The National Union of Mineworkers (NUM) has condemned Petra Diamonds' decision to place Finsch Diamond Mine under business rescue and initiate a retrenchment consultation process at Cullinan Mine, warning that nearly 1,800 jobs and the livelihoods of mining communities are at risk.
NUM said about 689 workers at Finsch and a further 1,090 employees at Cullinan face an uncertain future following the company's announcement.
Petra Diamonds, however, said the move is necessary due to severe challenges facing the global diamond industry, including declining demand, falling prices, and the continued strength of the rand against the US dollar.
"We are faced with an unprecedentedly weak diamond market due to global macro factors as well as the recent Middle East tensions," said Petra Diamonds CEO Vivek Gadodia.
According to the company, diamond prices at both operations have declined significantly in recent months. Petra said Cullinan Mine's average tender price dropped from $109 per carat during the third quarter of the 2026 financial year to about $81 per carat in April and May, while Finsch Mine's average price fell from $56 per carat to about $47 per carat over the same period.
