Diamond plant to boost beneficiation in SA
Wednesday, 28 July 2010
South Africa took further strides yesterday towards expanding the country's capacity to cut and polish the diamonds produced within its borders with the opening of the Matla diamond polishing plant in East London.
Speaking at the opening, Mineral Resources Minister Susan Shabangu bemoaned the dearth of beneficiation in the diamond sector.
"As a department, we want value added to our raw materials, making sure that our people get jobs and contribute to the economic activity of the country," she said.
Only 2 percent of local diamonds are cut and polished in the country.
The new plant, which boasts technology worth R35 million from China, is a subsidiary of Matla Innovation. The company's chief executive is Chia-Chao Wu and its chairman is Zwelakhe Sisulu.
The R102m project is a partnership between Matla, the East London Industrial Development Zone (IDZ), the Industrial Development Corporation and technical partners Gold Eastern Holdings of China.
About 80 percent of diamonds processed at the plant are expected to be exported, mainly to China.
Sisulu said it was unfortunate that diamonds from South Africa were cut and polished in non-diamond producing countries like Israel, India and China.
At least 25 previously unemployed and unskilled youth in the Eastern Cape have been tapped to work at the project. Prospects are good for another 500 jobs to be created within the next five years.
The facility in East London's IDZ is equipped to process a maximum capacity of 20 000 carats a month.
