JOHANNESBERG, June 1 – Diamond producer Petra Diamonds has announced plans to reduce its workforce and place its Finsch mine in South Africa under business rescue as it responds to ongoing challenges in the global diamond market.
The company said it has started a consultation process with employees and labour unions regarding the proposed job cuts, although it has not disclosed how many positions could be affected.
Petra attributed the decision to a combination of factors, including continued weakness in diamond prices, a stronger South African rand and uncertainty linked to geopolitical tensions in the Middle East.
The Finsch mine remains a key asset for the company, contributing about 34% of group revenue during the 2025 financial year. The operation mainly produces smaller diamonds, particularly stones weighing two carats or less.
According to the company, demand and pricing for smaller diamonds have faced sustained pressure in recent years, creating significant challenges for the mine’s profitability. Petra said placing the operation under business rescue will allow it to restructure the mine and explore options to improve its long-term financial position.
Chief Executive Officer Vivek Gadodia said the company does not expect a meaningful recovery in prices for smaller diamonds in the near future.
As a result, Petra has withdrawn its financial outlook for the 2026 to 2030 period while it assesses market conditions and the impact of the restructuring process.
The company employs more than 4,000 people across its operations and continues to review measures aimed at strengthening its business amid a difficult operating environment.
