Hope Diamond Transport says 11 of its buses will remain idle after a number of companies which had contracted it to transport their employees terminated their contracts.
The Musina-based company, in a letter to managers, staff and shareholders on Monday, said it had received contract termination notices from key partners including Murray & Roberts, Concor and TDS. It said these terminations came at a time of economic uncertainty and significant challenges in the mining industry, particularly in the diamond sector.
The company said the termination of the contracts would have a substantial effect on its operations. It said Concor and Murray & Roberts contributed about 31% of the company’s revenue.
“As a result, 11 buses and/or smaller vehicles will be left without operation, affecting the transportation needs of about 1,100 passengers across three shifts.”
In September last year in Musina, a bus belonging to Hope Diamond Transport carrying Murray & Roberts employees travelling to the Venetia mine was involved in a head-on collision with a truck and both caught fire. Seventeen Murray & Roberts Cementation employees, the bus driver from Hope Diamond Transport, the truck driver and a passenger in the truck died.
Hope Diamond Transport said the board had directed management to submit a plan to address this loss of business and outline mitigation measures.
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