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Ppt coImpacts and opportunities of the Covid19 on Mining Regions and Cities - A joint OECD and MIREU eventmpendium

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The COVID-19 pandemic is affecting regions and cities specializing in mining and extractive activities in different ways. The mining sector, which is highly dependent on commodity markets, is particularly vulnerable to the effects of external shocks, in terms of jobs, income levels and living standards.

The virtual discussion examined the impact of the coronavirus pandemic on mining regions and cities, policy responses and opportunities that have emerged in the short and long term. This virtual discussion provided a platform for the exchange of experiences and best practices of OECD and MIREU mining regions and cities in the context of the COVID-19 crisis. In addition, the results of the surveys conducted by the representatives of the mining regions were presented.

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Ppt coImpacts and opportunities of the Covid19 on Mining Regions and Cities - A joint OECD and MIREU eventmpendium

  1. 1. 23rd June 2020 webinar OECD & MIREU: COVID-19 ON MINING REGIONS AND CITIES
  2. 2. 1. Image of the event 2. A snapshot of the Q&A 3. Speakers presentation directory 4. Webinar overview Table of contents
  3. 3. Webinar - 23 June 2020
  4. 4. “The pandemic accelerated pre-existing declining conditions in coal regions, with a significant impact in co-power generation sector’’ “COVID-19 has had a differentiate impact across countries, not all closed down the mines and some kept production (Sweden, Finalnd)’’“Recovery strategy in Western Australia involves diversifying in related sectors across the mining value chain” ‘’ It remains crucial to investigate diversification opportunities from supply chains – related sectors are very important for us in the quest for diversification’’ “The Corona Crisis might increase regional dependency on extractive industries as other Industries like tourism are severely impacted and had to lay off workers. In that context transferable skills are key to over between industries” “A policy framework to coordinate mining development with a broad vision of regional development is crucial to overcome this crisis in the short term and prepare communities for future shocks” ‘’We are just at the beginning of the crisis we now have to learn how to navigate situations with a lot of uncertainty, building the right capabilities for regions is key to handle these processes’’ 2. Voices from the room – a snapshot of the Q&A
  5. 5. • OECD Preparing Mining regions and cities for the future ANDRES SANABRIA FERNANDO RIAZA OECD SLIDE 7 • COVID-19 impact in MIREU regions JUHA KAIJA MIREU SLIDE 19 • Impacts and responses of COVID19 in Chile RONIE NAVARRETE Antofagasta, CHILE SLIDE 30 • COVID-19 and mining in Western Australia JOHN ACRES Western Australia, AUSTRALIA SLIDE 45 • Challenges and opportunities for the Silesian Voivodeship ANNA DUDECK Silesian Voivodeship, POLAND SLIDE 46 • Preparing Mining regions for the future in Greece ATHANASIA ZOVOILI Region of Central Greece, GREECE SLIDE 61 3. Speakers presentations directory
  6. 6. The COVID-19 pandemic is affecting regions and cities specialized in mining and extractives activities in different ways. The mining sector, which is highly dependent on commodity markets, is especially vulnerable to the effects of external shocks, in terms of jobs, income levels and living standards. Mining regions and cities are exposed to the shock effects of COVID-19 on both the supply and the demand side. On the production side, lockdown measures have influenced working conditions and input supply chains, potentially affecting production levels. On the demand side, the global drop of manufacturing and construction activity can reduce the demand for minerals and metals, which may lead to disruptions in the value chain. These combined effects can influence productions levels and eventually jobs, income and well-being in mining regions and cities. Why attend? This virtual discussion will serve as a platform to share experiences and best practices by OECD and MIREU mining regions and cities in the context of the COVID-19 crisis. In addition, the results of the surveys conducted by the representatives of the mining regions will be presented. Welcome - MIREU and OECD Secretariat Context – Impacts of COVID19 in mining regions and responses MIREU will describe the main impacts to COVID-19 to mining regions Experiences from: ‒ Antofagasta, Chile ‒ Western Australia, Australia Open Discussion Preparing for the future – measures to improve resilience OECD will explore the key opportunities arising from the crisis Experiences from: ‒ Śląskie, Poland ‒ Sterea Ellada, Greece ‒ EU coal regions in transition Open Discussion Summary and closing MIREU and OECD Secretariat 4. Webinar Overview Agenda
