Diamond miner Petra Diamonds and the National Union of Mineworkers (NUM) have signed a five-year wage agreement covering Petra’s South African operations. The agreement spans from July 1, 2024, to June 30, 2029, ensuring stability and fair wages for workers.
Employees in the A and B Paterson bands will receive a wage increase of 6.25% or the Consumer Price Index (CPI), whichever is higher, for the first year. The following years will see increases of 5.75% or CPI for years two and three, and 6.5% or CPI for years four and five.
Petra CEO Richard Duffy expressed gratitude towards NUM for their cooperation. “We thank our partners in the NUM for their positive and constructive engagement in concluding this agreement against the backdrop of a challenging period for the industry,” Duffy said. “This allows for continued certainty on fixed labor costs at our South African operations and enables us to renew our focus on operational delivery as we continue to build further resilience in the business.”
London-listed Petra owns and operates the Cullinan and Finsch mines in South Africa, along with the Williamson mine in Tanzania. The Koffiefontein mine in South Africa is currently on care and maintenance.
The wage agreement is a significant development for Petra Diamonds, providing a stable and predictable labor cost structure. This stability is crucial as the mining industry faces various challenges, including fluctuating diamond prices and operational hurdles.
The agreement also highlights the importance of strong labor relations. The positive engagement between Petra Diamonds and NUM sets a precedent for constructive negotiations in the industry. This partnership ensures that both the company and its employees can work towards common goals without the disruption of labor disputes.
Petra Diamonds has been focusing on building resilience in its business operations. The wage agreement is part of a broader strategy to maintain operational efficiency and financial stability. By securing a long-term agreement, Petra can better plan its financials and allocate resources effectively.
The Cullinan mine is known for producing large, high-quality diamonds, including the famous Cullinan Diamond, the largest rough gem-quality diamond ever found. The Finsch mine is one of the world’s significant diamond producers, known for its high-quality gems. The Williamson mine in Tanzania also plays a vital role in Petra’s portfolio, contributing to the company’s overall diamond production.
While the Koffiefontein mine is on care and maintenance, Petra Diamonds continues to monitor the site, ensuring it remains safe and secure. The company has not disclosed any plans to reopen the mine in the near future.
Overall, the five-year wage agreement between Petra Diamonds and NUM marks a positive step forward for the company. It ensures fair compensation for employees while providing Petra with the stability needed to navigate the challenging landscape of the diamond mining industry. With this agreement, Petra Diamonds can focus on operational excellence and long-term growth.
Source: Mining Weekly
