THE DIAMOND FIELDS
The discovery of diamonds near Luderitzbucht in 1908 was an event
of great importance to the country, and in view of the value of the
diamond fields, and the powerful influence they have had on the
economical development of the country, we shall give some account
of their discovery, probable origin, and the nature of the mining
operations connected with them.
There can hardly be a more dreary place on earth than the strip of
desert land that borders the coast of South-West Africa, and it is
hardly a matter for surprise that geologists tramped leisurely over
the wind-blown sand dunes, making careful note of the geological
features of the country, without for a moment suspecting that the
gravel beneath their feet was thickly studded with the hard and
brilliant little “stones of fire” known as diamonds. Somehow or other
it is not the lot of the geologist to discover gems and gold in South
Africa. A child playing with the pebbles on a river bank; a poor Dutch
farmer lazily sifting gravel through a coarse wire sieve; a prospector
sinking a well in search of water; a kaffir shovelling sand--in such
unromantic ways have Nature’s chiefest treasures come to light in this
land.
One day in April of 1908, a kaffir working on the Kolmanskuppe railway
line, not far from Luderitzbucht, picked out of a shovelful of coarse
sand a small, rough, whitish stone that sparkled in the sunlight.
Little did the “boss” to whom he showed it dream that in the tiny
stone lay the promise of an increase in the revenue of the country of
nearly seven million sterling in half a dozen years, and the conversion
of the tin-shanty settlement at Luderitzbucht into a substantial and
progressive little town in the same period. But so it proved.
As luck would have it, the native had worked in the De Beers diamond
mines at Kimberley; he knew the difference between a rough diamond
and a white pebble. Had he not received a substantial bonus from the
compound manager as a reward for his honesty whenever he discovered a
“fire stone” in the blue ground and handed it over to the official?
But his “boss” laughed at him when he said it was a diamond, and told
him to “get out!” The railway contractor, however, a gentleman named
Stauch, laughed after another fashion when the gem came into his hands.
He hurried off to Swakopmund, and there sought an interview with the
owners of the land, the Deutsches Kolonial Gesellschaft. He came back
with half a dozen licences in his pocket which gave him the right to
peg certain extensive areas. It was not long before little parcels of
the gleaming gems were in his possession. The wise Herr Stauch is now a
diamond magnate.
The news of the wonderful discovery quickly spread, and before many
months had passed companies were exploiting the gravel occurrences. It
is amusing to recall to-day the ridicule heaped on these “discoveries”
by financial and other journals. The gems were “dolls’ diamonds,”
“diamondettes”; it was “financial folly” to pick up these little
glittering, weather-beaten specks. With a characteristic display of
journalistic wit, one well-known weekly affirmed that “he would be an
ass indeed to allow himself to be imposed upon by such ‘carats’ as
these.” But the carats recovered last year, for instance, were valued
at the nice little sum of £2,945,975.
The diamondiferous area is an extensive one. It is a strip of
sandy country near the coast, from 2 to 12 miles wide, extending
intermittently from Conception Bay (100 miles south of Swakopmund) to
Angra Juntas, some 60 miles north of the Orange River, a total distance
of about 250 miles. The strip is broken by a chain of hills and rocky
ridges running mainly from north to south. In the wide valleys and
depressions thus formed, ranging from 2 to 3 feet above sea-level
to over 500 feet, the diamondiferous gravel is found. The deposits
are by no means uniform. Large stretches of ground may not contain a
single stone, while a rich “pocket” may hold scores of the glittering
gems. The patch, too, that is so rich in diamonds may have a surface
view precisely similar to that of the barren areas around. Such freaks
of deposit seemed to some of the early prospectors to be the work of
whimsical genii.
The precious stones lie among tiny fragments of banded agate, red
garnet, red jasper, chalcedony, milky quartz, and sand.
The deposit varies in depth from 6 inches to 15 feet. Over the mixture
the furious trade winds from the south rage for eight or nine months
in the year. A process of natural concentration proceeds apace. The
light particles are caught up and whirled away to the sand dunes,
until in many places nothing is left but the heavy diamonds and a thin
layer of coarse particles. Naturally, the little depressions here and
there, especially those on the windward side of obstacles, have a
good concentration of rich detritus. The gems are never found in any
quantity in the valleys that run from east to west, but in those that
lie in the line of the prevailing wind.
