Lesotho mine cuts workers

CAUSES: SLUMP IN DIAMOND PRICES, WEAKENING US DOLLAR AND US TRADE TARIFFS

- Sechaba Mokhethi

The livelihoods of hundreds of miners at Lesotho's largest diamond mine, Letseng Diamonds, are at risk as the company implements "cost-saving measures".

In a meeting with some of its 1,225 staff on Thursday, the company announced it would be retrenching between 250 and 300 permanent and contracted workers. This, it said, was as a result of a steady slump in global diamond prices, a weakening dollar and uncertainty over US trade tariffs.

Spokesperson for the mine, Tsepo Hlojeng, confirmed to GroundUp that the company had started consultations with staff.

"It is our plan to have all activities related to the implementation of the current scenario completed by the end of August."

Hlojeng said employee benefits will be paid out to the affected employees.

While the news came as a shock to many of Letseng's miners, the company, in a statement last week, said: "While the company has met its production targets, it has not been immune to the sustained pressure on rough diamond prices and adverse exchange rate movements."