Local diamond producers have a small volume of exceptionally high value stones.
Research is underway by diamond producing regions to test the theory that alluvial diamond mining operations are accompanied by critical minerals such as rare earths.
of SA diamonds, on condition that industry players commit a portion of their revenue to the cause. The challenge, says Smart, is that diamond producers are required to contribute 1% of their revenue to marketing. “We believe in the imperative of adopting a marketing strategy and agree that it is of national importance. However, as diamond mines are currently loss-making, there is little to no income to contribute to the cause.” Smart argues that the diamond sector pays royalties to the state, and if mines are forced to close this will be a loss to the country’s coffers. “For small-scale diamond producers that are currently loss-making, the state should step in and contribute the one percent. As it is, diamonds are among the top commodities contributing towards the country’s annual mineral earnings and if diamond mines close, the state loses royalties and taxes.” Size matters – impact on producers Smart advises that diamond producing countries in Africa, including Angola, Namibia and Botswana, produce, on average, higher value stones and fare better in the market downturn when compared to South African diamond miners, the bulk of whose production is low in value stones.
industry’s revenue, employing between 33 500 and 40 300 people. They hold a significant 80% of mining licenses. According to the Minerals Council South Africa, in 2023 junior miners generated R95,9 billion in revenue, up from R88,2 billion in 2022. Opportunities for growth According to Smart, there are several initiatives underway aimed at rejuvenating the natural diamond sector, which has long been in the doldrums and at the mercy of lab-grown diamonds. In a bid to safeguard the future of natural diamonds, industry stakeholders recently met to forge a path to profitability. In June, a ministerial roundtable was held in Luanda, Angola, to discuss and develop a joint global marketing strategy for natural diamonds. The meeting focused on addressing the challenges facing the diamond industry, particularly declining demand and prices for mined diamonds. Ministers from major African diamond-producing countries, along with industry representatives, participated in the discussions. Locally, the Minister of Mineral and Petroleum Resources, Gwede Mantashe, urged a united front to revive the natural diamond industry and proposed the creation of a dedicated marketing fund, offering to champion the global promotion
February 2026 | www.modernminingmagazine.co.za MODERN MINING 37
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