Finsch Diamond Mine closure hits local business

The shutdown of the Finsch Diamond Mine in the Northern Cape has plunged local businesses into a dire financial predicament. Several local business owners have expressed the significant blow this closure has had on their operations and finances.

Assets worth billions of rands are slated to be sold off as part of the aftermath. This situation arose after the business rescue plan was sanctioned. The mine had been grappling with mounting pressure in the natural diamond market due to the increasing popularity of manufactured diamonds.

The mine currently owes considerable sums to contractors and workers, adding to the woes of local businesses. Many business owners report that they have received no notice ahead of the mine's closure and are left uncertain about their future standing with the mine. One affected business owner states, "The mine is owing me more than half a million. As yet, the mine did not give me any end of termination. I don’t know where I stand with them; my staff is still waiting for their money."

Another business owner lamented, "It has affected us badly, so even before the closure, there was no notification from the mine. We are their supplier. I have got a contract with them, so they buy food from us. In that week, we ordered food worth R50 to R60 000; now you can imagine I am sitting with that."

A third business owner revealed, "The mine is approximately fifty percent of our turnover and we have already seen a drop to thirty percent of our turnover."