SA small, junior diamond mining sector in dire straits – report

South Africa’s small and junior diamond mining sector is up the creek, according to media reports citing the South African Diamond Producers Organisation (Sadpo).
“Over the past 16 years, we've lost about 90% of the companies involved in the sector and about 20 000 jobs. COVID-19 has exacerbated the situation to a point where the industry might disappear in the next ten years if we don't take urgent steps to rectify things,” Sadpo chairperson Lyndon de Meillon was quoted by Mining Weekly as saying.
He said overregulation was inhibiting the growth of the sector and as much as 8% of the turnover for small and junior diamond mines is spent on compliance-related costs.
“We need a regulatory regime that is investor-friendly and simple…Essentially, the regulations and legislation in place for larger mines are not suitable for small and junior [miners], as they cannot comply with all of it,” said De Meillon.
“This level of compliance-related costs is crippling for small, privately owned, unlisted companies that are mining marginal ultralow grade deposits, and which do not have access to large amounts of cash.” 
He also said that Sadpo prepared a proposal on ways to rescue the troubled small and junior diamond mining sector.
The sector contracted from about 2 000 companies operating in South Africa in 2004 to the current 200.

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