De Beers Suspends Botswana Diamond Mine Production
De Beers is suspending work at its diamond mines in Botswana reports the Telegraph. The Telegraph says the Botswana diamond mines produce one fifth of all the world's diamonds and nearly half of De Beers global output.
Work will be suspended for the rest of the year at two of them, Damtshaa and Orapa No 2, while Orapa No 1 and Jwaneng, the planet's single most valuable diamond mine, will stop activities until at least mid-April.
Production at the mines had already stopped in December, when the workers went on their Christmas break, and when they returned only care and maintenance was being carried out. Now several thousand of the firm's 5,510 permanent employees will be sent home on extended leave on full pay from Tuesday, while 580 jobs will be slashed at the two mines facing long-term closure.
Bloomberg and Financial Times are also reporting the cessation of work at the Bostwana diamond minds. The U.S. buys half of the world's diamonds and with the U.S. in a bad recession there are not as many diamonds being sold. De Beers is left stuck with excess diamond inventory as a result. Another strategy De Beers is taking to combat the recession is to go outside its restricted circle of authorized buyers or sightholders to sell its excees diamond inventory.
Photo: Hauling kimberlite bearing ore at Jwaneng, the richest diamond mind in the world. Source: De Beers Group
De Beers is suspending work at its diamond mines in Botswana 
