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Dubai-based diamond merchant probes Jagersfontein dam collapse
The mine, which is situated in the Free State, was formerly owned by De Beers, and was shut down in the 1970s.
A vehicle that was swept away by mud at Charlesville, Jagersfontein, on 12 September 2022, after a mine dam burst killing one person and leaving some community members homeless. Picture: Nigel Sibanda
A Dubai-based diamond merchant, Stargems Group, is probing the Jagersfontein dam collapse, according to a Bloomberg report.
Who are the mine owners?
The mine, which is situated in the Free State, was formerly owned by De Beers, and was shut down in the 1970s.
The tailings dump is owned by Stargems’s unit Jagersfontein Developments.
The Bloomberg report states that the company acquired the shareholding of the tailing dump from billionaire Johann Rupert’s Reinet Investments SCA in April.
Jagersfontein Developments will reportedly offer R20 million to assist the community, an external spokesman for the company said in an email to Bloomberg.
“Full due diligence was conducted before this acquisition showing that the assets, including the dam, were safe and secure,” according to the email.
The Jagersfontein dam wall collapsed on Sunday, containing mining waste in South Africa, triggering mudslides filled with toxic sludge into the nearby residential areas.
Severe damage in Jagersfontein
The death toll from the disaster is still unclear amid conflicting reports. The numbers vary from one to five.
More than 500 animals were rescued, with some dying and property being damaged.
The latest incident also led to a loss of power in the small town of Jagersfontein.
Floodwaters and mud cut off Eskom Holdings SOC Ltd’s access to a key electrical substation. The utility said Monday it’d restored power to the mine and is making progress in restoring supplies to the town.
De Beers ceased operations at Jagersfontein in 1971. It sold the operation, along with its associated liabilities, in 2010, the company said in a statement.
“We share the concerns of the nation for the residents of the area,” it said. “We stand ready to provide technical assistance and support to the government should it be requested by the Minerals Council South Africa.”
Minerals Council South Africa, a mining industry lobbying group, said the cause of the dam collapse was unknown.
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