Johannesburg, South Africa — MININGREVIEW.COM — 15 January 2009 – BRC DiamondCore Limited – a growth-focused African diamond explorer, created through the merger of BRC Diamond Corporation of Toronto and DiamondCore Resources of Johannesburg – is scaling back its South African operations.
In a statement to the JSE, the company confirmed that it would not lift the suspension of bulk sampling at its projects in South Africa’s Northern Cape province “in response to persistent depressed diamond prices and the deepening economic downturn.”
BRC DiamondCore said it envisaged shutting down its Paardeberg operation for the immediate future, and downsizing its Silverstreams operation from three shifts to a single-shift operation.
This would result in retrenchments, and had necessitated a consultation process with affected employees and their representative unions. The company did not provide details of the number of jobs that would be lost as a result of this action.
BRC DiamondCore added that it had also not renewed its outsourced contract for the bulk sampling at its De Kalk project after the contract had expired at the end of December 2008.
“Management deems these steps as essential due to the ongoing need to conserve cash in light of persistent adverse market conditions,” said BRC DiamondCore president Mike de Wit.
“We nevertheless still anticipate a recovery in rough diamond prices in 2009. We retain the view that this, together with a stronger US dollar exchange rate against our operating currency and lower energy costs, should position us more favourably in the year ahead," he concluded.