South Africa diamonds. Diamonds, Diamonds and Kimberly

Choice of colors

Humanity learned about diamonds seven thousand years ago. The first diamonds were discovered in India in the form of placers. It was there that the largest diamonds in human history were discovered. People often paid for the possession of these stones with blood and life. Every large diamond known in the world has its own bloody history.

At the end of the 19th century, when Indian diamond mines were already depleted, diamonds were discovered in bulk in the Great Namib Desert in southern Africa. They say that the blacks hired to search for diamonds groped in the sand, completely naked with jars tied around their necks for finds. When releasing workers from the mine, a thorough search was carried out, but even with such a strict approach to the accounting of diamonds, jewelry still managed to be smuggled in in wounds specially inflicted for this purpose. It was in this way that the largest Shah diamond was removed from the mine.


Diamonds are already cut diamonds, processed in a special way, which can put the economy of any, even the most backward, country on its feet. That is why the so-called diamond fever covered all continents and countries of the world.

Diamonds are amazing stones with unique properties and, among other things, they are very rarely found in nature. Diamond mining is an extremely labor-intensive process, which will also require considerable investment, especially at first.

Diamonds are formed at a distance 400 km from the surface of the earth in the earth's mantle, at high temperatures and enormous pressure. Diamonds are brought to the surface of the earth by magma erupted from the crater of a volcano, and thus kimberlite pipes appear. Placers are already secondary diamond deposits; they are formed during soil erosion, mainly in the beds of reservoirs, at the bottom of coastal sea and river areas.

From approximately 1 ton of rock, no more than 1 carat of diamonds can be isolated. But that is not all. The main thing is to discover mines containing kimberlite or lamproite pipes. It happens that more than a dozen years pass from the start of a diamond mine to its launch. We present to you the rating of diamond mining countries:

6. Australia

Until recently, Australia was one of the leading diamond mining countries. But at present its reserves have been greatly depleted; now diamond mining there is carried out mainly near the city of Kimberley in the Argyl mine. It was here that very rare pink crystals were recently discovered, which have a very high price and are sold only through auctions. But scientists estimate that the diamond reserves at this mine will be completely depleted by 2018.

5. South Africa

South Africa is the most developed country on the African continent, the undoubted leader in the number of mineral deposits, including diamonds. The only country in Africa that is not a third world country. The constant growth of GDP marks the incredible activity of the country's foreign market. South Africa ranks fifth in annual diamond production ( 7.4 million carats$1.22 billion)

4. Angola

Angola ranks fourth in the world in diamond production. The main deposit is Fukauma. Angola's economy is mainly based on the production and sale of oil. It is thanks to oil exports that the country's economy is developing very quickly among all sub-Saharan African countries.

Because diamond production is calculated not in terms of mass (kg), but in terms of their value. The value is determined by the size and purity of the stones. Then Angola produces 8.7 million carats of diamonds 1.32 billion dollars.

3. Canada

Canada is rightfully considered one of the richest countries in the world. Canada is a recognized leader in terms of exports and imports. The main diamond deposit is Ekati. Canada occupies an honorable third place in our ranking (12 million carats - 2 billion dollars)

2. Botswana

Botswana, a country located in the south of the African continent, boasts the largest number of diamond mines. It borders South Africa, Namibia and Zambia. More than 70% of this country is occupied by the Kalahari Desert, the so-called “green desert”.

The country is one of the recognized leaders in the production and value of all diamonds. Industrial mining of these stones in the country began back in 1971. In addition, Botswana has rich deposits of gold, silver and platinum. The main share of the state's export products comes from the USA and Western Europe. The country produces per year 24.6 million carats worth $3.64 billion

1. Russia

Russia is one of the world's largest owners of almost all types of minerals. The country has rich deposits of ferrous and non-ferrous metals, coal, oil, and natural gas. Many of the natural resources presented are located in Siberia, including the richest kimberlite pipes.

