More Diamond News!!!!

[Michael Alexander]

Mmmh! Hopefully there is light at the end of the tunnel.... 

[Michael Alexander]

Diamond News From SOuth Africa"

"Court rules against De Beers
June 11, 2009

The Labour Court had ruled that De Beers had acted unlawfully when it retrenched workers, the National Union of Mineworkers said yesterday. The union said it had approached the court for relief after De Beers served its members with Section 189 notices and retrenched them without following due processes as stipulated in the Labour Relations Act. While it had agreed with lay-offs, it said, the process had not been followed properly. - Sapa"

[Michael Alexander]

LONDON - De Beers, the world's largest diamond mining group, is close to securing a covenant waiver on $3-billion of existing loans, two bankers said on Friday.

De Beers, 45% owned by mining conglomerate Anglo America Plc, is seeking a waiver to avoid breaching loan covenants at the end of the second quarter, the bankers said, as the company seeks temporarily to loosen the terms.

The waiver will suspend covenant tests until September by when trading conditions are expected to have improved and is due to be agreed on by Friday, one of the bankers said.

Lenders will receive an upfront fee in return for agreeing the waiver and the interest margin on the existing financing will be increased from 35 basis points to current market levels of around 200 to 300 basis points, he added.

De Beers is also seeking to refinance $1,5-billion of loans maturing in March 2010, according to a company spokesman, adding De Beers' remaining loans do not mature until 2012.

The spokesman said loan covenants were not an issue, discussions on the $1,5-billion refinancing were progressing after a month of talks and that no deadline had been set for the end of negotiations.

[Michael Alexander]

DIE einde van 'n produksie-onderbreking van drie maande by Namibië se grootste diamantmyn, NamDeb, breek op 1 Julie aan en 'n geskatte 1 300 werkers keer van volgende week af terug na Oranjemund om die myn weer in bedryf te stel.

Te midde van bespiegelinge en vrese onder die arbeidsmag van NamDeb, het die maatskappy gister die versekering gegee dat geen verdere afdankings of vrywillige uitdienstredings op die tafel is nie. Tot nou toe is die omvang van verliese vir die myn en regeringsinkomste weens die sluiting nie bekend nie, maar NamDeb is tevrede dat besparings van tot soveel as N$100 miljoen bewerkstellig kon word.

Alle mynbedrywighede is op 1 April vanjaar by NamDeb se ses myne in die Sperrgebiet gestaak en sowat tagtig persent van die totale arbeidsmag van 1 600 is met verpligte verlof gestuur. Die produksievakansie het nie mariene ontginning geraak nie.

Net sleutelpersoneel het op Oranjemund en in die myngebied aangebly om basiese instandhouding te doen. NamDeb se hospitaal, skole op Oranjemund en die bestuursmaatskappy van Oranjemund het ook soos normaal voortgegaan.

Vroeër vanjaar het NamDeb se moedermaatskappy, De Beers, 'n soortgelyke produksievakansie van vyftig dae in Botswana ingestel. Net een van Botswana se diamantmyne, Damtshaa, sal vir die res van die jaar gesluit bly, maar die ander drie myne is reeds weer in produksie.

Die groepbestuurder van eksterne en korporatiewe kommunikasie van NamDeb, mnr. Hilifa Mbako, het aan Republikein gesê die hervatting van mynbedrywighede op 1 Julie vind plaas op 'n tydstip waarop die wêreld hom vir 'n herlewing in die diamantbedryf gereed maak. Volgens alle aanduidings gaan Namibië se totale diamantproduksie in 2009 tot minder as 800 000 karaat daal wat 63% minder is as die 2,1 miljoen karaat wat in 2008 ontgin is.

Die vooruitsigte vir vanjaar is die swakste in die myn se geskiedenis sedert 1990 toe net sowat 750 000 karaat ontgin kon word.

"Intelligensie dui daarop dat die vooruitsig bestaan dat wêreldaanvraag sal toeneem en ons maak daarop staat. Daar is positiewe tekens vir herstel, maar ons is nog nie uit die oerwoud nie al is die tekens daar dat ons daarvoor kan regmaak," het mnr. Mbako gesê.

Oor die terugkeer van die sowat 1 300 werknemers wat tans nog met vakansie is en die heropening van die myn, het mnr. Mbako daarop gewys dat alle werkers op afgeleë gebiede reeds per radio en deur persoonlike kontak in kennis gestel is dat hulle aanstaande week vir diens na Oranjemund moet terugkeer.

NamDeb het ook verskeie busse gereël wat werkers na die diamantgebiede sal terugneem. Volgens hom heers opgewondenheid by die werkers, veral nadat vrese ontstaan het dat die produksievakansie 'n manier was om van hulle ontslae te raak.

Mnr. Mbako het egter die versekering gegee dat NamDeb geen verdere afdankings of skeidingsprosesse beplan nie. "Beslis nie. Ons is deur 'n pynlike skeidingsoefening. Ons het die getalle bereik ten opsigte van ons produksieteikens en ons het 'n onderneming gegee dat geen verdere afdankings gaan plaasvind nie.

"Ons gaan dit gestand doen, maar ons beskik nie oor 'n kristalbal wat ons in staat stel om te sien wat in die toekoms gaan gebeur nie. Ons huidige planne maak nie vir so iets voorsiening nie," het hy gesê.

[Michael Alexander]

The Telegraph reports that giant diamond miner De Beers has been granted a temporary covenant waiver on its £1.8 billion debt and is bringing in advisers to facilitate major restructuring of the diamond company.

The world's leading diamond miner, which due to the global recession has been hit by a severe downturn in demand for diamonds, has secured a delay on the tests to September.

