NUM condemns Petra diamonds' decision to place Finch mine under business rescue and threaten over 1,700 jobs

The National Union of Mineworkers (NUM) expresses its profound concern and strongly condemns the decision by Petra Diamonds to place the Finch Diamond Mine in Kimberley under Business Rescue and to issue a Section 189A notice at the Cullinan Diamond Mine.

The Business Rescue process at Finch places approximately 689 workers in a state of uncertainty, while the Section 189A notice at Cullinan threatens the jobs of roughly 1,090 workers. Together, these developments place nearly 1,800 livelihoods at risk and threaten the economic stability of the mining communities that depend on these operations.

NUM vehemently rejects any attempt to place the burden of business challenges on workers, who have continued to contribute to the profitability and sustainability of the company through their labor, sacrifice, commitment, and productivity over many years.

According to NUM Petra Diamonds Chief Negotiator and National Health and Safety Secretary, comrade Masibulele Naki, workers cannot be treated as a cost item whenever companies experience financial pressures:

"It is unacceptable for companies to continuously point fingers at labor costs whenever they face operational or financial challenges. Workers are not a liability on a balance sheet; they are the creators of value and wealth in the mining industry. Without workers, there is no production, and there is no profit."

Naki further states that the union remains deeply concerned about the growing trend in the mining sector where retrenchments and business rescue processes are increasingly used as the first option rather than the last resort:

"The narrative that labor is the highest cost to the company must be challenged. Executive remuneration, management decisions, declining investment strategies, market fluctuations, and operational inefficiencies also contribute significantly to the financial position of mining companies. Workers should not be expected to pay the price for challenges they did not create."

Market Realities and Sustainability

The NUM acknowledges that the global diamond industry faces significant market pressures—including weaker consumer demand, declining rough diamond prices, increased competition from laboratory-grown diamonds, and broader economic uncertainties. However, Naki notes that these realities must be acknowledged honestly, “instead of creating an impression that workers' wages are the primary cause of the company's financial difficulties.” Furthermore, exchange-rate fluctuations and the volatility of the South African Rand against the US Dollar significantly influence revenue streams and production costs. Because these economic factors are beyond the control of workers, NUM maintains that any assessment of the future sustainability at Finch and Cullinan must objectively consider these global market conditions, commodity pricing, operational efficiencies, and capital allocation decisions before jobs are sacrificed.

"Retrenchments cannot become a business strategy. Every job lost means a family pushed closer to poverty, a child whose future becomes uncertain, and a community that suffers economic decline. The social cost of retrenchments far outweighs any short-term financial benefit claimed by employers."

Call for Urgent Government Intervention

The union firmly believes that the current crisis requires urgent intervention by government at the highest level. The mining industry remains a strategic pillar of the South African economy and cannot be left solely to market forces.

NUM calls upon the Minister of Mineral and Petroleum Resources, the Chief Inspector of Mines, the Minister of Electricity and Energy, the Minister of Trade, Industry and Competition, and the National Treasury to urgently convene a multi-stakeholder intervention to safeguard jobs, sustain investment, and secure the future of these operations.

"Government cannot be a spectator while nearly 1,800 workers and their families face an uncertain future. The mining industry remains one of the pillars of our economy, and every effort must be made to preserve jobs, sustain production, and protect communities that depend on mining for their livelihoods."

To ensure full compliance with labor and mining legislation, social and labor commitments, and health and safety obligations, the NUM demands strict regulatory oversight:

• Department of Mineral and Petroleum Resources & Chief Inspector of Mines: Must closely monitor the Business Rescue and Section 189A consultation processes to ensure workers' rights and safety standards are not compromised.

• Minister of Electricity and Energy: Must intensify measures to secure an affordable, reliable, and sustainable energy supply, as escalating electricity costs continue to place pressure on operational sustainability across the industry.

• National Treasury: Must explore policy and financial mechanisms to assist in preserving productive mining assets, sustaining employment, and supporting investment during commodity market volatility.

• Minister of Trade, Industry and Competition: Must engage stakeholders to identify measures that support South Africa's diamond industry, promote local beneficiation, expand downstream industries, and protect decent work opportunities.

Defending Workers' Rights

The NUM will participate fully in all consultation processes and vigorously defend the interests of workers during both the Business Rescue proceedings at Finch Diamond Mine and the Section 189A consultation process at Cullinan Diamond Mine.

Naki concluded by reaffirming the union's unwavering commitment:

"The NUM will not stand by while thousands of workers face uncertainty. We shall utilize every legal, organizational, and collective bargaining mechanism available to defend jobs, protect workers' rights, and ensure that workers' voices are heard throughout these processes."

The NUM stands in solidarity with all affected workers and their families, reiterating its commitment to fight against unnecessary job losses. Sustainable solutions must be found that protect both the long-term viability of mining operations and the livelihoods of workers and mining communities.

For further information, please contact:

Masibulele Naki, NUM National Health and Safety Secretary, 073 333 7745 / 064 502 1769

The National Union of Mineworkers
7 Rissik Street.
Cnr Frederick Johannesburg
Tel: 011 377 2111 Cell: 083 809 3257
Twitter: @Num_Media

Facebook: https://www.facebook.com/pages/NUM/10086002340