  7. 7. PREPARING MINING REGIONS AND CITIES FOR THE FUTURE OECD/ MIREU Webinar: Impacts and opportunities of Covid-19 on Mining Regions and Cities Rural and Regional development Unit, CFE, OECD
  8. 8. 1. Ongoing megatrends and emerging changes from COVID-19 in mining regions and cities 2. Responses to OECD survey 3. Attaining a resilient future for people, business and the environment in mining regions 8 Structure of the presentation
  9. 9. Relevance of mining for regional development High wage jobs Innovation and development of new technologies and… Greater investments on infrastructure and services (health centres) Environmental and social impacts Greater volatility in regional growth High productivity with uneven distribution of benefits (mining benefits outside the community) Mining and extractive activities are spatially concentrated
  10. 10. Megatrends impacting mining regions and cities Opportunities (selected) Challenges (selected) Demographic changes • Migrants may enhance labour supply. • Lifelong learning for old workforce to keep adding-value. • Shortage of labour from local demographic decline. • Reduction of social, economic and cultural activities from youth out-migration • Higher pressure to local finances. Climate change and environmental pressures • Competitive advantage from high environmental standards in mining • New jobs from the development of environmentally friendly technologies. • Increased need for minerals and metals in the production of renewable energy • Pressures to reduce environmental footprint throughout the value chain • Increased public scepticism towards mine explorations and opening Technological innovation • Compensate for shortage of labour. • Enhance attractiveness of mining regions (e-services). • Raise productivity with environmentally friendly processes • Greater labour opportunities for young and women (Prepare workforce for the future) • Automation of jobs in the mining sector. • Impact competitiveness if technological innovation is produced outside the region. • Reduce the need for certain minerals from laboratory products or recycling processes Source: OECD (forthcoming) OECD Mining Regions Case Study: Västerbotten And Norrbotten, Sweden
  11. 11. COVID-19 crisis could induce shifts in industry and policy decisions • Opportunities for local entrepreneurs to participate in the mining value chain • New jobs and business at regional level • Greater networks with other suppliers Possible consequences from COVID-19 crisis Greater emphasis on resilience of mining value chains: • Diversify suppliers, increase stock • Delocalize production of inputs on-site (i.e. 3D printers) Increased focus on developing automation and remote operations of mines Increased national/regional policies to increase self-sufficiency on certain industries or inputs capabilities Speeding up the transition to a low - carbon economy • Competition to traditional suppliers • Disruption in local labour markets • Economic transition (coal communities) Effects at local level
  12. 12. 12 Survey: Sample profile Geographical distribution of survey respondents Source: Own elaboration Number of responses per continent • 21 valid answers, from across 4 continents and 12 counties • 48% respondents belong to the private sector, 38% to the public and 14% to NGOs and academia.
  13. 13. • Responses indicate that Latin- and North America have been relatively more impacted than Europe • Limited job losses, mostly outside the mining sector in third sectors such as tourism or recreation • Movement restrictions have affected drive-in/drive-out workers • Value chain remains resilient to external shocks, but raises medium- term concerns • Uncertainty in the international commodity market 13 Survey results: Q1 - What are the impacts on your mining-related activities and local/regional economy brought by the COVID-19 pandemic?
  14. 14. • Improving health security is the #1 priority - e.g. updating H&S protocols • Nearly half of respondents highlight measures to protect local employment • Respondent from North- and Latin America report steps to restart mining activity • Addressing the lack of revenue has generally been implemented through unemployment packages 14 Survey results: Q2 - What kind of measures has your national, government, region, or city implemented to address COVID-related impacts mentioned before?
  15. 15. • Cross-sectional nature of the resilience • Great importance of investing in digital infrastructure and economic diversification as drivers of resilience building • Respondents from North- and Latin America, unlike Europe, see a need for improved labour market policies 15 Survey results: Q3 - What mining regions and cities need to do to become more resilient to future shocks?
