De Beers' new $2.3 billion underground facility could be disrupted by a strike that the National Union of Mineworkers (NUM) of South Africa is planning after pay talks collapsed, according to a media report.
NUM, the largest union in South Africa, claimed its members wanted a 9% wage raise, whereas De Beers, a subsidiary of Anglo American, only offered 6%.
"The NUM can confirm that the four-month wage negotiations with the world's leading diamond company De Beers have collapsed and a dispute has been declared at the Commission for Conciliation, Mediation and Arbitration (CCMA)," Reuters quoted NUM as saying.
The CCMA mediates and certifies the results of labour disputes in the country.
NUM has not announced a strike start date, but has indicated it is mobilising its "more than 1,500 members, preparing them for a protected indefinite strike".
Workers in South Africa are required by law to provide 48 hours’ notice before beginning a strike.
De Beers ended open pit mining operations in December 2022 at Venetia after 30 years and switched to the new $2.3 billion underground mine last July.
The group estimates that the Venetia underground mine will yield about 4 million carats of diamonds per year by 2023, or about 12% of the company's forecasted group output.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
