The report, published by the Wall Street Journal, includes commentary from local employees at the De Beers Group-operated diamond recovery plant in Venetia, South Africa. In July, the company announced it had suspended production at the site, despite previously expecting it to operate until the 2040s.
Among those who contributed to the report was Tinah Nemahunguni, a 37-year-old widow who has worked at the plant for more than a decade.
“There is no bigger industry here. It’s the only job I’ve ever had that has sustained my family. We are desperate,” she said.
A local union said more than 1,200 jobs are at risk during the suspension of production, which was described as disastrous for a country with an unemployment rate of 40 per cent.
It was also noted that around 10 large diamond mines have either faced similar suspensions or outright closures over the past two years, resulting in a dramatic decline in total production.
The report also highlighted industry outrage over a brief experiment with lab-created diamonds by De Beers, with the launch and eventual closure of Lightbox Jewelry.
“Over the past century, miners like De Beers positioned diamonds as synonymous with love and devotion. But now, stones can be made in labs that mimic the Earth’s extreme pressure and temperatures — for a fraction of the price,” writes Alexandra Wexler.
“As the man-made gems became mainstream, they increasingly threatened diamonds’ status as the ultimate luxury good, sending prices for both natural and synthetic stones tumbling.”
She continued: “Like many South Africans, most workers in the area live hand-to-mouth, with no savings to fall back on. Other local jobs are less lucrative, if they can be found at all.”
The severe impact of diamond mine closures on African communities was a popular topic in Jeweller's Great Diamond Debate III.
In February, parent company Anglo American slashed the value of its diamond business by half – a third write-down in three years. The report also speculated that Anglo American has struggled to find a buyer for its 85 per cent stake in the company; however, recent media reports suggest sales negotiations are advanced and could be completed soon.
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