De Beers Sends Workers on Early Holiday Vacation as African Operations Slowdown (Updated)

Inline with De Beers’ decision to scale back production, the company’s African operations are starting to reduce production. In South Africa, Namibia and Botswana staff levels have been reduced, most on early holiday leave, some are not expected to return.

DBCM mines are currently operating with a minimal crew, made up mostly of safety, security and environment teams.

At Namdeb and De Beers Marine Namibia, staff retrenchments are inevitable, according to a Friday release. As part of the production scale back, mining ships would be brought back to port where they are expected to be moored from mid December until an unspecified date in early January of next year.

“This will inevitably result in a reduction in the required number of employees,” said Ndeshi Hangula-Shikwambi, Namdeb’s manager for corporate communications. “We will consult openly and fully with any affected employees, and with the Mineworkers Union, to ensure that we meet all the statutory requirements.”

Inland, mining is slowing down to a single shift a day from the regular double shifts and the previously announced maintenance work is taking place.

Botswana, the site of De Beers’ most important mines, has been hard hit by the drop in rough diamonds. At the last DTC Botswana Sight, many Sightholders choose to not take the goods, leaving the company with unwanted diamonds.

Work at the Jwaneng, Orapa and Letlhakane diamond mines has also been reduced with staff going on early holiday vacation. While lay-off plans are not clear, like its sister companies elsewhere in Africa Debswana is considering its options. As DBCM’s Tweedy said, it all hinges on holiday sales.