/ 30 May 1997

Dispute delays Alexkor sell-off

FRIDAY, 12.00NOON

PRIVATISATION and restructuring of the state-owned Northern Cape Diamond mine Alexkor has been suspended by the mine’s restructuring committee after it declared a dispute with government and Alexkor’s board.

The committee, made up or representatives of Alexkor management, labour, community and provincial government, said the dispute arose after Public Enterprises Minister Stella Sigcau ignored its recommendations on corpoarte governance, proposing instead a non-negotiable management structure.

Diamnonf industry analysts warn that the delay could threaten the mine’s future. It is cash strapped and currently losing between 20% and 40% of production to theft.