  16. 16. Dimension Policy objective Action areas (examples) Competitiveness and diversification Producing more value in extractive industries Long-term planning for regional infrastructure networks, moving up in GVC. Diversifying into other economic activities Upscaling suppliers/SMEs, supporting clusters, green technologies and services Preparing workforce for technological change Life-long learning for workforce, matching curriculum with future industry needs Quality of life and attractiveness Enhancing local quality of life Improving broadband quality and accessibility, quality of services, land-use coordination, environmental impacts Making growth more inclusive Entrepreneurship support for women, young and Indigenous peoples Integrating elderly population in local economy. Regional governance and public investment Making the most out of fiscal transfers and benefit-sharing mechanisms Linking planning and budgeting (multi-year planning), developing framework for monetary and non- monetary benefit-sharing Developing collaborative institutions for development Developing a common vision and priorities for regional innovation Integrating planning and community engagement Strengthening mechanisms of dialogue and consultation, transparency and urban-rural linkages 16 Integrating mining with regional development for a resilient future of communities and environment Source: OECD (2016) Mining regions and their cities: scoping paper, http://www.oecd.org/regional/regional-policy/Scoping-paper.pdf
  17. 17. THANK YOU ANDRES.SANABRIA@OECD.ORG, LISANNE.RADERSCHALL@OECD.ORG WWW.OECD.ORG/CFE/REGIONAL-POLICY/MINING-REGIONS.HTM
  18. 18. Next Steps Case studies Thematic study Events
  19. 19. COVID-19 impact in MIREU regions Juha Kaija, Geological Survey of Finland- GTK on behalf of the MIREU team Besides MIREU regions, presentation is based on the data and information of Secretaría General de Industria, Energía y Minas – Junta de Andalucia, Spain; Mining Finland, FinnMin and Technology Finland; Swedish Association of Mines, Mineral and Metal Producers - SveMin, Sweden; AMINER - Andalusian employer mining-metallurgical companies, Spain; CONFEDEM- Confederación Nacional de Empresarios de la Minería, Spain; This project has received funding from the European Union’s Horizon 2020 research and innovation programme under Grant Agreement No. 776811 | Topic: H2020-SC5-2017
  20. 20. The MIREU aims to establish a network of mining and metallurgy regions across Europe  Council of Mining and Metallurgy Regions of Europe (CoMMER) • will help the regions to share knowledge and experiences when facing the challenges to establish and maintain an extractive industry • Also EU level Social License to Operate (SLO) Guidelines and much more! This project has received funding from the European Union’s Horizon 2020 research and innovation programme under Grant Agreement No. 776811 | Topic: H2020-SC5-2017
  21. 21. Covid-19 and mining regions – some questions Covid-19 pandemia proven how fragile production chains are – it offers good opportunity to show how essential the European mineral raw materials are for the society • During the Covid-19, has there been signs of an increased understanding of the importance of the European mining industry ? • Do people understand the importance of mining better now? • Have the mining industry and mining regions done their best to tell this story? • How are junior mining and exploration companies coping with declining economy? • Has there been enough financial support for junior companies? • How regions can survive through the crisis ? Response (immediate/short-term support – Repair (next 2-3 years) – Recovery (long- term recovery)
  22. 22. Impacts on exploration – is 2020 a lost year? • Crisis hit on exploration companies – cease/delays in activities • One major effect on operations is the limitation to international workers and expertise. • Significant decrease in field work in summer 2020 – delays in many projects • At least 2-3 months delays • Crucial especially for SME drilling companies, service providers, summer trainees, but might affect in future also investments • Analysis and work – with drilling programmes before lockdown continues • In Ireland: licensees should inform any effects on work and expenditure programmes from COVID-19 preventative measures; and the permitting authority takes these effects into consideration when assessing licensees expenditure and work programmes • In Sweden: Svemin has put pressure on the Swedish government that 2020 must be seen as a lost year, meaning that all exploration permits should automatically be extended by one year.
  23. 23. Overall situation on mining and metallurgy • Not yet significant impact on mining, mining companies have performed quite well, manufacturing facilities continue producing and promoting remote working where possible. • Mining companies invest in their current mining activities, instead of expanding • Growing impact on metallurgy and manufacturing, exploration and for the technology and service companies • Posing significant challenges to an increasing number of companies • One difficult scenario is the simultaneous infection of workers • Shifts have been organized or reduced to decrease exposure times and contact between colleagues. • Reguests for tenders and demand is decreasing • New orders and demand have decreased in metallurgy and mining related manufacturing but not in mining • Exceptions can be found, e.g. Metso declares increase in new orders • Difficulties to get payments due to customers financial issues • Postponement or total withdrawal of agreed orders • Unable to conduct work due to restrictions (travelling, cancellations of visits etc) • Reduction in the presence of contractor companies whose services are not urgent or a priority right now • In mining impacts are mainly on new investments and expansion projects
  24. 24. Mining and metallurgy – examples from Ireland, Spain and Sweden • As a result of the lockdown both of Ireland’s two operating mines went into care and maintenance • Boliden Tara Mines DAC zinc mine in Navan Co Meath made the decision to reopen • Essential service due to the fact that they are a part of international value chains for raw material needed in a variety of industries, including the medical industry. • The Spanish mining industry is considered essential (e.g. Asturias, Castilla-Leon or Andalucia), as it is a supplier of raw materials irreplaceable for our society, even for making medical or sanitary devices. Therefore, the mines are producing at normal rate. • The process industries in Spain, aluminium, steel, chemicals, etc., are also essential and they kept activity, sometimes reduced but enough to not stop, of course having extra and full H&S measures to avoid COVID spreading. • Due to increased spread of the coronavirus in Norrbotten, LKAB is taking further measures that will apply to all employees in Sweden • One plant has been closed for several days, due undermanning and safety considerations.
