Input by the Northern Cape Premier, Ms Dipuo Peters at the occasion of the launch of the Gold Chain Technology, Kim Diamond Building, Kimberley

Programme director
Honourable mayors and councillors
Madam Minister, Ms Buyelwa Sonjica
Members of Executive Council (MECs)
Leaders of faith based organisations
Business representatives
Non-governmental organisations (NGOs) and community based organisations (CBOs)
Distinguished guests
Ladies and gentlemen.

Great minds have purposes, little minds have wishes. I am here to today to tell you we have a purpose not a wish. We are here today to assert that the initial source which provided the funds for the greater expansion of the South African mining industry should be accorded its rightful place.

The capital of the Northern Cape province has often been referred to as the diamond capital of the world. The 1873 settlement known as the "New Rush" rapidly exceeded 50 000 people and was renamed Kimberley, home to the Kimberley mine which later came to be known as the "Big Hole". This operation yielded more than 14,5 million carats while in operation and spawned the creation of De Beers Consolidated Mines (Pty) Ltd and the birth of an entire modern global diamond industry.

Diamonds have been extracted from the city for more than 140 years placing Kimberley at the forefront of most developments in the country. Since the discovery of this precious stone, the city and province have had little to show for these priceless gems and these have been beneficiated in other centres around the country and the world.

This is despite the city having hosted the first stock exchange, the embryonic stage of the University of Witwatersrand and streetlights to mention only a few firsts for Kimberley. The economic wealth of the city has significantly contributed to the development of the modern South African and the international economy.

Taking cognisance of all these issue mentioned and that the Northern Cape is currently contributing 36% in value of South Africa's diamond production which includes the best quality marine and alluvial diamonds in the world one could rightfully ask where does all this wealth go?

With the announcement by De Beers of the closure of the three diamond mines in Kimberley and only the CTP plant to continue, headlines read the world over that Kimberley has lost its sparkle. This was countered by the South African President after his visit to Antwerp (seeing the influence of our diamonds in foreign countries), Belgium in 2005 and during a visit to Kimberley he stated that the diamond sparkle of Kimberley must be returned.

The Northern Cape provincial government submitted project proposals to national government to be included in the Accelerated and Shared Growth Initiative. This submission was based on the Northern Cape provincial growth and development strategy. The initial submission was reviewed and the diamond and jewellery initiatives were approved.

Based on this the Northern Cape diamond strategy and detailed business plan was then developed. The strategy provides a specific business case for the establishment and facilitation of the full value chain in the Northern Cape, primarily Kimberley with the intent to have the benefits and rational for the strategy to be advantageous to the rest of the province and the country.

The Northern Cape is at the forefront of the struggle to capture its rightful part of the diamond pipeline on a global front. This urged the province to develop the diamond strategy.

Based on this Accelerated and Shared Growth Initiative of South Africa (AsgiSA) assigned the Northern Cape the special provincial project of processing diamonds, precious stones and jewellery manufacturing.
These AsgiSA special provincial projects were selected for their impact on unemployment, poverty eradication and economic growth, as well as the potential for sustainability and to possibly leverage for private sector funding and foreign direct investment.

The diamond strategy and business plan has three key objectives to anchor Kimberley as a centre for:
* cutting and polishing
* jewellery
* services.

This is supported by the specific steps taken by Southern African Development Community (SADC) and specifically South Africa in terms of legislation to support beneficiation. It is critical that the relevant critical mass be created in terms of the full diamond pipeline. This includes the actual traders, beneficiators, service providers, statutory bodies and finally the wholesale and tourism sector. Complimenting this representative of the quality and integrity of Kimberley diamonds.

The Northern Cape government identified the seven wonders
* diamond cutting and polishing
* jewellery manufacturing
* Kimberley international diamond and jewellery academy
* Kimberley diamond, gemmology and jewellery hub
* branding
* tourism
* relocation of the state diamond trader.

Madam Minister, I wish to emphasise that the successful establishment and relocation of the state diamond trader to Kimberley is critical to really implement the Diamond Amendment Act successfully.

The Trader will have to ensure:
* Equitable distribution and access to rough diamonds.
* Lowering barriers of entry and ensuring previously Disadvantaged Individuals (PDI) and Small Micro and Medium Enterprise (SMME) initiatives can take place.
* Positioning the trader geographically central where the full diamond pipeline can have access with synergy between provinces in terms of diamonds, gold and platinum jewellery to have maximum benefit and impact for the national context.

An estimated 95% and some years even more, of the South African diamond production passes through Kimberley, clearly indicating its pivotal role in the diamond industry. The Kimberley International Diamond Jewellery Academy is a critical component to ensure skilled human capital, technology and intelligence to enable industry. The project is a partnership between provincial government and De Beers which is now at the critical stage where all parties must make their contributions to enable the project.

Internationally Kimberley is renowned and acknowledged for diamonds. This means that Kimberley has a tremendous brand value that can be utilised to the benefit of all of South Africa. The Kimberley process lends its name from Kimberley and is the internationally reference for diamonds with integrity. This combined with the Northern Cape tourism drive will form the platform for diamond specific SMME initiatives that can be initiated.

Considering this background, we are therefore excited to be part of this initiative this morning, as this is an effort to ensure that more value is added to precious metals locally, with finished products destined for export markets, making Gross Domestic Products (GDP) contributions and improving the trade balance.

The Gold Chain technology project, focusing on the production of gold and silver chains for the export market specifically the United States of America (USA), will progressively escalate its production and employment. It is expected that in four years time, an estimated 300 people will be employed and the factory will process a substantial tonnage of gold and silver jewellery. The project is a partnership between the provincial government, black economic empowerment partner Solandra and Q-Quality, an Italian company that will contribute skills, technology and access to markets.

The bulk of the skills will be transferred from Italian technicians to locals with several future trainers acquiring machinery and equipment training in Italy. This initiative will provide our province and our country with a foothold into the lucrative world jewellery market. Currently the annual gold industry is R450 billion, with a demand that tops up to 2 800 tons.

I am also very excited to announce that Gold Chain Technology is merely a component of the centre that we will be renaming today the Kimberley Diamond and Jewellery Centre. This is a new start and the first star on the horizon for the diamond strategy as per our national mandate.

It is against this inspiring background that we welcome you Madam Minister for gracing this occasion, as we know that you have always supported us, ensuring that we implement these measures and mandates place this province on a good path for accelerated and shared growth.

I therefore take this opportunity to introduce you as our keynote speaker Ms Buyelwa Sonjica

Issued by: Northern Cape Provincial Government
15 May 2008