DIAMOND MINING IN SOUTH AFRICA - ECONOMIC GEOGRAPHY: Mining for schools
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ECONOMIC GEOGRAPHY: DIAMOND MINING IN SOUTH AFRICA
CONTENTS
Diamond mining has been SECTION D1 2 SECTION D5 43
taking place in South Africa What are diamonds? 3 Why diamond mining matters 44
for almost 150 years. But the What makes diamonds special? 4 Factors that favour and hinder diamond 45
mining in South Africa
sector is far from reaching the Uses of diamonds 9
Safety and health 46
end of its life.
SECTION D2 12 Environment 48
Where diamonds are found and mined 13 Diamond mining technology 52
South African diamond mining today 16 Synthetic diamonds 54
Quotes about diamonds 55
SECTION D3 18 Fun facts about diamonds 56
The diamond mining life cycle 19
SECTION D6 57
SECTION D4 26 Glossary of terms 58
People of diamonds 27
The big finds 31
Jobs in diamond mining 39
Brief history of diamond mining 40
in South Africa
PAGE 1
MINING
FOR SCHOOLS
SECTION D1
People have always
been attracted to
beautiful objects.
Diamonds have
been treasured as
gemstones since
ancient times.
Petra Diamonds
PAGE 2
SECTION D1
WHAT ARE DIAMONDS?
The word diamond comes Diamond is the crystallised form of pure carbon The funnel-shaped areas carved out by the
(99.95% to 99.98%), the strongest mineral on magma eruptions are called kimberlite pipes,
from the ancient Greek word earth, and one of the oldest substances known to named after the first formation discovered in
adámas meaning invincible or man. The chemical formula of diamond is C which Kimberley, South Africa.
is the chemical symbol for the element carbon.
indestructible. Diamond ore, in its roughest form, doesn’t look
The earth is estimated to be 4.5 billion years like the shiny nuggets on engagement rings.
old. Most of the diamonds we find today started Diamonds must be sorted, cut and polished to
THE to form between 1 billion and 3.3 billion years bring out their lustre. On average, 250 tonnes of
EARTH’S ago under intense heat (around 1,204°C) and ore must be mined in order to produce a single
CORE immense pressure, more than 150km below the carat gem quality polished diamond.
earth’s surface in the mantle, an area consisting
Rough diamonds come in all shapes and sizes,
INNER CORE of volcanic magma.
1,600km colours and purities. They may be transparent,
OUTER CORE Then, hundreds of millions of years ago, powerful translucent or opaque. The larger, whiter and
2,750km
volcanic eruptions pushed the diamonds closer cleaner the diamond, the rarer it is. However,
MANTLE to the earth’s surface. As the magma travelled premium prices can be commanded by coloured
2,800km up to the surface it ripped off pieces of the diamonds, which can be blue, pink, green,
mantle taking the diamonds, embedded inside yellow, brown, orange, violet, black or grey.
CRUST the crystallised host rocks, with it.
50-70km
PAGE 3
SECTION D1
WHAT MAKES DIAMONDS SPECIAL?
A diamond
The diamond is known for its
superlative physical qualities,
most of which originate from
the strong molecular bonds is forever www.forevermark.com/en/now-forever/
a-diamond-is-forever/frances-gerety/
between its atoms. In particular,
Marketing has significantly affected the
it has the highest hardness and image of diamonds as a valuable commodity.
thermal conductivity of any Prior to the 1930s, diamond rings were
bulk material. rarely given as engagement rings. Opals,
rubies, sapphires and turquoise were much
Diamonds were traded in India as early as the
more popular to give as tokens of love.
4th century BC and were thought to possess
Then De Beers changed the world diamond
magical properties – just to gaze at a diamond
market with a brilliant advertising campaign
was considered strengthening. In the 1st century
begun in the 1940s, causing demand for
AD, the Roman naturalist Pliny said, “Diamond is
diamonds to increase. The campaign was
the most valuable, not only of precious stones,
responsible for creating new markets in
but of all things in this world.” Their usage in
countries where no diamond tradition had
engraving tools also dates to early human history.
existed before.
The popularity of diamonds has risen since
The Diamond is forever ad campaign was
the 19th century because of increased supply,
created by the US advertising agency, NW Ayer,
improved cutting and polishing techniques,
in 1947. In 2000, Advertising Age magazine
growth in the world economy, and innovative
named this the slogan of the 20th century.
advertising campaigns.
PAGE 4
SECTION D1
WHAT MAKES DIAMONDS SPECIAL? CONTINUED
The most familiar uses of diamonds today are
THE
FOUR Cs
as gemstones used for adornment, and as The commercial value of a diamond is
industrial abrasives for cutting hard materials. determined by four characteristics known as
The dispersion of white light into colours of the ‘4 Cs’ – carat, colour, cut and clarity.
the spectrum is the primary characteristic of
gem diamonds. In the 20th century, experts
in gemology developed methods of grading C1: Carat
diamonds. Four characteristics, known The value of a diamond is partly determined by The following chart indicates the average
informally as the ‘4 Cs’, are now commonly used its weight and the price per carat of diamond mm size per carat:
as the basic descriptors of diamonds. rises proportionately with size.
Approximate
A carat is the international unit of measurement Carats diameter
used to measure the weight of diamonds. One
carat is the equivalent of 0.2 grams. 0.25 4.0mm
In the diamond trade, fractions of a carat are
referred to as points. One carat is divided into 0.5 5.2mm
100 points – so each point is 1/100th of a carat.
A 10-point diamond weighs 1/10th of a carat,
1.00 6.5mm
and a 50-point stone weighs one-half carat.
More weight equals more money so many
1.5 7.4mm
diamond cutters sacrifice brilliance to maximise
carat weight and profit. But, weight does not
always equal size or beauty. Poorly cut diamonds, 2 8.1mm
even if they are big, can be dull and lifeless.
PAGE 5
SECTION D1
WHAT MAKES DIAMONDS SPECIAL? CONTINUED
C2: Colour
Diamonds typically range from pale yellow to GIA colour grading scale
colourless, but can also be brown, blue, green,
SCALE D E F G H I J K L M N O P Q R S T U V W X Y Z
orange, red, pink and black. Colour has a
significant impact on the diamond’s appearance GIA GRADE
as the presence of noticeable colour may reduce
its ability to reflect light. Usually, the most
Near Faint Very light Light
valuable diamonds have little to no detectable Colourless
colourless yellow yellow yellow
colour. But, stones with colour called ‘fancy
colours’ are very rare and are highly prized.
The most common diamond colour is yellow
and the Gemological Institute of America (GIA)
Grading Scale for diamond colour is based on
the amount of yellow that is visible. Each colour
grade is based on a very small range.