  25. 25. Mining and metallurgy – example from Lower Silesia, Poland KGHM Polska Miedź S.A. • The coronavirus pandemic has not yet had a significant impact on the group's production results. • NITROERG Capital Group of KGHM, producer of explosives, has started production of Nitrosept liquid for disinfection for the needs of the KGHM Group Mining Plants, other mining plants and for general use - for sale. Rock raw materials and aggregates • No influence, some mines have even hired new employees. MAŁOPOLSKA REGION Olkusz – Pomorzany Lead and Zinc Mine: • The COVID 19 pandemic has contributed to the speeding of the liquidation decision of the Olkusz- Pomorzany Mine. The main reason for the termination of mining is the depletion of zinc and lead ores. • The radical changes on the market in December 2019-April 2020 caused by the outbreak of the coronavirus pandemic affected the decrease in metal prices, accelerating the decision to end production (by about a year).
  26. 26. Economical measures – also for the extractive industry? • European Commission recovery plan: Next Generation EU: €750 billion as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the total financial support of the EU budget to €1.85 trillion • EIT-Raw Materials Booster Call for businesses affected by the COVID-19 crisis to support the future recovery - up to 200 000 € in funding per application • The crisis funds offered by the European governments and regional authorities – many small exploration and mining companies are not very convinced about them – slow process & inadequate Example from Finland: • GDP is projected to decrease by 5.5% in 2020, based on the assumption that restrictive measures will last for three months - however, the uncertainty is much higher than normal • Finnish government amending budget proposal of additional 4.0 billion € in June 2020 includes a package of measures to support the economic recovery from the coronavirus situation, for example: • 970 million € to support all business sectors • 300 million € to be used for the development of the battery cluster - Suomen Malmijalostus Oy • 150 million € to strengthen the balance sheet of Suomen Malmijalostus Oy (state ownership in mining companies has been centralized in this company) • 2 million € to the Geological Survey of Finland for use in the development of the GTK Mintec pilot plant complex
  27. 27. Three pillars of the next generation EU
  28. 28. Post-crisis recovery European mining is essential for increasing the EU’s security of supply for many metals and minerals! Example: three fundamental measures for the recovery of the Spanish mining industry: 1. Streamlining of permits and procedures for pending projects, taking into account the strategic-essential nature of mining activity. 2. Reduction of fiscal charges (local taxes, fees, etc.); creation of aid to support measures against the pandemic that the sector is already implementing and increasing the added value of the mining industry. 3. Promotion of the use of metals produced in regions, like copper, considering its properties, such as antimicrobial, and promoting activities that consume copper: electric batteries, energy renewable, sanitary uses. Regional Mining Authority in Andalucia - SGIEM has already initiated several processes to modify the regulations with an impact on mining. A new Decree has been approved to simplify the land use permitting process for mining industry.
  29. 29. www.mireu.eu @MIREU_EU @MIREU.EU www.linkedin.com/company/11376706/ This project has received funding from the European Union’s Horizon 2020 research and innovation programme under Grant Agreement No. 776811 | Topic: H2020-SC5-2017 Thank you for your attention! PARTNERS
  30. 30. 1 "Impacts of COVID19 in mining regions andresponses” VIRTUAL DISCUSSION Ronie Fernando Navarrete T. Regional Ministerial Secretary for the Economy Antofagasta Region June 23, 2020
  31. 31. 22 CHILE It is a country located in South America. Its capital is the city ofSantiago. • Approximately55%ofChilean exportsare related to theminingsector. • Chilehas21.9%ofglobal lithiumreserve. • It hasthedriest desert in theworld. • Chilehasthelargest astronomicalcenters in theworld. TheChileaneconomyis internationally knownas oneofthestrongestonthecontinent. TOTAL POPULATION 19.458.310
  32. 32. MINING COPPER Chile is the is the largest copper producer in the world, satisfying 36% of the world market andhas 28%of the world's copperreserves. MINES Thestate-ownedcompanyCodelco, theworld's largest coppercompany,exploits someofthemain Chilean deposits, suchasChuquicamataandEl Teniente,thelargest open-pitandunderground minesin theworld,respectively. 3
  33. 33. PRODUCTION AND RESERVES INCHILE MINERAL COPPER GOLD SILVER MOLYBDENUM IRON RANKING IN WORLD PRODUCTION PARTICIPATION IN WORLD RESERVES PARTICIPATION IN WORLD PRODUCTION PRODUCTION IN CHILE 43 3
  34. 34. ANTOFAGASTA REGION • Antofagasta concentrates 52% of the national copper production. An industry that has managed to become the protagonist of its economy and that has caused the region to position itself as an increasinglyattractive andrelevant economichub. • Considered the cradle of large copper mines, such as the centennial Chuquicamata and the rich Escondida deposit, among other minerals, the region is, by all accounts, the most important mining center in Chile thanks to its generous resources. • And it is that given the strong presence of this industry -with such gravitating actors as Codelco, BHP and Antofagasta Minerals, among others- and the great mineral wealth that houses its extensive territory, the region concentrates a large part of the mininginvestmentportfolio. 43 4
