Job cuts loom as Lerala halts mining
Onalenna Kelebeile | Thursday October 20, 2016 18:00
The news of the temporary cessation of all pit operations at LDM possibly for three to four months was broken this week by the project manager at Basil Read Mining Botswana (BRMB), the company contracted to conduct mining operations at Lerala.
A letter authored by the BRMB project manager, Gabriel Monyatsi in Lerala to all heads of departments and section heads and all Basil Read employees reads in part: “The company received a letter from LDM authorities informing it that the ramp up in production has been significantly slower than was planned due to the inability of the plant to process head feed at the desired rate.
“As a result the LDM has temporarily ceased all in-pit mining operations until further notice.” The situation will thus leave BRMB with no option but to embark on a retrenchment exercise as it cannot afford to keep employees yet there is no income generation to pay them during the period, it said.
Because the cessation is with immediate effect, Monyatsi stressed that the retrenchment will be fast tracked to avoid putting the company on financial crisis.
He however promised that, “engagements with the workers’ committee have already started and employees will be updated on regular basis on any new developments”.
Monyatsi further explained in the letter that his principals at LDM are working on the plant problem and they are hopeful that it will take them three to four months. The situation at Lerala will be reviewed in mid-January 2017.
BRMB has been informed by the Lerala mine that continuing in-pit mining operations and further building the stockpile when the plant is unable to consume it would put the project and BRMB at significant economic risk.
However operations at the mine will be totally shut down, as they will continue to process the stockpiled ore into the plant throughout this period.
Although Monyatsi had promised to shed more light on the impending job losses at their LDM site, especially highlighting exactly how many workers are going to be affected by the retrenchment exercise, he could not fulfil his promises.
He incessantly promised to return to the Mmegi Business team when reached on his mobile phone. He however, could not deny nor confirm the impending exercise at Lerala.
“I am afraid I can’t comment on this matter for now,” was all he could muster when pushed further.
Lerala, which is owned by Australian company Kimberley Diamonds Limited, restarted production in April this year after being mothballed for three years. The mine was targeting to produce an average of 357,000 carats/y at full production and operate for seven years.
Commencement of mining operations at Lerala followed the awarding of a $47 million (P480 million) open pit-mining contract to South Africa’s Basil Read in February.
The mineral resources of the diamond mine as at December 31, 2015 was estimated as 20.1 million tonnes (Mt) at 24.2 carats per 100 tonnes (cpht) containing 4.9 million carats.