Debswana temporarily shuts some operations

GABORONE - Debswana has announced a temporary shut down and suspension of operations at the Damtshaa Mine and Orapa Number 2 plant, a move that will affect 580 employees.
A news release from the diamond mining company states that the temporarily shut down operations started yesterday to April 14, while susension of production at Damtshaa Mine and Orapa No. 2 plant will continue for the remainder of the year after the shut down period.
The company says the steps are being taken to mitigate the effects of the global financial downturn by reducing production during the year to align it with demand, thus conserving cash for the company, protecting employment and maintaining readiness for an eventual upturn in the market.
During the shut down, all Debswana essential services, such as hospitals and schools will continue normally and most managers will remain at work.
The company hopes to redeploy its employees elsewhere within the company, and further intends to offer voluntary early retirement with incentives and voluntary special leave.
Debswana, a 50/50 venture between the government and De Beers said the management has been in consultation with the employees regarding the ongoing financial crisis and the company's intends interventions to solicit their input and buy-in before the implementation.
It said all the mitigation actions are taken in the best interest of the company, employees, shareholders and other stakeholders.
The company remains optimistic about the future, saying the medium and long term fundamentals of the diamond industry are strong as demonstrated by incremental growth and low volatility in the prices of diamonds.
"Diamonds are rare and becoming rarer and known diamond reserves are at an all time low. On the demand side, there has been a consistent increase and this is expected to continue in the long term," Debswana says. BOPA