Greater collaborations and trust needed in the diamond industry
DEPUTY Mineral Resources Minister Godfrey Oliphant has called for greater collaborations and trust in the diamond industry to make the sector globally competitive.
Oliphant said it was important for the government and its entities to work in concert to ensure future growth of the sector.
He said the government and its state entities remained committed in working with the industry to set out realistic expectations and deliverables in order to ensure sustainable growth.
Yesterday Business Report reported that the mining industry had complained that delays in their Value-Added Tax refunds by the South African Revenue Services (Sars) were threatening their existence.
President of the World Federation of Diamond Bourses Ernest Blom said the industry was facing cash flow difficulties due to them getting their VAT refunds late.
“Sars at any given time holds back an estimated R300 million of money they should be paying us for VAT paid to them, this is crippling our industry and taking working capital out of it,” Blom said.
Oliphant said the indaba had come out with clear directives to ensure that the Department of Mineral Resources (DMR) and the State Diamond Trader (SDT) implements 2026 Diamond Vision.
“The Indaba resolved to strengthen collaborative efforts towards addressing challenges and capitalising on opportunities to refine and implement the 2026 Diamond Vision,” Oliphant said. The vision was a blueprint developed by the DMR and SDT to make local beneficiation a reality in the country.
Futhi Zikalala Mvelase, chief executive of SDT, said her organisation would continue to bring industry players together to ensure co-operation.
“The SDT will continue to co-ordinate meaningful engagements between stakeholders in order to grow and position South Africa to be the heartbeat of diamond beneficiation in Africa,” Mvelase said.
De Beers Consolidated Mines chief executive Phillip Barton said trust was an important component in ensuring that the industry realised its transformation and beneficiations goals. Growth in the industry would not be possible if stakeholders failed to work together as partners and trusted each other.
He said companies should not work in isolation from the rest of the Southern African Development Community, adding that the 2026 Vision had to be shared by regional countries.
“It’s important we understand our regional interdependence, because as a region we can compete if we come together rather than competing against each other,” Barton said.