Financial Difficulties at Alexkor
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19.03.07
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Mining
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According to reports, South Africa's state-owned diamond mining company Alexkor has been experiencing financial difficulties due to a combination of lack of funding and unproductive offshore mining operations, in addition to a problematic land claim.
Alexkor is facing decreased carat production due to unfulfilled expectations in its offshore mining operations. In addition, the company's equipment and plant infrastructure are out-dated.
The company is now facing a land claim by the community of Richtersveld, where the mine is situated.
The diamond mining giant is reportedly planning some restructuring and downsizing, meaning that some of Alexkor's 1400 employees may be facing looming unemployment.
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By: Rachel Lieberman, Israel Diamond Industry Portal
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