NUM Sees Flaw in DeBeers’ Black Empowerment Deal

All in all, South Africa’s National Union of Mineworkers (NUM) is pleased with DeBeers’ finalised Black Economic Empowerment plan.

But one major flaw persists: a 15% set-aside for “key” employees has been inserted into the agreement that has weighted the 26% stake held by newly-created Ponahalo Investment Holdings. Conforming to statute, DeBeers spun that portion of its Consolidated Diamond Mines in South Africa into a minority stake that will be 50% owned by workers and former workers, and another 50% owned by community interests and business people.

But “spoiling the apple-pie,” the NUM states, is the 15% set-aside of this latter stake to key employees, which could lead to patronage or even racism.

NUM Gen. Sec. Gwede Mantashe singled out the positive fact that Ponahalo, or “emergence” in the Setswana language, will be headed by a former diamond worker and trade unionist. “This new partnership with DeBeers will lead to the betterment of workers and the communities of diamond mineworkers,” he said.