The strong rand has had a severe impact on a number of De Beers’s South African mines, MD Gary Ralfe said on Friday.
Speaking during a conference call following the release of its first-half results, Ralfe said mines affected include the Koffiefontein and Kimberly underground mines, the Cullinan mine, the Oaks Mine in Limpopo and its west coast marine and alluvial mines.
He said some of these mines are struggling to break even.
He said while the majority of the group’s older and more marginal South African mines are suffering at the current exchange rate, they are not the mines from which De Beers derives its main cash flow and income.
The group said every effort is being made to seek further efficiencies and cost reductions.
Ralfe said to keep Koffiefontein viable, the group has embarked on a policy of voluntary retrenchments.
He said the group has to find a balance between having viable operations and its corporate duties as an employer. He said the group is aware of its responsibilities to keep as many people in jobs as possible. — I-Net Bridge