For a very long time, Russia was not considered a diamond-mining country, although at the end of the 19th century small diamond deposits were discovered in the Urals. But the vast territorial expanses of our country did not allow the hope of discovering new deposits to fade, and, according to scientists, it was in Yakutia. The largest diamond deposits are located in the Sakha Republic, Arkhangelsk and Perm regions. In 2007-2008, Russia occupied a leading position in the diamond mining ranking. Today, the Russian Federation ranks first in the world in diamond mining ( 38.3 million carats, worth $3.73 billion)

Diamond industry in recent history

Since 1980, global industrial production of diamonds has increased 3-4 times, but, nevertheless, diamonds are still considered an extremely scarce natural resource. Over the past 25 years, more than 12 thousand kimberlite deposits have been discovered in the world. But at the same time, only 1% of these deposits contain a sufficient amount of diamonds to make their mining economically profitable.

Naturally, this is due to the fact that no one sifts tons of rock through a sieve anymore, dreaming of finding one small diamond. Today, diamond mining is a labor-intensive process, requiring both huge investments and high technical skills. The size of industrial diamond mines is so large that they can be seen from space.

The most widely represented diamond deposits are on the African continent. In some politically unstable countries in West and Central Africa, the military junta has taken strict control of diamond mining. Using funds from the sale of jewelry to invest in military operations in the country. Stones from these countries, most often smuggled, are called “blood diamonds” or “stones of grief and war.”

Therefore, in 2002, the UN initiated the so-called Kimberlite Process, which was supposed to stop the smuggling of diamonds from military conflict zones and the use of the proceeds to further continue the war. But still, this problem could not be completely solved, because in African countries, their state of customs control, smuggling is flourishing and the export of diamonds continues. Among other things, diamonds are also supplied by countries that are not in a state of direct hostilities, and these diamonds are considered “clean”, but are also used to escalate a military conflict.

The "Big Hole" - as the Kimberley diamond quarry is called - is nothing short of impressive. It seems that you are standing on the edge of a crater left by the impact of a giant meteorite on a large city. The pitiful remains of the latter stuck to the edge of the crater, and everything else was buried under the turquoise-blue cover of the waters that filled the bottom of the crater.

For those who have already seen mega-quarries, of which there are quite a few on the planet, the size of the “Big Hole” may not seem so amazing. The initial depth of the quarry was 245 meters, but then it was partially backfilled to a depth of 215 m, and subsequently also filled with water. So the depth of the crater that can be observed today is only 174 m. Less than, for example, the molybdenum quarry of the Sorsk Mining and Processing Plant, which I observed at (280 m) or, moreover, the Udachny diamond quarry in Yakutia (585 m), which Igor saw.

But it's not about depth, it's about meaning. We stand on the precipice of Africa's first major diamond mine, which gave birth to the diamond rush, Cecil Rhodes, and, as a consequence, the Anglo-Zulu and Boer Wars. This “hole” determined the history of all of South Africa. It also became a symbol and a household name in the diamond industry, giving its name to kimberlites, a kimberlite pipe, and even the Kimberley region in northwestern Australia (it was so named after diamonds were found there).

All in all, the Big Hole and the city of Kimberley are an essential stop on our long journey in search of South Africa.

The history of diamonds in South Africa did not begin in Kimberley, but not far from it. In the town of Hopetown on the banks of the Orange River (now a town 60 km from Kimberley). Different sources tell this story slightly differently, but the most popular version is this.

In 1866, farmer Schalk van Niekerk was visiting his neighboring farmers and noticed that their children were playing with some kind of bright pebble. He asked the owners to sell him the artifact he liked. To which the children’s mother allegedly replied: “The Lord is with you! It's just pebbles. Take it for free if you like it.” 15-year-old Erasmus Jacobs probably never knew that his discovery marked the beginning of the diamond rush. And if he found out, he would most likely cross himself once again, that the thirst for profit had passed him by.



(Erasmus Jacobs in old age. It is unlikely that this man ever suffered from the realization that he had missed out on a colossal fortune.)

Van Niekerk resold the stone to the traveling merchant O'Reilly, who reached the British town of Grahamstown and showed it to Dr. Atherstone, a geologist. He confirmed that the river pebbles were nothing more than a 21.25-carat diamond. The stone was named “Eureka.”

