Published: September 7, 2017 |

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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 percent 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 Labor’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.

Source: Rapaport

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