  35. 35. IMPACTS OF COVID19 INMINING MEASURES The spread of the coronavirus has not left anyone indifferent. Its effects at the health, economic and social level are evident. In the case of mining, Covid-19 has forced to implement measures and new business strategies to continue operations around the world. STRONG "Miningdoes not fail Chile andit does notstop, but it does take measures to care for its people” 6
  36. 36. 77 IMPACTS OF COVID-19 IN MINING The signs at the beginning of this 2020 promised a more positive context for the mining industry. Along with this, there was a rebound in the international price of copper, as a result of the rapprochement between the United States and China in their trade dispute. But the Covid-19 coronavirus outbreak changed the scenario overnight. Closing of borders, worldwide cancellation of massive events - including in Chile with the Expomin 2020 fair, postponed until the end of the year - and the establishment of quarantines and restrictions on the free movement of
  37. 37. Price, demand and supply • The fall in the price of raw materials is one of the negative effects that the pandemic caused by the Covid-19 coronavirus has generated. • The impending global recession will strongly affect the demand for base minerals such as copper, nickel, aluminum, iron or zinc, and even lithium andcobalt. • In the case of Chile, it considers that the effect of the stoppages at the moment (until the beginning of April) is very marginal, but does not rule out its growth as the number of infected persons increases or restrictions on movement between regions tighten, despite the companies' declared commitment to operational continuity. 83 7
  38. 38. Reactions & Responses Despite all this, mining is considered to have reacted proactively “throughthe reduction of personnel onsite, greater distancing, temperature monitoring, etc. Contingency plans are being implemented in case your workforce becomesill andhasoperational problems. Miningcompanieshavetakenthis pandemic seriously andrecognize as a possibility that mining production could besignificantly affected. Inother words, the country's main activity canpresent a complexscenario if this situation continues to growandgets out of control. ” 83 8
  39. 39. 10 In support of small miners Small andmedium-sized mining donot havethe financial backsthat Large Mininghas. For this reason, the National Mining Company(ENAMI),hasadoptedaseries of actions to help these actors. Hedecidedto providein anextraordinary way, fromMarch,advancepaymentsof 50%to all copper&goldproducersat the timeof the delivery of theirlots, plus 40%&25%respectively of the settlement after 12daysif the analysis ofthe sampledoesnotyieldsresult of law Boththe miningofficeswill continueto operate normally, butwithareduction in their personnel. In addition,the companyunveileda plan to paysmallminersbywiretransfer or voucherissuance.
  40. 40. 1111 ANTOFAGASTA REGION MINING SUPPLIERS The current coronavirus situation has triggered a crisis (in development) classifiedasabrupt,puttingthecontinuityof organizationsatrisk: • Suppliersaleshavefallen,onaverage,between25%- 40% •Teleworking has been adopted as far as possible as a work platform for suppliers and customers. However, the operation of clients still requires theparticipationofhighstaffinglevels. •Customers are more sensitive to the behavior of suppliers. •Customers have substantially limited the purchase of products / services classified as non-essential. Customers and suppliers are seriously affected by rumors regarding job stability.Rumorscauseharmtoorganizationsastheyincreaseuncertainty. However,if companies(beingresponsiblewiththebusiness)placepeopleasagreatdecisionfactor,the impactofthe crisiswillbetolerable.Otherwise,it willbeirreversible. 11
  41. 41. MINING PRODUCTION InApril 2020, the series withseasonal adjustment andcalendareffectcorrected for the MiningProduction Indexrecorded an increase of0.8%comparedto the previous monthandaninterannual decrease of 0.7%. Thetrend-cycle series recorded an annualized monthlyincrease of1.2%in the long-termevolution. Evolution of the mining production index January 2018 – April 2020 Indexvalues Mining production index Tendency - Cycle Months 121212
  42. 42. MINING PRODUCTION In the analysis period, the mining production index showed an interannual decrease of 0.5%, as a consequence of the lower activity registered in two of the three types of mining that comprise it. Metal mining decreased 0.8%,subtracting 0.809pp. to the variation in theindex,asaresultofthe 1.4% decrease in copper extraction and processing,dueto less processingand lower ore grade in important companies in the sector. Evolution of the mining production index January 2018 – April 2020 Variation 12 months Forits part, non-metallicminingincreased16.4%andhada0.595 pointimpact.inthevariationofthe Mining production index months variation(%) Indexvalues 1313 generalindex,dueto ahigherproduction oflithiumcarbonateand caliche. 13
  43. 43. 1414 CHALLENGES 14 One of the big doubts is the duration of the coronavirus crisis, so, the first priority is to guarantee the health conditions to advance the projects. Globalcopper consumptionwill growwiththe advancement of renewableenergyandgreener transportation systems. It should berememberedthat copper is oneof the main componentsof batteries for electric vehicles. It's important to empowerteleworking whenyoucan.The idea is to create adifferent workcontext. Inthe long term, wecontinue to believe that copper fundamentals are strong andthat futuredemandwill remain strong.
