OWN CORRESPONDENT, Johannesburg | Monday 1.05pm
ALEXKOR, the embattled state diamond miner, has secured a R120-million loan that will allow further exploration work, a government official said on Monday.
The loan agreement was sealed after a meeting on Friday between officials from Alexkor, the government, the diamond miner’s management contractor, Nabera Mining Ltd, and Nabera’s financier, BoE.
The loan, arranged by BoE, will give the go ahead to vital exploration work at the mine where reserves were estimated to run out in December, threatening the jobs of more than 1200. The government had said it would end Nabera’s management contract unless it showed proof of the loan facility.
Nabera, a black empowerment group, was awarded a two-year contract to run the troubled mine in March, ahead of South African diamond giant De Beers. Access to the loan facility was one of the main requirements for the management contract.
Alexkor has been plagued by mismanagement and irregularities which have resulted in the dismissal of four board members. Pre-tax losses were R62,6-million in the current financial year from R2,5-million in 1996. — Reuters