Mining in focus
No support for
alluvial miners
Alluvial diamond miners are hampered by lack of government support, funding
and inappropriate regulations, writes the South African Diamond Producers
Organisation (SADPO).
L
engthy delays in securing mining
permits and licences, onerous and
inappropriate regulatory requirements,
lack of funding for entrepreneurs, and
a Mining Charter and implementation
guidelines that are impractical for small
operators: these are just some of the problems
that confront start-up and existing alluvial
diamond miners in the Northern Cape like
Amo Marengwa and Lyndon de Meillon.
Under the co-ordination of South African
Diamond Producers Organisation
(SADPO), the alluvial diamond mining
industry has attempted to highlight the
diversity of the junior mining sector and
the challenges of the ‘one size fits’ all
approach to minerals policy by regulators.
Both Amo Marengwa and Lyndon de
Meillon are members of SADPO’s National
Committee.
Amo Marengwa is the son of Dr Ben
Marengwa, South Africa’s first black geologist.
After Dr Marengwa passed away, Amo and
his three brothers decided to continue some
of their father’s projects, one of which was
prospecting for diamonds in Taung, North
West Province. They grew up in the area and
know local people and customs.
Their company, Blue Banjo, applied for and
was granted a prospecting right on a property
that had previously been well explored and
partly mined. They put in R13-million of their
own savings for a processing plant so that they
could begin bulk sampling.
And that’s where progress stalled. They don’t
have the working capital to start operations,
and no institution – not the Industrial
Development Corporation, nor the banks –
will lend it to them.
Financial constraints
The number of alluvial diamond miners in South Africa has dropped significantly over the past few years as
a result of a number of constraints.
[24] MINING MIRROR JULY 2019
“There are no proper support mechanisms for
new entrants to the industry,” says Marengwa.
“The battle to find funding is forcing many
black mining entrepreneurs to rent out
their land to the better-established white
miners. Apart from the funding, we face two
other serious challenges – lack of access to
geological information and lack of access to
markets,” he adds.
Marengwa says he accepts that government
cannot extend direct help but that an enabling
policy environment is lacking. “If government
cannot help and the number of larger,
white-owned diamond miners who might be
potential partners is dwindling, who is left?
The only way government can truly help the
industry is by growing the pie: enabling the
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