  44. 44. AGRADECIMIENTOS 15 Thank you
  45. 45. COVID-19 and mining in Western Australia Stages of COVID-19 economic management • Hibernation • Recovery • Reform and transformation
  46. 46. Preparing for the future Challenges and opportunities for the Silesian Voivodeship 23 June 2020 r.
  47. 47. • IN THE FIRST QUARTER OF 2020, 119.9 THOUSAND JOBS - ALMOST ¼ OF JOBS WERE LIQUIDATED DUE TO THE EPIDEMIC SITUATION, IT CONCERNED ALMOST EXCLUSIVELY THE PRIVATE SECTOR • BY ALMOST 40%, THE NUMBER OF VACANCIES DECREASED COMPARED TO THE PREVIOUS YEAR, WHILE DURING THE ENTIRE SECOND DECADE OF THE 21ST CENTURY IN THE FIRST QUARTERS OF SUBSEQUENT YEARS THE NUMBER OF VACANCIES INCREASED • AT THE END OF MARCH 2020 DUE TO THE EPIDEMIC ALMOST EVERY 6 WORKING PERSONS IN THE PUBLIC SECTOR PERFORMED WORK REMOTELY, WHILE IN THE PRIVATE SECTOR EVERY 12 Impact of the COVID-19 on the labor market in Poland
  48. 48. Unemployment rate (Poland/Silesia; 2019/2020) 4.6 4.5 4.4 4.2 4.0 3.9 3.8 3.7 3.7 3.6 3.6 3.6 3.8 3.9 3.8 4.2 6.1 6.1 5.9 5.6 5.4 5.3 5.2 5.2 5.1 5.0 5.1 5.2 5.5 5.5 5.4 5.8 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 january february march april may june july august september october november december Silesia 2019 Silesia 2020 Poland 2019 Poland 2020
  49. 49. Economic structure of the region (impacted by COVID-19) mining 2018
  50. 50. Gross Added Value in Silesia
  51. 51. Challenges of transition in Silesia ECONOMY QUALITY OF LIFE HUMAN CAPITAL RE-USE OF POST-INDUSTRIAL AREAS FOR INVESTMENT PURPOSES (BROWNFIELD TYPE) REINDUSTRIALIZATION STRENGHTENING COMPETITIVE ADVANTAGES INCREASING THE ABSORPTION RATE OF INNOVATIVE SOLUTIONS INNOVATIVENESS STIMULATION, SUPPORTING RIS REDUCTION OF ACCUMULATION OF NEGATIVE PHENOMENA OF A SOCIAL NATURE ENSURING HIGH QUALITY SPACE AND ENVIRONMENT HIGH QUALITY PUBLIC SERVICES DEVELOPMENT IMPROVEMENT OF FUNCTIONAL CONNECTIONS IN THE REGION HIGH QUALITY OF EDUCATION RAISING QUALIFICATIONS AND IMPROVING PROFESSIONAL ACTIVITY STIMULATING SOCIAL INNOVATIVENESS (OR SOCIAL INNOVATIONS) COUNTERACTING THE NEGATIVE EFFECTS OF DEMOGRAPHIC PROCESSES
  52. 52. Action Plan for Transition in Silesia (adopted in July 2019) HIGH QUALITY OF LIFE IN THE REGION COMPETITIVENESS OF THE ECONOMY BASED ON MODERN ENVIRONMENTAL TECHNOLOGIES DEVELOPMENT OF CREATIVE INDUSTRIES AND LEISURE INDUSTRIES ca. EUR 130 million ca. EUR 44 million ca. EUR 337 million
  53. 53. CA. € 42 MILLION Anti-crisis action packages offered by the Management Board of the Silesian Voivodeship „THE SILESIAN HEALHCARE PACKAGE” Stabilization of hospital finances, modernization of hospital infrastructure, purchase of medical equipment and other equipment necessary to fight the COVID-19 pandemic. „THE SILESIAN ECONOMY PACKAGE” Directed mainly to the SME’s sector. Covers five pillars: working capital and liquidity loans, employer support in maintaining jobs, non- returnable support, support measures (economy promotion & internationalization) and capital entries. „THE SILESIAN PACKAGE FOR RESIDENTS” Covers three pillars: the purchase of personal protective equipment for health care entities, support for health and life protection of people at risk of social exclusion and support for social economy entities. CA. € 230 MILLION CA. € 19 MILLION
  54. 54. Development Strategy „Silesia 2030” (draft of May 2020) Vision of the region in the perspective of 2030 Green Silesia 2030 STRATEGIC OBJECTIVE A: THE SILESIAN VOIVODESHIP AS A REGION OF RESPONSIBLE ECONOMIC TRANSFORMATION STRATEGIC OBJECTIVE B: THE SILESIAN VOIVODESHIP AS AN INHABITANT-FRIENDLY REGION STRATEGIC OBJECTIVE C: THE SILESIAN VOIVODESHIP AS A REGION WITH HIGH QUALITY OF ENVIRONMENT AND SPACE STRATEGIC OBJECTIVE D: THE SILESIAN VOIVODESHIP AS AN EFFICIENTLY MANAGED REGION
