VISIT BY OFFICIALS FROM SOUTH AFRICAN DIAMONDS AND PRECIOUS METALS REGULATOR

4^th FEBRUARY 2016

 

 

 

• Governor of the Central Bank,

• Management of Central Bank,

• Chief Executive Officer and officers of the South African Diamonds and Precious Metals Regulator

• Government officials

• Ladies and gentlemen;

   

  I greet you all this morning.

   

  I am honoured to be part of this function as a representative of the Government of Swaziland to mark the first meeting on technical cooperation and exchange between the Central Bank of Swaziland and the South African Diamonds and Precious Metals Regulator.

• Mr. Governor and CEO of SADPMR, allow me to give you a short background on the subject matter of precious minerals sub sector. The mines and minerals sector is increasingly subject to international law, encompassing a wide range of conventions, protocols, declarations, treaties, standards, codes and recommendations relating to environmental, social and economic norms. The international laws do not supersede the domestic laws but rely more on political will and government cooperation. However, these laws apply across the full spectrum of the mining life cycle from initial ownership, access rights, prospecting, mining, processing, use of the end product and disposal of waste materials. True, there is no comprehensive international law that applies to the complete mining life cycle; from prospecting to rehabilitation but governments are increasingly calling for measures to being made for the adoption of international standards in order to provide a “level playing field” for an industry that is increasingly globalised in nature. In response to sustained criticism, initiatives at the global level have led to the introduction of the “International Codes” for the mines and minerals industry.

   

  In around the year 1999, the Kingdom of Swaziland participated in a conceptualization of a forum to regulate and govern the trade of rough diamonds; today called the Kimberley Process (KP). The Kimberley Process calls for member states (Participants) to create a mechanism that prevent trade in conflict diamonds by the use of an import/export certification system designed to govern the international trade in rough diamonds. The Kimberley Process set minimum standards for States to satisfy before being considered for admission into the forum. Swaziland undertook the necessary reforms that were required to enable us to qualify to be a member (Participant) of the Kimberley Process Certification Scheme (KPCS). In May 2011, Swaziland was indeed admitted to be a member of the KPCS and we now look back with pride and satisfaction that we feature in international cooperation that benefits many governments.

   

  In 2011, the iNgwenyama gave an assent to Diamond Act; Act No. 3 of 2011. The primary objective of this Act is to govern and regulate diamonds and diamond industry in accordance with the Kimberley Process Certification Scheme. I take this opportunity to inform you that diamonds are perceived to be a sensitive and strategic mineral by many nations, including Swaziland, and the Kingdom of Swaziland is thus bound by the provisions of the Kimberley Process and Kimberley Process Certification Scheme in as far as the storage and safekeeping of diamonds is concerned.

  The Ministry of Natural Resources and Energy identified the Central Bank of Swaziland as a possible partner in the storage and safekeeping of diamonds and other precious minerals including gold. It is for this reason, that the Ministry developed and signed a memorandum of understanding (MOU) with CBS with a provision for storage facilities and other precious minerals. The MOU stipulate that all diamonds to be submitted to the Central Bank, from any Mine, shall be deposited directly without involvement of a third party except security forces that shall be deployed to provide security for goods in transit from a mine to the Bank.

   

The Ministry is delighted that you have embarked on a journey to establish a technical partnership and cooperation in improving security systems and facilities and I assure you that the Ministry will be ready to participate in any initiative you agree upon. The Ministry further takes note of the different stakeholders that include the Central Bank of Swaziland, Swaziland Revenue Authority, Royal Swaziland Police, Swaziland Civil Aviation Authority and courier agencies in the import and export of diamonds transactions.

 

The Ministry of Natural Resources and Energy has set a number of targets for all the portfolios under the Ministry in pursuit of the objectives of His Majesty’s King Mswati III vision for the Kingdom of Swaziland to attain first world status by the year 2022, normally referred to as Vision 2022 and Strategic Plan. One of the targets in the Strategic Plan is to increase contribution of the mines and minerals sector to the Gross Domestic Product (GDP) from the current 0.07% to over 4% by 2018 and With these few remarks, I wish you a success in this cooperation and exchange program you are here to establish and please leave the door ajar for my Ministry when we come and seek any further assistance with regard to the mines and minerals sector.

In my closing remarks, the Ministry wishes to commend the Governor and his team from Central Bank of Swaziland for making preparations to host our guests and stakeholders in this venue and it is a job well done indeed.

Finally, I wish you a successful and productive working session and I also note the whole SADC region is facing the threat of drought and we pray for rains before we reach the winter season.

 

With these remarks, I declare the working session for the Central Bank of Swaziland, South African Diamonds & Precious Metals Regulator and stakeholders officially launched.

 

Thank you and God bless you all.

JABULILE MASHWAMA (SENATOR).

MINISTER FOR NATURAL RESOURCES AND ENERGY