Ralfe: Underground Kimberley Mines to Close by Year-end

De Beers Managing Director Gary Ralf said the underground mines at Kimberley are depleted and are likely to be closed this year. Five of the company’s seven mines in South Africa are losing money.

“The Kimberley mines are exhausted. They have been going for 100 years and that is why we are already in a process of consultation, which will lead to the closure,” Ralfe told Reuters yesterday (Monday).

“By the end of this year, I believe we will have closed down the Kimberley underground,” he added.

Last year Jonathan Oppenheimer, Managing Director of DBCM, which runs De Beers’ South African mining operations, warned that mine closures are being considered. About 1,000 mine workers are expected to lose their jobs if the closure takes place.

During a press conference yesterday morning, reporting half year results, Ralfe did not commit to the closure, only saying that it is being considered.

Yesterday the group reported diamond sales during the first half of the year of $3.485 billion, $3.22 billion by the Diamond Trading Company (DTC).