The news of the discovery of diamonds caused a stir in London. An authoritative geologist came from there, who, after a year of research, came to the conclusion that there could be no diamonds in the Cape Colony, and “Eureka” was most likely a specially planted stone. As soon as he made this statement, van Niekerk reappeared on stage - with a much larger diamond - the “Star of South Africa” at 47.69 carats. This time, the enterprising farmer had to fork out the cash: he bought the stone from a colored shepherd for 500 sheep, 10 bulls and 1 horse. He sold the diamond, of course, for much more: for 11,200 pounds (and, as a result, the price of the diamond after a couple of resales increased to 25 thousand pounds). Now there is no longer any doubt: there are diamonds in the soil of South Africa.

The Star of South Africa was found in 1869. After which the pickaxes clattered from the Orange River to the Vaal River. In 1871, the efforts of diamond hunters were crowned with success. The treasured stones were found on the territory of a farm that belonged to the De Beers brothers.

The photo of one of the brothers in the Kimberley Field Museum is somewhat similar to the photo of Erasmus Jacobs: the same stern look of ultra-conservative Boer farmers. I think they viewed the very idea of ​​digging in the ground for sparkling stones with disgust. Therefore, they happily sold their possessions for a price that they could not even dream of just recently, and left to explore new Vortrek horizons. These were people of the farming frontier, accustomed to plowing virgin soil during the day and reading the Bible in the evenings - they were not on the same page with noisy, hectic prospectors.

Founded after the discovery of diamonds in 1871, the town was initially simultaneously known by two names: New Rush (“New Fever”) - the name of the deposit and Vooruitzicht (I won’t risk translating it into Russian or even pronouncing it) - the name of the De Beers farm. Official London, represented by the Secretary of State for Colonial Affairs, did not like any of the names: the first seemed too vulgar, the second unpronounceable for an Englishman.

The secretary ordered the local authorities to name the settlement so that at least he himself could pronounce the name. The order was carried out in the traditions of British humor. Local officials named the rapidly emerging town Kimberley, implying that Secretary Lord Kimberley was definitely able to pronounce his own name.

The further fate of Kimberley is typical for mining towns that did not turn into a “ghost town” after a couple of years of development. Rapid and chaotic growth, the emergence of successful businessmen raking in business for themselves. Consolidation and mechanization of the mining process. The gradual formation of large cartels from small individual plots. Finally, the final battle between two or three powerful competitors and the formation of a large monopoly.

The diamond business was doomed to go this route from start to finish. Especially after it became clear that the power of diamonds lies in their rarity. If you throw everything mined in the Kimberley and other deposits onto the market, the price of stones will fall. And if you produce only a small part, exclusiveness and elite prices are guaranteed. Of course, such a scenario is only possible if the market has a monopoly. Not fair? Well, diamonds (more precisely, diamonds) are not iron ore or copper. You can live without them. But to make them super-luxury items, “a girl’s best friend,” is welcome. Who knows, if history had gone differently, brides all over the world would have expected not a diamond ring, but, for example, a zirconium bracelet.

In the battle for Kimberley and for the diamond market, Cecil Rhodes won, who came to the mines as a sickly 18-year-old youth, and, as a result, united all the diamond mining of the colony into a single concern, De Beers, perpetuating the name of God-fearing Boer farmers for centuries.

But I will write about him, as well as about the handsome adventurer Barney Barnatto and about the diamond wars, separately. In the meantime, let's take a walk through the streets of modern Kimberley.

At first glance, it is clear that the mining past is the basis of the city’s identity. This is reflected in the names of many shops and cafes.

And even in the design of hotels.

Here is the dormitory of our backpacker (Greatbatch Gusthouse), decorated as a miners' shelter underground. An eerie authentic place.

Instead of bedside lamps, there are miner's lanterns.

The turbulent mining past is also reflected in the many pubs that remain from the late 19th century.

We just got to Kimberley on Friday evening. And next to our hotel there was HalfWay Pub, which preserved the interior of the 19th century. The pub was full. At the oak counter, against the backdrop of century-old Castel beer posters, local girls were bored, waiting for their Barney Stimson. The youth consumed shot after shot. We modestly sat down in a corner and indulged in a truly South African pastime: watching a rugby match of the local championship. To our satisfaction, the Pretoria Bulls (who we initially decided to root for) beat Cape Town's Stormriver. The evening was a success.