  55. 55. Communes in mining transformation (areas of the strategic intervention) AREAS MOST EXPOSED TO RESTRUCTURING IN THE MINING INDUSTRY THE COMMUNES COVERED BY THE MINING TRANSFORMATION PROCESS INCLUDE UNITS WITH ONE OF THE FOLLOWING PREMISES:  LOCATION OF POST-MINING AREAS AFTER MINING OPERATIONS HAVE ALREADY BEEN COMPLETED (MINES CLOSED OR IN LIQUIDATION),  CURRENT HARD COAL MINING ACTIVITY,  THERE IS A SIGNIFICANT NUMBER OF PERSONS EMPLOYED IN THE MINING SECTOR AND A SIGNIFICANT PERCENTAGE OF PERSONS EMPLOYED IN THE MINING SECTOR IN GENERAL.
  56. 56. Strategic undertakings planned in Silesia (1/3) INNOVATIVE SILESIA - „HIGHWAY OF THE FUTURE COMPANIES” RAISE INNOVATION LEVEL OF THE REGION'S ECONOMY, IN PARTICULAR IN AREAS OF SMART SPECIALIZATIONS RE-INDUSTRIAL SILESIA PLANNING, COORDINATING AND ACCELERATING THE DEVELOPMENT OF BROWNFIELD SITES FOR ECONOMIC, SOCIAL AND ENVIRONMENTAL PURPOSES, TAKING INTO ACCOUNT THEIR POTENTIAL AND REGIONAL POLICY OBJECTIVES TOURIST SILESIA INCREASING THE TOURIST ATTRACTIVENESS OF THE REGION BASED ON LOCAL POTENTIALS, THEREBY INCREASING THE LEVEL OF DIVERSIFICATION OF REGIONAL ECONOMY AND BUILDING A POSITIVE IMAGE OF THE REGION HEALTHY SILESIA IMPROVING HEALTH CONDITION INHABITANTS OF THE REGION, INCLUDING THE RESTRICTION INCIDENCE OF CIVILIZATION DISEASES
  57. 57. Strategic undertakings planned in Silesia (2/3) VITAL SILESIA LIMITING THE NEGATIVE EFFECTS OF OCCURRENCE OF ADVERSE DEMOGRAPHIC TRENDS EDUCATIONAL SILESIA INCREASE IN THE LEVEL OF COMPETENCE AND EDUCATION OF RESIDENTS TRANSLATED INTO THE PROCESS OF ECONOMIC TRANSFORMATION OF THE REGION SILESIAN PARK - THE GREEN HEART OF THE REGION INCREASE OF ATTRACTIVENESS ONE OF THE REGION'S "BUSINESS CARDS" AND THE QUALITY OF LIFE OF ITS INHABITANTS CULTURAL SILESIA STRENGTHENING THE CULTURAL SECTOR AND GROWTH PARTICIPATION OF RESIDENTS IN CULTURAL EVENTS
  58. 58. Strategic undertakings planned in Silesia (3/3) LOW-CARBON SILESIA IMPROVING THE QUALITY OF LIFE OF RESIDENTS THROUGH IMPROVING THE QUALITY OF THE ENVIRONMENT, IN PARTICULAR AIR ECO SILESIA IMPROVING THE QUALITY OF THE ENVIRONMENT, PRESERVING VALUABLE AREAS, NATURE AND STRENGTHENING OF CITIES' RESISTANCE TO CLIMATE CHANGE MOBILE SILESIA IMPROVING THE REGION'S ACCESSIBILITY AND COMMUNICATION COHERENCE SAFE SILESIA IMPROVING THE SAFETY OF THE REGION’S RESIDENTS IN CRISIS SITUATIONS
  59. 59. Addressing the challenges after 2020 - summary Not enough innovation Waste of energy Air pollution “Black” Jobs Traffic Clean energy innovation Energy efficiency and energy management Green Jobs Clean transportation Long lasting and expensive process COORDINATED & COMPLEMENTARY TOOLKIT ROP SV 2021-27 (ERDF + ESF+) Just Transition Fund (also managed by the region) Envelopes for SV within European and National Programmes Other public and private resources
  60. 60. Thank you for your attention Regional Development Departament Marshal Office of the Silesian Voivodeship
  61. 61. Εξωτερικό περιβάλλον Region of Central Greece Athanasia Zovoili Rural and Surveying Engineer, MSc Geoinformatics, MSc Environmental Design of Infrastructure Works Deputy Director of Industry, Energy & Natural Resources Region of Central Greece Lamia, GreeceT.+30 2231351282, M.+30 6985864823 e-mail: a.zovoili@fth.pste.gov.gr, azovoili@gmail.com Lamia 2020
  62. 62. About us - 34% share in national agricultural production -10% of the total agricultural area of the country - 13% of all domestic meat production 15.6% of total honey production - 34% of total domestic aquaculture production Second greatest production in white meat, pork and chicken - 13 POP products -15.8% of third-country firms Four Seasons Tourism Thematic, Alternative & Therapeutic Tourism It employs 41.4% of the human resources of manufacturing. - 45% of exports - First highest penetration (61.7%) of eGovernment services offered by public services to citizens and businesses. - 76.3% of the research activity by enterprises (the corresponding figure for the whole country is 34.9%) Agrifood Tourism Metals Innovation Dynamic Sectors of the Region of Central Greece