Petra Diamonds
PAGE 6
SECTION D1
WHAT MAKES DIAMONDS SPECIAL? CONTINUED
C3: Cut
Regardless of the size of the diamond, cut is Very shallow Shallow Ideal Deep Very deep
often considered the most important ‘C’, and is
governed by man’s skill rather than by nature. The
cut of a diamond is crucial to its ability to reflect
light and has the greatest influence on its beauty.
Cut refers to the evenness, symmetry and angle
of a diamond’s facets. A master cutter cuts and Poor Good Excellent Poor Very poor
angles to precise specifications so the diamond Appears dark Appears small
optimally reflects the maximum amount of light
through the top of the stone giving it sparkle
and brilliance. If a diamond is cut too deep,
light escapes out of the side and the centre will Diamond cut should not be
appear dark, absorbing rather than reflecting
light. A very shallow cut results in light escaping confused with diamond shape.
through the bottom, causing the diamond to
All diamond shapes are different and the unique characteristics of each diamond determines
look like a dull piece of glass.
the shape. Below are some of the most common diamond shapes viewed from above:
In 1919, Marcel Tolkowsky, a mathematician and
gemologist, developed the formula for cutting
diamonds to achieve the most brilliance in a
diamond. The round brilliant diamond cut has
become an industry standard and is known as the Round Princess Emerald Asscher Marquise Oval Radiant Pear Heart Cushion
‘American Ideal Cut’ or the ‘Tolkowsky Brilliant’.
PAGE 7
SECTION D1
WHAT MAKES DIAMONDS SPECIAL? CONTINUED
C4: Clarity
Because they are formed deep within the
earth, under extreme heat and pressure;
virtually all diamonds contain ‘birthmarks’;
small imperfections inside the diamond (called
inclusions), or on its surface (called blemishes).
Flawless Internally Very very slightly included
Clarity refers to the degree to which these flawless (VVS1 and VVS2)
imperfections are present. Therefore, the fewer No inclusions or blemishes when No flaws on the surface or Minute inclusions that are difficult
imperfections or inclusions within a stone, the viewed under 10X magnification by internally, only blemishes when for a skilled grader to see under
rarer and the higher its value. a skilled grader viewed under 10X magnification 10X magnification and absolutely
invisible to the naked eye
The clarity scale was developed by the GIA to
quantify these imperfections.
All diamonds are systematically graded and
plotted under 10X magnification. If a trained
grader cannot see a clarity characteristic at 10X,
it does not affect the clarity grade.
Very slightly included Slightly included Included
(VS1 and VS2) (SI1 and SI2) (I1, I2, and I3)
Minor inclusions that range from Inclusions are easy (SI1) or very Inclusions may or may not be easily
difficult (VS1) to somewhat easy (SI2) to see under 10X seen by the naked eye but are
easy (VS2) to see under 10X magnification, but difficult with the obvious under 10X magnification
magnification and almost naked eye
impossible to see with the
naked eye
PAGE 8
SECTION D1
USES OF DIAMONDS
People have always been bridal sector and are the traditional stone in
engagement and wedding rings, representing
attracted to beautiful, rare eternal love and commitment.
objects. Diamonds have been
Industrial diamonds
treasured as gemstones since The superior strength and unique properties of
ancient times, admired for their diamonds make them suitable for a wide range
beauty, and people still think of industrial uses. Most diamonds mined lack
the quality necessary to become gemstones
of diamonds as the ultimate
and 80% of all rough diamonds go towards
luxury in jewellery. However, industrial uses.
diamonds are valued for far Traditionally, because diamonds are so hard
more than their captivating (scoring a 10 on the Mohs Hardness Scale)* and
durable, their use has centred on cutting, drilling
beauty. Their unique physical
and polishing, and they are especially popular
properties make them prized in the mining industry and in the military. Very
above all other gems. small diamond particles are embedded into saw
blades, drill bits and grinding wheels to increase
Jewellery
their ability to cut tough materials. Diamond
We are all familiar with De Beers’ famous slogan:
powder, made into a diamond paste, is used for
“A diamond is forever”, first used in 1947, and
polishing or for very fine grinding.
the beauty of a diamond set in an engagement
ring, earrings and other fine jewellery. Diamonds Diamonds are also used to cut and polish other
have an entrenched association with the diamonds for jewellery.
PAGE 9 * See glossary on page 57SECTION D1
USES OF DIAMONDS CONTINUED
Automotive industry Researchers are also looking into using
diamonds to help the visually impaired, and
Diamonds are an integral part of the automotive
testing diamonds as a potential material for
industry and are used in the production of
bionic eyes and eye implants.
vehicles. Diamond saws and drill bits cut and
finish car body and engine components and Many dental tools include diamond tips to help
diamond-coated grinding wheels bevel and dentists drill with maximum efficiency and
polish the glass in windows. without worrying about breaking instruments.
Windows Engraving
Diamond membranes are very durable, resistant Diamonds are used to engrave hard stone like
to heat and abrasion and are transparent. granite and quartz because diamonds will not
Diamond windows are made from very thin break or even scratch.
diamond membranes and used to cover openings
in lasers, vacuum chambers and x-ray machines. Audio equipment
Industrial-grade diamonds are believed to
Medicine enhance the performance of high-quality
Diamonds have potential health benefits. speakers, improving sound quality. Diamond is a
Medical research indicates that nanodiamonds very stiff material, and thin diamond domes can
– tiny diamond particles – may be an indicator vibrate rapidly without deforming and lessening
of the effectiveness of cancer medication once the sound quality. Diamonds are also used in
administered to patients allowing doctors to record player needles and DJ equipment.
monitor the progression of the cells.
PAGE 10SECTION D1
USES OF DIAMONDS CONTINUED
Beauty products
Some beauty companies offer expensive
diamond-based beauty products including
diamond-flecked spray, exfoliators and blurring
agents which, allegedly, reduce the appearance
of wrinkles.
Heat sinks
Diamonds are resistant to heat and can heat up
and cool down without having a major impact on
performance and conduct heat extremely well.
Diamonds are, therefore, used as a material for
heat sinks. A heat sink is an electronic device that
incorporates either a fan or a peltier device to
keep a hot component such as a processor cool.
Future uses
Through continuous research, scientists are
finding other, more sophisticated uses for
nanodiamonds in high-tech applications,
including super lasers, surgical tools, medical
devices and next generation computing
(spintronics).
PAGE 11MINING
FOR SCHOOLS
SECTION D2
Ever since the
first diamond was
discovered in 1867,
South Africa has been
a world leader in
diamond mining.
De Beers
PAGE 12SECTION D2
WHERE DIAMONDS ARE FOUND
AND MINED IN SOUTH AFRICA
Natural diamonds were formed
some 3.3 billion years ago in
conditions of intense heat and
pressure 150km below the
earth’s surface.
