The local beneficiation sector can have a positive impact on the economy as it can offer employment opportunities, De Beers’s beneficiation manager Kagiso Fredericks said yesterday.
Fredericks said from entrepreneurs perspective, it meant they would have a viable business, which they could depend on for their livelihoods.
De Beers describes beneficiation as “any process that improves the economic value of the rough diamonds that it mines. That includes cutting and polishing diamonds, jewellery manufacturing, and marketing and distribution”.
De Beers said one of the major criticisms of the mining and resources sector in Africa over the years has been that it simply extracts resources without benefiting the countries, citizens and communities in which it operates.
"We’ve known for some time that if we’re going to create a sustainable future for the mining industry – and specifically the diamond mining industry in South Africa – that this perception has to change. As a result, we’ve seen a significant transformation within the diamond mining sector in recent years to share the benefits of diamond mining more equitably,” De Beers said.
According to De Beers, the key to unlocking a sustainable future for the diamond industry lies in beneficiation.
Fredericks said South Africa was a rich source of rough diamonds and aside from helping to up-skill the industry, it is important for the group as diamond producers to afford small beneficiation customers access to affordable parcels of rough diamonds.
The group said accessing the industry was not easy. Out of necessity, it’s a highly regulated industry.
“For small businesses to succeed as beneficiators, they need help with access to funding, business strategy, and networking opportunities as much as they need access to smaller and more affordable parcels of rough diamonds,” it said.
In a bid to open up the industry, a year ago De Beers and several key industry players – including the SA Diamond and Precious Metals Regulator, SA Diamond Manufacturers Association, SA Diamond Dealers Club, and the State Diamond Trader – partnered to launch a Small Beneficiator Customers (SBC) pilot programme with seven identified businesses in need of assistance.
The objective was to broaden the supply and access of rough diamonds to small South African-owned beneficiation companies.
"Successfully establishing a cutting and polishing business takes time, and currently, the size of diamond parcels offered to Sightholders is out of reach in terms of affordability for SMMEs,” De Beers said.
Fredericks said the pilot project was productive and De Beers decided to roll it out as a regular programme.
To help emerging businesses access affordable rough diamond parcels, the De Beers group said it was offering SBCs parcels of diamonds consisting of a mix of diamonds from its mines in Namibia, Botswana, Canada and South Africa.
Small business owner, Vivid Gems’s Andile Gcaba said the pilot project has been life-changing for him.
“I’m now able to purchase consistently high-quality affordable parcels of rough diamonds, which means my business can be sustainable. I’m also establishing key networks to grow my business.
“Essentially, I’m now able to use jewellery as a driver to get me to where I want to be as a businessman,” he said.
BUSINESS REPORT