0% Diamondcore looking for partner for SA operations
I-Net Bridge | Thu, 21 May 2009 06:42[miningmx.com] -- Canadian mining group BRC Diamondcore intends to restructure itself and seeks to enter into a business combination with a partner with whom the South African mining assets of the company can be developed at an appropriate time and manner when diamond prices have recovered sufficiently to restore profitable operations. It added that it continue with its existing strategy of selling off non-core assets and may also sell non-core business units to ensure sufficient cash flow to maintain liquidity. "The company sees its main strategy as the exploration for and, if successful, the consequent development of kimberlite diamond operations in the DRC, with these being supported by its remaining operations in South Africa," the group stated. As a result of the continued depressed state of the diamond market, with diamond prices at a level such that operating costs would have exceed expected revenue, the company placed all its South African operations on a care and maintenance basis and retrenched all employees of its South African operations. In terms of South African labour law related to retrenchments there are a mandatory consultation period and a mandatory notice period. This process resulted in the final date of employment of the South African employees being April 11, 2009. "A skeleton staff is now employed on a rolling short term contract basis to attend to the administration of the company and to ensure protection and preservation of the company's assets," Diamondcore, which is listed on the JSE, said. "In the DRC employees have also been retrenched and operations significantly cut back. The Tshikapa camp is being maintained on a care and maintenance basis. Altogether 21 employees have been retrenched out of a total staff complement of 31. In addition two expat contracts have also been discontinued," it stated.
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