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DEPARTMENT OF MINERALS AND ENERGY

DEPARTMENT OF MINERALS AND ENERGY. Presentation to M&E PPC on: Diamond Amendment Bill Precious Metals Bill. THE TEAM. Department of Minerals and Energy South African Diamond Board MINTEK. OVERVIEW. Background Highlights per Chapter Comparisons. BACKGROUND. SOUTH AFRICA:

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DEPARTMENT OF MINERALS AND ENERGY

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  1. DEPARTMENT OF MINERALS AND ENERGY Presentation to M&E PPC on: Diamond Amendment Bill Precious Metals Bill

  2. THE TEAM • Department of Minerals and Energy • South African Diamond Board • MINTEK

  3. OVERVIEW • Background • Highlights per Chapter • Comparisons

  4. BACKGROUND SOUTH AFRICA: • Largest producer of gold [Contributes 15% of the world supply of gold] • 4th largest producer of rough diamonds, [Contributes 12% of the world production] • Produces 70% of the world platinum supply • Trainable work-force • THERE IS OVERALL NEGLIGIBLE VALUE ADD IN ALL THE ABOVE MINERAL COMMODITIES

  5. BACKGROUND Contd. • Rationale for amending the LAW • Accesibility of raw material • Maximise value addition industry • Encouraging FDI and foreign skills in South African beneficiation projects • Encourage investments in both trading and manufacturing • Growth of supply side such as manufacturers of diamond cutting equipment and servicing equipment • SA becoming major international diamond cutting centre and trading hub • Infrastructure development • Increased participation throughout the value chain

  6. DIAMOND AMENDMENT BILL

  7. Chapter 1: Definitions Critical new definitions • Beneficiation - polishing or setting in tools or setting in jewellery of diamonds, • Kimberley Process Certification Scheme- the international certification scheme for the international trade in unpolished diamonds negotiated in the Kimberley Process.

  8. Chapter 2A: State Diamonds Trader

  9. Chapter 2B: Diamonds and Precious Metals Regulator

  10. Chapter 3: Illegal Acts

  11. Chapter 4:Licences and Permits

  12. Chapter 5: Diamond Trade

  13. Chapter 6 : Export of Diamonds

  14. Chapter 7 : Control measures

  15. Chapter 8 : Offences and Penalties

  16. Chapter 9 : General

  17. PRECIOUS METALS BILL

  18. “Presently governed by Chapter 16 of the MINING RIGHTS ACT, 1967” The BILL provides for: • Acquisition • Possession • Local beneficiation • Disposal of Precious Metals

  19. RATIONALE FOR REDRAFTING • Deregulation of: • Silver • Possession of and trading in Minted Bars (Investment product) • Restrict fabricators to Semi-fabricated Precious metals • Transport Permit deleted • Act administered through the SA Diamond&Precious metals Regulator

  20. RATIONALE FOR REDRAFTING Contd • Introduction of a Beneficiation license for fabrication • Security matters • Fabricators (Jewellers and beneficiation licensees) may not purchase Unwrought Precious Metals • Provision for stolen Precious Metals to be returned to original mine owner if traced • Introduction of an Import Permit

  21. DEFINITIONS

  22. ADMINISTRATION OF THE ACT

  23. SPECIAL PERMITS FOR UNWROUGHT

  24. CONSIDERATION OF APPLICATIONS FOR LICENCE, PERMIT OR CERTIFICATE

  25. EXTRACTION, SMELTING, REFINING LICENCE

  26. PRECIOUS METALS BENEFICIATION LICENCE

  27. JEWELLER’S PERMIT

  28. IMPORT PERMIT & TRANSPORT PERMIT

  29. SAPS POWERS; OFFENCES; PENALTIES

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