GLUT IN DIAMONDS

Shannon News, 24 June 1927, Page 4

GLUT IN DIAMONDS

FEAII OF OVJER-rKOI>UCTIO>'. Fear lest over-production of diamonds should cripple the industry lias led the Government of So+tth Africa to introduce legislation embodying a measure of control. The rrecious Stones Bill is described as a long overdue measuro consolidating the differing laws of the four provinces, ,but it contains a number of provisions designed to meet, the serious difficulties created by thee recent discoveries of alluvial diamond deposits at Lichtcnburg, Port Nolloth Namaqualand, and elsewhere. How serious the position in the diamond trade in as'the result of these alluvial developments has been demonstrated by Sir Ernest Oppenheimcr, who has given figures showing Ahe effect of the Lichtenburg. fields on the price of alluvial ' diamonds., • In June, 1925', the alluvial output of the Union was £170,000; last December it was £366,000; in February it had risen to £575,000. Last year alluvial, piodtiction totalled £4,000,000 sterling and the production of the mines was £8,000,000. All this was bought by the Diamond Syndicate, which has been compelled to retain diamonds to the valug of £l,000,000 over and above the ordinary stock. This showed that the world could not absorb the diamonds produced. During this year the estimated production of alluvial diamonds is £7,000,000; thus the ac cumulation in the hands of the syndicate will be £4,000.000, instead of last year's £1 000,000. Sir Ernest Oppenheimer pointed out that the syndicate could not continue to buy up diamonds on this huge scale in order to support the market. Therefore- ho regarded the Government intervention as absolutely necessary for the maintenance of the diamond industry.