Miningmx reports that JSE-listed diamond firm BRC DiamondCore may lose its South African diamond mining licenses due to dissension with unions regarding the retrenchment of 200 diamond mine workers.
According to reports, the diamond company reportedly discovered an important kimberlite discovery in the Democratic Republic of Congo six months ago. Miningmx maintains that BRC has yet to inform its shareholders about the find.
The discovery is thought to be connected to diamond geologist Mike de Witt's search for the source of the rich alluvial diamond deposits in southwest DRC, called Tshikapa.
BRC DiamondCore has focused on the area due to its strong potential to yield rare diamondiferous kimberlite deposits.
BRC attempted to include Rio Tinto in the exploration program of the kimberlite, but the latter declined. Subsequently Gem Diamonds became involved in the project until it also pulled out reportedly due to the state of BRC’s finances.
According to Miningmx, BRC's current liabilities stand at C$12m against current assets of C$2.8m of which C$1.2m is cash.
Last week, BRC refused to meet with the South African trade union Solidarity. According to a union spokesperson, the diamond miner stated that "its financial situation had not improved since the last meeting and there would be no merit in engaging labor."
BRC has announced that it intends to lay off about 200 workers at its Silverstreams alluvial diamond project and the kimberlitic Paardeberg project.
Solidarity stated that it intends to clarify with the Department of Minerals and Energy if BRC sent a Section 52 notice to the department, notifying it of the retrenchments. If this is not the case, its mining licenses for the diamond mining projects could be revoked.