  63. 63. Mining vs Covid-19 The pandemic is affecting lives and our interlinked economies in many ways. The mining sector is not immune and will be impacted differently depending on the countries, minerals, and modes of operation. The longer-term impact of the health crisis on the world economy—and its consequences for the mining sector—is still uncertain. The longer the supply and demand disruptions last, the more severe the economic crisis will be. Several mines placed in quarantine worldwide. Many governments have taken drastic measures to stop the spread of coronavirus, such as lockdown; orders that have led to temporary suspensions in mining operations. Our country has exempted mines from specific quarantine measures such as lockdown because we knew that closing mines could affect even more the entire economy. Of course, the health and well- being of workers was the main priority for both companies and the government, during this period. This puts producers under duress. The decrease in mineral prices also puts pressure on national economies. With global manufacturing on pause and a marked slowdown in the global economy, demand for minerals has dropped, along with prices.
  64. 64. How we acted Daily briefing of staff on developments regarding the spread of the virus in the country, on current government measures. Campaign to inform all employees both electronically and with leaflets and announcements with written instructions. Removal from work of workers belonging to vulnerable groups. 1 2
  65. 65. The companies adopted a strict distance policy between employees working in the facilities and at the same time limit the number of people working underground. For the latter, and as far as possible, minimum distance guidelines apply, so that congestion is limited to the absolutely unavoidable, while the advanced ventilation systems used in the galleries of the Mines ensure continuous renewal and fresh air flow. Constant temperature intake and oxygen measurement in mining workers, as well as disinfection. On a daily basis, the Operations Center informs about the temperature measurements carried out throughout the 24 hours. Establishment of a special crisis management team with a specific plan for the occurrence of a suspicious case at the facility. Training of health personnel in case a suspected case is required.Special diagnostic test in case an employee presents with COVID-19 symptoms. 3 4 5
  66. 66. Restriction of staff travel by corporate buses and provision of fuel allowance for travel by private vehicles. Imposition of personal protective measures (use of mask and gloves) on the drivers of transport vehicles passing through the facilities. They have distributed to all workplace face masks and antiseptic solutions for hands on all construction sites and ensure sufficient quantities in as a safety stock. Termination of physical internal and external meetings or trainings and adoption of their remote control through available teleconference tools. Application of tele-work gradually in the offices of the facilities. 6 7 8
  67. 67. calls for the resolution of chronic pathogens (by simplifying a series of procedures, but also by easing fuel taxation in order to reduce energy costs for energy etc.) of our region responded to the call of the Greek society for the substantial contribution to the treatment of the pandemic and the protection of the workers in these unprecedented conditions for our country. The next day The companies
  68. 68. Act for the Future Today executives are navigating unchartered waters, putting in place crisis response teams, getting staff to work remotely, and making tough choices on how to shore up their balance sheets and cash positions. Executives are thinking through scenarios ranging from a June 2020 bounce back. Although the crisis could stretch through to the end of the year, or perhaps one that returns in seasonal cycles. The truth is we don’t know for sure. The mining industry is part of the core of human activity and we must be prepared to deal with crises and with a clear plan for the next day
  69. 69. THANK YOU VERY MUCH!!!!!!

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