The Democratic Alliance (DA) in Limpopo has called on the Department of Mineral and Petroleum Resources (DMPR) and the Limpopo Department of Economic Development, Environment and Tourism (LEDET) to urgently account for how they intend to protect workers, contractors, local businesses and surrounding communities following De Beers’ decision to suspend production at its Venetia Diamond Mine for two years.
The party wants both departments to appear before the Limpopo Legislature’s LEDET Portfolio Committee to outline their responsibilities and contingency plans to cushion the expected economic impact of the production pause.
Venetia Diamond Mine, situated in the Vhembe District, is South Africa’s largest diamond mine by value, producing more than 40% of the country’s diamonds. The mine supports approximately 4,400 employees and contractors and is regarded as a key economic driver in Limpopo and the country at large.
Although De Beers has indicated that the mine is not closing permanently, but is temporarily suspending production to reduce costs and rephase capital expenditure amid weak global diamond demand, the DA believes the decision could have severe consequences for thousands of livelihoods.
DA Limpopo leader Jacques Smalle said the government could not afford to adopt a “wait-and-see” approach while families and businesses faced uncertainty.
“A temporary production pause can have permanent consequences for families who depend on the mine for an income, contractors who rely on Venetia for work and local businesses whose survival depends on the mine’s operations. The government must present a clear plan to protect these livelihoods during this difficult period,” said Smalle.
He said the Department of Mineral and Petroleum Resources, as the country’s mining regulator, has a responsibility to assess the possible economic impact of the production pause and ensure that every practical measure is taken to minimise job losses.
“The department must also ensure that Venetia’s Social and Labour Plan continues to be implemented throughout the production pause and that workers, contractors, suppliers, and surrounding communities receive the necessary support,” he said.
Smalle further argued that years of policy and regulatory uncertainty under Mineral and Petroleum Resources Minister Gwede Mantashe had weakened South Africa’s mining sector, making it less competitive and less resilient to global economic pressures.
“The Minister must create a stable, predictable and competitive mining environment that attracts investment and protects jobs. South Africa’s mining industry can not continue to lose ground because of policy uncertainty,” he said.
While mining regulation falls under national government, Smalle said LEDET also has a critical role to play in limiting the economic impact in Limpopo.
“LEDET must explain how it intends to support affected businesses, protect the regional economy and assist families whose livelihoods will be impacted during the production pause,” he added.
The DA maintains that the government must work with all stakeholders to ensure the temporary suspension does not translate into long-term economic hardship and that Venetia Diamond Mine is well positioned to resume full production once global market conditions improve.