Roleplayers

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The Company
National Diamond Marketing
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
The four partners alone employ more than 2000
workers.
On average, NDM markets the output of over 7000
workers.
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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.

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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.

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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.

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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.

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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
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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
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ROLEPLAYERS

• Miner / Producer
• Manufacturer (with licence)
• Skilled Unskilled labour (previously
  disadvantaged)
• Tender Operations
• Dealers
• Fiscus

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Existing Situation
Open Market
Producer
SA Dealer
Sales by Tender
De Beers Producer Country Sight
Export
International Buyer or Cutter
Fiscus
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Desired Situation
Open Market
Producer
Sales by Tender
SA Joint Venture
De Beers Producer Country Sight
Local Buyer or Cutter
Local Beneficiation Polishing
International Buyer or Cutter
Fiscus
Export (Minimal Duty)
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The Roadmap
FINANCE LODM (Large Overseas Diamond
Manufacturer) (Sightholder ?)
SKILL Existing SA Manufacturer Or
Dealer (Authorised Rep)
BEE Black Entrepreneur (Authorised Rep)

• Advanced Skills
• Training
• Integrity
• Overseas markets

• Existing infrastructure
• Local Knowledge
• Manufacturing Ability

• Empowerment

WORKERS Employees Trust
Beneficiating Entity XXX SA (PTY)
Company Licence Cutting and polishing Licence
Rough Dealer
Empowerment
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Empowerment
BEE Black Entrepreneur (Authorised Rep)
Beneficiating Entity XXX SA (PTY)
Company Licence Cutting and polishing Licence
Rough Dealer
Open Market
De Beers Producer Country Sights
Sales By Tender
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Win 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

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