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Date : 15/02/2005
Source: Minerals and Energy
Title: Xingwana: Shining Light Awards Diamond Design Collection

Speech for Deputy Minister Ms L Xingwana to be presented at the Shining Light Awards Diamond Design Collection

15 February 2005


The Master of Ceremonies, the managing director of DTC-Gareth Penny, distinguished guests, Ladies and Gentlemen; it is fortunate that the Patron of these awards, Minister Mlambo-Ngcuka is away on official business because it then gave me an opportunity to share a special word with you. I know she would have been thrilled to be here so that she could see the type of pieces you will be presenting tonight, this most elegant social event in the annual jewellery calendar, which promotes the best interests of diamond jewellery in our country. The De Beers Group has been very kind to us this year, just two Sundays ago they gave us a spectacular jewellery show at our AMP Ministerial dinner. This gave us an opportunity to boast to our colleagues from the rest of the continent about our industrys commitment to our beneficiation initiatives.

South African mining companies have chosen thus far to trade precious minerals and metals through the major centres such as London and Zurich. The main reason for this was exchange control. With the relaxation of exchange control being phased in, the time to consider a change of mindset is right now.

For many years people have said that Johannesburg could become the centre for a Pan-African Metals and Minerals Exchange, trading diamonds, gold, platinum, cobalt, aluminium, ferro-alloys, gemstones, titanium oxide and copper, but no concerted effort has been made yet to study the feasibility of this exciting concept. However, the New Partnership for African Development (NEPAD) now gives us the conviction to put this opportunity on the table, because for the first time we as Africans can begin to believe that we can make this work.

Diamond manufacturing has received much attention recently. NEPAD encourages us not to accept the status quo and diversify our diamond industry. We believe that South Africa, and in particular Johannesburg could become a trading centre for rough and polished diamonds. For this reason, expanding diamond cutting and polishing in South Africa will be an unwavering objective. This growth in diamond manufacturing will be matched with a growth in BEE in diamond manufacturing.

Nations grow by this added-value process. Direct employment and skills are also developed and the increased revenue flow creates a ripple effect, with the reverberations giving rise to further employment in the economy. Some authorities claim that this added-revenue can multiply the economys employment creation capability by as much as 17 times.

I am well aware that diamonds are associated with romance, magic and mystery. De Beers has taken that magic and intrigue, coupled with good business sense and woven a tale that entices every woman to want to own their product. A good piece of marketing, I must admit, but if it works why not? For us the magic words are value addition made in South Africa. Again let me emphasise our appreciation at the beneficiation efforts of the company and reiterate that we hope they will extend a helping hand to those who are new in the business. I am looking forward to the day when we will be celebrating the opening of a DeBeers trading centre combined with a manufacturing facility, if not in South Africa, at least in SADC so that we can truly say that diamonds are mined, polished and made in Africa. That is why we are amending the Diamond Act. Through these amendments we aim to discourage 100% export of rough diamonds, supporting the branding of South African diamonds.

I know that we can always count on the support of this industry in changing the status quo.

Once again, let me thank the organisers who have invited me to this sparkling event.

I wish all the participants good luck, by being her with us today, they are already winners. Let us enjoy the presentation.
Issued by: Ministry of Minerals and Energy
15 February 2005
Source: Department of Minerals and Energy
(http://www.dme.gov.za)

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