Debswana Diamond Co., the joint venture between De Beers and Botswana’s government, plans to cut at least 1,000 jobs, or about a fifth of its workforce, according to a Bloomberg report.



Letters have been sent to mineworkers at Jwaneng, Orapa and Letlhakane diamond mines to inform them that they may be fired, Debswana spokeswoman Esther Kanaimba said in a phone interview with Bloomberg from Botswana’s capital Gaborone today.



Debswana, which accounts for about a fifth of world diamond output, shut its four mines last year as the global recession reduced spending on luxury goods including jewelry. The Damtshaa diamond mine still remains closed, while the other three reopened in April.



“The company is reviewing its operations and we have informed workers that there is a likelihood that their jobs may be affected,” Kanaimba told Bloomberg. “Our strategy has been to contain costs, improve revenue for shareholders, maintain the effectiveness of the company and ensure sustainability.”

Diamond giant De Beers, which is 45% owned by Anglo American Plc, is seeking to raise $1 billion through a rights offer to cut debt. Managing Director Gareth Penny said on November 24 that sales were 47% of the level a year earlier.



The Botswana Gazette reported today that about 1,278 employees may lose their jobs.

Some jobs, such as cleaning and catering, may be outsourced, while other employees will be fired, Kanaimba said. The process may take the whole of this year to complete, with the first of the employees fired probably leaving by the middle of the year, she said.



Workers received letters complying with Section 25 of the country’s labor laws informing them of a possibility of job losses, Sebataladi Ramoitoi, deputy secretary general of the Botswana Mining Workers Union, said in a phone interview from the Jwaneng diamond mine today.



“We are in negotiations with Debswana on how the project can be executed without causing effects on the affected employees,” Ramoitoi told Bloomberg. “It is just the beginning of the process and we have not reached any agreement yet.”