46 No. 26245 GAZETTE.
The Draft Precious Metals and Diamonds General Amendment Bill, 2004, is hereby published for public comment.
Written comments must be received not later than 17 June 2004.
(As introduced in the National Assembly as a section 75-Bill; explanatory summary of Bill published in Government Gazette No.
[ ] Words in bold type in square brackets indicate omissions from existing enactments. Words underlined with a solid line indicate insertions in existing enactments.
To amend the Mining Rights Act 20 of 1967 and the Diamonds Act 56 of 1986 so as to provide for the rationalization of the regulation of matters pertaining to the downstream development of precious metals and diamonds; to promote equitable access to, and local beneficiation of the nation's precious metals and diamonds and to provide for matters connected therewith.
Amendment of section 1 of Act 20 of 1967 1.
to make up, smelt or change the form or add value in any other manner to unwrought precious metals in his lawful possession excluding refining or changing the form for purposes of recovery or jewellery manufacturing as provided for in sections 144 and 145 of this Act; and thereafter dispose of such beneficiated product as allowed by law.
Amendment of section 143 of Act 20 of 1967 2.
"(dA) he has obtained a precious metal beneficiation licence in terms of section 145 A from the Director General".
"(3A) Nothing in this Act will preclude any category of persons mentioned in subsection 1 (a)-(d) from entering into a credit loan agreement with a holder of a precious metal beneficiation licence and or a holder of a jewellery permit in terms of which unwrought precious metal may be delivered before payment."
Amendment of section 144 of Act 20 of 1967 3.
to buy or receive from any person exempted under section 143 (1) (a), (b) or (c) any material, substance or solution in the lawful possession of that person containing precious metal, and to extract such precious metal and dispose thereof in accordance with the provisions of this Chapter.
"(3) There shall be paid to the [receiver of revenue] Director-General in respect of every recovery works licence a prescribed fee.
"(4) Any such licence [ if issued for a year, expire on the thirty-first day of December of the year in respect of which it is issued. and any such licence issued for quarter of a year shall expire on the first ensuing thirty-first day of March, thirtieth day of June, thirtieth day of September or thirty-first day of December, depending on the quarter during which it is issued.
"(5) No holder of such a licence shall carry on any activity authorized by the licence elsewhere than on the premises or at the place described on the licence or in any endorsement thereof in terms of subsection (6), and no such holder shall be in possession of unwrought precious metal [(not being silver)] at any place elsewhere than on the premises or at the place so described unless he holds in respect of such precious metal a transport permit referred to in section 147."
(6) If at any time it becomes necessary for any holder of such licence to transfer or extend the activities referred to in subsection (5) to any premises or place not described on his licence [within the magisterial district, the receiver of revenue concerned] the Director-General [shall] may endorse on the licence the situation of such new or additional premises or place.
[and shall forthwith in writing notify the Commissioner of the South African Police of the endorsement].
"(7) (a) Any such licence may upon payment of the prescribed fee [prescribed by subsection (3) and with the written approval of the Commissioner of the South African Police or any person designated by him,] be renewed by the [receiver of revenue] Director-General [for a calendar year or a quarter of a year], provided an application for such renewal is made at least thirty days before the expiration of the licence."
The activities authorized by such licence are discontinued permanently, the person who held the licence shall forthwith submit to the [Commissioner of the South African Police] Director-General a solemn declaration of the mass of the unwrought precious metal in his possession at the date such licence expired or was refused or cancelled or such activities were discontinued, and dispose of such precious metal in accordance with the provisions of this Chapter within fourteen days after the date of such declaration or within such longer period as the [said Commissioner] Director-General may allow.
Amendment of section 145 of Act 20 of 1967 4.
(5) A jeweller's permit shall not entitle the holder thereof to purchase or otherwise obtain unwrought precious metal except from a banker or the South African Mint or any person or category of persons exempted under section 143 (1) or any person approved by the [Treasury] Director-General [or another holder of a jeweller's permit].'
"(7) Every holder of a jeweller's permit shall produce and exhibit such register whenever requested to do so by [any member of a police force duly established by law] the Director-General or any member of the South African Police Service."
By the deletion of subsection (8).
Any person who is refused a precious metals beneficiation licence may, within 14 days after having been notified by the Director General, of the refusal, appeal to the Minister who may dismiss the appeal or direct the Director General to issue such licence to such person.
There shall be paid to the Director General in respect of every precious metal beneficiation licence a prescribed fee.
Amendment of section 146 of Act 20 of 1967 5. Section 146 of the Mining Rights Act, 1967 is amended by the substitution for the expression "Commissioner of the South African Police" of the expression "Director-General".
Amendment of section 147 of Act 20 of 1967 6.
"(1) No person except the holder of a jeweller's permit and a holder of a precious metal beneficiation licence shall transport or in any manner convey any unwrought precious metal [(not being silver)] outside the boundaries of any mine, works or other property or place in which such metal is located, except under the authority of a permit issued by the [Commissioner of the South African Police or any person designated by him] Director-General: Provided that such permit or licence shall not be required for the transport or conveyance of any unwrought precious metal in respect of which a certificate under section 143 (1) (d) or a permit under section 143 (1) (e) has been issued."
"(2) A permit for the transport [of] or conveyance of unwrought precious metal shall be in the form prescribed by regulation and may be issued subject to such special conditions as the [Commissioner of the South African Police or any person designated by him] Director-General may deem fit."
Amendment of section 148 of Act 20 of 1967 7.
By the deletion of substitution of subsection (3).
Amendment of section 149 of Act 20 of 1967 8.
"(3) [Every] Any person required by this section to keep a register shall [on or before the fifteenth day of each month] on a quarterly basis transmit or deliver to the [Commissioner of the South African Police] Director-General a true copy in duplicate of such register [for the last preceding [month] quarter, together with a solemn declaration of the correctness thereof, and shall produce and exhibit such register whenever requested to do so by any member of a police force duly established by law holding a rank of or above the rank of sergeant]".
Amendment of section 152 of Act 20 of 1967 9. Section 152 of the Mining Rights Act, 1967 is amended by the substitution for the expression "Mining Commissioner" of the expression "Director-General".
Amendment of section 153 of Act 20 of 1967 10.
By the deletion of the phrase "not exceeding two thousand rand" in subsection (2).
Amendment of section 1 of the Diamonds Act 56 of 1986 11.
"'Kimberly Process' means the process defined in the Regulations promulgated under section 95 of the Act and published under Government Notice No. R.1361 of 1 November 2002".
Amendment of section 4 of Act 56 of 1986 12.
by the deletion of the expression 'exploited and' in paragraph (a); and by the substitution for paragraph (b) of the following paragraph: to ensure the sound and orderly development of diamond resources in the Republic. Amendment of section 5 of Act 56 of 1986 13.
By the deletion of subsection (3).
Amendment of section 6 of Act 56 of 1986 14 Section 6 of the Diamonds Act, 1986 is hereby amended by the substitution for paragraph (c) of the following paragraph "he has been convicted of an offence in the Republic, other than an offence committed prior to 27 April 1994 associated with political objectives, and was sentenced to imprisonment without the option of a fine, or, in the case of fraud, to a fine or imprisonment or both."
Amendment of section 8 of Act 56 of 1986 15.
"(d) In the case of a member or, where applicable, an alternate member referred to in section 5(1)(a), (b), (c) [or (d)] or (dA) if he ceases to hold the qualifications by virtue of which he was appointed as a member or an alternate member of the Board."
Amendment of section 9 of Act 56 of 1986 16. Section 9 of the Diamonds Act, 1986 is hereby amended by the substitution for the expression "seven members" in subsection (3) of the expression "fifty percent plus one member".
Amendment of section 10 of Act 56 of 1986 17.
"(2) The executive committee shall consist of the chairman, "chairmen of the committees established by the Board", the executive officer and at least two other members of the Board."
Amendment of section 13 of Act 56 of 1986 18.
"(dA) In order to eliminate the presence of conflict diamonds in the diamond industry, the Board must administer a prescribed Kimberly Process Certification Scheme."
Amendment of section 18 of Act 56 of 1986 19.
Amendment of section 19 of Act 56 of 1986 20.
"2(A) Nothing in this Act will preclude any category of persons mentioned in subsection (1) from entering into a credit loan agreement with a holder of a diamond beneficiation licence in terms of which unpolished diamonds may be delivered before payment."
Amendment of section 22 of Act 56 of 1986 21. Section 22 of the Diamonds Act, 1986 is hereby amended by the insertion of the expression "beneficiation licencee," after the expression "tool maker" in paragraph (a).
Amendment of section 25 of Act 56 of 1986 22.
"(1) Any person who by chance finds or picks up any unpolished diamond at any place where he or his employer is not permitted to prospect, dig or mine for diamonds in terms of the [Minerals Act, 1991] Mineral and Petroleum Resources Development Act, 2002, shall forthwith take that unpolished diamond to the nearest police station and deliver it to the member of the South African Police on duty."
by the insertion of the word 'unpolished' before the word 'diamond' where it occurs in subsection (3); and by the insertion of the word 'unpolished' before the word 'diamond' wherever it appear in subsection (4).
Amendment of section 25A of Act 56 of 1986 23.
"(3) Any person who refuses to be searched as aforesaid or who obstructs any authorized person conducting a search under this section, shall be guilty of an offence. [and liable on conviction to a fine [not exceeding R1 000] or to imprisonment for a period not exceeding three months, or to both [such] a fine and such imprisonment]".
Amendment of section 26 of Act 56 of 1986 24.
"[e] A diamond beneficiation licence entitling the holder to add value to unpolished diamonds."
Amendment of section 45 of Act 56 of 1986 25.
(1) The Board shall designate and regulate any premises as a Diamond Exchange Centre.
Before the Board decides on the designation of a Diamond Exchange Centre it may conduct any investigation in connection therewith.
The utilisation of the premises referred to will be subject to such terms and conditions as the Board may determine.
The licensee of a Diamond Exchange Centre must keep or cause to be kept a prescribed register, wherein the prescribed particulars in respect of all trading transactions are entered.
Amendment of section 48 of Act 56 of 1986 26.
"(3) Dealing in unpolished diamonds for export purposes may only be conducted at the premises of a registered Diamond Exchange Centre".
Deletion of section 51 of Act 56 of 1986 27. Section 51 of Act 56 of the Diamond Act, 1986 is hereby deleted.
Amendment of section 59 of Act 56 of 1986 28.
In order to ensure that [cutters, or tool-makers] diamond beneficiation licencees obtain a regular supply of unpolished diamonds, [the Board may enter into an agreement with] any producer, dealer or any association or organization of producers or dealers [in pursuance of which any such producer, dealer association or organization] must allocate or offer unpolished diamonds to diamond beneficiation licensees in the prescribed manner [each of those cutters, or tool-makers].
The deletion of subsections (2) and (3).
Amendment of section 60 of Act 56 of 1986 29.
the substitution of the expression "exporter" for the expression"person", and the insertion of the expression "unpolished" after the expression "that".
Amendment of section 61 of Act 56 of 1986 30.
"(1) Any [exporter] person who desires to [register] export any unpolished diamond [for export] shall register that unpolished diamond at a prescribed export centre and furnish the registering officer with a return on the prescribed form in respect of that unpolished diamond."
"(2) In the return furnished in terms of subsection (1) the [exporter] person exporting such unpolished diamond shall specify the value of the unpolished diamond as was offered by such person at the Diamond Exchange Centre and declare that the value so specified is to the best of his knowledge and belief the fair market value of that unpolished diamond."
Amendment of section 62 of Act 56 of 1986 31.
by deleting the expression " Subject to the provisions of section 63 and 64", and by the substitution of the number "15" for the number "5" in subsection (2).
Amendment of section 63 of Act 56 of 1986 31.
"(c) if the Minister with the concurrence of the Minister of Finance, determines that it [is] may be so exempted."
Deletion of section 64 of Act 56 of 1986 33. Section 64 of the Diamonds Act, 1986 is hereby deleted. Amendment of section 65 of Act 56 of 1986 34.
"(2) The person who has assessed the value of an unpolished diamond referred to in subsection (1) (b), shall furnish the registering officer with a certificate in which he specifies the value of that unpolished diamond and the name of a person who is prepared to purchase that unpolished diamond at the value so specified."
"(3) A certificate furnished in terms of subsection (2) shall be deemed to be an offer to the exporter by the person specified therein to purchase the unpolished diamond in question at the value specified therein."
Section 66 of the Diamonds Act, 1986 is hereby deleted.
Section 67 of the Diamonds Act, 1986 is hereby deleted. Amendment of section 68 of Act 56 of 1986 37. Section 68 of the Diamonds Act, 1986 is hereby amended by the deletion of the expression "or any fine" after the expression "levied" in subsection 1 and by the deletion of the expression "or fine" where it appears in subsection (2).
Amendment of section 69 of Act 56 of 1986 38. Section 69 of the Diamonds Act, 1986 is hereby amended by the insertion of the expression 'unpolished' before the word 'diamond' wherever it appears in paragraphs (a), (b), (d) and (e) of subsection (1).
This Act is called the Precious Metals and Diamonds General Amendment Act, 2004 and comes into operation on a date to be fixed by the President by proclamation in the Gazette.