Mine layoffs loom

THE announcement last month by the De Beers family of companies that they are cutting back on diamond production has started to result in job losses.

Staff at Namdeb and De Beers Marine were presented with voluntary separation letters at the end of December.
Unconfirmed reports say that Namdeb and De Beers Marine are looking at laying off around 1 000 employees.
The Mineworkers Union of Namibia (MUN) confirmed yesterday that consultations have started with the mines, but could not say how many jobs would be affected.

NO NUMBERS YET

Both Namdeb and De Beers Marine said yesterday that they ‘have not come to any numbers’ yet.
De Beers Marine stopped operations on December 14 and their five vessels are now all in harbour at Saldanha Bay.
According to Christine du Plessis, communications manager for De Beers Marine in Windhoek, the ships are scheduled to stay there for another six weeks.
The move is to cut costs in the face of the global economic crisis which has dragged the diamond price down, resulting in significant diamond stockpiles.
Crews are on shore leave, considering their options of voluntary separation or early retirement offered by the company.
Last month Hilifa Mbako, the group manager for external and corporate affairs at Namdeb Diamond Corporation, said in a statement on behalf of Namdeb, De Beers Marine Namibia, NDTC (Namibia Diamond Trading Company) and De Beers Namibia: ‘Namdeb and De Beers Marine Namibia will take immediate steps to reduce production for the remainder of 2008 and early 2009 in line with prevailing demand’.
Du Plessis said the process is ongoing and negotiations continue with the union in line with the new Labour Act. She explained that even the recent Christmas jewellery sales in the UK and the US would affect the situation, but as yet there have been no further developments.
Markus Lubbe, group financial manager of Namdeb, said: ‘The whole process of aligning Namdeb’s production to reduced levels of demand for rough diamonds is at an early stage. Namdeb has not embarked on a process of voluntary retrenchments; instead the options of early retirement and voluntary separation are currently under consideration with our employees and affected stakeholders.’
He referred to an earlier statement by Mbako: ‘Namdeb will see some mine sites being reduced to one shift and stopping most operations over the festive season, and others will carry out more essential maintenance. This will inevitably result in a reduction in the required number of employees.’
At the time Mbako could not give the exact number of workers who would be laid off.
Unconfirmed estimates put it close to 230 for De Beers Marine and more like 800 for Namdeb but when presented with these numbers Lubbe said: ‘We have not come to any number yet, I don’t know where you get your numbers from.’
Neither would the president of the Mineworkers Union of Namibia (MUN), Andries Special Eiseb, divulge any figures.
‘The union and the company have been in negotiations with regards to voluntary separation packages as the mine looks to reducing staff levels. The number of jobs affected, I don’t have that information with me. Our offices are closed till January 12. The negotiations are an ongoing process with ongoing consultations,’ he said.
De Beers Marine would be approached separately, he said, adding that ‘the initial discussions have started but due to the Christmas break are still on hold’.
Nevertheless jobs are being lost, and all over the mining industry.
Otto Shikongo, president of the Chamber of Mines of Namibia, wrote about the consequences of the falling international mineral prices for the mining industry in an article published in The Namibian on November 28.
‘The Chamber is concerned that while jobs in the mining industry were expected to grow significantly, the current situation means that some jobs will be lost with serious social consequences,’ he warned.
‘The Chamber believes that Namibia’s mining industry is well placed to weather the current storm, albeit the negative impacts outlined above. However it may be some time before the industry can return to the stage it was at earlier this year when exploration was booming and finance was relatively easy to come by.’
Last month Weatherly Mining Namibia, which operates copper mines and a smelter, announced the closure of the last two of its operations.
The closure of Weatherly’s two mines at Otjihase and Tschudi has seen the loss of nearly 600 jobs. Only a handful of workers were retained at the two mines for care and maintenance work, General Manager Ron Clarke said this week.