De Beers to slash production costs
Wednesday 07 October 1992
The company gave no details, but analysts said they believed a quarter of the workforce of the Premier mine, near Pretoria, would be laid off. Premier produces 25 per cent of the world's large investment gems.
De Beers has been hit by the slump in demand for luxury goods. In July, it reported lower first-half earnings, and said its final dividend was likely to be cut. It also announced a cut in the diamond quota controlled by its subsidiary, the Central Selling Organisation, which runs the world cartel.
Analysts said the measures were unlikely to improve the prospects for De Beers' share price, which has dropped to R47.57 (nearly pounds 10) from a high of R93 six months ago.
The Russians have indicated that they may start selling their dollars 4bn stockpile of diamonds on the free market. A De Beers spokesman said the effect would be 'catastrophic'.
Michael Coulson, analyst with Credit Lyonnais in London, believes that De Beers may have to close mines if the new measures are not enough.
- 1 Autism 'caused by genetics', study suggests
- 2 What happens to your body when you give up sugar?
- 3 Why you should never make assumptions about people with autism
- 4 Tourist films plane's descent just metres above packed Caribbean beach
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Tourist films plane's descent just metres above packed Caribbean beach
Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
How Homer Simpson discovered the Higgs boson over a decade before scientists
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Harrison Ford plane crash: Star Wars actor 'seriously injured' after light aircraft crash lands
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
Nigel Farage promises Ukip will not 'stigmatise' would-be migrants – and says he wants 'everyone to speak the same language'
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...