De Beers, a subsidiary of Anglo American, is currently in talks with the National Union of Mineworkers (NUM) in an attempt to secure a five-year wage agreement. The negotiations come amid the looming threat of a strike at De Beers’ Venetia Mine and its sorting and sales business. In a statement, De Beers expressed its belief that a five-year agreement would provide much-needed stability, especially in light of the transition from open-pit mining to underground mining at the Venetia Mine and the recent relocation of their sorting and valuation business from Kimberley to Johannesburg. Additionally, the diamond industry is grappling with challenging market conditions that continue to impact its operations.
NUM initiated a mobilization process among its 1,500 members, demanding a 9% wage increase while De Beers offered 6%. Despite four months of negotiations, a dispute was declared and referred to the Commission for Conciliation, Mediation, and Arbitration (CCMA). NUM emphasized that its members would not settle for less than a 9% increase, a substantial reduction from their initial demand of 25%. The union argued that rising food, fuel, and general inflation rates left no room for minor concessions and asserted their readiness for a significant strike action.
De Beers clarified that the sole remaining point of contention is wages, and the union is currently evaluating their offer following a meeting facilitated by the CCMA. The company expressed confidence in its ability to reach a sustainable agreement with NUM through continued engagement with the union and its employees. In compliance with South African labor laws, disputes must be referred to the CCMA, initiating a 30-day conciliation process, which can be extended with the consent of both parties.
De Beers’ mining operations at the Venetia Mine reached the bottom of the open pit in 2022, leading to a transition to underground mining, with the first stones being delivered in July. While Venetia continues to process lower-grade surface stockpiles during this transition, temporary reductions in production levels are expected. However, the company anticipates a gradual ramp-up of production over the next few years as development efforts continue, as outlined in their half-year results up to the end of June.