This archive report was first published on 11 November 2019.
Kimberley, the site of a 19th-century diamond rush, has been plagued by violence and sabotage in its efforts to curb illicit diamond mining. The city, known as the world's diamond capital, has seen a government-backed project aimed at bringing illegal miners into the formal fold falter.
The project, launched 18 months ago, granted over 800 unlicensed miners the right to legally mine around 1,500 acres of diamond-rich waste fields. However, the initiative has been met with resistance from informal miners not included in the scheme, who have attacked infrastructure and members of the newly licensed cooperative.
Ekapa Minerals, the company running the initiative, has reported a significant increase in security costs, with the company spending around 3 million rand ($200,160) on security measures. The company has also resorted to using alternative routes for its trucks, adding to the financial burden.
The failure of the project is a major blow to wider corporate and governmental efforts to bring South Africa's estimated tens of thousands of informal miners into the mainstream. Illicit mining and mineral trading cost around $1.5 billion a year in lost sales, taxes, and royalties, according to a 2017 estimate by the Minerals Council.
Minerals Minister Gwede Mantashe has expressed his dissatisfaction with the project's progress, stating that the government may need to take a more active role in the initiative. The project's troubles also highlight the need for clear policy on small-scale or 'artisanal' mining, which is currently lacking in South Africa.
