Raising the profile of small-scale and artisanal diamond miners by fostering stronger networks, investing in future talent and addressing the challenges facing the industry were the main focuses of the Kimberley International Diamond Symposium (KIDS), held on 24 and 25 August at the Horseshoe Inn and Convention Centre in Kimberley, Northern Cape.
Hosted by the South African Diamond Producers Organisation (Sadpo) in conjunction with the Geological Society of South Africa (GSSA), the event was designed not only to promote the industry, but also to find collaborative ways to address the myriad challenges it faces.
“When you talk about diamonds, people generally think of big companies like De Beers or Petra Diamonds mining kimberlites. They don’t think about the small operators working in the alluvial fields. One of the things we wanted to do was to promote the artisanal and small-scale diamond mining industry and its importance,” GSSA Fellow Dr Tania Marshall tells Mining Weekly.
She says the recent KIDS event was the first diamond industry conference in South Africa to bring participants 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, around 150 industry stakeholders attended. These included academics, geologists, business leaders, mining equipment suppliers, service providers, government officials and others.
Notably, some 30 mining students were fully or partially sponsored to attend the event in the hope that they will 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 resources to do so,” says Marshall.
Of particular concern is the crippling cost to artisanal and small-scale miners (ASMs) of complying with the Mineral and Petroleum Resources Development Act (MPRDA) and the amended National Environmental Management Act, which have been imposed on the industry since their promulgation in 2004 and 2014 respectively, and which treat small and large-scale miners equally.
A report entitled ‘Status of the South African small and junior diamond mining sector’, published by the African Earth Observatory Network and Nelson Mandela University in 2021, showed that the small and junior diamond mining industry had shrunk from about 2 000 companies in 2004 to about 220 in 2020, and from 25 000 employees to only 5 720.
These figures are likely to have fallen further since then.
“What makes it worse is that it’s not just the direct jobs. It’s also the extended families that these people look after. So for every job that’s lost, there are more than 20 people who are not supported,” says Marshall.
Sadpo chairperson Gert van Niekerk notes that the decline in ASM diamond mining has also had a knock-on effect on supporting industries such as equipment and service providers.
“Kimberley has gone from being a vibrant young town to virtually a big city at this stage. In terms of industry, where we used to be able to do everything in Kimberley, now everything has to go to Joburg or come from Joburg. Kimberley has become a substation. It’s a sad story from start to finish,” Van Niekerk laments.
But he is hopeful that the policy reviews currently underway could turn the ship around, if only the changes can be implemented quickly enough.
“I am actually excited about the fact that they are looking at the MPRDA and the Diamond Act. They’ve released the ASM policy document on the smaller side. If we can now ensure that there is a concerted effort to address the issues as we have suggested, I’m sure we can turn this sunset industry back into a sunrise industry,” says Van Niekerk.
Marshall points out that policy and legislative changes take time – something the industry no longer has on its side. However, there could be some relief in the form of a reduction in the time it takes to obtain prospecting, mining and water use permits.
“It’s OK if you’re a big company with a lot of money; you can wait three years for your permit. Small operators have to make money on a monthly basis. I know a number of people who’ve actually gone bankrupt before their permits have been approved. By the time their permit is approved, they don’t exist anymore and they can’t mine,” she says.
Marshall says the GSSA will host another conference in 2025 to commemorate 100 years of diamond mining on the west coast of Namaqualand.
“We hope to address all the issues identified at KIDS. It’s the centenary of the discovery of diamonds on the west coast. Some of the money that was donated for sponsorships at KIDS will be reinvested in this conference so that we can sponsor more students to go to this conference as well,” she explains.
