Mining Mirror July 2019 | Page 26

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 www.miningmirror.co.za