The mine, which last year faced possible closure, says it has been in discussions with its employees, trade unions and other stakeholders in efforts to find solutions to restart mine operations with limited available cash after it did not receive any income during the lockdown period. 

In a statement, the CEO for the Ekapa Group, Jahn Hohne, says they decided to continue mining operations with a reduction in salaries. 

He says this was to make it possible for all of their surface mining employees and 50% of their underground employees to earn at least some income while the pandemic continues. 

Hohne highlights that in 2019 they managed to save the company from the diamond price crash with salary reductions that have since been fully paid back. 

He says they are confident that the mine can now also overcome the Covid-19 crisis through working together as a team for the benefit of everyone dependant on the mine for their livelihood.

Hohne explains that they do not expect income from post lockdown production for the next two to three months. 

He says they have considered different options for the restart of operations and the only feasible solution is "to ramp up to 50% labour compliment capacity underground, and 100% for surface mining in line with Covid-19 level 4 restrictions, and then, in order to cover for the lack of revenue, to implement a 12.5% reduction in salary for all employees, with a further 12.5% reduction that can be reimbursed later from the first distributable profits".

OFM News previously reported that the National Union of Mineworkers (NUM) has expressed dissatisfaction with the decision made by the mine, stating that all employees at the Kimberley Ekapa Mine deserve to be paid their full salaries and benefits.

The union's Kimberley Regional Secretary, Cornelius Manhe, said they view this as "heartless and inhuman" as their members could barely afford transport allowances.

However, Hohne maintains in a statement that the mine has been hit hard by the lockdown and is "rather implementing a positive restart for the sake of everyone dependant on the mine for their livelihood while continuing to support the government in its effort to flatten the Coronavirus infection curve during the unique circumstances currently affecting the whole world.”

OFM News