in China.
As advised in the previous announcement, pursuant to past normal operational practices, mining operations were suspended at the Caijiaying Mine during the lunar Chinese New Year festivities with effect from 22nd January 2020, whilst milling operations continued until the 30th January 2020.
Underground workings at Caijiaying are being maintained on a care and maintenance basis with essential services, including pumping and ventilation, ongoing. As planned, the opportunity has been taken to undertake maintenance work at the mill, which has now been completed and the mill placed in care and maintenance. Whilst all essential and senior Chinese staff remain at Caijiaying, all non-essential local staff have been sent home and placed on standby with the expectation of operations recommencing on 9th February 2020 as mandated by the Chinese authorities.”
There have been thousands of people now affected by the coronavirus, and it was reported that the virus had spread into Hong Kong.
Yesterday, Hong Kong reported that they had seen their first death following a diagnosis of coronavirus, and certainly this is not an issue that global governments will want to stretch out.
Beside the fact that the coronavirus has become a global health disaster, the global economy is now suffering major setbacks over the potency of the lethal disease.
Not just for the sake of Griffin, but for the global economy and the health of the world population, the coronavirus will have to be addressed before lives are lost and global trading stumbles.
Shares in Griffin Mining trade at 63p (-2.69%). 5/2/20 12:43BST.