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Miningmx reports that Ekapa Mining (KEM), the last major diamond company operating in Kimberley, has imposed a three-month, 12.5% salary reduction across the board on its staff in an attempt to remain economically viable.
This action was taken in the face of slumping diamond prices and renewed problems with illegal miners on its property. The operation was formerly run as a joint venture with Petra Diamonds, which sold its 75.9% controlling stake in July last year. At the time, Ekapa was experiencing major problems with illegal miners operating on its properties, but had – hopefully – reached a workable solution after surrendering 600 hectares of its ground to the illegal miners provided they stayed off the rest of the company’s lease area. The deal, lauded at the time by mines minister Gwede Mantashe, was called the Batho Pele initiative and the former illegal miners were reclassified as artisanal miners. Yet KEM CEO, Jahn Hohne, says they are still spending R3m a month on security measures to keep the miners off the property after further incidents including arson on some of the company’s haul vehicles. The National Union of Mineworkers has rejected the 12.5% cut now imposed, despite Hohne’s commitment that the reductions would be repaid “from the earliest available distributable profits when the new business model is successful”. Management is engaging directly with the NUM in the Northern Cape and “not received any formal notification of a dispute being declared”.
- Read the full original of the above report by Brendan Ryan at Miningmx
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