At its Investor Day event last week, Anglo American announced a “radical and aggressive” restructuring that includes job cuts at De Beers. Philippe Mellier, CEO of De Beers, notes that the diamond mining company will be cutting more than 1,500 jobs as it reduces diamond production down from this year’s 29 million carats to 26-28 million carats in 2016.
Additionally, the company’s Damtshaa Mine will be put on care and maintenance while production is reduced at Orapa Plant 1. This suspension of production follows De Beers’ statement that Snap Lake—the group’s only Canadian mine—will also be placed on extended care and maintenance and will reopen only if conditions improve.
Mellier adds that because of this, De Beers will also be closing its head office in Canada and opening a smaller support center in Calgary.
Overall, the job cuts and decreased production are both part of Anglo American’s effort to reduce costs as profits diminish. In the next few years, the multinational mining company will be cutting 85,000 jobs, shedding 60 per cent of its portfolio and streamlining the business into three main units: Bulk Commodities, De Beers, and Industrial Metals. CJ