DiamondCorp, the Southern African diamond development and exploration company, has defeated its own employee/union battle over wages. This will have a positive effect on the company’s single asset – the Lace diamond mine in the Free State province of South Africa, which is currently in development stage.

The company today announced it has signed a four year wage agreement with the Association of Mineworkers and Construction Union (AMCU), covering all employees at the Lace. The agreement is based around 8% annual increases in basic salary for most categories, along with a progressive lift in the lowest categories to R12 500 per month basic salary over the four year period.

DiamondCorp CEO Paul Loudon said: “This long wage agreement will provide industrial relations stability at the Lace mine during the critical mine start up years and demonstrates a solid maturing of relationships between the union and management. We are particularly pleased to have negotiated a four year agreement rather than the more common two or three year agreement”.