The diamonds found in this sand are peculiar to the country. They are
wholly unlike any other known African stones. When in 1901 some natives
professed to have found certain small stones in the alluvial diggings
on the Vaal River, the experts knew at once they were not river stones.
The boys had stolen them from German South-West Africa. All shades
of colour are found among them, but the stones of a clear white
appearance, with a barely perceptible yellowish tinge, predominate.
Pale pinks and lemon yellows are fairly common. Impure shades are
remarkably few, and fully 85 per cent. of the gems are fit for cutting.
They are said to resemble the stones derived from Brazil. In size they
are small; it takes six or eight to make a carat as a rule, but a few
large stones have been found. One weighed 34 carats and another 17
carats. These large stones, however, are very exceptional.
How did the diamonds get there? That these lustrous gems should
sprinkle the sand so thickly in this dreary region may well give cause
for wonder. Geologists differ as to their probable source of origin.
Dr. Wagner, in his exhaustive work on “The Diamond Mines of Southern
Africa,” summarises the main theories as follows:
(1) The diamonds were released by weathering from the crystalline
rocks of the basement system.
(2) The diamonds were derived from the denudation of the primary
deposits of British South Africa, carried down to sea by the Orange
River and distributed along the coast by the agency of the Benguella
current.
(3) A modification of the second hypothesis, according to which the
diamonds were carried down to the sea from sources believed to exist
within the interior of German South-West Africa.
(4) The parent rock of the diamonds lies submerged off the present
coast.
Dr. Wagner dismisses the first three, and advances arguments in
favour of the fourth. He concludes that they have been derived “from
a primary deposit, or from primary deposits, which now lie buried
beneath the sea somewhere off Pomona,” as there is a steady--if not
quite persistent--increase in the average size of the stones as one
proceeds from north to south, until the Pomona area is reached, where
the average weight is greater than anywhere else. On this supposition
the lighter stones have been swept northward by a strong ocean current
when the coast was still submerged. To this we may add the statement of
Dr. Marloth that among “the prospectors who know the country south of
Prince of Wales Bay, the belief is quite common that Pomona diamonds
came from some volcanic fissures that occurred there.” Kimberlite
“pipes” and dykes occur in the Keetmanshoop, Gibeon and Bethany
districts, but they contain no diamonds.
Dr. Versfeld, however, is of the opinion that the diamond-bearing
gravel is not of marine origin, but debris from diamond “pipes” which
has been concentrated by the strong winds. It is quite possible, he
argues, that the stones may have been transported hundreds of miles,
but he recognises the futility of laying down hard-and-fast theories.
He ventures to affirm, however, that the discovery of diamond-bearing
pipes “much nearer to the Luderitzbucht deposits than those at present
known seems well within the bounds of probability.” And with that
pleasant probability we leave the matter of the origin of the stones.
All the mineral rights of the diamond fields have been held by the
German Colonial Company, and their “sphere of influence” extends
for over 300 miles along the coast and about 60 miles inland. Six
companies--each with a fifty years’ concession from the Colonial
Company--practically monopolised the industry. These are the Pomona
Diamantminen Gesellschaft, the Koloniale Bergbaugesellschaft, the
Diamanten Pachtgesellschaft, the Deutsche Diamantengesellschaft, the
Vereinigte Diamantminen, Luderitzbucht, and the Kolmanskop Diamond
Mines, Ltd. The Kolmanskop Company is registered in the Cape Province,
and they have a valuable holding of about 10,000 acres, 6 miles from
Luderitzbucht.
The first stage in exploitation is rather picturesque, from the
spectator’s point of view. You plod up the side of a sand dune and,
on gaining the top, look down into the depression below and see,
perhaps, a dozen natives crawling about the sand on all fours as if
in search of coins or gems which some one has dropped. You watch them.
One man is using the flat of his hand as a scoop, running it slowly
through the sand; another is “harrowing” with his fingers; a third
squats on his haunches native fashion and gazes intently at a little
heap of particles in his hand, while another, by a hoarse exclamation,
draws attention to something in the palm of his hand. These boys are
“sampling” the ground. It is a laborious and most trying task in the
fierce summer sun. The top layer of diamondiferous gravel is invariably
richer than any underlying deposit, so it is possible to get a fairly
accurate idea of the value of the detritus by this primitive picking.
