SA insists on 15% export duty on diamonds

CAPE TOWN – The South African government rejected industry criticism of its proposed changes to diamond regulations yesterday, saying it would insist on establishing a state diamond trader and imposing a 15 per cent export duty.

“I can assure you that we cannot scrap duty on rough diamond exports as this will be a deterrent on exporting our precious commodity without being beneficiated (processed) closer to source,” Mines Minister Lindiwe Hendricks told a parliamentary committee reviewing the bill. South Africa’s planned shake-up of the sector aims to stimulate more jewellery manufacturing and gem cutting, especially by blacks in the world’s fourth-largest diamond producing country, by value.Meanwhile, the mines ministry also said yesterday it would hold talks with diamond giant De Beers on its offer to give the government a 50 per cent stake in its local sales arm Diamdel.A document presented to a parliamentary committee said: “Offer by De Beers that Diamdel partner with SDT (state diamond trader).DME (Department of Minerals and Energy) to pursue discussions with De Beers.”Hendricks earlier told the committee the government would insist on establishing a state diamond trader in its proposed shake-up of the sector that has been heavily criticised by industry players.- Nampa-ReutersSouth Africa’s planned shake-up of the sector aims to stimulate more jewellery manufacturing and gem cutting, especially by blacks in the world’s fourth-largest diamond producing country, by value.Meanwhile, the mines ministry also said yesterday it would hold talks with diamond giant De Beers on its offer to give the government a 50 per cent stake in its local sales arm Diamdel.A document presented to a parliamentary committee said: “Offer by De Beers that Diamdel partner with SDT (state diamond trader).DME (Department of Minerals and Energy) to pursue discussions with De Beers.”Hendricks earlier told the committee the government would insist on establishing a state diamond trader in its proposed shake-up of the sector that has been heavily criticised by industry players.- Nampa-Reuters