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De Beers to Close Koffiefontein Mine in S.A.
Jan 20, 2006 1:27 PM
By Jeff Miller
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(Rapaport...January 20, 2006) De Beers Consolidated Mines reports that it will close the Koffiefontein Mine in the Free State Province, South Africa. The mine opened in 1870 following the discovery of diamonds in South Africa in 1866. De Beers formally gave notice to the Department of Minerals and Energy (DME) as required by the Minerals Act, according to the company.
De Beers' mining license expires on February 4, 2006 and in terms of mining legislation it is required to give the DME such notice within 14 days of ceasing mining operations.
Koffiefontein Mine has been operating at a loss since 2001 and, in spite of taking remedial steps to address the mines economic viability, and to return it to profitability, the mine continued to operate at a loss at the end of 2005, De Beers reports. Attempts at selling the mine have not been successful.
De Beers will now commence consultations with the 329 employees and the National Union of Mineworkers (NUM) in terms of S189 (3) of the Labour Relations Act (LRA) 66 of 1995. These consultations will seek measures to ameliorate the adverse effects of layoffs and the plan could include a provision for retraining.
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Tags:
De Beers, National Union of Mineworkers (NUM), South Africa
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