Why diamond mining matters

The diamond mining industry has played a significant role in the historical and industrial development of South Africa and continues to play an important role today, not only on a macro-economic level but on local and community levels too.

  • The diamond mining industry currently employs 14,569 people

  • In 2022 employees in the diamond sector earned roughly R6 billion in salaries and wages

  • Employment is provided for workers from rural communities which in turn results in the transfer of funds back to these areas

  • In 2022, royalties paid amounted to R101 million

  • Diamonds produced in 2022 reached 10.5Mct

  • Total sales in 2022 stood at R26.7 billion

  • In 2022 South Africa produced a total of 10.5Mct, yet export volumes dropped to 8.0Mct. The lower diamond export earnings is a concern, given that its impact on the balance of payments, foreign reserves, monetary policy and on the level of business activity in the country has declined.

  • Diamonds are used in other South African industries including jewellery making, and cutting and grinding tools such as diamondtipped drill bits and saws

  • Diamond mining has a role to play in the development of human resources (training) and infrastructure such as schools, clinics, roads and housing

  • The industry drives employment in other sectors, such as cutting and polishing

  • The industry purchases goods and services, electricity for example, which stimulates industrial production and the provision of services

  • Diamond mining attracts foreign capital into the country via direct investment

  • Dividends are paid to shareholders in South Africa