Alluvial diamonds were the first diamonds to be
discovered in South Africa. Alluvial means these
were diamonds that had been removed from
their primary position by erosion over millions of
years, and deposited in a river bed, ocean floor
or shoreline.
By 1869, diamonds were found far from any
stream or river, first in yellow earth and then
below ground in hard rock called blue ground
near and in what was to become Kimberley
in the Northern Cape, the world’s diamond
capital. The blue ground was subsequently
named kimberlite, after the mining town.
These kimberlites in ancient, vertically-dipping
volcanic pipes are the primary sources of South
Africa’s diamonds most of which were initially
suitable for open-cast mining.
PAGE 13SECTION D2
WHERE DIAMONDS ARE FOUND
AND MINED IN SOUTH AFRICA CONTINUED
The first diamonds were found at the future
site of the Big Hole on the farm Vooruitzicht
belonging to the De Beers brothers, in
1871. The ensuing scramble for claims led
to the place being called New Rush, later
renamed Kimberley. From 1871 to 1914 up to
50,000 miners dug the hole with picks and
shovels, yielding 2,720kg or 13,600,000ct
of diamonds. The Big Hole has a surface of
17ha and is 463m wide. It was excavated
to a depth of 240m, but then partially
infilled with debris reducing its depth to
about 215m. Since then it has accumulated
about 40m of water, leaving 175m of the
hole visible. Once above-ground operations
became too dangerous and unproductive,
the kimberlite pipe was also mined
THE BIG HOLE
underground by the De Beers company to a
depth of 1,097m.
There is currently an effort in progress
to register the Big Hole as a World
The Big Hole is an open-pit and underground mine in Kimberley in the Northern Cape.
Heritage Site.
It is claimed to be the largest hole excavated by hand.
PAGE 14ullinan SECTION D2
Mpumalanga
WHERE DIAMONDS ARE FOUND
AND MINED IN SOUTH AFRICA CONTINUED
KwaZulu-Natal
SOUTH AFRICA Venetia
LEGEND Limpopo
De Beers
Petra Diamonds
Trans Hex
Lower Orange River Diamonds
Petra Diamonds and Ekapa Mining
Cullinan
Gauteng
Mpumalanga
North West
Finsch
Free State
Lower Kimberley
Ekapa Mining JV Koffiefontein KwaZulu-Natal
Orange mines Diamonds were later discovered in significant
Northern Cape quantities in kimberlites in what was then
known as the Transvaal – the Cullinan mine near
West Coast
Resources Pretoria was opened in 1902 and then Venetia
in 1992. The Finsch mine in the Northern Cape
LEGEND
opened in 1967.
Eastern Cape De Beers
Petra Diamonds
Alluvial diamonds and small diamondiferous
Trans Hex fissures have been known and worked for many
Western Cape Lower Orange River Diamonds
years along the southern banks of the Orange
Petra Diamonds and Ekapa Mining
River as well as along and off South Africa’s
west coast.
PAGE 15SECTION D2
SOUTH AFRICAN DIAMOND MINING TODAY
Diamond mining has been In 2018, South Africa produced 10.5Mct of
diamonds. Total sales amounted to R16.3 billion,
taking place in South Africa for with 55% of diamonds being exported.
almost a century and a half, but The underground mining and recovery of
Further north in Limpopo province, the Venetia
mine owned by De Beers is South Africa’s largest
the country’s diamond sector diamonds continues to this day in the vicinity of diamond producer, recovering some 8Mct a year.
Kimberley, the site of the early main discoveries
is far from reaching the end of Mining is currently by open-cast methods but the
in the 19th century. depth limits of the open pit are being reached
its life. Developments at the and an underground mine is being developed
Petra Diamonds acquired the Bultfontein,
country’s three largest mines Dutoitspan and Wesselton Mines from De Beers
to continue production below the open pit.
Underground mining will be by conventional
– Venetia, Finsch and Cullinan – in 2010 and started with development work
block-caving or sub-level caving methods.
to open up new areas of these mines. In 2016,
are designed to expand their Ekapa Minerals, a partnership between Petra
outputs and to extend their lives Diamonds and Ekapa Mining, bought the
treatment plant and old tailings dumps from De
to anywhere between a quarter Beers. By operating all these resources as a unit
The Finsch mine, part of the Petra Diamonds
and a half a century. in a joint venture, this can significantly extend
group, is South Africa’s second largest producer
the life of these operations.
and operates as an underground mine using
LOWER ORANGE RIVER DIAMONDS conventional sub-level caving methods. Finsch
produces an annual 2.1Mct. The mine is starting
To the west of Kimberley, and on the southern
to work in new areas which are expected to
banks of the Orange River some 60km upstream
maintain this level of production.
from Port Nolloth, Lower Orange River Diamonds
mines largely alluvial diamonds at its Baken and Near Pretoria and also part of the Petra
Bloeddrif operations. Diamonds group, the Cullinan mine (originally
PAGE 16SECTION D2
SOUTH AFRICAN DIAMOND MINING TODAY CONTINUED
called Premier) is being restructured and Major diamond producing countries (2009-2018)
expanded to mine at ever-increasing depths
with a life expectancy in excess of 50 years.
24
Expansion is intended to lift annual production
from its current 0.8Mct to 2.2Mct by 2019.
20
The South African Diamond Producers’
Carats produced (millions)
Organisation (SADPO) represents the country’s
emerging diamond miners and the organisation 16
is supported by the Emerging Miners’ Desk of
the Minerals Council South Africa. SADPO is 12
a member of the Minerals Council’s Emerging
Miners’ Leadership Forum. SADPO is a
8
voluntary association which aims to streamline
the diamond producers’ industry and act in
concert with other structures in the industry. 4
Its members include diamond producers and
diamond dealers.
0
The Minerals Council South Africa also has 2009 2018
in place a Diamond Leadership Forum which
addresses areas of concern to the sector. Russia Botswana Canada Angola South Africa DR Congo Namibia
This chart shows the estimated annual production of gem-quality diamonds, in millions of carats, for the world’s
leading diamond-producing nations. Graph by Geology.com. Data from USGS Mineral Commodity Summaries.
PAGE 17MINING
FOR SCHOOLS
SECTION D3
Improved mining
and recovery methods
have enabled mining
companies to meet
world demand
for diamonds.