Halfway Pub, by the way, is also famous for the fact that it is a pub built in such a way that you could ride into it... on a horse. And get a pint without getting out of the saddle. According to legend, Cecil Rhodes asked the pub builders about this so as not to have any complexes about his height.

We know many political leaders who suffer from this. Some even select successors for themselves based on height.

The next morning the city was quiet and deserted - a great time for a walk. Moreover, it immediately became clear: this is not Gauteng - there is nothing to be afraid of in the daytime.

But we shouldn’t forget that this is South Africa.

Yes, they will let you forget about it.

No announcements on the gates,

nor the door to the chapel of the Anglican Cathedral of St. Cyprian,

nor the gutted bag lying in the grass in front of this very cathedral

If we ignore this, then we see a truly British town. Both in history and in modern times.

The main character of Pretoria is Paul Kruger. Here is his sworn enemy Cecil Rhodes.


The pedestal shows how Cecil teaches life to the local black population (in fact, apparently, he negotiates).

Kimberley also has a monument to the Boer War. But it immortalizes the fallen British.

The siege of Kimberley by the Boers (October 1899 - February 1900) is one of the central episodes of the war. Of course, Cecil Rhodes himself was in Kimberley.

In our hotel, I unearthed a book about the siege of the city with photographs from those years and excerpts from the diaries of city residents. Very interesting to read. In general, the Anglo-Boer War is a topic of interesting research. At the same time, it is both a gentleman's war and the first brutal war of the 20th century (concentration camps for civilians, scorched earth tactics).

Our hotel is a late 19th century house located in the Belgravia area. The similarity of the name with one of the most prestigious and aristocratic areas of London is not accidental: the streets of Belgravia are full of beautiful snow-white mansions.


It’s just a pity that high fences and dogs running amok on the other side often interfere with viewing.

Another feature of Kimberley is the abundance of colleges and grammar schools in a truly British spirit

Here is the building of the girls' high school (1887)

And here is a high school for boys.

A truly British building and a truly British activity - playing cricket in a crisp white uniform.

The Masonic Center can also be considered an asset of a British city, and not an Afrikaner one

The central street of the city (more precisely, the central street of the city of the early-mid 20th century: it is called Old Main Street) is less pompous

And even cosmopolitan

but not forgetting her origins

The modern center is very low-rise. There are almost no high-rise buildings, and they look a little excessive architectural dominants

There is almost no standard development that distinguishes Pretoria and Johannesburg

The most notable building is the Oppenheimer House (this family, famous for Soviet propaganda, took over De Beers after Rhodes' death)

This is the most advanced diamond sorting and processing enterprise in the country (and before the construction of a more modern analogue in Gaborone, in the world).

Sunlight interferes with the work of stone appraisers, so the building is built in a special way - on one side it almost does not allow sunlight to pass through.

The city's main attraction, the Big Hole, is located immediately west of the center.

Underground mining ended in 2005, and since then the complex has been converted into a powerful tourist center.


There is an observation deck, an exhibition of vintage equipment, a descent into the mine, and a hall with real diamonds (including the hero of the occasion - the Eureka diamond). As well as a restored model of the Kimberley prospector.

No Disneyland - everything looks very real, even despite the rare dolls

Some pubs still serve customers. You can still bowl in bowling alleys.

All sides are reflected - even the life of black workers in the mines

And in the far corner of the complex is the farm of those same De Beers, whose name now rhymes with large and ruthless business

Summary: Kimberley can hardly be considered one of the top five places in South Africa that must be visited. But if you visit for a longer period of time and get to know the country in depth, you should definitely visit here. This is an important facet of the history and modernity of the country.

Until the next episode.

previous episodes.

The expansion of China in African countries is the talk of the town, but few people can imagine what it looks like in reality. However, the case of Zambia stands apart - it is truly unique. In fact, the Chinese bought up an entire country under the leadership of the “African Yeltsin,” imposing unaffordable debts on it, and are now preparing to “skim the cream.” But why does China need Zambia?

Zambia is not God knows what, but it is still an independent country, whose government continues its policy of self-destruction and is leading to the actual loss of state sovereignty gained in 1964.

This conclusion was reached by IMF experts, representatives of Zambia’s donor countries and other interested parties. The reason is the fantastic volume of state debt to Chinese companies and funds, which official Lusaka is not able to cover even by borrowing from the IMF, the African Development Bank or other structures. It is coming to the point that Zambia will have to transfer to China its entire energy and transport infrastructure, as well as promising mining industries, including diamonds.

Here we recall the recent story of Sri Lanka, which transferred the huge port of Hambantota to China (70% of the shares for 99 years and Chinese companies in management) due to the inability to pay $8 billion in debt that arose during the construction by the Chinese of a number of monstrous facilities, including the port itself and Mattala - “the emptiest air harbor in the world.”

In the case of Zambia, there is also a “critical amount” of $8 billion. Apparently, for the Chinese it is a “cut-off” - then the process of no return begins.

Cash only

During his tenure, Zambian President Edgar Lungu signed contracts with China for a total of 8 billion in debt, but now the figure is 9.7 billion in consolidated debt, and another 5 billion are hanging somewhere. Lungu claims that these contracts are “working through” and the money “has not yet been fully received.” What “not yet fully fully” means in Zambia is anyone’s guess. Apparently, someone received it, but not everyone and not everyone.

Not everyone likes the situation when the government collects debts from influential creditors without even having a chance to pay them off. Even in Zambia.

Recently, Lungu fired all the ministers of the social bloc due to a corruption scandal surrounding the so-called cash travel program. In short, it is the distribution of cash from European donors to poor households in order to stimulate small businesses and increase the purchasing power of the population. Not microloans, but distribution.

The main donors of this crazy project were the British and Swedes from various charitable foundations. That is, a bearded Swede came to the village of Big Bemba somewhere on the banks of the Zambezi with a bag of small bills and began handing them out. Mainly women, since they and only they do housework among the Bemba, while men catch crocodiles in order to rape them and increase potency (this is not a joke, but a real local belief that leads to human casualties - crocodiles do not approve of sexual violence against themselves) . It is quite difficult to come up with anything more corrupt. It is clear that everyone stole, except for particularly honest Swedish philanthropists. But they, by the way, are horrified by the latest news and are preparing to stop participating in the program.

In January, Foreign Minister Harry Kalaba loudly slammed the door. He was not satisfied with the dominance of corruption and the Chinese. Now the government is actually personified in one person by the Minister of Finance, Mrs. Margaret Mwanakatwe, who literally “sits on money,” including Chinese money. It was she who stated that Zambia was freezing all Chinese projects in the country that were less than 80% completed, which caused some bewilderment in Beijing.

Chinese representatives in Lusaka came to President Lung with a question like: “How so, my friend? Have you confused the shores? Lungu responded confidentially (the conversation was private) and said that everything was fine, “all projects will go according to plan,” this woman had mixed up something. The Chinese, however, did not stop and forced Lungu to publicly confirm: “There are no irregularities in Chinese-funded projects.”

Let's say even that. This will not save the country in any case.

Resistance is futile

The main invader of Zambia is the Chinese company BRI. Initially, it actually built a railway to Tanzania (in fact, the only one in the country), but then it turned into a tool for issuing loans and purchasing assets. Already, the Chinese own Zambia's main state television channel and the ZNBC news channel, making resistance futile.

Not only do the Chinese work on the railway (physically - in the form of managers, engineers and even machinists) and at the power plant. The Zambian government is required to participate 15% with its own funds in all projects, which increases the amount of debt exponentially - there is simply no money in the country. There is not even enough money for police salaries, and other civil servants receive their salaries with months of delays, which, in fact, prompted Ms. Mwanakatwe to launch an anti-Chinese riot.

Debt and investment servicing alone costs Zambia half a billion dollars annually, which is surprising in its own way for a country with a struggling economy. Financial penalties for assumed but overdue obligations have long outweighed the country's total savings. This is not just an inevitable default, it is a catastrophe.

The alarm was even sounded at the IMF, where they started talking about the pointlessness of lending not only to Zambia, but also to two dozen other countries in which China is conducting “debt diplomacy.” In response, President Lungu demanded that the IMF Resident Representative in Lusaka, Alfredo Baldini, shut up and “not spread negative rumors among donors.”

