Small diamond mining industry in sharp focus at symposium

4th October 2023

By: Darren Parker

Creamer Media Contributing Editor Online

     

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Raising the profile of small-scale and artisanal diamond miners by fostering stronger networks, investing in future talent and addressing the industry's challenges were key focus points at the 2023 Kimberley International Diamond Symposium (KIDS), which took place on August 24 and 25 at the Horseshoe Inn and Convention Centre, in Kimberley, in the Northern Cape.

The event, which was hosted by the South African Diamond Producers Organisation (Sadpo), in collaboration with the Geological Society of South Africa (GSSA), sought not only to promote the industry but also to find collaborative ways to address the myriad challenges it faces.

"Generally, when you talk about diamonds, people think about large companies such as De Beers or Petra Diamonds mining kimberlites. They don't think about small operators that are in alluvial fields toiling away. One of the things that we wanted to do was to promote the artisanal and small-scale diamond mining industry and their importance," GSSA fellow Dr Tania Marshall tells Mining Weekly.

She says the latest KIDS event was the first diamond industry conference in South Africa where attendees could come together in person since the outbreak of the Covid-19 pandemic, providing a much-needed opportunity to reconnect.

She hopes the event served to strengthen relationships and reforge networks and alliances that can unite the industry against the many challenges it faces.

In total, about 150 industry stakeholders attended. These included academics, geologists, business leaders, mining equipment suppliers, service providers, government officials, and others.

Notably, the event saw about 30 mining students being fully or partially sponsored to attend, in the hope that they might contribute to the future of the industry.

"These were students; they will also be young entrepreneurs, people who want to get into the industry but don’t have the financial wherewithal to do so," Marshall says.

Of particular concern is the crippling cost of artisanal and small-scale miners (ASMs) in complying with the Mineral and Petroleum Resources Development Act (MPRDA) and the amended National Environmental Management Act that have been imposed on the industry since promulgation in 2004 and 2014 respectively, which treat small- and large-scale miners the same.

In a report titled 'Status of the South African small and junior diamond mining sector', published in 2021 by the African Earth Observatory Network and Nelson Mandela University, it was shown that the small and junior diamond mining industry shrank from about 2 000 companies in 2004 to about 220 in 2020, going from 25 000 employees to only 5 720.

These figures have likely dropped further since.

"What makes it worse is it's not only the direct jobs. It's the extended families that these people look after as well. So, for one job that gets lost, it's upwards of 20 people who are not being supported," Marshall says.

Sadpo chairperson Gert van Niekerk notes that the decline in the ASM diamond mining industry also has a ripple effect on supporting industries such as equipment and service providers.

"Kimberley has diminished from a vibrant young city to virtually a big town at this stage. Industry-wise, where we used to be able to do anything in Kimberley, everything has now got to go to Joburg or come from Joburg. Kimberley has become a substation. It's a sad story from the beginning to the end," Van Niekerk laments.

However, he expresses hope that policy reviews currently under way might turn the ship around, if only changes can be executed swiftly enough.

"I am actually excited about the fact that they are looking at the MPRDA and the Diamonds Act right now. They've published the ASM policy document in terms of the smaller side. Now, if we can ensure a combined effort to address the issues as we have proposed, I'm sure we can turn around this sunset industry into a sunrise industry again," Van Niekerk says.

Marshall notes that policy and legislation changes take time – something the industry does not have on its side anymore. However, there could be relief in the form of shortening the time it takes to get prospecting, mining, and water-use permits approved.

"It's okay if you're a big company and you've got large coffers; you can wait three years for your permit. Small operators need to make money on a monthly basis. I know a number of people who've actually gone bankrupt before their permits have been approved. When their permit is eventually approved, they no longer exist, and they can't go mining," she says.

Marshall says the GSSA will be hosting another conference in 2025 to commemorate 100 years of diamond mining along the Namaqualand West Coast.

"We're hoping to address all of the issues that were identified at KIDS. It's the hundredth-year anniversary of the discovery of diamonds along the West Coast. Some of the money that was donated for sponsorships at KIDS is being reinvested into that conference to allow us to sponsor additional students to go to that as well," she explains.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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