US tariffs on natural diamonds continue to weigh on SA’s already struggling diamond sector, said De Beers chair Barend Petersen.
Addressing a Joburg mining conference on Thursday, he called on the US to help revive the natural diamond market by lifting its duties on imports of the precious stones.
Unlike precious metals such as gold and platinum, diamonds are among the SA exports that remain subject to a full 30% duty in the US, pressuring one of the country’s most iconic export sectors.
SA sold R16.6bn worth of natural diamonds in 2023, half of which was exported, and the sector directly employs nearly 15,000 people in the country, according to the latest Minerals Council SA data.
The World Diamond Council (WDC), a US-based group representing the international natural diamond value chain, has urged that country’s administration to exempt natural diamonds from tariffs, citing the potential for more than 200,000 jobs and $117bn in economic output to be lost domestically.
“We stand with the WDC in calling for diamonds to be exempt from tariffs,” said Petersen.
“Tariffs for natural diamonds do not protect jobs; they simply raise prices for consumers and disrupt diamond supply chains.”
The call for a reprieve comes as demand for natural diamonds has plunged in recent years, thanks to the rising popularity of lab grown stones, with the steady downward trajectory of natural stone prices weighing on legacy miners such as De Beers.
The Anglo American subsidiary is the world’s biggest supplier of diamonds, with operations across Botswana, Namibia, SA and Canada. Its local Venetia mine accounts for about 40% of global supply annually.
Despite the group’s outsize role in global supply, Petersen emphasised that “De Beers is not the industry”, calling on other miners to step up and take responsibility for keeping prices in check.
As an industry, we must continue to work together to find solutions to enable ethical diamonds to flow.
— Barend Petersen<br />De Beers chair
He said cross-border collaboration and partnerships between companies, communities and governments were crucial to keeping the industry afloat.
“Marketing alone will not save diamonds,” said Petersen.
“As an industry, we must continue to work together to find solutions to enable ethical diamonds to flow.
“Across SA, Botswana and now Angola, we have shown what partnerships can achieve. Together, we have proven that when governments, communities and companies work side by side, diamonds can deliver progress,” he said.
De Beers in August announced encouraging developments for its joint venture with Angola’s state-owned diamond company, Endiama, after the partners discovered a new kimberlite field, the most common source of mined diamonds, for the first time in three decades.
Meanwhile, parent company Anglo has been waiting for the right time to divest its 85% stake in De Beers as part of a radical portfolio restructuring. Anglo CEO Duncan Wanblad has emphasised that the group has seen firm interest from potential buyers, but a prolonged slump in the market has kept the deal on ice.
Bloomberg reported last month that Botswana President Duma Boko wants to buy a majority stake in De Beers by end-October. The government already owns the remaining 15% of the mining firm.
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