Petra Diamonds
PAGE 18SECTION D3
THE DIAMOND MINING LIFE CYCLE
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9
Exploration Mining Ore Cleaning, Industrial Sales of rough Cutting and Sales of Closure and
processing sorting and diamond diamonds polishing gemstones rehabilitation
packaging sorting
Petra Diamonds
PAGE 19SECTION D3
THE DIAMOND MINING LIFE CYCLE CONTINUED
Petra Diamonds
45,000 tonnes of ore. Once the ore is broken,
STEP 1
excavators load the ore into haul trucks and
Exploration
transport it to a primary ore crusher where
Geologists use many methods to explore the diamond extracting process begins.
for kimberlites – the primary sources of Venetia mine is an example of open-pit mining.
diamonds – including satellite remote sensing,
geophysics and reconnaissance sampling. Any In underground mining, miners tunnel into
kimberlites discovered can then be drilled to the earth’s crust through the kimberlite pipe.
establish whether or not they contain economic Tunnels are constructed on two levels about
quantities of diamonds. 25m vertically apart. The upper level is used
for undercutting the ore zone to initiate caving.
Extracting core for analysis will give indications
The lower production level is used to extract the
of grade, cost per tonne and average value per
bulk of the ore through funnel like excavations
carat. From here, a decision whether to mine or
from the upper level. In the lower level, load
not can be made.
haul dumpers collect the broken ore and take it
to a crusher before being taken to surface for
STEP 2
processing.
Mining
This type of mining, known as block caving,
PIPE MINING - PRIMARY DEPOSITS
is a well-established and safe mechanised Cave
There are two types of pipe mining, namely mining method that was first introduced at Undercut
open-pit mining and underground mining. Kimberley in 1951. It is now used extensively as
level
Open-pit mining involves removing the layers of an underground mining method as it allows for
sand and rock found just above the kimberlite. the bulk mining of large orebodies and enables
Once exposed, the ore in the pit is broken up by a higher ore extraction percentage compared to
blasting. A single blast can break approximately other underground mining methods. Production level
PAGE 20SECTION D3
THE DIAMOND MINING LIFE CYCLE CONTINUED
Petra Diamonds
ALLUVIAL MINING – SECONDARY DEPOSITS diamonds found are comparatively small, but of
Over thousands of years, kimberlite pipe that high quality and value.
reaches the earth’s surface is eroded and
MARINE MINING
weathered by wind, rain and water courses.
The eroded kimberlite bore rough diamonds, Marine mining involves extracting diamonds
which were carried downstream in ancient river from the seabed, hundreds of metres under
channels to the coast. Some of these diamonds water. The earliest form of marine mining
settled in these old river channels, while some entailed shore diving, where a swimmer would
of those that were washed into the ocean collect diamond-bearing gravel from the
were deposited back on ancient beaches. The shallow seabed. Today specialised ships mine
gravels in which these diamonds are found for diamonds deep out to sea. These ships use
were covered under layers of other material, a powerful crawler that sucks up gravel on the
such as sand, mud, clay and underwater plant- seabed through flexible pipes. Sometimes a
life. The first diamonds discovered in South large-scale drill mounted to a ship is used to
Africa were from alluvial deposits. excavate for diamonds.
Today, industrial alluvial mining is conducted in
STEP 3
a number of different ways, all aimed to remove
Ore processing
the material that has, over time, covered the
diamond-bearing gravel. Once the gravel Diamonds are recovered from ore in five stages:
layer is reached, it is collected and hauled to a
production plant for processing. Due to being Crushing
washed downstream by water and impacting Once diamond-bearing ore and gravel is
rocks along the way which tends to break collected, it is transported to a primary crusher.
any diamond with a flaw, most of the alluvial The primary crusher reduces the size of the ore
PAGE 21SECTION D3
THE DIAMOND MINING LIFE CYCLE CONTINUED
into smaller, more manageable pieces measuring and crystallographic laser fluorescence that
STEP 5
no larger than 150mm. A secondary crusher, are calculated based on the specific properties
known as a roll-crusher, may be used to reduce
Industrial diamond sorting
of diamonds. These processes are designed
the size of the ore even further. to separate the rough diamond from any Industrial diamonds are regarded as a by-
other heavy density materials collected by product of the gemstone market – 80% of
Scrubbing
the cyclonic separation plant. An example is mined diamonds are unsuitable for use as
In this stage, the ore is scrubbed to remove
diamond’s fluorescence when exposed to X-rays. gemstones and are used industrially. Within the
loose excess material and is screened. Material
Sensors detect flashes of light emitted by the
smaller than 1.5mm is discarded because it is
diamond and send a signal to a microprocessor Petra Diamonds
too costly to extract diamonds from such a
that fires a blast of air at the diamond, which
small piece of ore.
spits it into a collection box.
Dense media separation
During this stage the diamond-bearing ore is mixed STEP 4
with a solution of ferrosilicon powder and water, Cleaning, sorting and packaging
which is measured to a specific relative density.
Diamonds collected in the recovery process are
This solution is fed into a cyclone, which tumbles
delivered to a sorting facility where they are
the material and forces a separation. Materials with
cleaned in an acid solution and washed before
a high density sink to the bottom, which results in a
being sorted. The rough diamonds are sorted
layer of diamond rich concentrate.
by size (carat weight) and then each size is
Recovery sorted into quality ranges, depending on each
At this stage, the diamond rich concentrate stone’s colour and clarity. It is at this point
is put through a series of processes involving that gem quality diamonds are separated from
magnetic susceptibility, X-ray luminescence industrial diamonds.
PAGE 22SECTION D3
THE DIAMOND MINING LIFE CYCLE CONTINUED
category of industrial diamonds, there is a sub- system to a sightholder. Sightholders are society organisations resulted in the creation
category comprising the lowest-quality, mostly companies that have a three-year supply of the Kimberley Process Certification Scheme
opaque stones, which are known as boart. contract with the DTC. Sightholders, in turn, send (KPCS). The KPCS document sets out the
Industrial diamonds are used for cutting and the diamonds to cutting facilities to be cut and requirements for controlling rough diamond
grinding tools, including diamond-tipped drill polished in preparation for sale as gemstones. production and trade. The KPCS came into
bits and saws. Diamond powder is also used as force in 2003.
Rough diamonds are packaged in sealed
an abrasive.
containers for transport. In accordance with the The KPCS requires its members to certify rough
Kimberley Process*, these containers are sealed diamonds as ‘conflict-free’ to prevent any
STEP 6
with a tamper resistant seal, numbered on site, ‘conflict diamonds’ from entering the legitimate
Sales of rough diamonds
and a certificate of origin is issued. diamond supply chain. It has virtually eliminated
Rough diamonds are typically sold by a tender the trade in conflict diamonds. It is estimated
The Kimberley Process*
process, during which participants view the that 4% of the world’s supply were conflict
The Kimberley Process (KP) originated when diamonds before the KPCS was introduced,
assortments and place a confidential electronic
Southern African diamond-producing states today that figure is estimated to be just 0.2%.
bid on the parcel of their choice. At the end of
met in Kimberley in 2000 to discuss ways to
the tender, the highest bidder wins the parcel.
stop the trade in ‘conflict’ or ‘blood’ diamonds The KP is open to all countries that are willing
The rough diamonds are sold to traders with a and ensure that diamond purchases were not and able to implement its requirements. The KP
diamond trading licence. Traders usually send the financing violence by rebel movements seeking has 54 participants, representing 81 countries,
diamonds for cutting and polishing and then to to undermine legitimate governments. with the European Union and its Member States
retailers for sale to the public around the world counting as a single participant. KP members
The United Nations General Assembly account for approximately 99.8% of the global
or to be sold on diamond bourses or exchanges.
adopted a landmark resolution supporting production of rough diamonds.
