South African Diamond and Precious Metals Regulator

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Regulation of Diamonds and Precious Metals

Regulation of Diamonds

The 2005 amendments to the Diamonds Act, viz., Diamonds Amendment Act, 2005 and the Diamonds Second Amendment Act, 2005 as well as the 2007 amendment to Regulations under the Diamonds Act took effect on 1 July 2007. These Regulations were also consequently amended on 4 April 2008.

 

The objects of the Regulator in terms of the Diamonds Act, 1986 (as amended) are:

(a) ensure that the diamond resources of the Republic are exploited and developed in the best interests of the people of
South Africa;
(b) promote equitable access to, and local beneficiation of, the Republic's diamonds; and
(c) ensure compliance with the Kimberley Process Certification Scheme.

The Regulator’s functions with regard to diamonds include:

(a) implementing, administering and controlling all matters relating to the purchase, sale, beneficiation, import and export
of diamonds; and
(b) establishing diamond exchange and export centres, which shall facilitate the buying, selling, export and import of
diamonds and matters connected therewith.

Whilst the former SA Diamond Board had an essentially regulatory role, the SADPMR has a promotional role as well. Through administering licences and export approvals, the SADPMR will strive to ensure that local demand for diamonds and precious metals is catered for, and that there is growth in local beneficiation of diamonds and precious metals. This will be quite a challenge for SADPMR, but we look forward to our future with optimism and enthusiasm.

Regulation of Precious Metals

The Precious Metals Act, 2005 repealed the Mining Rights Act, 1967, and is now the principal Act governing the precious metals industry in South Africa. In term of the Act precious metals includes gold and platinum group metals.

 

The objects of the Regulator with regard to precious metals are to:

(a) ensure that the precious metal resources of the Republic are exploited and developed in the best interest of the people
of South Africa;
(b) promote equitable access to, and local beneficiation of, the Republic's precious metals;
(c) promote the sound development of precious metal enterprises in the Republic; and
(d) advance broad-based socio-economic empowerment.

The Regulator’s functions with regard to precious metals include:

Implementing, administering and controlling all matters relating to acquisition, possession, smelting, refining, fabrication, use and disposal of precious metals.

This means that the Regulator now handles applications for the following precious metal licences and permits:

(a) Refining Licence (for smelting and refining).
(b) Precious Metal Beneficiation Licence (for fabrication).
(c) Jeweller’s permit (for manufacture of jewellery)
(d) Special Permit (for jewellery manufacture, fabrication, and for scientific purposes)
(e) Certificate (to buy OR sell precious metals)