02 Apr 2017

Gem Diamond Botswana has placed its Ghaghoo diamond mine at CKGR on care and maintenance, subsequently halting production.

This was revealed by Gem Diamond Botswana managing director, Mr Haile Mphusu during the Ghanzi District Council session.

Mr Mphusu said effective April 1 mine production operations would be halted and that only work to preserve mine assets would be carried out.

The mine started operating in 2014 and currently employs 183 people who would be reduced to 25 from April 1. He said financial losses experienced by the company in the last two years due to poor diamond prices compelled them to place the mine on care and maintenance.

He said they experienced the dropping of diamond prices of categories of Ghahoo which were small diamonds, dropping to 30 per cent.

Mr Mphusu said last year the mine took the decision to restructure the company and cut employment by a third to reduce costs, with the hope that the mine could be profitable. He said unfortunately diamond prices continued to go down.

During the care and maintenance period, Mr Mphusu said major works would be pumping water from underground.

He told the council that the mine’s corporate social responsibility would be curtailed for two years.

However, he said limited corporate social responsibility would continue such as providing drinking water to the Gope community, maintenance of Mothomelo and Molapo boreholes and limited assistance to schools. ENDS