While Mantashe did not indicate any plans to curb the rise of artificial diamonds, he emphasised that real diamonds are forever and remain a form of investment.
Mineral Resources and Energy Minister Gwede Mantashe has expressed concern that the rise of artificial diamonds is hurting South Africa’s mining sector.
There are people who aspire to own diamonds in life, but their financial situation makes it difficult. Some companies have noticed this desire and decided to fill the gap with artificial diamonds.
Artificial diamonds are created in a laboratory by replicating the intense heat and pressure conditions found deep within the Earth. They are generally less expensive than natural, mined diamonds.
Diamonds are forever
Mantashe was speaking at the opening of the Finestar diamond facility in Kempton Park, Gauteng, on Friday, 5 September.
Finestar is headquartered in India, and the diamond manufacturing facility in the country will focus on cutting and polishing rough diamonds into faceted gemstones for jewellery and other applications.
During his address, he highlighted that the increase in artificial diamonds poses a threat to the mining sector.
While he did not mention whether there are plans to curb the increase in these diamonds, he emphasised that real diamonds are forever, and they are a form of investment.
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Support in the industry
He added that the government will give Finestar the necessary support, as its contribution to the economy is also vital and expected to make a difference.
Finestar’s facility has cost at least R300 million and has created employment for 46 people.
The sector is one of many in the country that is expected to feel the impact of the 30% United States (US) tariffs imposed by the Trump administration.
Diamonds performance
South Africa exports a significant number of diamonds to the US, according to the Observatory of Economic Complexity (OEC). However, these exports experienced a decline in the year leading up to June 2025.
Prince Mbetse, CEO of Finestar, stated that the facility will handle natural diamonds, not artificial ones. He noted that the diamond industry is experiencing difficulties due to geopolitical tensions, but he believes it will not die anytime soon.
“We have always had plans to expand our operations and open this facility. This is a sign of our faith that the industry will bounce back. We believe the challenges the industry faces are not permanent, and we will soon overcome.”
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