Agriculture is the largest contributor to the local economy, but it does not dominate the economy as much as in the Kopanong and Mohokare local municipalities. Spin-offs from diamonds mined at Koffiefontein contribute a major part to the local economy. The farming industry varies throughout the region, with the irrigation scheme at Jacobsdal producing crops such as grapes, potatoes, maize, wheat, lucern and groundnuts, while cattle and sheep farming dominates around Luckhoff and Koffiefontein. Luckhoff in particular is well-known for its merino. Around Petrusburg is mostly mixed farming, with sheep farming especially prominent and potatoes and maize as the main crops, supplemented sunflower and corn. At Oppermansgronde vineyards produce significant income for the town.


Koffiefontein is one of the five producing mines in the Petra Diamonds group – a leading supplier of rough diamonds.  Koffiefontein is one of the world’s top kimberlite mines by average value per carat. The mine produces high-value diamonds, a regular proportion of which are beautiful white diamonds between 5 and 30 carats in size. The average value per carat achieved in the financial year to June 2009 was US$252, which is high compared to the world’s kimberlite mines. In 1994, a 232.34 carat diamond was recovered at Koffiefontein, being the largest rough diamond ever produced by the mine. Petra acquired Koffiefontein in July 2007 from De Beers for R81.9 million and, having conducted care and maintenance activities at the mine in the 12 months prior to completion, was able to bring the mine on stream immediately. As an important supplier of rough diamonds to the international market and operating mines both inside and outside South Africa, Petra Diamonds established a BEE joint venture holding company to manage and operate the Koffiefontein Diamond Mine, called Koffiefontein Empowerment JV (KEJV).

Koffiefontein Diamond Mine currently employs 539 people permanently and on a fixed-term contract basis. Skills development and capacity building opportunities have been extended to all employees. The reopening of the mine has also provided new life to churches, schools, shops and sporting facilities as well as the hospitality industry. With the exclusion of a few houses under maintenance, all company houses are occupied by employees and private individuals. The sporting facilities managed and owned by the mine are available for the whole community.


Located at Jacobsdal, the Landzicht Wine Cellar opened in 1974. Owned by GWK Limited and producers, it annually presses ± 3 000 tons of grapes, producing ± 2.4m litres of wine. A new bottling plant using the latest technology was opened in April 2005 as a black empowerment project. Amongst the premium wines produced from pure certified cultivars are 5 whites, 4 reds, 1 Rosé and several fortifieds such as White Muscadel and Ruby Port. Landzicht wine labels range among the best in South Africa having won several Veritas, SA Young wine Show and Michaelangelo awards. The Winery offers cellar tours and wine tasting.

Local Economic Development

The municipality concluded an Memorandum of Agreement with the IDT to facilitate the development of a Local Economic Development Strategy. The process to establish LED Forum and Local Business Chambers in all five towns of the municipality was also initiated. IDC, Petra Diamonds and Letsemeng Local Municipality have signed a Memorandum of Agreement on the establishment of a LED Forum with clear Terms of Reference but for specific projects in Koffiefontein. The Department of Rural Development in conjunction with Letsemeng Municipality is also in the process of establishing a Council of Stakeholders in Jacobsdal also focusing on specific projects.