There was also local hysteria in the United States: two senators wrote a bipartisan letter to Trump about China’s “predatory infrastructure financing” in African countries. Trump liked it, he did, but things didn’t go further than that.

Among other things, Lungu managed to issue Eurobonds worth $1 billion, which were supposed to serve as a guarantee for the cash distribution program. Now they don’t serve – everything has collapsed, and there is nothing to be surprised at: with a yield of 14%, Zambian Eurobonds were actually state bonds.

At the same time, Zambia is going to buy military helicopters for $95 million (presumably from Russia) and owes Israel $400 million for military electronics. The country can be closed.

Previous attempts at riots against Chinese dominance under President Lungu were not successful. In February, the opposition attempted to impeach the head of state. Its leader, Hakainde Hichilema, a perennial presidential candidate, millionaire, head of his own party and personal enemy of Lungu, produced a secret document detailing the sale of the Zambia Natural Resources Development College to the Chinese state-owned company AVIC International. College is not an educational institution, but something like a research office engaged in geological exploration. The beauty of this story is that the Chinese wrote something on the contract as a signature in hieroglyphs that no African could understand. That is, they slipped the black brothers some kind of paper with squiggles, on the basis of which they received access to geological exploration throughout the entire country. Brilliant.

The Minister of Mining and Mineral Resources, Christopher Yalamu, who protested against all this, went to South Africa and from Cape Town said that there is practically no geological exploration being carried out in Zambia, although the Chinese seem to have found microdiamonds in the west and north of the country. Lungu immediately dismissed the rebel, and Mrs. Mwanakatwe, a former colleague of Lungu’s from working in the African branch of a famous British bank, began to run the entire government.

"African Yeltsin"

In recent years, Lungu and his immediate circle have been commemorating Mao Zedong in appropriate and inappropriate ways, even hanging his portraits on suitable walls. It turns out organically and naturally - they all grew up under President Kenneth Kaunda, who openly focused on the PRC and instilled this habit in the next generation of Zambian politicians. The Chinese like this, but it was not possible to appease them with this form of sycophancy.

At the recent meeting, Lungu did not leave a single step from Comrade Xi, distracted only by Vladimir Putin, because he believes that these whites from the north can also give a loan. The Northern Whites respond by offering military-technical cooperation, and the experience of the Central African Republic shows that this can be productive.

The result, however, is disappointing. China is demanding the transfer of control over Zambia's electricity industry, and subsequently the rest of the state's assets, as the country is forced to default on various types of debt (bonds, bonds, sovereign debt, etc.). Over the past two weeks, Mrs. Mwanakatwe has been making statements almost every day that there will be no default, sleep well, but what else can she do?

There are rumors in South Africa that the Chinese are openly making drunk President Lungu, who is really prone to drinking alcohol, for which he has already received the nickname “African Yeltsin.”

The same personal claims (if not harsher) are being made against Ms. Mwanakatwa as, in fact, the second person in the country. Zambian and South African media have been closely following the finance minister's controversial personal life. She was repeatedly filmed drunk and once allegedly beat up her 26-year-old boyfriend (she is 56) after catching him having sex with another woman in a car in front of the Mayela nightclub.

Technically, Ms Mwanakatwe is married to the manager of a local mobile phone company. Regarding the incident at Mayela, she categorically denies everything, claiming that the media are blatantly lying. She prefers to communicate with her opponents on Twitter in a mixture of English and Bemba, which has a devastating effect on her image in the eyes of investors. An example for fans: “I have no boyfriend.” Bufi mwandi abantu babufi, which boyfriend is that? Awe mwandi bufi, bufi. There is nothing like that in my life.”

The personal life of the Zambian elite is just an illustration of the fact that the country's state system is completely discredited and, in fact, does not work. The Chinese, with their “debt diplomacy,” act in a very monotonous manner, but in the Zambian case everything falls at their feet. President Lungu and his people are not even trying to resist eastern expansion, which is clearly turning Zambia into a Chinese colony on terms worse than even British rule.

