Beneficiation is a process currently being implemented in the Southern African countries – Namibia, Botswana and South Africa – and its aim is to obligate corporations in the country, including diamond mining giants, to move part of their activities to these countries. Beneficiation is a process aimed at facilitating the development of local industries and economies, and creating jobs for the local population, thereby improving social conditions.
The process started several years ago, when these countries, which are blessed with an abundance of natural resources, started to lose patience due to the fact that the continent’s natural treasures were not being translated into overall economic improvement. The African countries began to set more rigid conditions for the diamond mining companies active in their territories. They demanded that diamonds recovered within their boundaries be cut and polished in local factories in order to create jobs and increase the stones’ value when they are sold on the international market, thus increasing profitability.
The basic interpretation of Beneficiation is the transition of the polishing industry to the rough diamond producing countries in order to add value to the exported stones. Nevertheless, in practical terms each of the countries will decide how to add to the value of diamonds excavated within its boundaries. The process’ declared goal is to achieve economic and social stability in the diamond producing countries, redistribute industry activity downstream and balance the partnership between the country’s governments and citizens on the one hand, and the diamond mining companies on the other.
In recent years, the issue of beneficiation has become one of the central issues in the diamond industry, and it is expected to gain importance and significantly affect the industry’s future.