The Diamond Trading Company (DTC), a the creation of an international certification
subsidiary of De Beers which markets rough scheme for rough diamonds. By the end of The KP is chaired, on a rotating basis, by
diamonds from De Beers operated mines, sells 2002, negotiations between governments, participating countries and members gather
a parcel of rough diamonds via its sightholder the international diamond industry and civil twice a year to discuss matters of concern.
PAGE 23SECTION D3
THE DIAMOND MINING LIFE CYCLE CONTINUED
Petra Diamonds
Sawing
STEP 7
The marked rough diamond is then placed on a
Cutting and polishing
sawing spindle, with a blade made from copper
Diamond cutting is both an art and an exact layered with a mixture of oil and diamond
science. The skills needed to be a proficient powder. The rough diamond is then lowered to
diamond cutter and polisher take years of the blade and cut where the marker has marked
training to acquire. the stone.
Marking It is the diamond powder that physically cuts
Marking is the first stage of the diamond cutting the diamond, not the copper blade – diamonds
and polishing process. It entails examining are the hardest known mineral to man, and only
and measuring a rough diamond, where a diamond will cut another diamond.
inclusions are noted and the yield of the rough Bruting and girdling
is determined – a diamond marker may decide
Here the rough diamond is set onto a dopstick
to mark two or three diamonds from one piece
(a metallic rod that holds the stone while it
of rough depending on the characteristics and
is being processed) using a special type of
inclusions present in the diamond. It may make
cement to secure it. During this stage, two
more sense to polish two diamonds from a large
rough diamonds rub together and the friction
rough around an inclusion to yield two smaller
wears the corners of the diamond down until it
stones with a higher clarity, as opposed to one
is round in shape.
larger stone with a low clarity grade. Using the
latest 3D laser scanning technology, the rough
diamond is marked to guide the diamond cutter.
PAGE 24SECTION D3
THE DIAMOND MINING LIFE CYCLE CONTINUED
Blocking are stabilised and entrances are sealed off.
STEP 8
The diamond is set into a tang (traditional Rehabilitation means the process of returning
Sales of gemstones
polishing tool) and lowered onto a scaife. mined land to its pre-existing condition or to
A scaife is a wheel impregnated with oil Diamonds prepared as gemstones are sold on another agreed use.
and diamond powder, which revolves at an diamond bourses or exchanges. There are some
incredible 3,000 revolutions per minute. Here 30 registered diamond exchanges in the world, Petra Diamonds
the diamond cutter polishes the four main including South Africa. Diamond exchanges are
crown and four main pavilion facets. places where dealers, brokers, and manufacturers
meet to buy and sell diamonds. Wholesalers
These facets are then divided into another
and retailers can buy small lots of diamonds at
four facets on the top and bottom which are
exchanges, after which they are prepared for
polished to achieve an eight square.
final sale to the consumer. Diamonds can be sold
Bruting and girdling – the second time already set in jewellery, or sold loose.
The diamond is bruted a second time to ensure
Diamond retailers, from small, independent
that the stone is perfectly round.
jewellers to mass market superstores, sell
Brillianteering diamonds. There has also recently been huge
growth in online diamond sales.
Here the remaining facets are polished and
shaped to refract and reflect the optimal amount
STEP 9
of white light. It is this stage that determines
Closure and rehabilitation
how much fire, brilliance and scintillation the
diamond will have and it requires great skill and Once the diamond reserve at a mine has
experience. The ultimate goal is to obtain ideal been exhausted, the owner must close and
proportions and perfect symmetry. rehabilitate the site. Underground tunnels
PAGE 25MINING
FOR SCHOOLS
SECTION D4
South Africa has
proved to be a
veritable treasure
chest of superb stones
with many notable
diamond discoveries.
De Beers
PAGE 26SECTION D4
PEOPLE OF DIAMONDS
Petra Diamonds
EMPLOYEE PROFILE number had increased to 16,666 people. It is
estimated that for every person employed in the
Ever since the Kimberley diamond industry, another nine dependants are
diamond strike of 1869, South supported.
Africa has been a world leader The employee profile of the mining industry is
in diamond production. Today, changing to reflect the people of South Africa.
The 2004 Mining Charter provided a framework
the country ranks among the
for the entry, at all levels, of historically
top 10 diamond producers disadvantaged South Africans into the industry,
globally, producing 10% of including women. The Department of Mineral
Resources (DMR) and mining companies
the world’s diamonds. In 2018
encourage women to be active at all levels in
about 10.5Mct of diamonds the industry. The Mining Charter set a target of
were produced locally. 10% for women in core mining jobs and by 2018
overall representation had reached 14%.
Total employee earnings have increased
significantly in recent years from R1.9 billion in Where possible, the diamond mining industry
2010 to some R5 billion in 2018. This is due both prioritises recruitment from areas close to its
to increased prices and a steady increase in operations, to foster a stable and cohesive
employment. In 2010, there were 11,602 people workforce and to contribute to the development
employed in the diamond industry. In 2018 the of local communities.
PAGE 27SECTION D4
PEOPLE OF DIAMONDS CONTINUED
KEY FIGURES JOHANNES
AND DIEDERIK DE BEER
BARNEY
BARNATO AND
IN THE SOUTH AFRICAN In 1871, the De Beer brothers CECIL JOHN
DIAMOND MINING INDUSTRY bought a farm named RHODES
Vooruitzicht near Zandfontein In 1873, 20-year
in the then Orange Free State. old Barnato
They soon discovered diamonds on their land. arrived penniless in South Africa from England.
