DBCM to Close Koffiefontein Mine
January 22, 06
De Beers Consolidated Mines (DBCM) on Friday announced the imminent closure of its Koffiefontein Mine in the Free State Province of South Africa, which has been operating at a significant loss since 2001.
Recent attempts to sell the mine were unsuccessful. Last year the company said that five of the company's seven South African mines were operating at a loss. This is the second South African mine closure for DBCM under a year. In August it stopped operations at its oldest mine, the historic
In line with mining legislation, the DBCM has formally given 14 days notice to the Department of Minerals and Energy (DME). The Company’s mining license expires on 4 February 2006.
DBCM is beginning consultations with the 329 employees and the National Union of Mineworkers (NUM) to achieve an agreement that will limit the effects of job losses. The agreement could include retraining workers for work in other sectors.
The Koffiefontein Mine opened in 1870 following the discovery of diamonds in