SPEAKING NOTES BY THE HONOURABLE MINISTER OF MINERAL AND PETROLEUM RESOURCES MR GWEDE MANTASHE (MP) South African Diamond Show Dinner The Capetonian Hotel, 02 February 2025 Master of Ceremonies, Ms Nozipho Tshabalala Honourable Minister of Natural Resources in Lesotho, Mr Mohlomi Moleko Deputy Minister of Mineral and Petroleum Resources, Ms Phumzile Mgcina President of the World Diamond Council, Ms Feriel Zerouki Board Chairperson of the State Diamond Trader, Mr Abbey Chikane and all board members CEO of the SDT, Ms Nosiphiwo Mzamo and your executives Chairperson of Brand SA, Ms Ipeleng Salele CEO of DeBeers Group, Mr Moses Madondo Captains of Industry Representatives of State Owned-Entities Distinguished Guests The story of diamonds in South Africa has a long history dating back to 158 years ago with the discovery of the Eureka Diamond on the south banks of the Orange River, which continues to play a pivotal role in the world’s diamond history. The events that ensued following the discovery led to, what is now known as, the “Great Kimberley Diamond Rush” where people from all walks of life flocked to Kimberley in search of these diamonds. Consequently, the world’s view on South Africa changed, and thereby resulting in South Africa becoming a major diamond producer globally. Despite being the largest diamond producer in the world for decades, only a few South Africans benefited from diamond mining because of the historic pit-to-port approach to mining. It is within this context that in 2007, we established the State Diamond Trader (SDT) as a state-owned entity to ensure that the diamond resources of the Republic are exploited and developed in the best interest of the country and its citizens. Since then, the SDT has been at the forefront of promoting equitable access to South Africa’s diamond resources and stimulate local diamond beneficiation in line with the Freedom Charter’s clarion call that “the people shall share in the country’s wealth”. At the center of addressing market failures of the past is the focus to increase the participation of historically disadvantaged South Africans as means of redistributing the country’s wealth and foster transformation. This seeks to redress historical inequalities and enhance the growth of South Africa’s diamond sector. However, the diamond sector is currently faced with a number of challenges which impact negatively on diamond production, including, inter alia, competition from lab-grown diamonds, economic and geopolitical risks, access to finance for emerging beneficiation businesses, and the decline in production at the De Beers’ Venetia Mine that is currently transitioning to an underground operation. As a consequence to these challenges, in 2023, South African diamond production dropped from the top 5 of the world diamond producers to 6th on the rankings. This is the reality that we are confronted with, hence our gathering here this evening to launch the weeklong Diamond Show. The show will serve as a valuable platform to showcase the strength, legacy, and future potential of South Africa’s diamond sector. Additionally, the show further provides us with an opportunity to not only reflect on the challenges faced by the sector, but to collectively identify opportunities and strengthen partnerships that can drive the growth and transformation of the sector, and the mining industry in general. To this end, the SDT has a major role to play in the promotion of natural diamonds to counter the growing threat of lab-grown diamonds. To enable this, the South African diamond sector, in collaboration with the SDT, must invest in the effective marketing of natural diamonds and the positive work that it does. The truth of the matter is that the South African mining industry does not communicate the good work that it does in society to change its reputation; hence the industry is still associated with being dirty, difficult, dangerous and deceased, as well as leaving holes on the ground - as is the case with the “The Big Hole” in Kimberley. Global economic instability, driven by factors such as inflation and geopolitical tensions, are also major contributing factor to the disruption of diamond production and increase supply volatility. The Kimberley Process, an international certification scheme aimed at preventing the trade of conflict diamonds, plays an important role in regulating diamond supply. As a member of the African Diamond Producer Association (ADPA), South Africa will continue to foster and strengthen collaboration on the continent to ensure the promotion of mutual technical assistance in the coordination of policies and strategies of development of the diamondiferous sector. By working closely together as stakeholders in the diamond sector, we can better promote natural diamonds globally. Despite being a top producer of rough diamonds, the South African diamond industry continues to import diamonds to enhance its value chain and thus ensure that the South Africa remains competitive within the global diamond trade. Again, the SDT has major role to play because as the diamond industry evolves, South Africa’s role as both an importer and exporter of diamonds will remain crucial to sustaining our position in the global market. To ensure that the legislation framework that regulates the diamond sector remains relevant given the current challenges, the department will consult with all stakeholders to identify legislative gaps. I can assure you of the government’s commitment to working closely with industry leaders to address challenges, capitalize on opportunities, and create a more sustainable and profitable future for the sector. Collaboration between the government and the diamond industry is essential for unlocking the full potential of this sector, promoting global market leadership, and contributing to broader economic and social transformation. It is, therefore, critical that we set out realistic expectations and deliverables that will position this industry on a sustainable growth path and position the country at the center of diamond beneficiation in Africa. As we move forward, let us continue to work together and ensure that South African remains a key player in the global diamond industry.
I thank you.