COMPANIES
De Beers to close SA mine
Posted Mon, 23 Jan 2006
De Beers Consolidated Mines (DBCM) on Friday announced the
imminent closure of its Koffiefontein mine in the Free State.
The mine opened in 1870 following the discovery of diamonds in South Africa in 1866.
DBCM has formally given notice to the Department of Minerals and Energy (DME) as required by the Minerals Act, it said in a statement.
The company's mining licence expires on February 4 this year and in terms of mining legislation it is required to give the DME such notice within 14 days of ceasing mining operations.
Koffiefontein mine has been operating at a significant loss since 2001 and, in spite of taking a number of remedial steps to address the mine's economic viability and to return it to profitability, the mine continued to operate at a loss at the end
of 2005.
Recent attempts at selling the mine have not been successful.
DBCM will now commence consultations with the 329 employees and the National Union of
Mineworkers.
"These consultations will seek measures to ameliorate the adverse effects of retrenchments and could include the provision of learnerships which include training in other sectors."
Sapa
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