Lace Diamond

The deal covers all employees at the Lace diamond mine, and provides 8% annual increases in basic salary for majority of employees and a hike in the salaries for lowest categories to ZAR12,500 per month over the four-year period.

DiamondCorp CEO Paul Loudon said: "This long wage agreement will provide industrial relations stability at the Lace mine during the critical mine start up years and demonstrates a solid maturing of relationships between the union and management.

"We are particularly pleased to have negotiated a four year agreement rather than the more common two or three year agreement."

Operations at the mine were suspended after the company refused to employ two additional full-time salaried shop stewards. The AMCU-led protest ended in December 2014.

Last month, the company said development work in the Upper K4 block at the mine was on track to commence mining operations in second half this year.

Image: DiamondCorp’s Lace mine in the Free State province. Photo: courtesy of DiamondCorp plc.