“Washing” tests are sometimes made instead of hand sampling. Should
the boys succeed in finding a fair number of gems, the second stage
is entered upon, This is very prosaic. The deposit is shovelled into
swinging sieves (the “babies” of the Vaal River diggings, slightly
improved), set in a rectangular frame. The sieve is swung backwards
and forwards in order to eliminate the fine sand, which falls to the
ground. The screened gravel is then conveyed to the concentration plant
for further treatment. On some of the claims the deposit is excavated
by dredgers which use large electric shovels.
The jigging plant--highly specialised machinery--receives the gravel in
capacious hopper mouths, a process of digestion goes on to the sound of
much crunching and groaning, the useless tailings are thrust out, while
the diamonds are ingeniously hustled into a place of security from
which they can be easily removed at intervals. Fully 90 per cent. of
the gems in the gravel are recovered in this way. Immense sums of money
have been spent on machinery. Huge structures have sprung up on the
sandy waste; and it is claimed that on some properties the equipment
is even superior to that of the highly elaborated plant at Kimberley.
Certainly this lavish expenditure on central concentration plant shows
a great faith in the future possibilities of the industry.
Several of the mining properties are linked up to Luderitzbucht
by light railways, and the companies in the vicinity of the town
draw their electric power for the machinery from the well-equipped
power-station at Luderitz Bay. Oil engines are in use on the distant
claims. The entire coastal belt is practically a desert, and the
little water found here and there in the wells that have been sunk is
too brackish for human consumption; so water, both for drinking and
diamond-washing purposes, is derived from the sea. Large condensers
have been erected on the coast; the water is conveyed along pump lines,
and also transported to the distant claims by water-carts and in tanks
carried by camels. The pump line from Elisabeth Bay to Kolmanskuppe
is no less than 17 miles in length. Some 5,000 natives and coloured
men were in the employ of the various companies before the war; the
majority of the natives were Ovambos, but Cape boys were found in large
numbers. The pay for the Ovambos was at the rate of £1 5s. per month,
with rations, while the more satisfactory Cape boys received £3 per
month, with rations.
Working costs vary considerably. The factors which determine them are:
the situation of the claims, the richness of the deposit, and the scale
of operations. In the case of five companies, we give the figures for
1913:
--------------------------------+-------------+---------
|Average Cost |Average
| Per Carat. | Value.
--------------------------------+-------------+---------
| s. d. | s. d.
Pomona Diamantminen Gesellschaft| 1 6 | 50 0
Koloniale Bergbaugesellschaft | 8 0 | 40 0
Deutsche Diamantengesellschaft | 15 0 | 45 0
Diamanten Pachtgesellschaft | -- | 40 0
Kolmanskop Diamond Mines, Ltd. | 10 6 | 23 6
--------------------------------+-------------+---------
These figures compare most favourably with those of the South African
diamond mines. The average cost per carat from the Premier Mine, for
instance, is 11s., while the average value is only 22s. But it must
be remembered that operations begin on these fields at what may be
called the middle stage of the Kimberley activities. Underground
mining, flooring, and washing, in connection with the Kimberley mines,
involve enormous expenditure, so it can readily be understood that the
working costs of exploiting a gravelly surface deposit will be, other
things being equal, considerably less than the mining of underground
diamondiferous rock.
The German Government derived a good revenue from the fields, as they
imposed a tax of 66 per cent. of the output value, less 70 per cent.
of the working costs. Prior to 1912, the heavy taxation and royalties
absorbed from 45 to 50 per cent. of the gross value of the output, but
the scheme of taxation was amended as above. In addition to the tax the
Government enjoyed a monopoly in the sale of the stones. Producers were
compelled to sell them through a Government organisation in Berlin,
called the Diamant Regie, and a commission of 2 per cent. was charged
on all sales made. On presenting his diamonds to the representative of
the Regie at Luderitzbucht, the producer received 12 marks (a little
less than 12s.) per carat on account. He had to wait until the Regie
had disposed of the gems; then the Government tax and the Regie’s
commission were deducted from the amount paid for them, and the balance
came at length into his hands. Early in 1914 the Regie was reorganised
and came under the management of the parties directly interested in the
revenue derived from the sale of the diamonds. Half the shares were
held by the Government and half by the mining companies. The Government
also had large interests in the Fiskus block of claims, which during
1913 produced an average of about 12,000 carats per month, so even if
the Government should make no change in the present law in South-West
Africa, they stand to reap a rich harvest from the fields. The areas
owned by private companies cannot, of course, be confiscated.
