SOUTH%20AFRICAN%20DIAMOND%20BOARD

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SOUTH AFRICAN DIAMOND BOARD

• PARLIAMENTARY PORTFOLIO COMMITTEE
• MINERALS ENERGY
• 06 JUNE 2001

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SOUTH AFRICAN DIAMOND BOARD

• CONTENTS
• 1. CONTRIBUTIONS INTO THE MDDB
• 2. STATUS SECTION 59 AGREEMENTS
• 3. SETTLEMENT AGREEMENT WITH DVIC
• 4. CONFLICT DIAMONDS (Kimberley Process)
• 5. RECAP ON THE 2ND AUGUST 2000 PRESENTATION
• 6. BUDGET OBJECTIVES 2001/2002 FIN. YEAR

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CONTRIBUTIONS INTO THE MINERAL DEVELOPMENT DRAFT
BILL

• CONSULTATIVE PROCESSES HELD WITH MEMBERS OF THE
  INDUSTRY IN ORDER TO FACILITATE THEIR
  PARTICIPATION
• SOUTH AFRICAN DIAMOND BOARD FULLY ENDORSES THE
  OBJECTIVES ENSHRINED ON THE BILL

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STATUS OF S59 AGREEMENTS

• ONLY TWO PRODUCERS HAVE SIGNED AGREEMENTS WITH
  THE BOARD, I.e Transhex De Beers
• THE AGREEMENT BETWEEN THE SADB , DE Beers and The
  DTC REMAINS VALID
• A COMPREHENSIVE REVIEW AND EVALUATION OF HOW
  ALIGNED THESE AGREEMENTS ARE TO GOVERNMENT POLICY
  REMAINS OUTSTANDING

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OUT-OF-COURT SETTLEMENT WITH DVIC Valuation (Pty)
Ltd

• MINISTERIAL INTERVENTION IN THE LONG DRAWN CASE
• NUMBER OF SESSIONS CONVENED BY THE CHAIRPERSON OF
  THE BOARD
• AMICABLE SETTLEMENT REACHED COVERING ALL CLAIMS
  THAT DVIC VALUATIONS (PTY) LTD HAD AGAINST THE
  SOUTH AFRICAN DIAMOND BOARD
• DECISION TO RETIFY TAKEN BY THE BOARD

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CONFLICT DIAMONDS

• THE BOARD REMAINS INTRINSICLY INVOLVED AND
  SUPPORTIVE OF THE KIMBERLEY PROCESS THAT IS BEING
  HEADED BY THE DEPARTMENT OF MINERALS AND ENERGY
• IN SUPPORT OF THE PROCESS, FOR THE FINANCIAL YEAR
  2001/2002 THE BOARD HAS BUDGETED FOR THE OPENING
  OF AN OFFICE IN THE NORTHERN CAPE IN ORDER TO
  CLOSELY MONITOR TRADE IN THAT PROVINCE

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RECAP ON THE 2ND AUGUST 2000 PRESENTATION

• TRANSFORMATION IN THE DIAMOND INDUSTRY - 2000 to
  2001
• STAFF COMPLEMENT
• COMPOSITION OF THE BOARD

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RECAP ON THE 2ND AUGUST 2000 PRESENTATION

• CORPORATE GOVERNANCE IN THE SOUTH AFRICAN DIAMOND
  BOARD
• OUR LAST PRESENTATION HIGHLIGHTED A NUMBER OF
  PROBLEMS PERTAINING TO CORPORATE GOVERNANCE
• COMPOSITION OF THE BOARD REMAINS THE GREATEST
  CHALLENGE IN ACHIEVING GOOD CORPORATE GOVERNANCE
• THE BOARD HAS HOWEVER ADOPTED A DETAILED
  CORPORATE GOVERNANCE MANUAL
• COPIES THERE-TO ARE AVAILABLE FOR MEMBERS PERUSAL

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RECAP ON THE 2ND AUGUST 2000 PRESENTATION

• EMPOWEREMENT IN THE DIAMOND INDUSTRY
• MEANINGFULL EMPOWEREMENT REMAINS NEGLIGIBLE
• NEW BLACK SIGHTHOLDER ENCOURAGING
• MININGFULL BLACK DIRECTORSHIP OR PARTNERSHIP
  STILL LACKING
• THE BOARD RECENTLY ESTABLISHED A COMMITTEE TO
  LOOK INTO THIS ISSUE AND REPORT BACK

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RECAP ON THE 2ND AUGUST 2000 PRESENTATION

• THE ROLE OF AN INDIPENDENT VALUATOR OF DIAMONDS
• SOUTH AFRICAN DIAMOND INDUSTRY REMAINS VERY
  COMPLEX
• THERE ARE STILL CONCERNS WHETHER OR NOT THE STATE
  RECEIVES A FAIR SHARE OF WHAT IS DUE TO IT BY THE
  INDUSTRY REMAINS QUESTIONABLE
• GOVERNMENT STILL REQUIRES AN EXPERT OPINION
  WHETHER OR NOT DIAMONDS LEAVING THE COUNTRY ARE
  FAIRLY VALUED
• EXPERTISE WITHIN GOVERNMENT REMAIN FAIRLY LIMITED

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RECAP ON THE 2ND AUGUST 2000 PRESENTATION

• A FUNCTIONAL DIAMOND BOARD OFFICE
• ADHERENCE TO THE CORPORATE GOVERNANCE MANUAL
  REMAINS KEY TO A FUNCTIONAL BOARD
• RESTORATION OF THE ROLE RESPONSIBILITIES OF THE
  EXECUTIVE MANAGEMENT REMAINS CRUCIAL TO A
  FUNCTIONING BOARD
• TERMS OF REFERENCE COMMITTEES OF THE BOARD AND
  MEMBERS THEMSELVES REMAIN THE ONLY SOLUTION TO A
  FUNCTIONAL BOARD

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BUDGET OBJECTIVES FOR 2001/2002 FINANCIAL YEAR

• INCREASED EFFICIENCY AND QUALITY SERVICE DELIVERY
  TO OUR CLIENT BASE (I.e INDUSTRY AND GOVERNMENT)
• REASONABLE PRESENCE AND ACCESSIBILITY OF OUR
  SERVICE IN AREAS OF HIGH TRADING ACTIVITY
• IMPROVE WORKING RELATIONS WITH OTHER STATE
  FUNCTIONARIES
• CONTINUED IMPROVEMENT IN MANAGING RESOURCE OF THE
  STATE

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• THANX FOR YOUR TIME