The British in Northern Rhodesia (as Zambia was called until 1964) built schools and missions on Bemba lands and Nyasaland. Cecil Rhodes built a railroad and a copper smelter there, and if the Chinese build anything, it is with the goal of taking it for themselves later. They skillfully exploit the personal weaknesses of individual politicians and the peculiarities of their behavior, gradually penetrating all government structures and pushing out competitors from the country.

There is no ideology in this. It was during the time of Kenneth Kaunda that it was fashionable to wear a portrait of Mao on your lapel. Now everything is decided by money and intimate conversations. And judging by the scale of the Forum of China-Africa Cooperation held in Beijing last week, when delegations from 53 countries arrived in China, it will only get worse.


website– When most people hear about diamond mining, they think of South Africa, where diamonds were first discovered in 1866 in the Kimberley region. A fifteen-year-old boy discovered the now famous 21.25-carat Eureka diamond on a farm on the banks of the Orange River. This discovery sparked a land grab and power struggle that led to the formation of De Beers Consolidated Mines Limited. De Beers consolidated the many mining licenses that were issued in the region, making South Africa the world's largest supplier of diamonds for decades and giving rise to the birth of the modern diamond industry, writes Rough&Polished, citing an article in ehudlaniado.com.

Diamond mining

The earliest discoveries were made mainly in alluvial deposits, but soon after diamonds began to be found at greater distances from streams or rivers. In the 1880s, 95% of the world's diamond supply came from the famous "blue earth" Kimberley region. This unique rock was later given the name "kimberlite" in honor of the region where the deposits were first discovered; this name is still used today.

Within a decade, South Africa's diamond fields were producing millions of carats annually, and by the end of the 19th century, South Africa was the source of 90% of the world's diamond production. Within a few years, the diamond mining experience gained there was used to explore and develop diamond resources throughout southern Africa.

The country also gained experience in areas such as grading and polishing, increasing efficiency as the era of large-scale rough and polished diamond production arrived.

Nearly a century and a half of diamond mining in the country has produced some of the most significant diamonds in history, including the famous Cullinan Diamond, the world's largest gem-quality diamond, weighing 3,106.45 carats.

Fifty years after the first discovery of diamonds in South Africa, production reached 50 million carats. By the end of the 20th century, according to several sources, production exceeded 100 million carats. The country is an important source of fancy-colored diamonds, particularly rare pink and blue diamonds, including a 122.45-carat blue diamond discovered at the Cullinan mine in 2014.

Although South Africa is still a major diamond producer, most of its diamonds are believed to have already been mined. De Beers, once largely based in the country and listed on the Johannesburg Stock Exchange, has moved most of its operations to Botswana and sold many of its mines in South Africa after closing much of its famous Kimberley diamond mine.

Despite the development of some small new projects in recent years, no significant new discoveries have been made in South Africa for decades. Most of the existing production comes from old projects where extraction is expensive.

Diamond production

Diamond production began in South Africa in 1928, making the country the world's fifth-largest diamond manufacturing center. But the local diamond manufacturing industry was not economically viable enough and therefore did not reach the scale needed to displace Belgium or Israel as the world leader in cutting.

At its peak before the 2008 crisis, South Africa employed approximately 3,000 diamond cutters and processed approximately 140,000 carats annually. In an effort to increase local economic benefits from diamonds, the South African government initiated a program known as “diamond beneficiation.”

Diamonds

This set of laws and regulations required greater involvement of historically disadvantaged communities at various stages of the diamond value chain, including diamond mine ownership and cutting. It also required that a minimum quantity of diamonds be provided for sale to local companies. The program's success is controversial, with some saying it has failed to significantly improve South Africa's diamond industry and may even have harmed it.

Over the past 15 years, many of the country's diamond cutting factories have closed or reduced production, although several large-scale cutting and polishing factories remain very active. Many of them specialize in large, expensive gemstones. Currently, the South African diamond manufacturing industry consists of only 300-600 cutters directly involved in the production of diamonds.

Similarly, attempts to create a jewelery manufacturing industry in South Africa have not yet produced the results that policy makers had hoped for. We attribute this to low labor costs in China and India. Currently, South Africa accounts for about 1% of the global consumer diamond jewelry market.