Workers’ Union Condemns Petra over Finsch Mine Closure

The National Union of Mineworkers (NUM) has criticized Petra Diamonds for its plan to put its Finsch mine in South Africa into business rescue and lay off employees.

Closing the mine would affect approximately 689 workers, while further cutbacks anticipated at the Cullinan deposit threaten roughly 1,090 jobs, the NUM said Sunday. The move endangers the economic stability of the mining communities that depend on the operations, the group warned.

“It is unacceptable for companies to continuously point fingers at labor costs whenever they face operational or financial challenges,” said NUM’s chief negotiator and national health and safety secretary dealing with Petra Diamonds, Masibulele Naki. “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.”

The union remains deeply concerned about the trend in the mining sector whereby companies implement layoffs and business-rescue processes as the first option rather than as a last resort, Naki added.

The union also called on the South African government to convene a multi-stakeholder intervention to safeguard jobs, sustain investment and rescue the future of the mining operations.

“The government cannot be a spectator while nearly 1,800 workers and their families face an uncertain future,” NUM said. “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.”

This is not the first time NUM has objected to Petra laying off workers. In late 2024, the company fired over 200 employees in a cost-cutting measure. Petra announced last month it would close the Finsch mine and fire workers amid a downturn in the market, and would divert the money to its Cullinan mine.

Petra is not the only company facing challenges in the sector. Kao mine owner Storm Mountain Diamonds recently announced it would temporarily close the Lesotho site next month. Meanwhile, Burgundy Diamonds, which owns the Ekati mine in Canada’s Northwest Territories, is looking to sell the deposit after filing for creditor protection last month.

Miners have faced significant financial challenges amid the downturn in the diamond industry over the past few years, particularly in the market for smaller diamonds, which these projects primarily produce.

Image: A worker performing an inspection at the Finsch mine. (Petra Diamonds)