Editor’s Note
South Africa’s Mineral Resources and Energy Minister has raised concerns about the potential impact of lab-grown diamonds on the nation’s traditional mining sector. This article examines the tension between technological innovation and established industries.
South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, has expressed concern that the rise of lab-grown diamonds could harm the country’s mining industry.
While many desire to own a diamond in their lifetime, economic realities can make this difficult. Some companies have recognized this desire and decided to fill the gap with lab-grown diamonds.
Lab-grown diamonds are created in laboratories by simulating the high temperature and pressure conditions found deep within the Earth. They are typically cheaper than naturally mined diamonds.
Mantashe made his remarks on September 5th during the opening ceremony of the Finestar diamond processing plant in Kempton Park, Gauteng.
Finestar, headquartered in India, will focus its South African manufacturing facility on cutting and polishing rough diamonds into faceted gems for jewelry and other applications.
In his speech, he emphasized that the increase in lab-grown diamonds poses a threat to the mining sector.
While he did not mention any plans to curb the price rise of these diamonds, he stressed that real diamonds are eternal and represent a form of investment.
He added that the government would provide Finestar with the necessary support, as its contribution to the economy is also crucial and is expected to make an impact.
The Finestar plant represents an investment of at least 300 million Rand and has created 46 jobs.
According to data from the Observatory of Economic Complexity (OEC), South Africa exports a significant volume of diamonds to the United States. However, these exports declined in the year leading up to June 2025.
Finestar CEO Prince Mbetse stated that the plant will process natural diamonds, not lab-grown ones. He noted that the diamond industry is facing difficulties due to geopolitical tensions but expressed confidence that the industry will not die out soon.
