Rockwell Diamonds places Tirisano on care and maintenance

Rockwell Diamonds said it has placed its operations at the Tirisano Mine, in South Africa on care and maintenance following persistent industrial relations issues and ongoing losses incurred by the mine.
The Tirisano Mine was impacted by a second illegal strike last week strike within a period of four months.
It has also been subjected to persistent industrial relations issues relating to pay increases despite the fact that the mine had continued to operate at a loss.
 The mine's challenges have been exacerbated by operational complexities as well as a slower than anticipated recovery in the price of smaller diamonds that make up much of Tirisano's production profile, that led to the persistent poor financial performance.
The miner said it had carried the burden of all losses because its black economic empowerment partner at the mine, Mogopa Minerals, had been unable to contribute any funding since the mine's inception.
"The decision to place Tirisano on care and maintenance has not been taken lightly and was only made once all possible avenues were explored to operate profitably using the existing infrastructure," said Rockwell chief executive James Campbell.
"…we are disappointed that these decisions will result in inevitable job losses at the mine; however, the financial position of the company has to be our main priority. We are also working with Mogopa Minerals to secure funding to enable them to meet their financial obligations in relation to Tirisano."
Rockwell said royalty mining revenues would be used to offset the care and maintenance costs.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished