290 likes | 303 Views
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:
E N D
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: • 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
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
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.
“Presently governed by Chapter 16 of the MINING RIGHTS ACT, 1967” The BILL provides for: • Acquisition • Possession • Local beneficiation • Disposal of Precious Metals
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
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
CONSIDERATION OF APPLICATIONS FOR LICENCE, PERMIT OR CERTIFICATE