The Company Partner 1 6 Workers Partner 2 1600 Workers Partner 3 300 Workers Partner 4 100 Workers Sales by Tender for 50 to 75 Producers 5000+ Workers National Diamond Marketing The four partners alone employ more than 2000 workers. On average, NDM markets the output of over 7000 workers.
Company Philosophy Any producer (no matter how large or how small) has a right (based on capital invested, risk taken and effort expended) to obtain the highest possible price (value) for the product he/she produces when selling in a free market system.
Company Philosophy (Cont.) We believe that any attempt (by the State or others) to manipulate prices (by fixing prices or limiting the type of investors who may wish to purchase rough diamonds) will not allow the State to achieve the intended objectives of the Bill. Subsidising any one segment of the diamond industry, at the expense of the producers, will ultimately result in the collapse of the producers and consequently the collapse of all other players in the downstream industry.
Mission of NDM To obtain for the partners in NDM the highest possible price for their own rough diamond productions relative to prevailing international market conditions.
Mission of NDM (Cont.) We believe that any producer (other than the partners) who wishes to make use of our services in an attempt to obtain the highest possible price for their rough diamonds has the right to do so. This leaves producers free to concentrate on what they do best. Namely, mining and supplying the South African diamond industry with what it needs most – rough diamonds.
Failure of the Bill Will not achieve its goals Will have massive unintended consequences Will disrupt industry Will result in unemployment Will result in reduced income for the Fiscus The Bill is fatally flawed
Potential Solution Offers the State an attainable as well as a sustainable solution Offers all stakeholders a workable solution Results in real growth Results in meaningful empowerment Depends on the Status Quo remaining largely intact
Existing Situation Sales by Tender Producer Open Market De Beers Producer Country Sight SA Dealer Export Fiscus International Buyer or Cutter
Desired Situation Open Market SA Joint Venture Producer Local Beneficiation & Polishing Sales by Tender De Beers Producer Country Sight Export (Minimal Duty) Fiscus International Buyer or Cutter Local Buyer or Cutter
The Roadmap FINANCE LODM (Large Overseas Diamond Manufacturer) (Sightholder ?) SKILL Existing SA Manufacturer Or Dealer (Authorised Rep) BEE Black Entrepreneur (Authorised Rep) Beneficiating Entity XXX SA (PTY) Company Licence: Cutting and polishing Licence: Rough Dealer WORKERS Employees Trust Empowerment Advanced Skills Training Integrity Overseas markets Existing infrastructure Local Knowledge Manufacturing Ability Empowerment
Sales By Tender Open Market De Beers Producer Country Sights BEE Black Entrepreneur (Authorised Rep) Beneficiating Entity XXX SA (PTY) Company Licence: Cutting and polishing Licence: Rough Dealer
Win Miner / Producer – Gets highest price Manufacturer – Gets more capital & goods Skilled & Unskilled labour – Get more jobs Tender Operations – Get more clients Dealers - Get more capital & goods Fiscus – Gets more income