About Us

Overview

The South African Diamond & Precious Metals Regulator (SADPMR) was established to administer the Diamonds Act, 1986 (as amended) and the Precious Metals Act, 2005 (Act 37 of 2005). The Precious Metals Act, 2005 (Act 37 of 2005) commenced on 1 July 2007 and Regulations made under the Act took effect on 9 July 2007. These Regulations were amended on 4 April 2008.

The Diamond Exchange and Export Centre (DEEC) was established by the South African Diamond and Precious Metals Regulator (SADPMR), in terms of section 59(b) of Act no.30, 2005 and started operating on the 14th January 2008.

One of the core functions of the SADPMR is to facilitate the buying, selling, exporting and importing of diamonds through its Diamond Exchange and Export Centre (DEEC). The DEEC is a secure and controlled environment where goods are offered to other licensees, and plays a vital role in ensuring that unpolished diamond tenders are facilitated fairly to the local market.

An additional service for the facilitation of polished diamonds was launched on 15th February 2013 by DEEC and first tenders were facilitated from 11th – 15th March 2013.

The South African Diamond Board was established in 1987 in terms of the Diamond Act, Act 56 of 1986 to regulate control over possession, the purchase, and sale of diamonds, the processing and the export of diamonds. During 2007 three pieces of legislation, namely; the Diamond Amendments Act, Act 30 of 2005, the Diamond Second Amendment Act, Act 30 of 2005 and the Precious Metals Act, Act 37 of 2005 were promulgated thereby broadening the legal mandate of the Board to also regulated precious metals.

South African Diamond Board was de-listed as a Schedule 3A public entity in March 2007 and replaced by the South African Diamond & Precious Metals Regulator, which was established by Section 3 of the Diamonds Act, 1986 (as amended in 2005).

 

LEGISLATIVE MANDATE OF THE SADPMR

The SADPMR is an organ of the state deriving its constitutional mandate from Section 239 of the Constitution of the Republic of South Africa, 1996, in terms of which it is defined as an institution performing public functions in terms of the legislation. The SADPMR is classified as a Schedule 3A Public Entity in accordance with the Public Finance Management Act No. 1 of 1999 (PFMA) (Act No.1 of 1999), as amended. The entity was established in terms of Section 3 of the Diamonds Act No. 56 of 1986 (Diamonds Act), as amended. The SADPMR’s mandate is to implement and enforce the provisions of the Diamonds Act and Precious Metals Act (Act No. 37 of 2005), the Diamond Export Levy (Administration) Act (Act No.14 of 2007) and the Diamond Export Levy Act (Act No.15 of 2007). The abovementioned pieces of legislation are implemented in conjunction with other legal frameworks that directly and indirectly affect the role and mandate of the organisation.

Mission

To regulate and promote the diamonds and precious metals industries in the best interests of the people of South Africa by: 

Values

Vision

To make diamonds and precious metals synonymous with South Africa.

Minister of Minerals and Petroleum Resources
Mr Abiel Mngomezulu - Chairperson
Mr Cecil Khoza - CEO
STRATEGIC OBJECTIVES

Mandate

 

The South African Diamond and Precious Metals Regulator (SADPMR) was established by the Diamonds Act, 1986 as amended to implement the following legislation:

Diamonds Act, 1986 (as amended)

Diamond Export Levy Act, 2007 in collaboration with South African Revenue Services (SARS)

Programme 1: Administration

Purpose

To provide efficient administrative support by ensuring that human resources
management, communication, and information and communications technology services
are effectively operational and always maintained, while being responsive to the needs and
aspirations of the SADPMR’s stakeholders.

SUB-PROGRAMMES

FINANCE

Purpose: To provide effective financial management and supply chain management support services.

Highlights: The focus of the sub-programme was to enhance its controls and presentation of financial statements; a clean audit opinion for 2022/23 FY was obtained as a result. 100% of the APP target in the financial year was recorded. The turnaround times for payment of
invoices and finalisation of bids were at an average of fifteen (15) days and thirty-four (34) days, respectively. All bids in the approved Procurement Plan were finalised for the financial year 2023/2024.

The sub-programme also implemented procurement processes in line with the new Preferential Procurement Regulations after policy development in line with the
revised National Treasury prescripts.

HUMAN RESOURCES MANAGEMENT

Purpose: To maximise the productivity of the entity by optimising the effectiveness of its employees.

Highlights: During the year under review, the human resources division conducted the climate survey. The implementation part of the recommended outcomes commenced in Q4 of the 2023/24 financial year. In terms of youth development, thirty-three (33) youths were given the on-the-job training  opportunity by the SADPMR in collaboration with the Mining Qualification Authority (MQA) and Transport Education Training Authority (TETA) for an internship programme and work-integrated learning programme. There are twelve (12) interns funded by the SADPMR, five (5) interns funded by the MQA, and sixteen (16) learners funded by TETA.

