The Northern Cape has long been the heart of South Africa’s diamond mining industry, but this is now a thing of the past as miners battle difficult market conditions.
In March, Ekapa Minerals Mine applied for provisional liquidation, a move that left over 1-thousand workers jobless. The latest casualties are employees of Finsch Mine near Lime Acres who were not paid their June salaries and are now facing job cuts.
Earlier in the week, diamond giant De Beers, whose footprint is in the Northern Cape, announced its plans to retrench workers at Venetia mine in Limpopo.
There has been growing pressure on the global natural diamond market, with questions being raised about the future of diamond mining.
For more than a century, diamond mines have driven the Northern Cape’s economy.
The recent closure of Ekapa Minerals Mine and the current uncertainty at Finsch Mine in Lime Acres highlight the growing challenges facing an industry that is now fast dwindling.
While the impact on mine employees has received much attention, contractors like Finsch Mine canteen operator, Marlene Van Schalkwyk, who relied on the mine for their livelihoods, say they fear for what lies ahead.
Marlene Van Schalkwyk, a contractor, says, “It is a big impact on me because the thing is, financially, I couldn’t pay some of my suppliers as yet, and at home I can’t pay my rent. I have rent to pay; I also have my personal things. The first important thing is my staff. I couldn’t pay them at the end of May.”
For maintenance contractor Michael Kotze, the slowdown has brought more than nineteen years of work to an abrupt halt.
He says many skilled contractors now face an uncertain future as opportunities become increasingly scarce.
Michael Kotze, contractor, says, “How do I feel? You are afraid. You feel lost. You don’t know how you will stand up and go on. The mine has been owing us money since March. It’s been three or four months. Some of our contracts were last paid in December last year. So right now, you can’t operate. You don’t know how much to start with or how much to operate with. Our workers are at home now because we can’t pay them. Communication has been very bad.”
The effects are also being felt by workers whose jobs helped keep the mining town alive.
Naledi Arone, a worker, says, “So it’s been two months now without getting our salaries, which is impacted as we have kids. We have kids to take to school, so yeah. We remain unpaid, we’re emotionally, physically and mentally drained.”
The National Union of Mineworkers says it fears a looming humanitarian crisis.
Lefa Bolofo says, “All employees within four months will be forced to leave their accommodation at the mine. No one owns any housing in Lime Acres. All employees, after this process is concluded, will be forced to leave their accommodation at the mine, and they will be leaving with nothing.”
With the diamond mining industry in the Northern Cape dwindling fast, government, mining companies, and local municipalities now face increasing pressure to develop sustainable economic opportunities that can outlast the Northern Cape province’s diamond industry.”
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