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.
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The diamond mining industry currently employs 14,569 people
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In 2022 employees in the diamond sector earned roughly R6 billion in salaries and wages
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Employment is provided for workers from rural communities which in turn results in the transfer of funds back to these areas
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In 2022, royalties paid amounted to R101 million
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Diamonds produced in 2022 reached 10.5Mct
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Total sales in 2022 stood at R26.7 billion
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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.
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Diamonds are used in other South African industries including jewellery making, and cutting and grinding tools such as diamondtipped drill bits and saws
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Diamond mining has a role to play in the development of human resources (training) and infrastructure such as schools, clinics, roads and housing
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The industry drives employment in other sectors, such as cutting and polishing
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The industry purchases goods and services, electricity for example, which stimulates industrial production and the provision of services
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Diamond mining attracts foreign capital into the country via direct investment
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Dividends are paid to shareholders in South Africa