ERASMUS JACOBS
This lead to a diamond rush, which made it In 1876 he bought four claims in Kimberley
In March 1867, the 15-year-old
impossible for them to keep the farm, as they mine and later formed Barnato Diamond
Jacobs found a transparent
were not able to protect their land from the Mining Company which he merged with
rock on his father’s farm, on
growing tide of intruders. After selling the farm, Kimberley Central Mining Company in 1883. In
the south bank of the Orange
Vooruitzicht would become the site of the Big 1888, Barnato sold out to Rhodes, after much
River. This transparent rock was
Hole – or Kimberley mine – and the De Beers competition between them. The amalgamation
subsequently confirmed as a diamond and was
mine, two successful diamond mines. Their lead to the formation of De Beers Consolidated
bought by Sir Philip Wodehouse, Governor of
name, given to the one mine, subsequently Mines, the name synonymous with diamonds,
the Cape, for £500. The diamond later became
became associated with the company. and the company which dominated the world’s
known as the Eureka diamond and weighed in
Kimberley is famous for the Big Hole, which is diamond market for many years. Rhodes had
at 21.19ct. Over the next few years, South Africa
often referred to as the world’s deepest man- arrived in South Africa in 1870 and invested
yielded more diamonds than India had in over
made hole. The Big Hole is a huge pit, almost £3,000 his aunt had lent him in the Kimberley
2,000 years.
circular and 215m deep, right in the middle of diamond diggings, from where he purchased
the town. diamond claims and became prosperous.
PAGE 28SECTION D4
PEOPLE OF DIAMONDS CONTINUED
THOMAS CULLINAN THE OPPENHEIMERS GWEDE MANTASHE
Cullinan, prospector and In February 2018, Mantashe
entrepreneur, was convinced that was appointed South African
there were diamonds to be found Minister of Mineral Resources.
on the Cornelis Minnaar Farm, Trade unionist Mantashe served
Elandsfontein, and purchased for 10 years as general
the farm in 1902. Cullinan’s optimism was not secretary of the National Union of
unfounded. The full extent of the kimberlite Mineworkers (NUM) from 1997 before
Sir Ernest Oppenheimer was a German-born
diamond pipe was soon established – 32ha in area becoming secretary general of the ANC in
diamond and gold mining entrepreneur,
and the largest in the world – and the Premier 2007, a position which he held until December
financier and philanthropist, who controlled
Diamond Mining Company was established. 2017. He made history by becoming the
De Beers from 1927 and founded the Anglo
first trade unionist to be appointed to the
American Corporation of South Africa. He was
board of directors of a JSE listed company,
succeeded in the business by his son Harry.
Samancor, in 1995.
Harry headed Anglo American from 1957 to
1982 and De Beers from 1957 to 1984. Harry’s
son, Nicky, became De Beers’ chairman in 1998.
He retired in 2012 when the family stake in the
company was sold to Anglo American.
The Oppenheimers’ diamond fortunes provided
the capital for development of the gold mining
industry. Diamonds could be described as the
spark which led South Africa – and mining – into
the industrial era.
PAGE 29PEOPLE OF DIAMONDS CONTINUED
GODFREY OLIPHANT CYRIL RAMAPHOSA
Oliphant is the current South Ramaphosa was appointed the
African Deputy Minister of fifth and current President of
Mineral Resources. He is a South Africa in February 2018.
former vice president of Before that, he was the country’s
COSATU (Congress of South Deputy President from 2014.
African Trade Unions) and member of the He was the founding general secretary of the
National Executive Committee (NEC) of NUM. NUM in 1982. He became part of the ANC’s
He has been a Member of Parliament since congress movement when he was instrumental in
1994. Oliphant has a direct connection with the founding of COSATU in 1985. He was elected
the diamond mining industry as he is also a secretary general of the ANC in 2002, and led
former branch chairperson of NUM at Finsch the constitutional negotiations for the ANC. He
diamond mine. entered the business world in 1997 after failing to
be elected to succeed Nelson Mandela as ANC
president, returning to politics in 2012.
PAGE 30SECTION D4
THE BIG FINDS
LARGEST
CUT DIAMONDS
IN THE WORLD Golden Jubilee Incomparable Cullinan I Cullinan II
There have been many famous
(and very expensive) diamonds
found over the years.
Cullinan III Tiffany Koh-I-Noor Regent Cullinan IV
Hope Dresden Green Briolette of India Wittelsbach
Standard 1-carat diamond
PAGE 31SECTION D4
THE BIG FINDS CONTINUED
FAMOUS SOUTH Eureka Excelsior
AFRICAN DIAMONDS Weight*: 21.25ct rough, 10.73ct polished Weight: 995.2ct rough
South Africa has proved to Origin: Orange River Origin: Jagersfontein mine
be a veritable treasure chest
of superb stones with many
Date of
discovery: 1867 Date of
discovery: 1893
notable diamond discoveries. Eureka has historical significance as it was first The Excelsior, is a giant blue-white diamond that
discovered in South Africa by a 15-year old boy had an irregular shape and internal black spots.
who thought it was just a pretty stone. This It was cut into 21 stones, with the largest
discovery led to the Kimberley Diamond Rush. weighing 69.8ct. 63% of the stone was wasted
A replica of the Eureka diamond was displayed at during the cutting process (primarily due to the
the 1867 Paris Exhibition. Over the next century, black spots).
the diamond was sold and re-sold a number
of times. In 1967, 100 years after the diamond’s
discovery, De Beers bought the diamond and
donated it to the South African people. The
diamond was placed in the Kimberley Mine
Museum, where it is currently on display.
* Weights are approximate
PAGE 32SECTION D4
THE BIG FINDS CONTINUED
GraphicaArtis/Getty
people.com/royals/queen-elizabeths-imperial-state-crown/
The Jubilee* Cullinan
Weight: 650.80ct rough, 245.35ct polished Weight: 3,106ct rough
Origin: Jagersfontein mine Origin: Premier mine
Date of
discovery: 1895 Date of
discovery: 1905
This diamond was originally named after Francis The largest rough diamond ever discovered
William Reitz, the then president of the Orange was named after Thomas Cullinan, founder and
Free State where the stone was discovered. chairman of South Africa’s Premier mine. It was
It was later renamed the Jubilee in honour of found 9m from the surface, protruding from a
Queen Victoria’s 60th year on the throne. sidewall of the pit.
* Initially named the Reitz The diamond was sold to the Transvaal government
who presented it to King Edward VII on his 66th
birthday. The stone was cut into nine major
stones and approximately 96 smaller diamonds.
The three largest of these are part of the crown
jewels of the United Kingdom.
Cullinan I, also called the Great Star of Africa, Cullinan II or the Lesser Star of Africa is the
is the biggest of the collection at 530.2ct and second-largest diamond of the collection, at
is mounted in the British Sovereign’s Sceptre 317.4ct, and is set in the front of the Imperial
with Cross. State Crown.
