Committee calls for transformation in diamonds, precious metals sectors

The Portfolio Committee on Mineral Resources and Energy has called for the South African Diamond and Precious Metal Regulator (SADPMR) to transform the sector, as well as to capacitate its existing transformation office to ensure these sectors reflect the demographics of the country.

On Thursday, the committee visited three entities of the Department of Mineral Resources and Energy – the SADPMR, Mintek and the State Diamond Trader (SDT) – as part of its week-long oversight visit in Gauteng.

It raised concern about transformation in the diamonds and precious metals sectors after the SADPMR highlighted the slow pace in growing the local beneficiation of diamonds.

According to the regulator, 881 072 ct of diamonds were produced in the 2017/18 financial year, but only 284 212 ct were locally beneficiated.

“Although we applaud the regulator for a clean bill of health with regard to its finances, its effort to transform the sectors still remains a major concern for us,” said committee chairperson Sahlulele Luzipo.

At Mintek, the committee observed that a lack of cooperation between State-owned entities, to a larger extent, contributed to Mintek’s financial challenges.

Luzipo said government departments should invest more in entities to create sustainable State capacity, grow the economy and create jobs.

The committee also advised the SDT to revise its organogram to mainstream critical positions, such as the company secretary and head of legal.