This is part of the skills development initiative, which involves increasing the number of interns and learners on an annual basis.  Furthermore, the SADPMR implemented a 5.5% cost of living adjustment for all employees below management, 4% for employees at the management level, and incentive bonuses for all qualifying employees. This is part of staff welfare to ensure that employees are taken care of during the difficult economic climate. The SADPMR continues to promote a culture of learning and has awarded thirteen (13) bursaries to staff members in the year under review. This is an additional number to the bursaries awarded to twenty-two (22) employees in the 2022/23 financial year. At the same time as the SADPMR was celebrating achievements, it was also dealing with bereavements after the passing of two (2) staff members in Q1 and Q2.

COMMUNICATION

Purpose: To provide brand awareness, promote stakeholder engagement, support the mandate of the SADPMR, and promote public awareness of the SADPMR’s activities and initiatives.

Highlights: During the year under review, the communication division conducted twenty-four (24) brand awareness activities in the following provinces: Gauteng, Eastern Cape, Western Cape, North West, Mpumalanga, and Limpopo. SADPMR also participated in international brand promotions in Canada and two (2) in Hong Kong to promote the mandate of the SADPMR. SADPMR is moving towards digital radio marketing with the aim of promoting brand awareness. SADPMR collaborated with five community radio stations in the form of interviews to reach large audiences.  SADPMR managed to publish five (5) articles, which were used as communication channels to promote SADPMR services and educate South Africans about the mandate of the regulator. To maintain our stakeholder relations, SADPMR conducted three customer satisfaction surveys to improve the quality of service delivery by the SADPMR towards the Diamond and Precious Metals Regulator. 

Under the review of the 2023/24 financial year, South Africa continued to play critical roles and lead KP activities. South Africa was appointed as the Chair of the Working Group on Monitoring and Deputy Chair of the WGDE. South Africa also participated in the review visit and mission to India to support the KP activities.  During the year under review, South Africa participated in the KP Plenary and international meeting, which was held in Zimbabwe. South Africa continued to show leadership within the KP, especially leading the subtechnical assistance and development of the diamond communities.  South Africa is one (1) of the member state within African Diamond Producers Association (ADPA) which consist of fifteen (15) member states and five (5) observers.  ADPA is an inter-governmental organisation that seeks to strengthen the level of influence African diamond producing countries have on the world diamond market.  Within ADPA there is a Committee of Experts which is consultation body, and it is divided into two working groups, which are Technical Advisors and Internal Audit. During the financial year, the working groups were established, and the internal audit group had its first meetings in March 2024 to discuss the planning followed by the execution of the audit.

INFORMATION COMMUNICATION AND TECHNOLOGY

Purpose: To align the ICT strategy and automation of business processes with the business strategy.

Highlights: During the year under review, SADPMR
successfully migrated its payroll system to Microsoft
Cloud to enable SADPMR to have direct access to the selfservice human resources portal. Furthermore, the SADPMR continued to implement ICT security measures. Also, the SADPMR implemented an ICT governance framework. As part of ensuring improved service delivery within the SADPMR, the ICT division developed two applications, namely MY SADPMR and SADMPR Online, to cater for internal staff and external clients. SADPMR Online will enable clients to submit precious metals registers online.

Purpose: To provide efficient and effective general legal support by ensuring compliance with legislation, identifying and mitigating legal risks, and providing well-informed legal advice.

Highlights: The SADPMR has done exceptionally well in managing and defending a number of litigation cases, and also managed to reduce and successfully defend a significant number of cases that were instituted against it by various external stakeholders. The SADPMR is left with two (2) ongoing litigation cases currently being adjudicated in the South Gauteng High Court and the Labour Court, respectively, of which the case in the latter forum is at the advanced stage of being finalised. One of the SADPMR’s future priorities is to become a litigation-free entity, as experience has shown that an entity with an overwhelming number of litigation cases tends to divert more of its focus on defending court cases and spending much of its time in court than focusing on its legislative mandate. 

SECURITY RISK MANAGEMENT

Purpose: To implement the Minimum Information Security Standards (MISS), Minimum Physical Security Standards (MPSS), National Vetting Strategy (NVS), and relevant pieces of legislation.

Highlights: The Security Risk Management Division continued to implement the provisions of the National Vetting Strategy (NVS), Minimum Information Security Standard (MISS), and Minimum Physical Security Standards (MPSS).

The National Vetting Strategy was implemented, and continuous vetting of the employees is in place. For the period under review, sixteen (16) vetting forms were submitted, and three (3) security clearances were received from the State Security Agency (SSA). This was achieved in collaboration with the requirements of the State Security Agency in terms of the NVS.

CORPORATE GOVERNANCE

Purpose: To provide advice to the Board on compliance with the application of relevant legislation, training and development, and administrative support.

Highlights: The SADPMR board approved the budget, strategic plan, and annual performance plan and submitted all required quarterly reports to the shareholder (DMRE).  The board also submitted the 2022/2023 annual report as stipulated in Section 55 of the PFMA. The board also conducted the external assessment and drafted the action plan based on the recommendations in the report. All meetings that were scheduled on the calendar were well attended by members.

