The operations will change from a four-shift system, running seven days a week, to a three-shift system, working a five and a half day week.
[quote] Overburden stripping rates and the volumes of gravel mined and treated will be adjusted to ensure the most sustainable model for each mine going forward, the JSE-listed diamond mining company said in a statement on Monday.
The change is in line with the company’s strategy of responsibly managing the ageing Lower Orange River assets in the final years of their economic life cycles by optimising mining and treatment volumes, together with cost reductions and improvements in efficiencies across the board.
The aim is to extend the viable life-of-mine of each operation for as long as possible, whilst constantly managing the risks inherent to mature alluvial mines.
The company has concluded an agreement with the National Union of Mineworkers to change the production shift system. As a result of this change, a total of 125 employees, which constitutes 22% of the workforce, have accepted voluntary retrenchment packages – the majority of which are older employees with long service.
The total cost of the Trans Hex restructuring programme is expected to be R47 million, including severance payments.
Trans Hex’s Lower Orange River operations are situated along the southern bank of the Orange River in the Northern Cape and start approximately 60 km upstream from Alexander Bay.