An investigation of the entering process into the small-scale diamond mining market in the North-West Province of South Africa

Abstract

The small-scale diamond mining industry in the North West Province of South Africa is experiencing a sustained decline, creating an urgent need to investigate pathways for new entrants into the market. Strategic planning is essential for navigating regulatory complexity, policy uncertainty, administrative burdens, and the need for effective community engagement, all while remaining compliant with existing legislation. Despite these challenges, the small-scale mining sector continues to play a vital role in local economic development, employment creation, and community sustainability, with several towns historically built around diamond mining activities. The contraction of this sector has therefore had significant socio-economic consequences for these communities. This study aimed to determine how newcomers can enter the small-scale diamond mining market, identify the primary challenges they face, and examine the strategies employed to overcome these obstacles. Semi-structured interviews were conducted with existing small-scale diamond miners, using pre-distributed questions to ensure consistency. The interviews were transcribed and analysed using Atlas.ti, enabling the identification of key themes and categories related to regulatory challenges, operational management strategies, and prospects for future growth. The findings reveal that compliance with mining legislation and achieving operational sustainability are the most significant challenges confronting the sector. Participants reported that navigating complex and frequently changing mining policies often requires the support of specialised consultancy firms, highlighting institutional barriers to entry for newcomers. The study further indicates that long-term sustainability in small-scale diamond mining is closely linked to regulatory compliance, technological adaptation, and responsible resource management. Participants emphasised the need for clearer, more supportive, and context-sensitive regulatory frameworks to reduce uncertainty and encourage formalisation within the sector. From a broader policy perspective, the study underscores the importance of regulatory reform that balances environmental protection, economic viability, and social development. Improved policy coherence, streamlined administrative processes, and targeted support for technology adoption could enhance productivity while promoting sustainable mining practices. By addressing these issues, policymakers can strengthen the resilience of the small-scale diamond mining sector, support community livelihoods, and contribute to inclusive and sustainable economic development in mining-dependent regions of South Africa.