By Chris Mfula
LUSAKA (Reuters) - Glencore 's (L:GLEN) Zambian subsidiary Mopani Copper Mines (MCM) will shutter its mining operations on April 8 but continue to process material it has on site in its smelter and refinery until further notice, the firm said in a statement on Tuesday.
"In addition to the impacts of a rapid decline in the copper price, Mopani's situation has been further impacted by the critical disruptions to international mobility, transportation and supply chains arising from COVID-19," the company said.
MCM said it has had to halt several projects it was commissioning until key personnel are able to travel to site.
The shutdown is the latest disruption to the global mining sector from the COVID-19 pandemic, which has caused lockdowns and travel restrictions around the world.
The statement did not give an end date for the shutdown. Earlier, Zambia's mines minister said it would be for three months from April 7.
MCM said it was engaging with Zambia's government and unions about its commitments to the workforce.
The miner said it expects permanent Zambian employees, excluding management, will be sent home on their base salary while unionised contractors will receive an "ex gratia" payment.
It said employees and their dependents will continue to receive healthcare and the firm would "remain committed" to its corporate social responsibility projects.
MCM, which produced 119,000 tonnes of copper in 2018, is 73.1% owned by Glencore, 16.9% by First Quantum Minerals (TO:FM) and 10% by Zambia's mining investment arm ZCCM-IH.