Today's Labour News

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transhexBL Premium reports that diamond miner Trans Hex has put its unprofitable unit West Coast Resources (WCR) into liquidation, citing a fall of nearly a third in diamond prices.  

Trans Hex is struggling with weak diamond prices on worries about oversupply and the rising popularity of laboratory-grown diamonds.  Its share price has fallen more than 70% over the past five years.  The company’s biggest shareholder is Christo Wiese.  The company reported that it had applied to the High Court in Cape Town to wind up WCR after failing to seal a deal to offload the business and get a third party to run it.  "WCR is not in a position to meet its working-capital requirements without the necessary funding being made available to WCR.  Accordingly, shareholders are advised that the major shareholder of WCR … today lodged an application to the high court [Western Cape division] for WCR to be placed into provisional liquidation," Trans Hex said on Friday.  The company bought WCR five years ago, hoping the business would give it a new lease on life after the depletion of diamonds at two flagship mines on the banks of the Orange River.  But a combination of falling diamond prices and lower than expected grades of diamonds from WCR, rendered the business commercially unsound.

  • Read the full original of the report in the above regard by Tiisetso Motsoeneng at BusinessLive (paywall access only)

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