PAGE 33SECTION D4
THE BIG FINDS CONTINUED
Jonker 1
Christie’s to auction famed
Weight: 142.90ct rough, 125.35ct polished
Jonker diamond
Origin: Elandsfontein mine* Mar 13, 2017 5:16 AM By Rapaport News
Date of
discovery: 1934 Christie’s unveiled the top lots that will go under
the hammer at its Magnificent Jewels auction in
Hong Kong this May, including Harry Winston’s
Johannes Makani, working for a poor diamond
famous Jonker V diamond.
digger, Johannes Jacobus Jonker, discovered the
rough stone of 726ct. It was bought by a famous The rectangular-cut, 25.27-carat, D-color,
New York jeweller, Harry Winston who cut the VVS2-clarity diamond is expected to sell for
rough stone into 13 gemstones. The largest $2.2 million to $3.6 million, or up to $142,461 per
diamond, Jonker 1, weighed 142.90ct. carat, the company said in a recent statement.
Jonker 1 was later re-cut to eliminate flaws and
The stone is one of a collection of 13 polished
improve its brilliance.
diamonds cut from the famous 726-carat Jonker
*A
pproximately 5km south of the Premier mine rough, which digger Jacob Jonker discovered at
(now Cullinan diamond mine)
South Africa’s Elandsfontein mine in 1934. The
rough diamond, which at the time ranked as the
world’s fourth-largest gem-quality diamond, was
sold the following year to Harry Winston and was
subsequently displayed during the Silver Jubilee
The Jonker No. 5 Diamond by Harry Winston goes up
Celebrations of the Coronation of King George V
for auction. Photo courtesy of Christie’s and Queen Mary, the auction house explained.
PAGE 34SECTION D4
THE BIG FINDS CONTINUED
The Taylor Burton Premier Rose
Weight: 240.80ct rough, 68.0ct polished Weight: 353.9ct rough, 137.02ct polished
Origin: Premier mine Origin: Premier mine
Date of
discovery: 1966 Date of
discovery: 1978
The stone was bought by Harry Winston who The stone was purchased by the Mouw Diamond
studied it for six months before working on it. In Cutting works, a Johannesburg company and
1969, it was purchased by actors Richard Burton named after Mrs Rose Mouw. It produced three
and Elizabeth Taylor. It was subsequently worn gems, the largest the pear-shaped Premier Rose.
by Elizabeth Taylor at Princess Grace of Monaco’s
40th birthday and at the 42nd Academy Awards.
In 1980, Robert Mouawad of Mouawad jewellers,
and the diamond’s subsequent owner, had it
recut to 68.0ct.
The Premier Rose compared to a
two-carat diamond engagement ring
www.treasurediamonds.co.za/2017/06/21/ www.williamgoldberg.com/house-of-goldberg/2015/08/
taylor-burton-diamond/ famous-diamonds-part-1-the-premier-rose/
PAGE 35SECTION D4
THE BIG FINDS CONTINUED
Golden Jubilee Centenary
Weight: 755.50ct rough, 545.67ct polished Weight: 599ct rough, 273.85ct polished
Origin: Premier mine Origin: Premier mine
Date of
discovery: 1985 Date of
discovery: 1986
The Golden Jubilee was presented to the King of The Centenary was named to commemorate
Thailand in 1997 for his Golden Jubilee – the 50th De Beers’ 100th birthday.
anniversary of his coronation – by a syndicate
of Thai business men. It is the largest cut and
faceted diamond, of any colour, in the world.
www.aigsthailand.com/Gemology-Course/66/EN
PAGE 36SECTION D4
THE BIG FINDS CONTINUED
OTHER NOTABLE DIAMONDS
The Great Mogul Koh-i-Noor
Weight: ~787ct rough Weight: ~186ct rough, 108.93ct cut
Origin: India Origin: India
Date of
discovery: 17th century Date of
discovery: 13th century
It was named after Shah Jehan who built the A Persian conqueror acquired the diamond
Taj Mahal. Its current location is unknown. and named it Koh-I-Noor meaning
‘Mountain of Light’. The diamond was given to
Queen Victoria in 1850 and is now part of the
British Crown Jewels.
Some Indians consider India to be the rightful
owner of the Koh-i-Noor diamond and would like
the diamond to be returned to their country.
PAGE 37SECTION D4
THE BIG FINDS CONTINUED
The Incomparable The Moussaieff Red The Hope Diamond
Weight: 890ct rough, 407.48ct cut Weight: 13.9ct rough, 5.11ct polished Weight: 132ct rough, 45.52ct cut
Origin: Mbuji Mayi* Origin: Alto Paranaiba, Brazil Origin: India
Date of
discovery: 1980s Date of
discovery: 1990s Date of
discovery: 1642
The Incomparable was found by a young girl Red colored diamonds are very rare and the The Hope Diamond was set in the royal crown
playing in a pile of rubble that was deemed too Moussaieff diamond, originally named the Red of Louis XIV but was stolen during the French
bulky to be worth scanning for diamonds. The Shield, is the largest known red diamond. It is Revolution. In 1830, Henri Thomas Hope, a
biggest piece of rough yielded this magnificent, currently owned by Moussaieff Jewellers Ltd. diamond dealer, bought a blue diamond which is
rare yellow diamond. believed to be part of the Hope Diamond. It was
gifted to the Smithsonian Institute in Washington
* Near MIBA diamond mine, Democratic Republic of Congo
DC in 1958.
The Hope Diamond is supposedly cursed,
bringing bad luck to anyone who owns it.
PAGE 38SECTION D4
JOBS IN DIAMOND MINING
The mining industry contributes Employment fields within the industry include
engineering; geology; finance, auditing and
to South Africa’s economic accountancy; company secretarial; human
wealth, while creating hundreds resources; medical; environmental science; and
safety, among others.
of thousands of mining jobs
and career paths. The diamond There are several routes available to people
wishing to take up a career in diamond mining.
mining industry currently The Mining Qualifications Authority (MQA)
employs some 16,666 people. is a Sector Education and Training Authority
(SETA) responsible for the administration
of skills development programmes for the
mining and minerals sector in South Africa.
Mining-related qualifications are offered
at the universities of the Witwatersrand,
Johannesburg, Pretoria and the Free State. In
addition, diamond mining companies also offer
learnerships, bursaries and scholarships.
Petra Diamonds
PAGE 39SECTION D4
BRIEF HISTORY OF DIAMOND MINING IN SOUTH AFRICA
INCLUDING MAJOR EVENTS
1867 Diamonds are discovered in the 1876 Barney Barnato buys four claims 1902 Thomas Cullinan purchases
Cape Colony – now the Northern in Kimberley mine before forming Cornelis Minnaar farm and the
Cape – when 15-year-old Erasmus Barnato Diamond Mining Company kimberlite diamond pipe is soon
Jacobs finds a transparent rock established, along with the Premier
on his father’s farm. The rock is 1867- Annual world diamond production Diamond Mining Company
later known as the 21.19ct Eureka 1877 increases more than tenfold 1905 The Cullinan diamond is discovered
diamond
at the Premier mine. At 3,106.75ct,
1883 Barnato merges his company with it is the largest rough diamond
1868 Major diamond strike at Kimberley
Kimberley Central Mining Company ever found. The Premier mine is
in Northern Cape
later renamed the Cullinan mine.
