The Diamonds Act of 1986: Regulating South Africa’s Prized Possession
South Africa boasts a long and prominent history in diamond mining. To ensure responsible management of this valuable resource, the Diamonds Act of 1986 (Act No. 56 of 1986) was established. This essay will delve into the key aspects of the Act, exploring its purpose, the functions it assigns, and its ongoing relevance in the South African diamond industry.
The primary objective of the Diamonds Act is to institute a comprehensive framework for overseeing the diamond trade within South Africa. This includes the establishment of the South African Diamond Board, empowered to regulate the possession, buying and selling, processing, and export of diamonds. Through licensing procedures, the Act aims to ensure legitimacy within the industry and deter illegal diamond trade.
One significant function of the Act lies in promoting equitable access to South Africa’s diamond resources. This focus on beneficiation, the local processing and value addition of diamonds, fosters economic growth and job creation within the country. Additionally, the Act aligns with the Kimberley Process Certification Scheme, an international initiative striving to eliminate conflict diamonds from the global market.
The Diamonds Act has undergone amendments over time, reflecting the evolving landscape of the diamond industry. The 2005 amendments, for instance, strengthened the role of the South African Diamond and Precious Metals Regulator (SADPMR), the successor to the Diamond Board. The SADPMR not only regulates the trade but also plays a promotional role, encouraging local beneficiation and industry growth.
Despite its contributions, the Diamonds Act continues to face challenges. Issues like illegal mining and smuggling necessitate ongoing vigilance. Furthermore, balancing the interests of large-scale mining corporations with those of smaller-scale artisanal miners remains an ongoing concern.
In conclusion, the Diamonds Act of 1986 serves as the cornerstone for regulating South Africa’s diamond industry. By promoting responsible trade practices, equitable access to resources, and adherence to international standards, the Act safeguards the integrity of this vital sector. As the industry evolves, ongoing reviews and potential revisions of the Act will be crucial to ensure it continues to serve its intended purpose effectively.