/ 2 September 2005

De Beers consider retrenchments

Mining giant De Beers has issued notice that it is considering retrenchments in the exploration division of its group services operation.

A formal notice to this effect was issued on Thursday to the National Union of Mineworkers (NUM) and staff in terms of Section 189 of the Labour Relations Act, said company spokesperson Nicola Wilson.

In terms of the legislation, two months of consultation would proceed from the date of issue of the notice, she said.

Wilson could not disclose how many employees De Beers intended retrenching, saying the final number would be subject to consultation with employees and employee bodies.

De Beers employs a total of 20 000 workers on all its operations worldwide, and of these, 11 000 are in South Africa. The worldwide staff complement in the exploration division numbers just under 1 100.

Its exploration division is part of De Beers Group Services which supplied services, locally and internationally, to the seven mining operations under De Beers Consolidated Mines.

The contemplated retrenchments were part of the restructuring of the company’s exploration activities in Southern Africa, central Africa, the Americas and Australia, as a consequence of a re-assessment of its global exploration priorities, Wilson said.

Various projects were being reprioritised to optimise resources and keep business costs to a minimum.

”Some areas are no longer core to the needs of the exploration division.”

She said the company expected the reorganisation to be completed toward the end of the year.

The NUM could not be reached for comment. – Sapa