The regulatory charges imposed on small miners by the South African government are absurd. Alluvial diamond miners are charged within the same framework as the mining majors.
The mere application for a small 5 ha mining permit, before the applicant has even bought a pick and shovel, costs R150 000. In the opinion of the South African Diamond Producers Organisation, this should not cost more than R5 000. But is the government listening?
If it’s not, the generation of new jobs in rural areas will be denied. Alluvial diamond mining is a job creator, but the sector has shrunk dramatically in the face of a permit application costing R500 000, a water right costing R500 000 and an environmental guarantee costing R2-million. One size does not fit all when it comes to mining legislation and specific attention needs to be given to specific minerals.
If this happens, South Africa’s absolutely enormous alluvial diamond endowment could generate jobs galore, in a resource that still has 100 years of life in it.