Storm Mountain Diamonds’ (SMD) Board of Directors has approved a care and maintenance plan at Kao Mine aimed at mitigating substantial financial losses which have prompted potential retrenchment of employees.
In a statement issued yesterday, SMD says the diamond mining sector continues to grapple with a severely suppressed market, and it has become a casualty of these challenging conditions.
SMD board chairman, Robert Cowley, informed employees that the company’s operations could not continue as usual due to mounting losses.
According to Cowley, the board’s decision to place the mine on care and maintenance was made in August, but it was only recently approved in a meeting held on September 13.
He said this plan aims to stabilise the company’s operations while exploring alternative strategies to prevent job losses.
Cowley emphasized the need for consultations regarding potential retrenchments, with notices to be sent to all employees shortly.
“These discussions are set to adhere to the Labour Act 2024 and the Codes of Good Practice 2003, focusing on minimising the impact on staff.
“While the implementation of the care and maintenance plan will take time, SMD will continue its operations through the end of September 2024, thanks to a recently negotiated extension with its mining contractor.
“I urge employees to remain focused on safety and to continue their work as directed during this transitional phase. This situation has, unfortunately, been caused by factors beyond our control,” he pointed out.
