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The National Union of Mineworkers (NUM) today issued a statement questioning the rationale and process for restructuring undertaken at De Beers Consolidated Mines' (DBCM) Venetia Mine. The Union also made several accusations which De Beers refutes.

DBCM is an empowered South African company committed to transformation in the South African mining sector. The Company is facing challenging economic realities in both costs and the impact of lower rough diamond demand on its revenues. DBCM is therefore reviewing its business model with as low a potential impact on employment as is possible to ensure that its South African mining business remains sustainable.

The Company continues to align its production to anticipated rough diamond demand and reduced ‘stay in business’ and ‘expansion capital’ costs before it reached a position where it issued the Section 189 (S189) notices this week. Such notices have been issued to 189 of 2,236 DBCM employees based in corporate offices in Johannesburg and Kimberley, as well as at the Venetia Mine. We believe this number may be reduced by 68 through natural attrition, such as retirement and the redeployment of people.

The Company requires overhead costs to now support two mining operations: Venetia and Voorspoed Mines.

The details and rationale for issuing S189s at Venetia have been communicated to NUM prior to issuing the notice. It has also been communicated to all DBCM employees and in face-to-face sessions for the 189 potentially affected people. The allegations that the Union was unsighted are unwarranted.

Venetia Mine employ 1,534 of the 2,236 employees of DBCM. There are 189 positions affected in DBCM, of which 152 relate to Venetia Mine.

Turning specifically to NUM allegations at Venetia:

• Firstly, we can confirm that, since Monday when we notified the NUM branch at Venetia of the S189 notices, the Union representatives have met with the Company, and we have explained the rationale and what its potential impact may be.
• Secondly; when such a process affects a department or section the S189 notices are issued to all in the work area irrespective of whom they are. We categorically reject the NUM accusation that its shop stewards, or anyone else, have been targeted.
• Thirdly, and related to the above, the NUM have specified in their statement that their NUM shop stewards, whose names appear as potentially affected, will be losing their jobs and are being targeted. The Company acknowledges the agreements with the Union and the NUM designated shop steward posts will not be affected.
• Lastly, accusations of racism are completely untrue and utterly offensive. It is not true that black employees alone are affected and received S189. The NUM were provided with the list of their members affected and the list of other employees and if applicable their representatives have been informed. DBCM and Venetia Mine have an excellent Employment Equity record.

Potential retrenchments are a last resort for De Beers. Such action by the Company follows a year of practical steps to reduce operating costs and has resulted in 400 employees leaving through resignations, retirements, contract expiry and transfers. It also placed a moratorium on recruitment and reduced overtime, travel and other budget cuts throughout the Company.

Contact

Wayne Smerdon
Tel +27 (0) 83 388 5603
[email protected]

Tom Tweedy
Tel +27 (0) 83 308 0083
[email protected]

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 Homepage.