Union Condemns Petra's Mine Suspension and Jobs Threat

(IDEX Online) - South Africa's National Union of Mineworkers (NUM) has condemned Petra over its decision to put its Finsch mine into business rescue, and to issue a jobs warning for its other deposit, at Cullinan.

The union says a total of 1,779 jobs are at risk - 689 at Finsch and 1,090 at Cullinan - and is calling on the government to intervene as a matter of urgency.

UK-listed Petra Diamonds announced its intention to start a so-called Section 189A process (mandatory warning of possible retrenchments) at Cullinan on 29 May, the same day it said it was placing Finsch into business rescue.

But the NUM, the recognized union representing workers at Petra, says it is "profoundly concerned" by the moves.

"Government cannot be a spectator while nearly 1,800 workers and their families face an uncertain future," it said in a statement.

"The mining industry remains one of the pillars of our economy, and every effort must be made to preserve jobs, sustain production, and protect communities that depend on mining for their livelihoods."

NUM Petra Diamonds chief negotiator Masibulele Naki said: "It is unacceptable for companies to continuously point fingers at labor costs whenever they face operational or financial challenges.

"Workers are not a liability on a balance sheet; they are the creators of value and wealth in the mining industry. Without workers, there is no production, and there is no profit." 

We have approached Petra for comment.

File pic of Finsch mine.