South Africa's New Guidelines to Boost Domestic Polishing

(IDEX Online) - South Africa has introduced new guidelines to retain more economic value from its rough diamonds by promoting local cutting and polishing, rather than exporting goods unprocessed.

Around 90% of its rough diamond production is currently sold abroad. The South African Diamond and Precious Metals Regulator (SADPMR) is tackling this by requiring genuine offers of certain rough to local buyers first - at reasonable prices and practical assortments.

Producers are currently required to allocate 10% of run-of-mine (ROM) rough -total unsorted output straight from the mine - to the State Diamond Trader (SDT), a government entity that resells it to local beneficiators (licensed cutters and polishers).​

The remaining 90% (known as non-SDT rough) has, until now, been exported by sellers who have deliberately deterred local buyers with high prices and poor bundles, favoring tenders in Antwerp and Dubai.​

SADPMR now mandates that they make genuine rather than sham offers to sell this non-SDT rough to domestic cutters and polishers.

It must be displayed for at least four days at the Diamond Exchange and Export Centre (DEEC) in Johannesburg before export approval. There is no quota change, just stricter enforcement to boost local uptake.