– De Beers’ planned two-year production pause at Venetia puts thousands of jobs and livelihoods at risk.
– The DA will call for the Department of Mineral and Petroleum Resources (DMPR) and the Limpopo Department of Economic Development, Environment and Tourism (LEDET) to appear before the LEDET Portfolio Committee.
– Government must protect affected livelihoods and end the regulatory uncertainty weakening South African mining.
The Democratic Alliance (DA) in Limpopo will call for the Department of Mineral and Petroleum Resources (DMPR) and the Limpopo Department of Economic Development, Environment and Tourism (LEDET) to appear before the Legislature’s LEDET Portfolio Committee following De Beers’ announcement that it plans a two-year production pause at its Venetia Diamond Mine in the Vhembe District of Limpopo.
The DMPR and LEDET must explain their respective plans and responsibilities for protecting workers, contractors, local businesses and communities during the production pause.
Venetia is South Africa’s largest diamond mine by value. It produces more than 40% of the country’s diamonds and supports approximately 4,400 employees and contractors. It is also a major contributor to the economies of Vhembe, Limpopo and South Africa.
De Beers has said that Venetia will not close permanently. Production will be paused to reduce costs and rephase capital spending while global diamond markets remain weak.
The challenges facing the diamond industry are global, and De Beers cannot solve them alone. But a temporary production pause can have permanent consequences for a family that loses an income, a contractor that loses work or a local business that loses its main customer.
However, years of policy and regulatory uncertainty under Mineral and Petroleum Resources Minister Gwede Mantashe have made South African mining less competitive, discouraged investment and left the sector less able to withstand global shocks. The Minister is responsible for creating a stable, predictable and competitive mining environment that attracts investment and protects jobs.
The DMPR is the national mining regulator and cannot watch from the sidelines. It must assess the possible job losses and economic damage, and ensure that Venetia’s Social and Labour Plan continues to be implemented during the production pause. Every practical alternative to job losses must be considered, and proper support must be provided to affected workers, contractors, suppliers and communities.
Mining regulation is a national responsibility, but the economic pain will be felt in Limpopo. LEDET must explain what it will do to protect the regional economy, support affected businesses and help families and communities through the pause.
Government’s job is to make South Africa more competitive, protect jobs and help the mining industry withstand global pressures.
That requires a stable and predictable mining environment, as well as a clear plan to protect livelihoods, support the regional economy and prepare Venetia to resume production when market conditions improve.