In view of the fact that South-West Africa may now be regarded as
a part of the British Empire, the probable life of the fields is a
matter of very real interest and importance. The experts differ, but
there is reason to believe that they will yield diamonds in good
number for many years. There are some who fix the limit at fifteen
years. Writing in 1913, Dr. Wagner states that “a long and prosperous
career may confidently be predicted” for the industry. Probably they
will last another twenty years. It is true that certain rich claims
have already been worked out, but vast areas of low-grade gravel yet
remain to be exploited. It is estimated that no less than £20,000,000
sterling worth of gems are in sight on the 10,000 acres held by the
Kolmanskop Company. During 1913 areas considered unworkable were dealt
with at a good profit owing to the introduction of modern plant; the
northern fields in the neighbourhood of Conception Bay and Spencer
Bay, which had been neglected for some time, were added to the list
of profitable propositions. It is not at all unlikely that new
deposits will be discovered. It is believed that diamonds were found
off Pomona as a result of dredging operations, but these activities
were abruptly terminated by an Imperial Decree. Diamonds have been
found on Possession Island and Halifax Island (British possessions
for many years), but the cost of the prospecting operations, which
was considerably in excess of the value of the stones found, did not
encourage the Union Government to follow up the discoveries. As the
gems are found along the coast and on the islands off the coast, it is
not unreasonable to infer that they lie in the sand of the sea-bed,
unless they have been dropped from the clouds. Here is an opportunity
for an enterprising syndicate. Then it must be remembered that the war
has seriously affected the diamond trade. The market will take years
to recover. Even when conditions swing back to normal it will be some
time before the market will be able to absorb the existing stock of
stones. To continue working these fields at the rate of output shown
by the figures for 1914, for instance, would be worse than folly.
Wisdom will dictate a considerable lessening of the output, and this,
of course, will have the effect of prolonging the life of the fields,
an altogether desirable state of affairs, since the revenue may then be
used to develop the agricultural resources of the hinterland. Whether
the many German shareholders will consider this wise or pleasant is
another matter. Up to the present the main portion of the profits has
gone into Government revenue to pay for the civil administration of the
country, but the bulk of the dividends paid to shareholders has gone
into the pockets of men who reside out of the country. The investors,
except in a few instances, have had the satisfaction of drawing some
fat dividends. The Koloniale Bergbaugesellschaft paid out in 1912 the
nice little dividend of 3,800 per cent.; the year before it was 2,500.
The Pomona Company paid out at the rate of 175 per cent. in 1913, while
the Kolmanskop Company paid 30 per cent. in 1912.
DIAMONDS PRODUCED IN SOUTH-WEST AFRICA SINCE 1908.
----------+------------+------------+------------
Year. | Carats. | Value. | Value
| | | per Carat.
----------+------------+------------+------------
| | £ | s. d.
1908 | 39,762 | 53,842 | 27 1
1909 | 519,190 | 704,123 | 29 0·5
1910 | 792,642 | 1,015,779 | 25 7
1911 | 766,465 | 968,418 | 25 3·1
1912 | 992,380 | 1,408,738 | 28 4·7
1913[18] | 1,470,000 | 2,953,500 | 40 1·9
----------+------------+------------+------------
TOTAL | 4,580,439 | £7,104,400 |
----------+------------+------------+------------
The figures given in the last Consular Report (1913) differ slightly
from the above, which are from Dr. Wagner’s volume, “The Diamond Mines
of Southern Africa.” The Consul’s figures are as follows:
Carats.
1908 39,375
1909 483,268
1910 867,296
1911 747,152
1912 985,882
1913 1,570,000
The Consul also appends a statement showing the output of diamonds
during the last three years from mines in the Union of South Africa,
and the sales of German South-West African stones during the same
period. These figures are deeply significant, and serve to show how
important a factor in the diamond market these stones have become.
-----+---------------------+-----------+-----------
Year.| Country. | Carats. | Value.
-----+---------------------+-----------+-----------
| | | £
1911 |Union of S. Africa - | 4,891,998 | 8,746,724
” | German S.W. Africa | 816,296 | 1,019,444
-----+---------------------+-----------+-----------
1912 |Union of S. Africa - | 5,071,882 | 10,061,489
” | German S.W. Africa | 902,157 | 1,303,092
-----+---------------------+-----------+-----------
1913 |Union of S. Africa - | 5,163,546 | 11,389,807
” | German S.W. Africa | 1,284,727 | 2,153,230
-----+---------------------+-----------+-----------
FOOTNOTES:
[18] Of the 1913 production only 1,284,727 carats were sold.