The Impact of COVID-19 on Employment In Mining

This briefing note by the International Institute for Sustainable Development examines the disruptive effects of the COVID-19 pandemic on employment within the large-scale mining sector. It analyzes immediate impacts on direct and indirect labor, the role of national lockdown policies, and the long-term structural shifts toward automation and localized supply chains, while providing recommendations for building future resilience.

• The mining industry's direct employment contribution is relatively small, typically accounting for 1%–2% of a country's total employment. However, it serves as a critical economic anchor in remote areas where it is often the primary job creator and provider of essential social services like education and health care. Additionally, the sector generates significant indirect and induced employment, with multiplier effects contributing up to 15% of national income in some countries.
• Employment risks vary across the mining value chain and are influenced by the project phase and worker status. The construction phase is more labor-intensive than the operational phase, making it more susceptible to large-scale demobilization during lockdowns. Workers categorized as 'essential staff' or those capable of remote work maintained their salaries, while contractual, migrant, and non-permanent workers faced the highest vulnerability to income loss, often under 'no work, no pay' principles.
• The pandemic caused significant disruptions to mining activities based on commodity type and national policy. Energy commodities like coal were generally exempt from lockdowns, and gold prices increased as a 'safe haven.' Conversely, metals such as copper, nickel, zinc, and iron ore experienced production and price declines. Underground mining faced higher health risks due to the use of packed elevators, leading some countries, such as South Africa and Poland, to temporarily close these operations.
• Major mining companies significantly reduced their 2020 capital expenditure (CAPEX) forecasts. Glencore planned to reduce CAPEX from USD 5.5 billion to between USD 4 and 4.5 billion, while Rio Tinto and Anglo American each cut their initial projections by at least USD 1 billion. These reductions and project delays are expected to lead to temporary layoffs and fewer employment opportunities, particularly in construction.
• COVID-19 is accelerating structural changes in employment models and technology adoption. In Australia, travel restrictions prompted a reduction in fly-in, fly-out (FIFO) and drive-in drive-out (DIDO) workers, potentially increasing local hiring or accelerating automation. While full automation is unlikely in the near term due to costs and complexity, the pandemic may lower barriers to adopting labor-saving technologies that were previously avoided due to fear of worker or government backlash.
• The pandemic exposed a dangerous overdependence on global supply chains, prompting a potential shift toward localization. While global sourcing was often chosen for lower costs, the crisis highlighted the benefits of local procurement, including lower disruption risks, shorter delivery times, and increased stability. Governments and companies are encouraged to develop strategic regional value chains and support local SMEs to reduce exposure to global market shocks.
• Governments and companies implemented various short-term relief measures, including declaring mining an 'essential service' in countries like Canada, Australia, Brazil, and Peru. Financial supports included tax relief and VAT postponements in Chile, and corporate solidarity funds, such as BHP's AUD 50 million Vital Resources Fund in Australia. However, the document argues that these blanket measures must shift toward targeted support conditional on job retention and the upskilling of displaced workers.

APA

International Institute for Sustainable Development (n.d.). The Impact of COVID-19 on Employment In Mining. https://www.iisd.org/system/files/publications/covid-19-employment-mining-en.pdf

Chicago

International Institute for Sustainable Development. The Impact of COVID-19 on Employment In Mining. n.d. https://www.iisd.org/system/files/publications/covid-19-employment-mining-en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=The Impact of COVID-19 on Employment In Mining |url=https://www.iisd.org/system/files/publications/covid-19-employment-mining-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndimpact, author = {{International Institute for Sustainable Development}}, title = {{The Impact of COVID-19 on Employment In Mining}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/covid-19-employment-mining-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }