De Beers has started a formal consultation process that could put more than 1,200 jobs at risk at its Venetia diamond mine in Limpopo, South Africa, as the global diamond market struggles with weaker demand and falling rough diamond prices.

The mining company’s decision comes after it announced plans to pause production at Venetia, the country’s largest diamond mine, for two years.

The suspension has raised concerns among workers, unions and local communities that depend on the mine for employment and business opportunities.

Although De Beers said it would support employees affected by the production halt, trade unions have raised concerns over the possible impact of retrenchments on workers and the broader diamond industry.

The company has issued Section 189A notices, which begin a legally required consultation process for large-scale job cuts in South Africa.

The notices do not automatically mean workers will lose their jobs. They allow employers and employees to discuss possible alternatives, including voluntary severance packages, early retirement, redeployment and other measures aimed at reducing job losses.

Unions warn of wider impact on diamond industry

UASA spokesperson Abigail Moyo said the planned shutdown at Venetia could affect thousands of workers and businesses connected to the diamond supply chain.

She said the mine’s closure would not only affect direct employees but also contractors, suppliers, diamond cutters and polishing businesses.

“Venetia Mine accounts for about 40% of South Africa’s diamond production, and any disruption will have a major impact across the industry,” Moyo said.

She added that the decision could place further pressure on communities already dealing with high unemployment.

The National Union of Mineworkers (NUM) said about 1,134 permanent employees at Venetia Mine and another 80 workers at De Beers Sightholder Sales South Africa are facing possible retrenchments.

The union accused the company of moving too quickly toward job cuts despite knowing about the challenges facing the diamond market.

Workers demand alternatives before retrenchments

NUM Diamond Sector Chief Negotiator Masibulele Naki said workers should not be the first option when companies face financial pressure.

He called on De Beers to consider other ways of reducing costs before making decisions that could affect employees and their families.

“Workers cannot be treated as disposable tools that are discarded whenever companies face economic challenges,” Naki said.

He urged the company to look at options such as retraining programmes, temporary job-saving measures, reducing unnecessary expenses and reviewing management costs.

De Beers said it is engaging with employees, unions and other stakeholders in line with South Africa’s labour laws.

The company also said it remains committed to supporting affected workers and maintaining its community and social investment programmes during the production pause.

De Beers faces pressure as diamond market weakens

The diamond industry has been hit by falling consumer demand, lower rough diamond prices and increased competition from lab-grown diamonds.

Producers around the world have been forced to adjust operations as market conditions remain challenging.

De Beers, majority owned by Anglo American, is one of the world’s largest diamond producers, with mining operations in South Africa, Botswana, Namibia and Canada.

The company has been reviewing its business as the diamond market faces changing consumer preferences and weaker sales.

The outcome of the consultation process at Venetia will determine whether job losses go ahead or whether alternative measures can be reached between the company and workers.