RESOURCES
DiamondCorp berates Amcu as it loses battle for survival
The danger of being a single-operation, single-commodity resources company is highlighted by DiamondCorp, which will put its listed holding company into administration despite being months away from steady state production as local bondholders and the Association of Mineworkers and Construction Union (Amcu) frustrated its efforts to refinance. DiamondCorp ran into technical, operational and financial problems exacerbated by what it called intransigent labour at its Lace diamond mine in the Free State as it sought desperately for money to bring it over the finishing line and into steady-state production. It was particularly scathing of Amcu in Friday’s statement. Blame, which was levelled at bondholders for the company’s inability to refinance the business, was also apportioned to Amcu, the dominant union at the mine, which was to use a highly mechanised mining process called block caving. "In addition, the protracted discussion with Amcu, which was terminated in early April 2017 wit...
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