Banks which approved the waiver include Barclays Capital, Royal Bank of Scotland, Lloyds Banking Group, Scotia Capital and Standard Chartered. In return for the waiver, the banks are to be paid an upfront fee and a higher interest rate on the debt.

De Beers needed the support of two-thirds of its syndicate to win the waiver for the next three months. The extra time will enable the diamond mining company to complete major restructuring.

The Telegraph discloses that De Beers has hired a leading accountancy firm to help with the refinancing of £900m of loans maturing in March next year. The company's remaining loans will mature in 2012.

[Michael Alexander]

Namdeb back on track
PRODUCTION has started again. On Wednesday of last week, the Managing Director of Namdeb, Inge Zaamwani-Kamwi, welcomed employees back during a mass meeting which was held at Oranjemund.

The meeting was preceded by a long distance bus transportation programme bringing back employees from all corners of Namibia. Senior management, including the General Manager accompanied the employees on the returning busses and to gain an appreciation of the distances involved.

Since November last year, Namdeb has sought to keep the Namibian nation informed about the negative impact that the global economic downturn has had on the diamond industry. One of the mitigating measures was the institution of a three month production interruption aimed at savings costs. It is important to remember that the situation the industry is in, is a global economic phenomenon, which is beyond our control and is negatively affecting many businesses around the world.

Namdeb's employees have responded positively with thought and action to the mitigating measures put in place since the beginning of the recession. They are therefore the heroes in the company's efforts to ensure a sustainable diamond future that is beginning to bear fruits as they returned to work this week.

In her address, Ms Zaamwani- Kamwi highlighted the importance of good safety and health practices, urging everyone to adopt a safety based behavioural culture. She noted that, while in the first half of the year financial performance was much better than anticipated, challenging times still remain.

"While the global economy seems to be on the road to recovery mode, it is important that we work smarter at all times so that we can do more with less."

Speaking about the importance for continuous responsiveness to the global recession, Ms Zaamwani- Kamwi stated that a prerequisite for building a "New Namdeb" was embracing a culture of continuous business improvement.

One of the spinoffs of the global economic downturn was the realization of how flexible and adaptable Namdeb is to the changing global economic environment. "It is this level of flexibility that Namdeb will have to continue demonstrating to ensure that it remains viable and profitable."

The welcoming meeting was followed by a full-day programme of sports activities aimed at team alignment and safety, thereby readying and reconditioning the body and mind following the three months leave. There was excitement everywhere as employees demonstrated their enthusiasm of being back to work.

The week's re-orientation pron gramme was concluded with a learning expo, aptly named the "Village of Learning" exhibition.

The objective was to create awareness and rekindle pride and enthusiasm by showcasing various aspects of Namdeb's business.

Under the theme "Diamond Pipeline", exhibitors at various stalls included local entrepreneurs and Namdeb business partners and contractors. The Namdeb exhibitions covered areas such as exploration, mining, processing, engineering services and projects and service areas.

An overwhelming number of Namdeb employees (about 84%) visited the stalls over the two-day period.

[Leon Sumter]

Wow, what exciting news indeed !!
Long live Oranjemund.

[Michael Alexander]

You all have more than likely heard about the selling of certain Anglo assets..... to ease their $11 billion debt...... many are3 wondering if they intend on selling their stake in DeBeers... here's a snippet from an article I read today...

"One of Anglo's assets conspicuous in its absence from the restructuring announcement was De Beers, the diamond giant in which Anglo holds a 45% stake. This prompted some commentators to question whether diamonds were still core to the company's strategy and whether an exit from the cash-hungry business might be on the cards at some point.

"We continue to see diamonds as a core business of ours," Carroll said. Asked whether Anglo would retain its 45% stake, she said: "That's our thinking today.""

[Andrew Darné]

Not diamond related but Anglo... They intend selling off the Skorpion plant at Rosh Pinah to a Chinese consortium... apparently it's common knowledge already.
Something to do with the current plant treatment or extraction process unable to process the the ore of the new reserves... the weigh-up is it's more viable to swing this plant and build new than to convert it for the new ore type.

[Alfred Boehme]

Briefed today everybody is getting 50% of the yearly salary ooooooops monthly salary once of, Barganing unit guys you need to wait.

[Michael Alexander]

GM on  the international wires....

"Namdeb sees significant drop in output


Namdeb, a 50-50 joint venture between De Beers and the Namibian government, said yesterday diamond output for this year would be less than half that of last year after it scaled down output, Reuters reported.

"We've been planning to scale down our operations and the recession only accelerated the process by a year," Namdeb's GM Mitford Mundell told Reuters in an interview.

He said the company was faced with lower quality ore at its land operations and would not up production significantly until its brownfield expansion projects take fruit. Even then it would not go back to the levels seen before the recession.

Mundell said the company would produce 330,000 carats from its land operations this year and around 600,000 carats from its marine operations. That compares with a total output of 2.1 million carats in 2008.

He said next year the diamond producer expects to make just over 400,000 carats and 650,000 carats from its land and marine operations respectively, and would keep around those levels in the next few years.

Namdeb shut down all its operations for three months this year to preserve cash and to use up some of its stockpiles. Its workforce has also been reduced by about half, Mundell said."

[Mike Stenson (RIP)]

Brownfield projects........ wonder where that is....

[Michael Alexander]

Wonder if it's up Ebay way? Braunveldt?

or something to the effect!

[SandyB]

My understanding ...  the term greenfield is used for a totally new  setup ie :  a greenfield project  for a factory would  be a new site new infrastructure , everything .. in that terminology  brownfield would be upgrading / utilising existing  infrastructure  ,, in this  current scenario , possibly wisest ??? under correction   so    away  ...

[Michael Alexander]

in that case... the ebay plant would be the spot......