Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Mmegi Online is reporting a major downsize has taken place at Debswana, a partnership between the Botswana government and De Beers.
The article says the company is in the process of shedding 700 jobs as part of a cost-cutting strategy:
The downsizing has translated into a 15% cut with the company’s staff complement whittled down to 4,200 from 4,900. Dubbed Debswana 2013: High Performance Strategy,” the scheme is the brainchild of Managing Director Jim Gowans.
Speaking at a Diamond Processing Exchange conference in Gaborone this week, Gowans said the job reductions were motivated by a need to reduce mine costs, most notably at Jwaneng —the richest mine in the world and supplier of over 65 percent of Debswana’s production, and at Orapa. Mmegi Online reported the strip ratios at these mines have more than doubled, from 4:1 to 10:1 at Jwaneng, and from 1:1 to 2:1 at Orapa.
