Factors that favour and hinder diamond mining in South Africa

  FACTORS FAVOURING DIAMOND MINING
       IN SOUTH AFRICA


  • South Africa’s diamond mining areas are well known and well explored – knowledge of the areas is extensive
  • Diamond mining in South Africa is a wellestablished industry with technical skills
  • Developments at the country’s three largest mines – Venetia, Finsch and Cullinan – are designed to expand their outputs and to extend their lives to anywhere between a quarter and a half a century
  • South Africa has a well-developed infrastructure (roads and railway lines) which assists mines to do business

  FACTORS HINDERING DIAMOND MINING
       IN SOUTH AFRICA


  • Costs in general are rising steadily, in particular the cost of salaries and wages; and electricity. The industry has to continually develop, implement and improve energy efficiency measures
  • Water supply: South Africa is a water scarce country and the industry has to continually develop, implement and improve water efficiency measures to reduce consumption
  • Lack of investment in diamond mining and emerging markets
  • Skills shortages: The diamond mining sector experiences a skills shortage. Skilled employees are essential to the sustainability of the diamond mining industry. Training and development in the industry focuses on developing the scarce skills needed at mines and on improving the employability of local residents
  • Synthetic diamonds are considered a low, long-term risk to the diamond mining industry. Synthetic diamond production techniques continue to advance, however, natural diamonds are expected to remain the premium product