Diamonds: Loss not cast in stone
The global diamond industry has had a tough couple of years, which has squeezed prices of smaller stones, perhaps permanently. But top-end diamonds are as much in demand as ever, says an expert
The financial woes of some mid-level diamond mines in SA in recent years aren’t the death knell of the country’s diamond mining sector, industry veteran John Bristow says. With the right management, a supportive regulatory framework and a greater focus on growing entrepreneurial mining skills, SA’s mining companies can continue to provide jobs and foreign earnings for many years, since the country still has an estimated US$2.5trillion of resources in the ground. But a new approach is needed. Bristow, former CEO of Rockwell Diamonds and Incubex, is a geologist who is now part of an association of specialist mining and financial advisers called the Global Diamond Network. At least three mines have faced difficulties lately. Towards the end of last year Lace Diamond Mine, owned by DiamondCorp, applied for business rescue after its infrastructure was damaged by flooding. Rockwell Diamonds is defending an application for provisional liquidation from a contractor who has not been paid for...
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