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De Beers Consolidated Mines (DBCM) communicated in August last year (2015) that it had taken a series of actions to ensure that its South African mining business remains sustainable by aligning production to meet softer market demand and by setting realistic targets and reducing both ‘stay in business’ and ‘expansion capital’ costs.
Over the past two years, DBCM has become a much smaller organisation consisting now of Venetia Mine in Limpopo Province, Voorspoed Mine in the Free State Province and its Sightholder Sales South Africa diamond trading function based in Kimberley in the Northern Cape Province.
Consequently, DBCM cannot maintain the current overhead structures designed to support a much larger company.
DBCM will therefore seek to reduce its 2,236 workforce by 189 positions of which 68 positions may be reduced without retrenchments and by natural attrition from retirements and the redeployment of employees. The remaining 121 affected positions will be concentrated at the corporate offices in Kimberley and Johannesburg, at Venetia Mine and in the Venetia Underground Project (VUP). The Venetia Underground Project is in its third year of development with a project strategy which has evolved from the set-up and ramp-up phases which required a substantial increase in the size of the VUP project team.
The Company will follow the prescribed steps to ensure fair and proper consultation with affected employees and their representatives and it commenced this process on Monday 15 February 2016 by issuing s189 of the Labour Relations Act notices to the specific areas affected in the business.
The Company understands this is a difficult period for all affected and will treat employees with dignity and respect, and provide practical support in counselling during this necessary and very difficult process. Staff briefings have taken place since Monday.
DBCM has carefully reviewed options available and believes that the restructuring proposal will ensure that the business is fit for purpose and better able to operate within this volatile and less predictable economic environment.
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Contact
Tom Tweedy
Tel +27 (0) 83 308 0083
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About The De Beers Group of Companies
De Beers is a member of the Anglo American group. Established in 1888, De Beers is the world’s leading diamond company with unrivalled expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers employs more than 20,000 people (directly and as contractors) across the diamond pipeline, and is the world’s largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company’s operating philosophy, the people of De Beers are committed to Living up to Diamonds by making a lasting contribution to the communities in which they live and work, and transforming natural resources into shared national wealth. For further information about De Beers visit www.debeersgroup.com.