Namdeb Closing Bogenfels Operation

(IDEX Online News) - Namdeb is closing its Bogenfels Operation in Namibia after it has been exhausted a rehabilitation project has commenced, the company said. Workers union sets alternate positions ultimatum.

Namdeb, a 50/50 joint venture between De Beers and the government of Namibia, said the Bogenfels operation was envisaged to be a one to two year project when it was originally commissioned. This operation exceeded expectations and outlived the two-year expectation and has now reached the end of its life of mine.

“In accordance with our responsibility to the environment and in line with existing legislation, a rehabilitation project has been initiated for the restoration of the area,” Namdeb said in a statement. In line with that, the number of employees will be reduced from the current 124.

The rehabilitation project is expected to be completed by end of July 2011.

The company is attempting to place affected employees in alternate positions within Namdeb operations.

Namdeb said that after meeting with the workers union MUN, the union raised an ultimatum that affected employees will only move into alternate positions once a demand related to a housing benefit is agreed to. “The Company’s concern is that the MUN’s ultimate is contrary to minimizing the impact of retrenchment,” Namdeb stated.

Of the 124 affected employees, 71 will be required for the rehabilitation project and 53 will require alternate placement.