‘SA junior diamond miners have potential to boost mining sector’

South African Diamond Producers Organisation (SADPO) says junior exploration and mining companies have potential to boost the growth of the local mining sector.
SADPO representative Lyndon De Meillon was quoted by Mining Weekly as saying that the junior diamond mining sector last enjoyed its glory days between 1990 and early 2000s.
 “In 2000, prior to South Africa’s changes to mineral policy ownership and regulation, and introduction of new ownership requirements, this key industry supported about 2 000 small and medium-sized private and listed operators,” he said.
SADPO said policymakers should ensure that the legislative and regulatory regimes are revised to create an enabling environment for the sector. 
The organisation also suggested a small miners development fund to help with the transformation and job creation as well as provide access to information and technical assistance to juniors from the Council for Geoscience and Mintek.
SADPO chairperson Gert van Niekerk said although there are a few small listed operations, the companies were finding it difficult to survive when mining ultralow-grade, low-margin deposits.
“Regrettably, the one-policy-fits-all approach, and the red tape imposed by the various government [departments and] agencies are particularly disadvantageous to the junior mining sector,” said Van Niekerk.
South Africa produced about 9.25-million carats in 2018 and of this smaller kimberlite operators produced about 10 000 carats, according to SADPO.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished