Gregory Diamond
11-28-2005, 04:40 PM
De Beers closes Kimberley mine
NOVEMBER 23, 2005 - Johannesburg, South Africa -- De Beers Consolidated Mines (DBCM) announced the closure of its loss-making underground operations at its 100-year-old Kimberley mine.
Since 2003, the underground operations of Wesselton, Dutoitspan and Bultfontein mines have been operating at a loss, according to a DBCM statement issued Tuesday. The losses have grown due to dilution and the ongoing depletion of existing reserves, and significant loss was forecast for the future.
De Beers has reached an agreement on the closings with the National Union of Mineworkers (NUM). De Beers will retrain the 693 workers who lost jobs due to the closure, and will invest in the region to create non-mining jobs. Among the investments are $7.5 million to upgrade the Kimberley Big Hole precinct into a world-class tourist destination. The project has already created 400 jobs in its construction phase.
Through above-the-ground processing plants at the Kimberley site, approximately 2 million carats will continue to be produced.
NOVEMBER 23, 2005 - Johannesburg, South Africa -- De Beers Consolidated Mines (DBCM) announced the closure of its loss-making underground operations at its 100-year-old Kimberley mine.
Since 2003, the underground operations of Wesselton, Dutoitspan and Bultfontein mines have been operating at a loss, according to a DBCM statement issued Tuesday. The losses have grown due to dilution and the ongoing depletion of existing reserves, and significant loss was forecast for the future.
De Beers has reached an agreement on the closings with the National Union of Mineworkers (NUM). De Beers will retrain the 693 workers who lost jobs due to the closure, and will invest in the region to create non-mining jobs. Among the investments are $7.5 million to upgrade the Kimberley Big Hole precinct into a world-class tourist destination. The project has already created 400 jobs in its construction phase.
Through above-the-ground processing plants at the Kimberley site, approximately 2 million carats will continue to be produced.