The Union’s Regional Secretary, Cornelius Manhe, told OFM News it is extremely concerning that approximately 2000 employees at this mine might soon be jobless and that in efforts to try and save it, employees have been requested to take 25% salary cuts for the next three months. 

Manhe said the proposed 25% salary cut across all positions is according to the union unfair as it will have a huge negative impact on employees at low-level positions already earning peanuts as opposed to those in managerial positions. The meeting scheduled with the management of the mine is expected to paint a clear picture regarding jobs that hang in the balance after they announced last week that they had become economically unsustainable and unviable as a result of the world market price reduction for rough diamonds.

The CEO for Ekapa Minerals, Jahn Hohne, has highlighted that there is a high need for an alternative business model that can be implemented immediately or the company could soon close its doors.

He said the world market price reduction equates to an approximately 20% year-on-year price decrease in dollar terms for Ekapa’s mining operations in Kimberley. This, coupled with about R3 million per month spent on security and infrastructure costs.

He said the chances of a complete shutdown of the business are very high if urgent steps are not taken.

OFM News