KIMBERLEY - Petra Diamonds has placed its Finsch Mine in the Northern Cape under business rescue and begun retrenchment talks at its Cullinan operation.
The company says prolonged under-performance, driven by a weak global diamond market, falling prices for smaller stones, and a strong rand, forced the decision.
Finsch, South Africa’s second-largest diamond mine, will keep running under business rescue as a turnaround plan is developed.
But the National Union of Mineworkers has slammed the move, rejecting claims that labour costs are to blame.
The union warns that mining communities will be hardest hit.
The union is urging government to step in, protect nearly 1,800 jobs at risk, and stabilise the sector.