1. SOUTH AFRICAN DIAMOND BOARD
PARLIAMENTARY PORTFOLIO COMMITTEE
MINERALS & ENERGY
06 JUNE 2001

2. SOUTH AFRICAN DIAMOND BOARD
CONTENTS
1. CONTRIBUTIONS INTO THE MDDB
2. STATUS SECTION 59 AGREEMENTS
3. SETTLEMENT AGREEMENT WITH DVIC
4. CONFLICT DIAMONDS (Kimberley Process)
5. RECAP ON THE 2ND AUGUST 2000 PRESENTATION
6. BUDGET OBJECTIVES 2001/2002 FIN. YEAR

3. CONTRIBUTIONS INTO THE MINERAL DEVELOPMENT DRAFT BILL
CONSULTATIVE PROCESSES HELD WITH MEMBERS OF THE INDUSTRY IN ORDER TO FACILITATE THEIR PARTICIPATION
SOUTH AFRICAN DIAMOND BOARD FULLY ENDORSES THE OBJECTIVES ENSHRINED ON THE BILL

4. STATUS OF S59 AGREEMENTS
ONLY TWO PRODUCERS HAVE SIGNED AGREEMENTS WITH THE BOARD, I.e Transhex & De Beers
THE AGREEMENT BETWEEN THE SADB , DE Beers and The DTC REMAINS VALID
A COMPREHENSIVE REVIEW AND EVALUATION OF HOW ALIGNED THESE AGREEMENTS ARE TO GOVERNMENT POLICY REMAINS OUTSTANDING

5. OUT-OF-COURT SETTLEMENT WITH DVIC Valuation (Pty) Ltd
MINISTERIAL INTERVENTION IN THE LONG DRAWN CASE
NUMBER OF SESSIONS CONVENED BY THE CHAIRPERSON OF THE BOARD
AMICABLE SETTLEMENT REACHED COVERING ALL CLAIMS THAT DVIC VALUATIONS (PTY) LTD HAD AGAINST THE SOUTH AFRICAN DIAMOND BOARD
DECISION TO RETIFY TAKEN BY THE BOARD

6. *
07/16/96
CONFLICT DIAMONDS
THE BOARD REMAINS INTRINSICLY INVOLVED AND SUPPORTIVE OF THE KIMBERLEY PROCESS THAT IS BEING HEADED BY THE DEPARTMENT OF MINERALS AND ENERGY
IN SUPPORT OF THE PROCESS, FOR THE FINANCIAL YEAR 2001/2002 THE BOARD HAS BUDGETED FOR THE OPENING OF AN OFFICE IN THE NORTHERN CAPE IN ORDER TO CLOSELY MONITOR TRADE IN THAT PROVINCE *

7. RECAP ON THE 2ND AUGUST 2000 PRESENTATION
TRANSFORMATION IN THE DIAMOND INDUSTRY to 2001
STAFF COMPLEMENT
COMPOSITION OF THE BOARD

8. RECAP ON THE 2ND AUGUST 2000 PRESENTATION
CORPORATE GOVERNANCE IN THE SOUTH AFRICAN DIAMOND BOARD
OUR LAST PRESENTATION HIGHLIGHTED A NUMBER OF PROBLEMS PERTAINING TO CORPORATE GOVERNANCE
COMPOSITION OF THE BOARD REMAINS THE GREATEST CHALLENGE IN ACHIEVING GOOD CORPORATE GOVERNANCE
THE BOARD HAS HOWEVER ADOPTED A DETAILED CORPORATE GOVERNANCE MANUAL
COPIES THERE-TO ARE AVAILABLE FOR MEMBERS PERUSAL

9. RECAP ON THE 2ND AUGUST 2000 PRESENTATION
EMPOWEREMENT IN THE DIAMOND INDUSTRY
MEANINGFULL EMPOWEREMENT REMAINS NEGLIGIBLE
NEW BLACK SIGHTHOLDER ENCOURAGING
MININGFULL BLACK DIRECTORSHIP OR PARTNERSHIP STILL LACKING
THE BOARD RECENTLY ESTABLISHED A COMMITTEE TO LOOK INTO THIS ISSUE AND REPORT BACK

10. RECAP ON THE 2ND AUGUST 2000 PRESENTATION
THE ROLE OF AN INDIPENDENT VALUATOR OF DIAMONDS
SOUTH AFRICAN DIAMOND INDUSTRY REMAINS VERY COMPLEX
THERE ARE STILL CONCERNS WHETHER OR NOT THE STATE RECEIVES A FAIR SHARE OF WHAT IS DUE TO IT BY THE INDUSTRY REMAINS QUESTIONABLE
GOVERNMENT STILL REQUIRES AN EXPERT OPINION WHETHER OR NOT DIAMONDS LEAVING THE COUNTRY ARE FAIRLY VALUED
EXPERTISE WITHIN GOVERNMENT REMAIN FAIRLY LIMITED

11. RECAP ON THE 2ND AUGUST 2000 PRESENTATION
A “FUNCTIONAL” DIAMOND BOARD OFFICE
ADHERENCE TO THE CORPORATE GOVERNANCE MANUAL REMAINS KEY TO A FUNCTIONAL BOARD
RESTORATION OF THE ROLE & RESPONSIBILITIES OF THE EXECUTIVE MANAGEMENT REMAINS CRUCIAL TO A FUNCTIONING BOARD
TERMS OF REFERENCE COMMITTEES OF THE BOARD AND MEMBERS THEMSELVES REMAIN THE ONLY SOLUTION TO A FUNCTIONAL BOARD

12. BUDGET OBJECTIVES FOR 2001/2002 FINANCIAL YEAR
INCREASED EFFICIENCY AND QUALITY SERVICE DELIVERY TO OUR CLIENT BASE (I.e INDUSTRY AND GOVERNMENT)
REASONABLE PRESENCE AND ACCESSIBILITY OF OUR SERVICE IN AREAS OF HIGH TRADING ACTIVITY
IMPROVE WORKING RELATIONS WITH OTHER STATE FUNCTIONARIES
CONTINUED IMPROVEMENT IN MANAGING RESOURCE OF THE STATE

13. *
07/16/96
THANX FOR YOUR TIME *