CEO’S OFFICE

Purpose: To enable service delivery programmes and the use of statistics in the diamond and precious metals sectors, as well as to conduct economic, policy, and market research on matters pertaining to diamonds and precious metals and their products.

Highlights: The inaugural publications of the two annual reviews, the World Diamond Annual Review 2022, and the World Precious Metal Annual Review 2022 were well received by internal and external stakeholders.

Programme 2: Trade

Purpose

The trade programme is responsible for the facilitation of local trade as well
as exports and imports of diamonds in accordance with the KPCS and to ensure that
diamonds are traded at fair market values.

SUB-PROGRAMMES

DIAMOND VALUATOR (DV)

Purpose: To ensure that diamonds are traded at fair market value.

Highlights: Diamond Valuator (DV) valued 6.1 million carats during this financial year as compared to 8.9 million carats in the previous year. DV ensures all diamond trades in the DEEC are verified to ensure fair market value.  Furthermore, the DV maintains its continuous support for the South African Police Service (SAPS) and provides expert opinion on objects presented after confiscation.  

During the current financial year, the DV offered rough diamond valuation skills to ten (10) new diamond licensees. The group consisted of five (5) women and five (5) young males. The initiative will enhance their knowledge in knowing the value the inputs caused in their businesses.  

DIAMOND EXCHANGE AND EXPORT CENTRE (DEEC)

Purpose: The Diamond Exchange and Export Centre (DEEC) is responsible for the facilitation of local trade as well as exports and imports of diamonds in accordance with the KPCS to promote local beneficiation.

Highlights: The DEEC is the sole export centre for diamonds in RSA. This centre continued to provide equitable access to diamonds in the RSA. During the year 2023/24, the KP certificates issued by the DEEC declined significantly, from one thousand four hundred and thirty-three (1433) in 2022 to nine hundred and sixty-three (963) in 2023. The clients accessing DEEC services also declined from two thousand seven hundred and eighty-four (2784) to two thousand three hundred and fifty-one (2351) in 2023/24 due to low production and the depressed diamond market. 

Although there has been a decline in diamond production, the DEEC has remained resilient during these difficult times. As a result, the DEEC was able to facilitate a tender of 4,5 million carats in 2023/24, which is less when compared to 5,2 million carats in 2022/23.  All quarterly trade statistical reports and annual diamond production statistical reports submitted were in line with the KPCS minimum requirements.  

Programme 3: REGULATORY COMPLIANCE

Purpose

To ensure compliance with the legislative requirements in the diamond and
precious metals industries and to improve transformation, competitiveness, sustainable
development, and job creation in these industries.

SUB-PROGRAMMES

REGULATIONS

Purpose: To receive, process, and issue diamond and precious metals licenses, permits, and certificates in line with the Diamonds Act, 1986, and the Precious Metals Act, 2005.

Highlights: During the period under review, the division surpassed its targets to issue all licenses within the prescribed regulatory period, with a total of seven hundred and fifteen (715) diamond and two hundred (200) precious metal licenses issued.  Furthermore, a total of twenty-two (22) male and seventy-three (73) female HDP licenses were issued.  

INSPECTORATE

Purpose: Monitor and enforce compliance with the Precious Metals Act, 2005, and the Diamonds Act, 1986; Monitor trade transactions through the analysis of prescribed registers; Measure transformation and compile assessment reports on transformation in the diamond and precious metals industry; Facilitate access to the industry by aspirant entrepreneurs in collaboration with industry through enterprise development programmes; and Promote beneficiation through the implementation of the SADPMR Beneficiation Strategy. 

Highlights: Monitoring of compliance.

Our Offices

Head Office Kempton Park

The South African Diamond and
Precious Metals Regulator Jewellery Manufacturing Precinct, Building 4 OR Tambo SEZ Ortia SEZ Precinct 1, Bonaero Park, 1622

26.11763572692871° S, 28.249347686767578° E

P.O BOX 16001,
Doornfontein, 2028 South Africa

Email: info@sadpmr.co.za
Phone: +27 11 2237000
Mon-Thur: 8:00am - 4:30pm
Friday: 8:00am - 4:00pm

Cape Town

Department of Mineral Resources and Energy,
14 Strands Street, Map House
DMRE 7TH FLOOR
Cape Town
8001
33.912449° S, 18.413063° E

Phone: +27 21 4271070
Mon-Thur: 8:00am - 4:30pm
Friday: 8:00am - 4:00pm

Durban

3rd floor, Durban Bay House, 
333 Smith Street (Anton Lembede), Durban
4000


29.860642° S, 31.008998° E

Phone: +27 31 335 9677
Mon-Thur: 8:00am - 4:30pm
Friday: 8:00am - 4:00pm

Kimberley

Kimberley Diamonds and Jewellery Centre
25 Villiers Street
Kimberley
Northern Cape
8301

28.762016° S, 24.760880° E

Phone: +27 53 831 3121
Mon-Thur: 8:00am - 4:30pm
Friday: 8:00am - 4:00pm
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