Gem Diamonds lays off Indonesia mine workers

Indonesian unit of UK diamond miner Gem Diamonds said it has decided to lay off all its workers and directors after the South Kalimantan mine was put under care and maintenance status.

PT.Galuh Cempaka (PTGC) Director Kuncoro Hadi was quoted by local daily Banjarmasin Post as saying that the company will lay off all of its 575 employees starting January 2009.

Gem Diamonds has an 80 percent stake in PTGC.

Kuncoro said the company was forced to put the mine under care and maintenance status and lay off workers after diamond prices plunged sharply following the global financial crises.

Kuncoro said the company might resume operation when diamond prices rebound. (*)