The company said it was also engaging relevant stakeholders, including the National Union of Mineworkers (NUM), which earlier this week condemned the “sudden closure” of the mine, which employs 115 people.
“The ever-declining diamond grade and stone size, together with increasing production costs, have resulted in significant financial losses being incurred,” Mining Weekly quoted TransHex as saying.
“The situation has worsened in the current financial year and action has now been taken to contain further losses and, critically, to give Baken mine the best possible chance of survival, at least in the short term, would continue to receive full pay while the company undertakes the necessary statutory processes of engagement and consultation with relevant stakeholders.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished