In this Act, unless the context indicates otherwise'

'Board' ......

[Definition of 'Board' deleted by s. 1 (a) of Act 29 of 2005 (wef 1 July 2007).]

'beneficiation' means the polishing of a diamond or the setting of a diamond in a tool, in an article or in jewellery;

[Definition of 'beneficiation' inserted by s. 1 (b) of Act 29 of 2005 (wef 1 July 2007).]

'business premises', in relation to a licensee, means premises of the licensee of which particulars of the location have been endorsed on his licence in terms of section 29 (2) (b) or 31 (4) (a);

'controlling interest', in relation to

(a) a company, means

(i) more than 50 per cent of the issued share capital of the company;

(ii) more than half of the voting rights in respect of the issued shares of the company; or

(iii) the power, either directly or indirectly, to appoint or remove the majority of the directors of the company without the concurrence of any other person; or

(b) a close corporation, means more than 50 per cent of the interest in the close corporation;

'crushed diamond' means any diamond deriving from a diamond which has been subjected to a process of crushing;

'cutter' ......

[Definition of 'cutter' deleted by s. 1 (c) of Act 29 of 2005 (wef 1 July 2007).]

'dealer' means the holder of a diamond dealer's licence contemplated in section 26 (a);

'diamond beneficiator' means a person who holds a licence contemplated in section 26 (b) or (c);

[Definition of 'diamond beneficiator' inserted by s. 1 (a) of Act 30 of 2005 (wef 1 July 2007).]

'diamond exchange' ......

[Definition of 'diamond exchange' deleted by s. 1 (d) of Act 29 of 2005 (wef 1 July 2007).]

'diamond exchange and export centre' means a diamond exchange and export centre contemplated in section 59 (b);

[Definition of 'diamond exchange and export centre' inserted by s. 1 (b) of Act 30 of 2005 (wef 1 July 2007).]

'diamond industry' includes any person involved in the buying of, selling of, dealing in, importation of, export of or production of diamonds, or beneficiation involving diamonds;

[Definition of 'diamond industry' inserted by s. 1 (e) of Act 29 of 2005 (wef 1 July 2007).]

'diamond powder' means any powder deriving from a diamond which has been subjected to a process of polishing or crushing;

'diamond trading house' means the premises at which the holder of a diamond trading house licence may facilitate local buying and selling of unpolished diamonds;

[Definition of 'diamond trading house' inserted by s. 1 (e) of Act 29 of 2005 (wef 1 July 2007).]

'enhanced diamond' means a natural diamond that has been altered, treated or improved by any artificial means, except by polishing;

[Definition of 'enhanced diamond' inserted by s. 1 (f) of Act 29 of 2005 (wef 1 July 2007).]

'executive officer' ......

[Definition of 'executive officer' substituted by s. 1 of Act 22 of 1989 (wef 23 March 1989) and deleted by s. 1 (g) of Act 29 of 2005 (wef 1 July 2007).]

'exporter', in relation to an unpolished diamond, means any person permitted in terms of this Act to export the unpolished diamond;

'fragment' means any part of a diamond separated from the diamond in a process of polishing and which is so irregular in shape or so small in size that it is usually unsuitable for polishing;

'inspector' means an inspector appointed under section 80 (1);

'Kimberley Process' means the international understanding among participants that was recognised by Resolution 55/56 adopted by the General Assembly of the United Nations on 1 December 2000;

[Definition of 'Kimberley Process' inserted by s. 1 (h) of Act 29 of 2005 (wef 1 July 2007).]

'Kimberley Process Certification Scheme' means the international certification scheme for the international trade in unpolished diamonds negotiated in the Kimberley Process;

[Definition of 'Kimberley Process Certification Scheme' inserted by s. 1 (h) of Act 29 of 2005 (wef 1 July 2007).]

'licence' ......

[Definition of 'licence' deleted by s. 1 (i) of Act 29 of 2005 (wef 1 July 2007).]

'licensee' means a dealer, diamond beneficiator, holder of a diamond trading house licence or researcher;

[Definition of 'licensee' substituted by s. 1 (j) of Act 29 of 2005 (wef 1 July 2007).]

'Mineral and Petroleum Resources Development Act' means the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002);

[Definition of 'Mineral and Petroleum Resources Development Act' inserted by s. 1 (k) of Act 29 of 2005 (wef 1 July 2007).]

'Minister' means the Minister of Minerals and Energy;

[Definition of 'Minister' substituted by s. 1 of Act 28 of 1988 (wef 30 March 1988), by s. 1 (a) of Act 10 of 1991 (wef 3 April 1991) and by s. 1 (l) of Act 29 of 2005 (wef 1 July 2007).]

'partly processed diamond' means a diamond which has been subjected to one or more processes of polishing, but not so many processes that it is in the opinion of the Regulator a polished diamond, and includes a diamond known as an 'acht kant', but does not include such an 'acht kant' which in the opinion of the Regulator is a polished diamond;

'police official' means a police official as defined in section 1 (1) of the Criminal Procedure Act, 1977 (Act 51 of 1977);

'polished diamond' means a diamond which has, in accordance with the requisites of its class or form, been subjected to so many processes of polishing that it is in the opinion of the Regulator a polished diamond;

'polishing', in relation to any unpolished or polished diamond, means the sawing, cutting, cleaving or dividing in any manner, faceting,brillianteering or altering of that diamond;

'prescribed' means prescribed by regulation;

'producer' means any person entitled to win or recover diamonds in terms of sections 19, 25 and 27 of the Mineral and Petroleum Resources Development Act;

[Definition of 'producer' substituted by s. 1 (b) of Act 10 of 1991 (wef 1 January 1992) and by s. 1 (m) of Act 29 of 2005 (wef 1 July 2007).]

'purchase', in relation to an unpolished diamond, means to purchase the unpolished diamond, to deal in it or to obtain it by way of barter, pledge or in any like manner;

'register' includes a computer printout;

'registering officer' means any person in the service of the Regulator or any person contemplated in section 5 (1) (c) assisting in the administration of this Act;

[Definition of 'registering officer' substituted by s. 1 (n) of Act 29 of 2005 (wef 1 July 2007).]

'regulation' means a regulation made under section 95 (1);

'Regulator' means the South African Diamond and Precious Metals Regulator established by section 3 (1);

[Definition of 'Regulator' inserted by s. 1 (o) of Act 29 of 2005 (wef 1 July 2007).]

'researcher' means the holder of a diamond research licence contemplated in section 26 (d);

'sell', in relation to an unpolished diamond, means to sell the unpolished diamond, to offer or expose it for sale, barter or pledge or for any like purpose or to dispose of or deliver it for the purpose of trade;

'State Diamond Trader' means the State Diamond Trader established by section 14;

[Definition of 'State Diamond Trader' inserted by s. 1 (p) of Act 29 of 2005 (wef 1 July 2007).]

'synthetic diamond' means a diamond manufactured by any artificial means;

[Definition of 'synthetic diamond' substituted by s. 1 (q) of Act 29 of 2005 (wef 1 July 2007).]

'this Act' includes a regulation;

'toolmaker' ......

[Definition of 'tool maker' deleted by s. 1 (r) of Act 29 of 2005 (wef 1 July 2007).]

'unpolished diamonds' means

(a) diamonds in their natural state, as they occur in deposits or extracts from the parent rock;

(b) diamonds simply sawn, cleaved, bruted, tumbled or which have only a small number of polished facets (windows which allow expert examination of the internal characteristics), and includes diamonds that are provisionally shaped but clearly require further working;

(c) tumbled diamonds of which the surface has been rendered glossy or shiny by chemical treatment or chemical polishing;

(d) broken or crushed diamonds;

(e) diamond dust; or

(f) diamond powder,

and applies regardless of whether such diamonds are won or recovered within the Republic;

[Definition of 'unpolished diamonds', previously 'unpolished diamond', substituted by s. 19 of Act 14 of 2007 (wef 1 November 2008).]

The Minister may by notice in the Gazette declare that a provision of this Act shall apply in respect of any other substance referred to in the definition 'mineral' in section 1 of the Mineral and Petroleum Resources Development Act.

[S. 2 substituted by s. 2 of Act 10 of 1991 (wef 1 January 1992) and by s. 2 of Act 29 of 2005 (wef 1 July 2007).]

(1) There is hereby established a juristic person to be known as the South African Diamond and Precious Metals Regulator.

(2) The Public Finance Management Act, 1999 (Act 1 of 1999), applies to the Regulator.

[S. 3 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

The objects of the Regulator are to

(a) ensure that the diamond resources of the Republic are exploited and developed in the best interests of the people of South Africa;

(b) promote equitable access to and local beneficiation of the Republic's diamonds; and

(c) ensure compliance with the Kimberley Process Certification Scheme.

[S. 4 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) The Regulator shall

(a) when considering an application for any of the licences or permits provided for in this Act, have regard to the promotion of equitable access to and local beneficiation of the Republic's diamonds;

(b) provide insurance cover for itself against any loss, damage, risk or liability it may suffer or incur;

(c) appoint a person who has expertise in market prices in respect of diamonds as a government diamond valuator; and

(d) advise the Minister on any matter to which this Act relates referred to it by the Minister.

(2) The Regulator may

(a) when considering an application for any of the licences or permits provided for in this Act, have regard to the broadbased socioeconomic empowerment Charter contemplated in section 100 of the Mineral and Petroleum Resources Development Act;

(b) enter into an agreement with any person, including the State, for the performance of any particular act or particular work or the rendering of any particular services;

(c) hire, buy or otherwise acquire such movable or immovable property as the Regulator may consider necessary for the performance of hire, buy or otherwise acquire such movable or immovable property as the Regulator may consider necessary for the performance of its functions and let, sell or otherwise dispose of property so acquired: Provided that immovable property shall not be acquired or disposed of without the approval of the Minister; and

(d) from time to time make recommendations to the Minister on any matter to which this Act relates.

[S. 5 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) The Board shall ensure that the functions of the Regulator are performed and that in so doing the objects of the Regulator are achieved.

(2) The Board shall consist of not less than 14 and not more than 17 members appointed by the Minister.

(3) The Board consists of the following members:

(a) A chairperson;

(b) two persons from the diamond industry;

(c) two persons from the precious metals industries;

(d) two persons from organised labour;

(e) one officer of the Department of Minerals and Energy;

(f) one member of the South African Police Service nominated by the Minister of Safety and Security;

(g) one officer of the National Treasury nominated by the Minister of Finance;

(h) one officer of the South African Reserve Bank nominated by the Governor of the South African Reserve Bank;

(i) at least three other persons with appropriate experience, expertise or skills to enhance the Board's capability of performing its functions more effectively and;

(j) the chief executive officer of the Regulator, appointed in terms of section 13, by virtue of holding that office.

(4)

(a) Before the Minister appoints the members of the Board contemplated in subsection (3) (a), (b), (c), (d) and (i), the Minister shall appoint an independent selection panel consisting of five persons with knowledge and understanding of the diamond industry and the precious metals industries.

(b) The panel shall compile and submit to the Minister a shortlist of not more than 20 candidates after having followed a transparent and competitive nomination process.

[S. 6 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

No person shall be appointed as a member of the Board in terms of section 6 (2) if he or she

(a) has been declared by a court to be mentally ill or disordered;

(b) is an unrehabilitated insolvent;

(c) has been convicted of an offence committed after the date of commencement of the Constitution, and sentenced to imprisonment without the option of a fine, unless the person has received a grant of amnesty or a presidential pardon before the date of his or her appointment; or

(d) is not a South African citizen and is not permanently resident within the Republic.

[S. 7 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) A member of the Board appointed in terms of section 6 (3) (a), (b) or (g) shall vacate office if

(a) he or she resigns by notice in writing to the Minister;

(b) he or she becomes subject to a disqualification contemplated in section 7;

(c) he or she has been absent more than two consecutive meetings of the Board without leave of the chairperson; or

(d) the Minister has removed the member from office

(i) on account of misconduct or inability to perform any function of his or her office properly; or

(ii) for being engaged in any activity that may undermine the integrity of the Board, which may include

(aa) participation in any investigation, hearing or decision concerning a matter in respect of which that person has a financial or personal interest;

(bb) making private use of or profiting from any confidential information obtained as a result of performing his or her function as a member of the Board; or

(cc) divulging any confidential information obtained by virtue of his or her office to any third party except as required by or under this Act or the Promotion of Access to Information Act, 2000 (Act 2 of 2000).

(2) The Minister may on good cause shown dissolve the Board and appoint a new Board in accordance with section 9 (2).

[S. 8 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) A member of the Board appointed in terms of section 6 (3) (a), (b) or (g) holds office for such period, not exceeding five years, as the Minister may determine at the time of his or her appointment.

(2) If a member of the Board dies or vacates office the Minister may appoint any person in his or her place for the unexpired period of his or her term of office.

(3) A person whose term of office as a member of the Board has expired shall be eligible for reappointment for not more than two terms.

(4) A member of the Board who is not in the fulltime employment of the State shall be paid such remuneration and allowances in respect of any expenses incurred in the performance of the functions of the Board as may be determined by the Minister in consultation with the Minister of Finance.

[S. 9 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) The chairperson of the Board or, in his or her absence from a meeting, a member of the Board elected by the members present shall preside at a meeting of the Board.

(2) The Board meets at the times and places determined by itself, but the first meeting of the Board shall be held at a time and a place determined by the chairperson.

(3) The chairperson may at any time or shall at the request of a two thirds majority of the members in office at the time convene a special meeting of the Board, and he or she must determine the time and place of the meeting.

(4) The quorum for a meeting of the Board is the majority of its total members.

(5) A decision of the Board shall be taken by resolution of the majority of the members present at any meeting of the Board and, in the event of an equality of votes, the person presiding has a casting vote in addition to his or her deliberative vote.

[S. 10 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) The Board may establish such number of committees as it deems necessary to assist it in the performance of its functions, and any such committee may include persons who are not members of the Board.

(2) If a committee consists of more than one member, the Board shall designate one member of such committee as chairperson thereof.

(3) A committee so established shall be accountable to the Board.

(4) The assistance contemplated in subsection (1) does not absolve the Board from its responsibility under this Act.

(5) A person appointed to a committee in terms of subsection (1) who is not in the fulltime employment of the State shall be paid such remuneration and allowances in respect of any expenses incurred in the performance of the functions of the committee as the Minister may determine.

[S. 11 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) The funds of the Regulator consist of

(a) moneys appropriated by Parliament;

(b) moneys received by way of grant, contribution, donation or inheritance from any source inside or outside the Republic; and

(c) moneys that may accrue from any other source.

(2) The Regulator shall utilize its funds to defray the expenses incurred by the Regulator in the performance of its functions under this Act.

(3) Moneys received by way of grant, contribution, donation or inheritance shall be utilized in accordance with any conditions imposed by the grantor, contributor, donor or testator concerned.

[S. 12 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) The Minister shall appoint a chief executive officer after consultation with the Board on such conditions of service and at such remuneration as the Minister, in consultation with the Minister of Finance, may determine.

(2) The chief executive officer is responsible for the administration and the general management and control of the day to day functioning of the Regulator, subject to the directions and instructions issued by the Board.

(3) The chief executive officer shall be assisted in the performance of his or her functions by

(a) persons appointed by the Regulator on such conditions of service and at such remuneration as the Regulator, after having obtained such professional advice as it may deem fit and with the concurrence of the Minister, in consultation with the Minister of Finance, may determine; and

(b) officers or employees placed at the disposal of the Regulator under section 15 (3) (a) of the Public Service Act, 1994 (Proclamation 103 of 1994).

(4) For the purposes of this Act, an officer or employee referred to in subsection (3) (b) shall be deemed to be a person in the service of the Regulator.

(5) Whenever the chief executive officer is for any reason unable to perform his or her functions the Minister may designate a person to act as chief executive officer until the chief executive officer is able to resume his or her functions.

[S. 13 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) There is hereby established a juristic person to be known as the State Diamond Trader.

(2) The Public Finance Management Act, 1999 (Act 1 of 1999), applies to the State Diamond Trader.

[S. 14 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

The objects of the State Diamond Trader are to promote equitable access to and local beneficiation of the Republic's diamonds.

[S. 15 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) The State Diamond Trader shall

(a) comply with the requirements of the Kimberley Process Certification Scheme in respect of any unpolished diamond it handles;

(b) provide insurance cover for itself against any loss, damage, risk or liability it may suffer or incur; and

(c) establish, maintain and expand a client base of local diamond beneficiators.

(2) The State Diamond Trader may

(a) acquire diamonds from other diamond producing countries; and

(b) enter into agreements with any person, including the State, for the performance of any function or the rendering of a particular service.

[S. 16 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

(1) The Board shall ensure that the functions of the State Diamond Trader are performed and that in so doing the objects of the State Diamond Trader are achieved.

(2) The Board shall consist of not more than 15 members appointed by the Minister.

(3) The Board consists of the following members:

(a) A chairperson;

(b) three persons from the industry, representing producers, diamond beneficiators and jewellery manufacturers;

(c) one officer of the Department of Minerals and Energy;

(d) one member of the South African Police Service nominated by the Minister of Safety and Security;

(e) one officer of the National Treasury nominated by the Minister of Finance;

(f) at least three persons representing investors or lenders of capital contemplated in section 17F (1) (a);

(g) three persons nominated by an association or associations which represent employees of diamond beneficiators; and

(h) the chief executive officers of the State Diamond Trader and the Regulator, by virtue of holding those offices.

(4)

(a) Before the Minister appoints the members of the Board contemplated in subsection (3) (b) and (f), the Minister shall appoint an independent selection panel, consisting of five persons with knowledge and understanding of issues concerning the diamond industry.

(b) The panel must compile a shortlist of not more than 20 candidates after following a transparent and competitive nomination process.

[S. 17 substituted by s. 3 of Act 29 of 2005 (wef 1 July 2007).]

Save as is otherwise provided in this Act, no person shall have any unpolished diamond in his possession unless

(a) he or she is a producer who has won or recovered that diamond from a mine as defined in section 1 of the Mineral and Petroleum Resources Development Act in accordance with any permit, right or other authorization granted to him or her under the Mineral and Petroleum Resources Development Act or which remains in force under Schedule 2 of the said Act;

[Para. (a) substituted by s. 7 of Act 10 of 1991 (wef 1 January 1992) and by s. 4 (a) of Act 29 of 2005 (wef 1 July 2007).]

(b) he or she has manufactured that diamond, if it is a synthetic diamond;

[Para. (b) substituted by s. 4 (a) of Act 29 of 2005 (wef 1 July 2007).]

(c) he is a licensee;

(d) he is in respect of that diamond the holder of a permit under this Act;

(e) he or she is in possession of that diamond in implementing a written agreement entered into by him or her with a person referred to in paragraph (a), (b), (c) or (d); or

[Para. (e) substituted by s. 4 (b) of Act 29 of 2005 (wef 1 July 2007).]

(f) he has otherwise come into possession of that diamond in a lawful manner.

(1) No person shall sell any unpolished diamond unless

(a) he or she is a producer;

(b) he or she has manufactured that diamond, if it is a synthetic diamond; or

(c) he or she is a dealer; or

(d) he or she is the holder of a permit referred to in section 26 (h).

(2) The provisions of subsection (1) shall not be construed so as to authorize such producer or dealer or holder of a permit to sell any unpolished diamond which has come into his or her possession in an unlawful manner.

[S. 19 substituted by s. 2 of Act 30 of 2005 (wef 1 July 2007).]

No person shall purchase any unpolished diamond unless

(a) he or she is a licensee; or

(b) he or she is the holder of a permit referred to in section 26 (e).

[S. 20 substituted by s. 3 of Act 30 of 2005 (wef 1 July 2007).]

No person shall purchase any unpolished diamond unless

(a) he or she is a licensee; or

(b) he or she is the holder of a permit referred to in section 26 (e).

[S. 20 substituted by s. 3 of Act 30 of 2005 (wef 1 July 2007).]

No person shall polish any diamond or crush or set any unpolished diamond in any tool, implement or other article unless

(a) he or she is a diamond beneficiator or researcher;

(b) he or she is an employee acting in the course of his or her employment with that diamond beneficiator or researcher; or

(c) he or she is authorized thereto in writing by the Regulator.

[S. 22 substituted by s. 5 of Act 30 of 2005 (wef 1 July 2007).]

No person shall polish any diamond or crush or set any unpolished diamond in any tool, implement or other article unless

(a) he or she is a diamond beneficiator or researcher;

(b) he or she is an employee acting in the course of his or her employment with that diamond beneficiator or researcher; or

(c) he or she is authorized thereto in writing by the Regulator.

[S. 22 substituted by s. 5 of Act 30 of 2005 (wef 1 July 2007).]

No person shall erect or operate any machine designed or adapted for the polishing of diamonds unless

(a) he or she is a diamond beneficiator or researcher;

(b) he or she is an employee acting in the course of his or her employment with that diamond beneficiator or researcher; or

(c) he or she is authorized thereto in writing by the Regulator.

[S. 23 substituted by s. 6 of Act 30 of 2005 (wef 1 July 2007).]

No person shall export any unpolished diamond from the Republic unless

(a) he or she is a producer;

(b) he or she has manufactured that diamond, if it is a synthetic diamond;

(c) he or she is a dealer; or

(d) he or she is the holder of a permit referred to in section 26 (e) or (h).

[S. 24 substituted by s. 7 of Act 30 of 2005 (wef 1 July 2007).]

(1) Any person who by chance finds or picks up any unpolished diamond at any place where he or she or his or her employer is not permitted to prospect, dig or mine for diamonds in terms of the Mineral and Petroleum Resources Development Act shall forthwith take that unpolished diamond to the nearest police station and deliver it to a member of the South African Police Service on duty who holds a rank of at least sergeant.

[Subs. (1) substituted by s. 8 of Act 10 of 1991 (wef 1 January 1992) and by s. 5 of Act 29 of 2005 (wef 1 July 2007).]

(2) If the Commissioner of the South African Police or any other member designated by him

(a) is satisfied that a person is the owner of a diamond referred to in subsection (1) or is entitled to be in possession thereof, he shall deliver that diamond to such person; or

(b) is not so satisfied, he shall cause a notice to be published in the Gazette calling upon any person who may be the owner of that diamond or entitled to be in possession thereof to prove his ownership or right of possession.

(3) If no person furnishes proof to the satisfaction of such Commissioner or member of his ownership or right of possession within 21 days after the date of publication of a notice referred to in subsection (2) (b), such Commissioner or member shall cause the diamond in question to be sold and the proceeds thereof shall, subject to subsection (4), be paid into the State Revenue Fund.

(4) If such Commissioner or member is satisfied that the diamond in question was found or picked up in the circumstances mentioned in subsection (1), he shall pay to the person who so found or picked up that diamond an amount calculated at one third of the amount realized at the sale in terms of subsection (3).

Subject to this Chapter, the Regulator may issue the following licences, permits or certificates, namely

(a) a diamond dealer's licence entitling the holder to carry on business as a buyer, seller, importer or exporter of unpolished diamonds;

(b) a diamond beneficiation licence entitling the holder to polish diamonds for the purpose of business or trade;

(c) a diamond beneficiation licence entitling the holder to set unpolished diamonds in tools, implements or other articles or to crush or to alter those diamonds for the purpose of such setting or for the purpose of trade;

(d) a diamond research licence entitling the holder to do applied research and tests in connection with diamonds, but not to polish diamonds for the purpose of business or trade;

(e) a temporary diamond buyer's permit entitling a person who does not hold a licence in terms of this section to buy an unpolished diamond from a diamond exchange and export centre;

(f) a diamond trading house licence entitling the holder thereof to facilitate the buying and selling of unpolished diamonds locally on premises registered in terms of section 47;

(g) a certificate entitling a person to be in possession of an unpolished diamond obtained in a lawful manner.

(h) a permit entitling a person to sell, export or import an unpolished diamond on prescribed conditions.

[S. 26 substituted by s. 8 of Act 30 of 2005 (wef 1 July 2007).]

(1) Any natural or juristic person may apply to the Regulator on the prescribed form for a licence.

(2) An applicant for a licence shall furnish such additional particulars in connection with his application as the Regulator may require.

(1) Before the Regulator decides on any application for a licence, it may conduct such investigation regarding the application as it may deem fit.

(2) Subject to the provisions of this Chapter, the Regulator may at its discretion grant or refuse an application for a licence, but the Regulator shall not grant any application if it is of the opinion-

(a) that the applicant or, where the applicant is a company, any director thereof or, where the applicant is a close corporation, any member thereof is not a suitable person to carry on the activities authorized by the licence, or to be involved in such activities;

(b) that an interest which any person has in the applicant is undesirable;

(c) that the applicant will probably not be able to exercise in a satisfactory manner control over the activities authorized by the licence;

(d) that there are already a sufficient number of persons holding the licence in question; or

(e) that the issue of the licence will be contrary to the public interest.

(3) If the Regulator refuses an application for a licence, the chief executive officer of the Regulator shall notify the applicant in writing of the decision of the Regulator.

(1) If the Regulator grants an application for a licence, the chief executive officer of the Regulator shall against payment of the prescribed fee issue to the applicant the licence on the prescribed form.

(2) The chief executive officer of the Regulator shall endorse on such licence

(a) any condition determined by the Regulator under section 30 (1); and

(b) particulars of the location of the premises approved by the Regulator under section 31 (1).

(1) A licence shall be subject to such conditions as the Regulator may determine at the time of the granting of the application in question.

(2) The Regulator may at any time

(a) cancel or vary any condition to which a licence is subject; or

(b) impose any condition or any further condition in respect of a licence.

(3) The chief executive officer of the Regulator shall endorse on the licence any cancellation, variation or condition referred to in subsection

(2).

(4) In order to give effect to subsection (3), the chief executive officer of the Regulator may request a licence in writing to submit his licence to the chief executive officer of the Regulator within the period specified in the request.

(1) No licence shall be issued unless the premises upon which the activities authorized by the licence will be carried on

(a) comply with the prescribed requirements; and

(b) were approved by the Regulator.

(2) Any licensee who desires to move or extend his business premises to any other premises shall apply to the Regulator in writing for its approval of the new or additional premises, as the case may be.

(3) After such investigation as the Regulator may deem fit, it may grant, on such conditions as it may determine, or refuse an application referred to in subsection (2), but the Regulator shall not grant any application if it is of the opinion

(a) in the case of an application in respect of any additional premises, that the granting of the application will not be in the interest of the diamond trade in general; or

(b) that the new or additional premises, as the case may be, do not comply with the prescribed requirements.

(4) If the Regulator

(a) grants an application referred to in subsection (2), the chief executive officer of the Regulator shall against payment of the prescribed fee endorse on the licence the particulars of the location of the new or additional premises, as the case may be, and such other alterations as the Regulator may direct; or

(b) refuses the application, the chief executive officer of the Regulator shall notify the licensee in writing of the decision of the Regulator.

(1) Subject to subsection (2)

(a) a diamond dealer's licence contemplated in section 26 (a) is valid for a period of five years;

(b) a diamond beneficiation licence contemplated in section 26 (b) or (c) is valid for a period of five years;

(c) a diamond research licence contemplated in section 26 (d) is valid until it is suspended or cancelled in terms of this Chapter;

(d) a temporary diamond buyer's permit contemplated in section 26 (e) is valid for a period of one month;

(e) a diamond trading house licence contemplated in section 26 (f) is valid for a period of five years;

(f) a certificate contemplated in section 26 (g) is valid for a renewable period of 10 years unless the holder of an unpolished diamond disposes of the unpolished diamond, in which case the certificate shall be transferred to the new holder of that unpolished diamond and shall be endorsed by the Regulator to reflect the changes.

(g) a permit contemplated in section 26 (h) is valid for such period as the Regulator may determine.

(2)

(a) The Regulator may renew any licence, permit or certificate referred to in section 26.

(b) This Chapter applies with the necessary changes in respect of an application for the renewal of a licence, permit or certificate.

(c) In the event of the death of the holder of a certificate contemplated in section 26 (g), his or her lawful successor must apply to the Regulator for the certificate to be endorsed to reflect the change in the holder of that unpolished diamond.

[S. 32 substituted by s. 9 of Act 30 of 2005 (wef 1 July 2007).]

Unless a licensee is a natural person who has acquired the approval of the Regulator to transfer his licence in terms of section 34, he shall not in any manner dispose of his licence or allow any other person to acquire any interest therein.

(1) Any natural person who desires to transfer his licence to a company or close corporation shall apply to the Regulator in writing for its

approval of such transfer.

(2) A licensee who has applied in terms of subsection (1) for the Regulator's approval shall furnish such additional particulars in connection

with his application as the Regulator may require.

(3) The Regulator shall not grant its approval for the transfer of a licence to a company or close corporation if it is of the opinion

(a) that the licensee concerned does not hold the controlling interest in the company or close corporation;

(b) that, in the case of the company, any director thereof or, in the case of the close corporation, any member thereof is not a suitable person to carry on the activities authorized by the licence, or to be involved in such activities; or

(c) that an interest which any person has in the company or close corporation is undesirable.

(4) If the Regulator

(a) grants its approval for a transfer referred to in subsection (1), the chief executive officer of the Regulator shall endorse on the licence such alterations as are necessary as a result of the transfer; or

(b) refuses its approval for the transfer, the chief executive officer of the Regulator shall notify the licensee in writing of the decision of the Regulator.

(1) No person shall without the prior written approval of the Regulator acquire a controlling interest in any company or close corporation after a licence has been issued or transferred in terms of this Chapter to that company or close corporation.

(2) The Regulator shall grant the approval referred to in subsection (1) only if it is of the opinion

(a) that the person concerned or, where that person is a company, any director thereof or, where that person is a close corporation, any member thereof is a suitable person to carry on the activities authorized by the licence in question, or to be involved in such activities; or

(b) that the acquisition of a controlling interest by that person will be in the interest of the diamond trade in general.

(1) A licensee which

(a) is a company and is converted into another type or form of company or into a close corporation; or

(b) is a close corporation and is converted into a company, shall within 30 days after such conversion submit its licence and the amended or new certificate of incorporation or the new founding statement, or a certified copy thereof, to the chief executive officer of the Regulator.

[Subs. (1) amended by s. 7 of Act 29 of 2005 (wef 1 July 2007).]

(2) The chief executive officer of the Regulator shall endorse on the licence such alterations as are necessary as a result of a conversion referred to in subsection (1).

(1) If

(a) a licensee has furnished information to the Regulator in or in connection with his application for a licence which is in a material respect untrue;

(b) a controlling interest was acquired without the written approval of the Regulator in a licensee which is a company or close corporation;

(c) any interest, other than an interest referred to in paragraph (b), which in the opinion of the Regulator is undesirable was acquired in a licensee;

(d) a licensee has contravened or failed to comply with a condition of the licence;

(e) a licensee has contravened or failed to comply with a provision of this Act;

(f) a licensee is or was at any time involved in the illegal possession of or trade in unpolished diamonds;

(g) a licensee

(i) has at any time been convicted of any offence which in the opinion of the Regulator renders him unsuitable; or

(ii) is for any other reason in the opinion of the Regulator not a suitable person, to carry on the activities authorized by the licence, or to be involved in such activities; or

(h) a licensee has ceased to carry on the activities authorized by the licence, the Regulator may by way of a notice in writing request the licensee to show cause within the period specified in the notice, which period shall not be less than 20 days after the date of the notice, why his licence should not be suspended or cancelled.

(2) Upon expiry of the period referred to in subsection (1), the Regulator may

(a) suspend the licence in question for such period as it may determine; or

(b) cancel that licence with effect from such date as it may determine.

(3) While a licence is suspended under subsection (2) (a), the licensee concerned shall be deemed not to be licensed.

(4) The Regulator shall cancel the licence of a licensee if requested to do so by the licensee.

(5) For the purposes of paragraph (d), (e), (f) or (g) of subsection (1) 'licensee' includes

(a) where the licensee is a company, any director of the company; or

(b) where the licensee is a close corporation, any member of the close corporation.

(1) If the Regulator suspends or cancels a licence under section 37 (2), the chief executive officer of the Regulator shall notify the licensee in writing of the decision of the Regulator.

(2) Any licensee who has ceased to carry on the activities authorized by his licence or whose licence has been suspended or cancelled under section 37 (2) shall within 30 days after having ceased to carry on such activities or after becoming aware of such suspension or cancellation return his licence to the Regulator.

(1) Any person aggrieved by a decision taken by the Regulator under this Act may in the prescribed manner and within the prescribed period appeal against the decision to the Minister.

(2) The Minister shall consider in the prescribed manner an appeal lodged with him or her in accordance with subsection (1), and may confirm, set aside or vary the decision appealed against or substitute for that decision any other decision which the Regulator in the opinion of the Minister ought to have taken.

[S. 39 substituted by s. 8 of Act 29 of 2005 (wef 1 July 2007).]

No person shall utilize any premises as a diamond trading house unless he or she holds a diamond trading house licence and those premises are registered as a diamond trading house in terms of this Act.

[S. 44 substituted by s. 10 of Act 30 of 2005 (wef 1 July 2007).]

(1) Any person who desires to register any premises as a diamond trading house shall apply to the Regulator in writing for the registration of those premises as a diamond trading house.

[Subs.(1) substituted by s. 11 of Act 30 of 2005 (wef 1 July 2007).]

(2) An applicant for the registration of premises as a diamond trading house shall furnish such additional particulars in connection with his application as the Regulator may require.

(1) Before the Regulator decides on any application referred to in section 45, it may conduct such investigation regarding the application as it may deem fit.

(2) The Regulator may at its discretion grant or refuse an application referred to in section 45, but the Regulator shall not grant any application if

(a) the applicant is not the holder of a diamond trading house licence;

(b) any person has an interest in the applicant that is undesirable;

(c) the premises do not comply with the prescribed requirements; or

(d) ......

[Para. (d) omitted by s. 12 of Act 30 of 2005 (wef 1 July 2007).]

(e) the registration of the premises as a diamond trading house will be contrary to the public interest.

[Subs. (2) substituted by s. 12 of Act 30 of 2005 (wef 1 July 2007).]

(1) If the Regulator grants an application referred to in section 45, the chief executive officer of the Regulator shall against payment of the prescribed fee register the premises in question as a diamond trading house and issue to the applicant a certificate of registration as a diamond trading house on the prescribed form.

(2) The registration of any premises as a diamond trading house in terms of subsection (1) shall be subject to the prescribed conditions.

(1) No producer, manufacturer of synthetic diamonds or dealer shall sell any unpolished diamond elsewhere than on

(a) the business premises of a licensee;

(b) any premises licensed as a diamond trading house in terms of this Act;

(bA) the premises of any diamond exchange and export centre established by the Regulator in terms of this Act;

(bB) the premises of the State Diamond Trader; or

(c) ......

[Para. (c) omitted by s. 13 of Act 30 of 2005 (wef 1 July 2007).]

(d) such other premises as the Regulator may approve under section 49 on application in writing by such producer, manufacturer or holder.

(2) No licensee shall receive or purchase any unpolished diamond elsewhere than on

(a) the business premises of a licensee;

(b) any premises licensed as a diamond trading house in terms of this Act;

(bA) the premises of any diamond exchange and export centre established by the Regulator in terms of this Act;

(bB) the premises of the State Diamond Trader; or

(c) ......

[Para. (c) omitted by s. 13 of Act 30 of 2005 (wef 1 July 2007).]

(d) such other premises as the Regulator may approve under section 49 on application in writing by the licensee.]

[S. 48 substituted by s. 13 of Act 30 of 2005 (wef 1 July 2007).]

(1) If an application for the approval of premises is made to the Regulator in terms of section 48 (1) (d) or (2) (d), the Regulator may conduct such investigation regarding the application as it may deem fit.

(2) The Regulator may at its discretion grant, on such conditions as it may determine, or refuse an application for the approval of premises, but the Regulator shall not grant any application if it is of the opinion

(a) that the granting of the application will not be in the interest of the diamond trade in general; or

(b) that the premises do not comply with the prescribed requirements.

(3) If the Regulator grants an application for the approval of premises, the chief executive officer of the Regulator shall against payment of the prescribed fee issue to the applicant concerned a certificate of approval in respect of the premises on the prescribed form.

(4) The chief executive officer of the Regulator shall endorse on such certificate any condition determined by the Regulator under subsection

(2).

(1) Subject to this section, no diamond beneficiator or researcher shall polish any diamond or crush or set any unpolished diamond in any tool, implement or other article elsewhere than on his or her business premises.

(2) A diamond beneficiator may apply to the Regulator to polish diamonds on such premises other than his or her business premises and for such period as the Regulator may approve.

(3) Section 49 shall mutatis mutandis apply in respect of an application by a diamond beneficiator in terms of subsection (2).

[S. 50 substituted by s. 15 of Act 30 of 2005 (wef 1 July 2007).]

No natural person shall sell or purchase any unpolished diamond on behalf of a juristic person unless he is registered as an authorized representative of the juristic person in terms of this Chapter.

(1) Any juristic person may apply to the Regulator on the prescribed form for the registration of a natural person as its authorized representative.

(2) A juristic person which has applied in terms of subsection (1) for the registration of an authorized representative shall furnish such additional particulars in connection with its application as the Regulator may require.

(1) The Regulator shall not grant any application referred to in section 53 if it is of the opinion

(a) that the natural person concerned does not comply with the prescribed requirements; or

(b) that a sufficient number of authorized representatives have already been registered in respect of the juristic person.

(2) If the Regulator grants an application referred to in section 53, the chief executive officer of the Regulator shall register the natural person concerned as an authorized representative of the juristic person and issue to the juristic person a certificate of registration as an authorized representative of the juristic person on the prescribed form.

No licensee shall receive or purchase any unpolished diamond

(a) for any purpose other than the activities authorized by his licence; or

(b) from any person not lawfully in possession of that diamond.

(1) Whenever a licensee receives or purchases any unpolished diamond he shall forthwith complete in duplicate a note of receipt or purchase on the prescribed form.

(2) The original of every note of receipt or purchase completed in terms of subsection (1) shall be handed over to the person who delivered or sold the unpolished diamond, and the copy thereof shall be retained by the licensee for a period of at least five years after the date on which he or she received or purchased the unpolished diamond.

[Subs. (2) substituted by s. 11 of Act 29 of 2005 (wef 1 July 2007).]

(1) Every producer, manufacturer of synthetic diamonds, dealer or diamond beneficiator shall keep or cause to be kept the prescribed register, in which shall be entered the prescribed particulars in respect of unpolished diamonds and polished synthetic diamonds.

[Subs. (1) substituted by s. 16 (a) of Act 30 of 2005 (wef 1 July 2007).]

(2) Every entry referred to in subsection (1) shall be made, in the case of a producer, within 24 hours and, in the case of any other person, within 7 days after the occurrence of the event recorded.

(3) Every person required to keep a register in terms of subsection (1) shall retain the register for a period of at least five years after the date on which the last entry was recorded therein.

[Subs. (3) substituted by s. 16 (b) of Act 30 of 2005 (wef 1 July 2007).]

The Regulator shall

(a) implement, administer and control all matters relating to the purchase, sale, beneficiation, import and export of diamonds; and

(b) establish diamond exchange and export centres, which shall facilitate the buying, selling, export and import of diamonds and matters connected therewith.

[S. 59 substituted by s. 17 of Act 30 of 2005 (wef 1 July 2007).]

(1) No exporter shall export any unpolished diamond from the Republic unless

(a) that diamond has been registered and released for export in terms of this Act; and

(b) that exporter is registered in terms of the Diamond Export Levy Act.

(2) No importer shall import any unpolished diamond into the Republic unless

(a) that diamond has been registered and released for import in terms of this Act; and

(b) that importer is registered under the Diamond Export Levy Act.

(3) The Regulator shall confiscate any unpolished diamond that does not satisfy the requirements of the Kimberley Process Certification Scheme, as prescribed.

[S. 60 substituted by s. 19 of Act 14 of 2007 (wef 1 November 2008).]

(1) Subject to sections 48A and 59, any exporter who desires to register any unpolished diamond for export shall at any diamond trading house and export centre furnish the registering officer with a return on the prescribed form in respect of that unpolished diamond.

[Subs. (1) substituted by s. 14 of Act 29 of 2005 (wef 1 July 2007).]

(2) In the return furnished in terms of subsection (1) the exporter shall specify the value of the unpolished diamond that was offered by such person at the diamond trading house and export centre and declare that the value so specified is to the best of his or her knowledge and belief the fair market value of that unpolished diamond.

[Subs. (2) substituted by s. 14 of Act 29 of 2005 (wef 1 July 2007).]

(2A) Notwithstanding subsection (1), any exporter that desires to register any unpolished diamond for export that pursuant to section 74 is not subject to section 48A shall at any diamond exchange and export centre furnish the registering officer with a return on the prescribed form in respect of that diamond specifying the value of that diamond and declaring that the value so specified is to the best of his or her knowledge and belief the fair market value of that diamond.

[Subs. (2A) inserted by s. 19 of Act 14 of 2007 (wef 1 November 2008).]

(3) A return referred to in subsection (1) shall be accompanied by the unpolished diamond in question and the prescribed documents.

(4) If the registering officer is satisfied that an exporter has complied with the provisions of this section and, where applicable, section 77, he shall register the unpolished diamond in question for export.

(1) If the Regulator is satisfied that an unpolished diamond will be exported from the Republic

(a) solely for purposes of

(i) being exhibited or displayed; or

(ii) obtaining an expert opinion as to the fair market value or manner of beneficiating that diamond; and

(b) for no longer period as the Regulator may determine (but not exceeding a period of 180 days from the date upon which that diamond was released for export as described in section 69), that diamond will not be subject to the provisions of section 48A.

(2) If the Regulator is satisfied that an unpolished diamond may be exported as described in subsection (1), a registering officer will issue the exporter of that diamond with a temporary exemption certificate stipulating

(a) that the diamond is not subject to section 48A;

(b) the value of that diamond as released for export in terms of section 69; and

(c) any other particulars required to be furnished by the Regulator in respect of that diamond.

(3) The exporter of an unpolished diamond that is exported as described in subsection (2) is in contravention of this Act if that diamond upon its reimportation is

(a) not registered for import as described in section 61A on a date within the date determined by the Regulator as described in subsection (1) in respect of that diamond; or

(b) is physically different in any manner as of the date that diamond was released for export as described in section 69.

(4) If the exporter of any unpolished diamond that is exported as described in subsection (2) contravenes subsection (3), that exporter shall be subject to a fine equal to 25 per cent multiplied by that diamond's value as released for export in terms of section 69 of the Diamonds Act.

(5) The Regulator may reduce the fine described in subsection (4) (c) up to 20 percentage points if he or she is satisfied that an exporter contravened subsection (3) for reasons beyond the exporter's control.

(6) Any fine imposed in terms of this section shall be paid by the exporter concerned to the Regulator within 30 days of being notified by the Regulator that such amount is due.

(7) Any money paid to the Regulator as described in subsection (6) shall be paid into the National Revenue Fund within seven days after receipt thereof.

[S. 64 substituted by s. 19 of Act 14 of 2007 (wef 1 November 2008).]

(1) The registering officer

(a) shall examine any unpolished diamond registered for export in terms of this Act and verify any particulars furnished in respect thereof; and

(b) may retain such diamond in order to have the value thereof assessed in the prescribed manner or by any person designated by the Regulator for that particular valuation or for valuation in general.

(2) The person who has assessed the value of an unpolished diamond referred to in subsection (1) (b), shall furnish the registering officer with a certificate in which he or she specifies the value of that unpolished diamond and the name of a person who is prepared to purchase that unpolished diamond at the value so specified.

(3) A certificate furnished in terms of subsection (2) shall be deemed to be an offer to the exporter by the person specified therein to purchase the unpolished diamond in question at the value specified therein.

[S. 65 substituted by s. 15 of Act 29 of 2005 (wef 1 July 2007).]

(1) If the difference in value of any unpolished diamond

(a) as specified in the return referred to in section 61 (2) in relation to the value of that diamond as released for export in terms of section 69; or

(b) as specified in the return referred to in section 61A (2) in relation to the value of that diamond as released for import in terms of section 69B, is greater than 20 per cent, the Regulator shall impose upon the exporter or importer concerned a fine equal to 20 per cent of the value of that diamond as released in terms of section 69 or section 69B (as the case may be).

(2) Any fine imposed in terms of this section shall be paid by the exporter or importer concerned to the Regulator within 30 days of the date that fine was imposed.

(3) Any money paid to the Regulator as described in subsection (2) shall be paid into the National Revenue Fund within seven days after receipt thereof.

[S. 67 amended by s. 17 of Act 29 of 2005 (wef 1 July 2007) and substituted by s. 19 of Act 14 of 2007 (wef 1 November 2008).]

(1) The registering officer shall not release any unpolished diamond for export unless

(a) that unpolished diamond was registered for export in terms of this Act;

(b) a certificate of exemption has been issued to the exporter in respect of that unpolished diamond in terms of this Act;

(c) the exporter has paid any fine imposed upon him or her in terms of section 67;

(d) the provisions of any other law relating to the export of that unpolished diamond have been complied with;

(e) that unpolished diamond has been made up in a parcel in such manner as the registering officer may determine; and

(f) the prescribed certificate, which certifies that the unpolished diamond for export has been handled in a manner that meets the minimum requirements of the Kimberley Process Certification Scheme, accompanies the parcel contemplated in paragraph (e).

(2) The registering officer shall release an unpolished diamond for export by sealing the parcel contemplated in subsection (1) (e) with the seal of the Regulator.

(3) Any packet contemplated in subsection (2) may not be exported from the Republic if a bill of entry delivered in terms of section 38 (3)(a) of the Customs and Excise Act, 1964 (Act 91 of 1964) is not delivered in respect of that packet within 10 business days of the date the Regulator released that packet.

[Subs. (3) added by s. 19 of Act 14 of 2007 (wef 1 November 2008).]

[S. 69 substituted by s. 19 of Act 29 of 2005 (wef 1 July 2007).]

No person shall export any polished diamond, irrespective of whether it is set in jewellery or not, from the Republic unless that diamond has been registered and released for export in terms of this Act.

[S. 70 amended by s. 30 (d) of Act 29 of 2005 (wef 1 July 2007).]

(1) Any person who desires to register any polished diamond for export shall at a prescribed export centre furnish the registering officer with a return on the prescribed form in respect of that diamond.

(2) A return referred to in subsection (1) shall be accompanied by the polished diamond in question and the prescribed documents.

(3) If the registering officer is satisfied that the provisions of this section have been complied with, he shall register the polished diamond in question for export.

The registering officer

(a) shall examine any polished diamond registered for export in terms of this Act and verify any particulars furnished in respect thereof; and

(b) may retain such diamond in order to

(i) have the value thereof assessed in the prescribed manner or by any person designated by the Regulator for that particular valuation or for valuations in general; or

(ii) determine whether it is in fact a polished diamond.

[S. 72 substituted by s. 21 of Act 29 of 2005 (wef 1 July 2007).]

(1) The registering officer shall not release any polished diamond for export unless

(a) that diamond was registered for export in terms of this Act;

[Para. (a) amended by s. 30 (d) of Act 29 of 2005 (wef 1 July 2007).]

(b) the registering officer is satisfied that the provisions of any other law relating to the export of that diamond have been complied with; and

(c) that diamond has been made up in a parcel in such manner as the registering officer may determine.

[Para. (c) substituted by s. 22 (a) of Act 29 of 2005 (wef 1 July 2007).]

(2) The registering officer shall release a polished diamond for export by sealing the parcel referred to in subsection (1) (c) with the seal of the Regulator.

[Subs. (2) substituted by s. 22 (b) of Act 29 of 2005 (wef 1 July 2007).]

The Minister may by notice in the Gazette exempt any person or category of persons from the provision of section 48A, 60 or 70 on such conditions as may be specified in the notice.

[S. 74 substituted by s. 18 of Act 30 of 2005 (wef 1 July 2007).]

If in connection with the export of diamonds the question arises whether any diamond is an unpolished or a polished diamond the Regulator shall decide such question.

[S. 75 substituted by s. 101 of Act 88 of 1996 (wef 22 November 1996).]

For the purposes of this Act, the value of any unpolished or polished diamond shall be assessed

(a) by assessing jointly the value of all diamonds indicated on the return referred to in section 61 (1) or 71 (1), as the case may be; and

(b) on such further basis as may be prescribed.

[S. 76 amended by s. 30 (d) of Act 29 of 2005 (wef 1 July 2007).]

(1) The Minister may at any time on the recommendation of the Regulator and by notice in the Gazette

(a) determine the maximum quantity in value of unpolished diamonds which may during the period specified in the notice be disposed of or exported by any producer or a producer so specified;

(b) direct that the value of all unpolished diamonds, or of a class of unpolished diamonds specified in the notice, won or recovered by any producer or a producer so specified be assessed in the manner specified in the notice, and prohibit any such producer or specified producer to sell such diamonds, or class of diamonds, without the approval of the Minister at a price below the value so assessed;

(c) prohibit any producer or a producer specified in the notice to dispose of any unpolished diamond to, or export it through the agency of, any person other than a person specified in the notice;

(d) declare that

(i) from the date specified in the notice no agreement entered into by any producer or a producer so specified for the disposal of unpolished diamonds shall be valid unless such an agreement is approved by the Minister; and

(ii) any agreement entered into prior to the date of the notice by any producer or a producer so specified for the disposal of unpolished diamonds shall be invalid in respect of unpolished diamonds delivered after that date in pursuance of such an agreement unless such an agreement is approved by the Minister.

(2) The Minister may at any time amend or withdraw a notice referred to in subsection (1) by like notice in the Gazette.

(1) The Regulator may in writing direct any person

(a) to furnish the Regulator periodically or otherwise and before the dates or within the period specified in the direction with such information as the Regulator may consider necessary to perform effectively its functions under this Act and as may be available to any such person; or

(b) to submit to the Regulator within the period specified in the direction any register, book or document in the possession or custody or under the control of any such person which contains or is believed to contain any such information.

(2) The Regulator may require that information requested under subsection (1) (a) be furnished in the form of a sworn statement.

(3) The Regulator may examine a register, book or document submitted to it in terms of subsection (1) (b) or make an extract therefrom or a copy thereof.

(1) The Regulator may inquire into any matter to which this Act relates.

(2) For the purposes of any such inquiry, the Regulator may

(a) summon any person who in its opinion may be able to give information of material importance concerning the subject of the inquiry, or who is believed to have in his possession or custody or under his control any register, book, document or thing which may have a bearing on that subject, to appear before the Regulator;

(b) call upon, and administer an oath to, or accept an affirmation from, any person present at the inquiry who was or could have been summoned under paragraph (a);

(c) interrogate or require any person who was called upon under paragraph (b) to produce a register, book, document or thing referred to in paragraph (a).

(3) A summons for the attendance before the Regulator of any person shall be in the form determined by the chief executive officer of the Regulator, shall be signed by the chief executive officer of the Regulator, and shall be served in the same manner as a summons for the attendance of a witness at a civil action in a magistrate's court.

(4) The law relating to privilege as applicable to a person summoned to give evidence or to produce a document or thing before a court of law shall be applicable in respect of the interrogation of, or the production of a register, book, document or thing by, any person referred to in subsection (2) (c).

(1) The Regulator may appoint any person in its service as an inspector.

(2) An inspector shall be furnished with a certificate of appointment signed by the chief executive officer of the Regulator and stating that he has been appointed as an inspector under this Act.

(1) In addition to the other functions assigned to an inspector or a police official by or under any other law, the inspector or police official may

(a) at any reasonable time enter any premises or other property or any vessel on which any activity in connection with unpolished diamonds is carried on and perform on any such premises, property or vessel such acts as may be necessary to ascertain whether the provisions of this Act have been or are complied with;

(b) if he has reasonable grounds to suspect that an offence under this Act has been committed in respect of any diamond, or has been or is about to be committed in respect of or by means of any machinery, at any time enter and search any premises or other property or any vessel, vehicle or aircraft on or in which such diamond or machinery is suspected to be found;

(c) if he has reasonable grounds to suspect that any machinery is used or intended for use in connection with the polishing of diamonds, examine, test or take photographs of such machinery;

(d) question any person who in his opinion may be capable of furnishing any information on any matter to which this Act relates, and for that purpose require a vessel or vehicle to be stopped;

(e) if he has reasonable grounds to suspect that any person has committed an offence under this Act in respect of any diamond, search or cause to be searched any such person or any article in his possession or custody or under his control: Provided that a woman shall be searched by a woman only;

(f) require from any person who has in his possession or custody or under his control any register or document under this Act, to produce to him forthwith, or at such time and place as may be determined by him, any such register or document;

(g) examine any such register or document or make an extract therefrom or a copy thereof, and require from any person an explanation of any entry in any such register or document;

(h) if he has reasonable grounds to suspect that any packet which is being or has been transmitted through the post contains any diamond, notwithstanding anything to the contrary in any other law contained, stop or cause to be stopped either during transit or otherwise any such packet, and open and examine any such packet in the presence of the person by whom it was dispatched, or any other suitable person;

(i) seize any such diamond, machinery, register or document which appears to provide proof of a contravention of a provision of this Act.

(2) An interpreter or a police official may accompany an inspector when he performs his functions under this Act.

(3) An inspector shall not perform any function under this Act unless he is at the time of performing that function in possession of a certificate of appointment referred to in section 80 (2), which certificate shall be produced at the request of any person affected by the performance of that function.

Any person who

(a) contravenes a provision of section 18, 19 (1), 20, 21 or 55;

[Para. (a) substituted by s. 11 of Act 10 of 1991 (wef 3 April 1991).]

(b) places any unpolished diamond in the possession, or on the premises or in or on the vessel, vehicle or aircraft, of any other person with intent that such other person be charged with an offence under this Act;

(c) contravenes a provision of section 22, 23 or 24; or

(d) fails to comply with a provision of section 25 (1), shall be guilty of an offence.

Any person who

(a) contravenes a determination, direction or prohibition under section 77 (1), or delivers any unpolished diamond in pursuance of an agreement which is invalid by virtue of the said section;

(b) contravenes section 33, 35 (1), 44, 48, 50 (1) or 52;

(c) contravenes or fails to comply with a condition of a licence, permit or certificate under this Act;

(d) fails to comply with section 36 (1), 38 (2), 48, 56 or 57; or

(e) fails to comply with a request or notice under section 30 (4) or 93 (1), shall be guilty of an offence.

[S. 83 amended by s. 12 of Act 10 of 1991 (wef 3 April 1991) and substituted by s. 23 of Act 29 of 2005 (wef 1 July 2007).]

Any person who

(a) contravenes section 60 or 69A;

(b) contravenes section 70;

(c) in connection with the registration of any unpolished or polished diamond for export wilfully furnishes information or makes a statement which is false or misleading; or

(d) fails to comply with section 67 (3), shall be guilty of an offence.

[S. 84 substituted by s. 24 of Act 29 of 2005 (wef 1 July 2007).]

Any person who

(a) fails to comply with a direction under section 78 (1);

(b) has been duly summoned under section 79 and who fails, without sufficient cause

(i) to attend at the time and place specified in the summons; or

(ii) to remain in attendance until excused from further attendance by the person presiding at the inquiry;

(c) has been called upon under section 79 (2) (b) and who refuses to be sworn or to make an affirmation as a witness;

(d) fails, without sufficient cause

(i) to answer fully and satisfactorily any question lawfully put to him under section 79 (2) (c); or

(ii) to produce any register, book, document or thing in his possession or custody or under his control which he has been required to produce under section 79 (2) (c);

(e) hinders or obstructs any inspector or police official in the performance of his functions under this Act;

(f) refuses or fails to comply to the best of his ability with any requirement or request made by any inspector or police official in the performance of his functions under this Act;

(g) refuses or fails to answer to the best of his ability any question which any inspector or police official in the performance of his functions under this Act has put to him;

(h) wilfully furnishes to any inspector or police official information which is false or misleading; or

(i) except for the purposes of performing his functions under this Act or when required to do so by any court or under any law, discloses to any other person any information acquired by him in the performance of his functions under this Act,

shall be guilty of an offence.