1888 Barnato sells out to Cecil The Cullinan diamond is cut into
1870 Cecil Rhodes arrives in South
Rhodes who forms De Beers nine gems. The two biggest are
Africa and invests three thousand
Consolidated Mines presented to King Edward VII in
pounds in the Kimberley
diamond diggings 1908 and now form part of the
1889 Chamber of Mines founded British Crown Jewels
1871 Johannes and Diederik de Beer
1910 Union of South Africa formed
buy Vooruitzicht farm in the then 1899- Anglo-Boer War caused
Orange Free State and discover 1902 disruptions in the mining industry 1914 Premier is shut down at the
diamonds on the land. A diamond outbreak of World War I
rush begins and Vooruitzicht 1899 Within days of the outbreak of the
1916 Premier begins operating again
would become the site of the second Boer War, Kimberley town
Big Hole – or Kimberley mine – is besieged. It remains under siege, 1920 Annual diamond production
and De Beers mine its mines closed, for 124 days reaches 20 million carats
PAGE 40SECTION D4
BRIEF HISTORY OF DIAMOND MINING IN SOUTH AFRICA CONTINUED
INCLUDING MAJOR EVENTS
1927- Sir Ernest Oppenheimer heads 1947 Diamond is forever ad campaign 1983 NUM wins collective bargaining
1957 De Beers created by the US advertising rights from the Chamber of Mines
agency, NW Ayer and De Beers
1920s De Beers influences most of world’s
changes the world diamond market 1990s World annual diamond production
rough suppliers to sell production
causing demand for diamonds reaches 100 million carats
through the company, giving the
to increase
company the power to influence 1990 Nelson Mandela freed from prison
diamond supply and diamond prices 1957- Harry Oppenheimer heads
1984 De Beers 1992 Venetia diamond mine opens in the
1928 First African diamond cutting now Limpopo province
factory opens in Kimberley 1970s World annual diamond production
reaches 50 million carats 1994 South Africa holds first
1930 A central buying organisation to
democratic elections
all producers (Diamond Trading 1978 Finsch diamond mine opens in
Company) and an organisation Northern Cape 1996 The Mine Health and Safety
dedicated to selling, the CSO Act introduced to address
1979 Premier is opened up below
(Central Selling Organisation), worker safety
the Gabbro sill, a 70m geologic
are founded
intrusion of barren rock which
2000 De Beer’s market share falls to less
1932 The Great Depression deepens and cuts through the pipe some 400m
than 60% from 90% in the 1980s
demand for diamonds dries up. below surface
and the company no longer has
De Beers closes all mines.
1982 NUM formed – the first black union control of the market. Company
1939- Diamond mines close for duration in mining in 40 years shifts to focus on independent
1945 of World War II marketing and branding
PAGE 41SECTION D4
BRIEF HISTORY OF DIAMOND MINING IN SOUTH AFRICA CONTINUED
INCLUDING MAJOR EVENTS
2002 The Mineral and Petroleum 2010 De Beers sells Kimberley
Resources Development Act underground mine to Petra
provides for equitable access to Diamonds
and sustainable development
2011 De Beers sells Finsch mine to Petra
of South Africa’s mineral and
Diamonds
petroleum resources
2011 Oppenheimer family announces an
2003 Kimberley Process Certification
exit from De Beers, ending almost
Scheme is established to stem the
a century-long monopoly
flow of conflict diamonds
2016 De Beers completes sale of
2003 First women employed in
Kimberley Mines surface operations
mining positions
to Ekapa Minerals
2004 Mining Charter comes into effect
2017 De Beers Group announces a three-
2005 Market forces drive diamond prices year partnership with UN Women
resulting in unprecedented price to accelerate the advancement of
volatility. World production peaks women across its organisation
at 177Mct
Petra Diamonds
2007 De Beers sells Koffiefontein mine to
Petra Diamonds
PAGE 42MINING
FOR SCHOOLS
SECTION D5
The diamond industry
makes a significant
contribution to South
Africa’s foreign
exchange earnings,
economic activities
and job creation.
Petra Diamonds
PAGE 43SECTION D5
WHY DIAMOND MINING MATTERS
The diamond mining industry • The diamond mining industry currently • Diamonds are used in other South African
employs 16,666 people industries including jewellery making, and
has played a significant role cutting and grinding tools such as diamond-
• In 2018 the industry paid its employees some
in the historical and industrial tipped drill bits and saws
R5 billion in salaries and wages
development of South Africa • The industry creates employment in other
• Employment is provided for workers from
and continues to play an rural communities which in turn results in the
industries, such as cutting and polishing
important role today, not only transfer of funds back to these areas • Diamond mining has a role to play in the
development of human resources (training)
on a macro-economic level • In 2018, royalties paid amounted to
and infrastructure such as schools, clinics,
but on local and community R353 million
roads and housing
levels too. • Diamonds produced in 2018 reached 10.5Mct
• The industry purchases goods and services,
• Total sales in 2018 stood at R16.3 billion electricity for example, which stimulates
industrial production and the provision
• Some 55% of diamonds were exported.
of services
Diamond export earnings have a positive
impact on the balance of payments, foreign • Diamond mining attracts foreign capital into
reserves, monetary policy and on the level of the country via direct investment
business activity in the country
• Dividends are paid to shareholders in
South Africa
PAGE 44SECTION D5
FACTORS THAT FAVOUR AND HINDER DIAMOND
MINING IN SOUTH AFRICA
FAVOURING HINDERING
FACTORS FACTORS
6 Costs in general are rising steadily, in and development in the industry focuses
4 South Africa’s diamond mining areas particular the cost of salaries and wages; and on developing the scarce skills needed at
are well known and well explored –
electricity. The industry has to continually mines and on improving the employability
knowledge of the areas is extensive
develop, implement and improve energy of local residents
4 Diamond mining in South Africa is a well- efficiency measures
6 Synthetic diamonds are considered a low,
established industry with technical skills
6 Water supply: South Africa is a water scarce long-term risk to the diamond mining
4 Developments at the country’s three country and the industry has to continually industry. Synthetic diamond production
largest mines – Venetia, Finsch and develop, implement and improve water techniques continue to advance. However,
Cullinan – are designed to expand their efficiency measures to reduce consumption natural diamonds are expected to remain the
outputs and to extend their lives to premium product
anywhere between a quarter and a half 6 Lack of investment in diamond mining and
a century emerging markets
4 South Africa has a well-developed 6 Skills shortages: The diamond mining
infrastructure (roads and railway lines) sector experiences a skills shortage. Skilled
which assists mines to do business employees are essential to the sustainability
of the diamond mining industry. Training
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