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Trans Hex to Halt Baken Mine Operations
Sep 6, 2017 4:52 AM
By Rapaport News
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RAPAPORT... Trans Hex Group is preparing to cease mining at a diamond asset in South Africa that employs 332 people and has recorded financial losses, it said.
The company informed the National Union of Mineworkers that
it would enter a consultation process over potential retrenchments —
or cuts —
at the Baken
mine starting September 1, according to a statement it released last week. The deposit has
been in operation for more than 45 years.
Baken incurred a loss of $2.8 million (ZAR 35.8 million) in the financial year that ended March 31, with rough-diamond production at the mine falling 36% to 24,024 carats. The asset recorded a loss of approximately $3.6 million in the April-to-July period.
“The company has made every effort to sustain operations at Baken,” Cape Town-based Trans Hex explained. “However, the mine’s low carat production and subsequent financial losses are now considered to be unsustainable.”
Employers who are considering making roles redundant must
consult with workers’ representatives, such as a trade union, and with other
relevant parties, according to the South African Department of
Labour’s website.
Trans Hex expects operations at Baken will
continue during the consultation process, with the mine then entering “care and
maintenance” from November 1, it added. This means the company will continue to
work on keeping the mine in its required condition even if it is not using it for
production.
Image: Imfoto/Shutterstock |
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Tags:
Baken, Baken mine, Rapaport News, Rough Diamonds, South Africa, Tran Hex Group, Trans Hex
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