Any person who

(a) in or in connection with an application in terms of this Act wilfully furnishes information or makes a statement which is false or misleading;

(b) with intent to defraud, alters, defaces, destroys or mutilates any register or document under this Act;

(bA) with intent to defraud, sells any synthetic diamond or enhanced diamond without disclosing that it is a synthetic diamond or an enhanced diamond, as the case may be or falsely declares an unpolished diamond as a synthetic diamond or an enhanced diamond when it is not a synthetic diamond or an enhanced diamond, as the case may be;

(c) falsely gives himself or herself out

(i) to be the holder of a licence or permit under this Act;

(ii) to be registered as an authorized representative of any juristic person; or

(iii) to be an inspector, shall be guilty of an offence.

[S. 86 substituted by s. 25 of Act 29 of 2005 (wef 1 July 2007).]

Any person who is convicted of an offence under this Act shall be liable

(a) in the case of an offence referred to in section 82 (a) or (b), to a fine not exceeding R250 000, or to imprisonment for a period not exceeding ten years, or to both such fine and such imprisonment;

[Para. (a) amended by s. 13 (a) of Act 10 of 1991 (wef 3 April 1991).]

(b) in the case of an offence referred to in section 82 (c), 83 (a) or 84 (a), to a fine not exceeding R100 000, or to imprisonment for a period not exceeding four years, or to both such fine and such imprisonment;

[Para. (b) amended by s. 13 (b) of Act 10 of 1991 (wef 3 April 1991).]

(c) in the case of an offence referred to in section 83 (b) or 84 (b), to a fine not exceeding R50 000, or to imprisonment for a period not exceeding two years, or to both such fine and such imprisonment; and

[Para. (c) amended by s. 13 (c) of Act 10 of 1991 (wef 3 April 1991).]

(d) in the case of an offence referred to in section 82 (d), 83 (c), (d) or (e), 84 (c) or (d), 85 or 86, to a fine not exceeding R25 000, or to imprisonment for a period not exceeding twelve months, or to both such fine and such imprisonment.

[Para. (d) amended by s. 13 (d) of Act 10 of 1991 (wef 3 April 1991).]

(1) An act or omission of an employee or agent, acting within the course and scope of his or her employment, which constitutes an offence under this Act shall be deemed to be the act or omission of his or her employer or principal, and that employer or principal may be convicted and sentenced in respect of it unless he or she proves

(a) that he did not permit or connive at such act or omission; and

(b) that he took all reasonable steps to prevent an act or omission of the kind in question; and

(c) that an act or omission, whether legal or illegal, of the character of the act or omission charged did not under any condition or in any circumstance fall within the course of the employment or the scope of the authority of the employee or agent concerned.

[Subs. (1) amended by s. 27 of Act 29 of 2005 (wef 1 July 2007).]

(2) For the purposes of subsection (1) (b) the fact that an employer or principal forbade an act or omission of the kind in question shall not by itself be regarded as sufficient proof that he took all reasonable steps to prevent such an act or omission.

(3) The provisions of subsection (1) shall not relieve the employee or agent concerned from liability to be convicted and sentenced in respect of the act or omission in question.

(1) Notwithstanding anything to the contrary in any other law contained, any money or property which a person has paid or delivered to an inspector or a member or agent of the South African Police in pursuance of an agreement for the delivery or acquisition of unpolished diamonds, shall upon the conviction of that person of an offence under this Act in connection with such an agreement be forfeited to the State.

(2)

(a) A forfeiture in terms of subsection (1) shall not affect any right which any person other than the convicted person may have to the property forfeited if he satisfies the court concerned

(i) that he did not know that such property was being used or would be used for the purpose of or in connection with the commission of the offence in question; or

(ii) that he could not prevent such use.

(b) Paragraph (a) shall not apply to any money so forfeited.

(3) The provisions of section 35 (4) of the Criminal Procedure Act, 1977 (Act 51 of 1977), shall mutatis mutandis apply in respect of a right referred to in subsection (2), and for the purposes of such application

(a) a reference in the said section to the court shall be construed as a reference to the court which has convicted the person referred to in subsection (1); and

(b) a reference in the said section to a declaration of forfeiture shall be construed as a forfeiture in terms of subsection (1).

Notwithstanding anything to the contrary in any other law contained, a magistrate's court shall have jurisdiction to impose any penalty provided for in this Act.

For the purposes of implementing an agreement entered into by the Government of the Republic and the government of any other country or territory with a view to the promotion or regulation of the production, processing or marketing of diamonds, the Regulator may in the Republic or in any such country or territory and on behalf of that government or any body in any such country or territory perform the functions set out in the agreement in question or determined thereunder.

(1) The Minister may after consultation with the Regulator make regulations as to

(a) the manner in which meetings of the executive or any other committee of the Regulator shall be convened, the procedure and quorum at those meetings and the manner in which minutes of those meetings shall be kept;

(b) the prevention of illegal acts relating to diamonds;

(c) the registration of persons in the service, or involved in the activities, of a licensee and the keeping of a register of persons so registered;

(d) control over and the searching of those persons;

(e) the imposition of a restriction on or prohibition of any particular interest in the activities carried on by a producer or licensee;

(f) the cancellation of any registration under this Act or of any permit, certificate or other authority issued or obtained in terms of this Act;

(g) the payment of witness fees to persons summoned to appear before the Regulator;

(h) ......

[Para. (h) repealed by s. 19 of Act 14 of 2007 (wef 1 November 2008).]

(i) the fees payable to the Regulator for services rendered by it;

(j) the performance of the Regulator's functions in implementing an agreement referred to in section 94;

[Para. (j) substituted by s. 28 (a) of Act 29 of 2005 (wef 1 July 2007).]

(jA) guidelines for and implementation of broadbased socioeconomic empowerment in terms of section 100 of the Minerals and Petroleum Resources Development Act;

[Para. (jA) inserted by s. 28 (b) of Act 29 of 2005 (wef 1 July 2007).]

(k) any matter required or permitted to be prescribed by regulation under this Act; and

(l) in general, any matter which the Minister may consider necessary or expedient to prescribe or regulate in order that the objects of this Act may be achieved, and the generality of this paragraph shall not be limited by the preceding paragraphs.

(2) Regulations made under subsection (1) may prescribe penalties for any contravention thereof or failure to comply therewith.

[Subs. (2) substituted by s. 28 (c) of Act 29 of 2005 (wef 1 July 2007).]

The Regulator shall consult the Minister in the exercise of such powers of the Regulator as the Minister may from time to time determine.

(1) The Minister may delegate to any officer of the Department of Mineral and Energy Affairs any power conferred upon the Minister by this Act, excluding the power referred to in section 95 (1).

(2) The Regulator may

(a) delegate to the chairman, chief executive officer of the Regulator, registration officer or any person in the service of the Regulator any power conferred upon the Regulator by this Act on such conditions as the Regulator may determine; or

(b) authorize any such chairman, officer or person to perform any duty assigned to the Regulator by this Act.

(3) The chief executive officer of the Regulator may

(a) delegate to any person in the service of the Regulator any power conferred upon the chief executive officer of the Regulator by this Act, excluding a power delegated to the chief executive officer of the Regulator under subsection (2) (a); or

(b) authorize any such person to perform any duty assigned to the chief executive officer of the Regulator by this Act.

(4) Any delegation under subsection (1), (2) (a) or (3) (a) shall not prevent the exercise of the relevant power by the Minister himself, Regulator itself or chief executive officer of the Regulator himself, as the case may be.

(1) Subject to the provisions of this section, the laws mentioned in the Schedule are hereby amended or repealed to the extent indicated in the third column thereof.

(2) Anything done by virtue of a provision repealed by subsection (1) and which is permitted or required to be done in terms of a provision of this Act, shall be deemed to have been done in terms of the latter provision.

(3) Any licence deemed to have been issued in terms of a provision of this Act, excluding a temporary licence issued for a particular period, shall remain in force until it is suspended or cancelled in terms of Chapter IV.

(4) and (5) ......

[Subss. (4) and (5) deleted by s. 29 of Act 29 of 2005 (wef 1 July 2007).]

This Act shall be called the Diamonds Act, 1986, and shall come into operation on a date fixed by the State President by proclamation in the Gazette.