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 Per Carat. | Average 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.