SA to polish up on jewellery production

Published Mar 12, 2007

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Cape Town - Job creation in South Africa and neighbouring nations and increased export revenue are spurring moves to beneficiate gold, diamonds and other gemstones in this country instead of selling them as raw materials.

This is according to speakers at the 81st conference of the World Jewellery Confederation held yesterday.

Deputy president Phumzile Mlambo-Nguka said this would play an important part in the government's aim to halve poverty and unemployment by 2014.

The theme of the conference, attended by representatives of the industry from 40 countries, was to develop a sustainable global jewellery industry.

Elizabeth Thabete, deputy minister of trade and industry (dti), said that although South Africa produced 25 percent of all raw materials for global jewellery production, it contributed less than half a percent to the R62 billion fabricated jewellery market.

There is growing recognition that South Africa must develop its advantage as a leading producer of precious metals and stones to become a globally competitive producer and marketer of jewellery. Current legislation aims to promote the beneficiation of metals and stones in South Africa to achieve the government's targets of growth, employment and equity.

The department of trade and industry has funded research to help the industry grow, helped potential investors to link up with South African jewellers in co-operation with the Jewellery Council of SA, and helped jewellers to expand through grants enabling them to acquire machinery, land and buildings.

"We are proud to have been a co-sponsor of Vukani-Ubuntu as the first project in the nation to train disadvantaged students in manufacture and design, at no cost to them. Some of the jewellery has been exported," said Thabete.

"The dti has concluded a trade agreement with the EU to phase out import duties. It promotes the utilisation of the US's African Growth and Opportunity Act, which allows no import duty on jewellery manufactured locally."

The government facilitates a gold loan scheme established by AngloGold Ashanti, Gold Fields, BAE Systems and Standard Bank that lowers the cost to local jewellers of financing gold purchases and helps them to become more competitive with international firms.

Buyelwa Sonjica, the minister of minerals and energy, said recent legislation was passed to encourage wider participation in the mining and beneficiation sectors. It would widen access to both rough diamonds and precious metals, while addressing security concerns.

She said the establishment of the state diamond trader would be critical to the Diamond Amendment Act. It would acquire and distribute rough diamonds to local cutters and polishers, complementing the department in its role of promoting and building the industry.

Sonjica continued: "Alexkor's production will be supplied to the state diamond trader. De Beers will make its Diamdel structure and personnel available as the foundation for the new trader. Local firms will be able to access raw materials and rough diamonds, which up to now have been sold mostly on international markets. We expect to see our country expanding in the cutting and polishing industries as well as in the jewellery manufacturing industry."

She added that local girls were being trained in jewellery design and manufacture in China.

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