OWN CORRESPONDENT and REUTERS, Johannesburg | Friday
THE South African Diamond Board said its dispute with De Beers, which had delayed two of the firm’s export consignments, centred on how to price diamond exports from the country.
In a bid to solve this ongoing saga, the ministry of minerals and energy said it would fast-track the restructuring of the board which was responsible for determining the value of the exported product.
“There was a requirement that the exports are at a fair market value, the issue was on the value of exports,” Victor Sibiya, head of the Diamond Board said in relation to the two export consignments, worth about R80m each, that had been blocked.
It is believed the dispute arose when De Beers refused to submit information to the Diamond Board that was outside the remit of the current Diamond Act.
De Beers has confirmed that the dispute over two of its export consignments, series number five and six, has been resolved.
Minister of Minerals and Energy, Phumzile Mlambo-Ngcuka, said the composition of the Diamond Board was still a problem because of “poor corporate governance adopted by the previous government”.
It is expected that the Board will be stripped of its core functions, shifting much of its regulatory responsibility to the department of mineral and energy and to the South African Revenue Services.
She added that some of the elements of the recently completed commission of inquiry into the diamond industry would be incorporated in the new Mineral Development Bill, which will in time replace the current Diamond Act.