The State Diamond Trader

STRATEGIC PLANand BUDGET 2014 – 2015

State Diamond Trader: MANDATE

The State Diamond Trader’s (SDT) mandate is: To Promote the diamond beneficiation industry in South Africa

through research and development of the Industry. The Mandate is derived from Section 14 the Diamonds

Amendment Act, 29 of 2005.

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SDT: VISION

VISION:

It is the Vision of the SDT to be a catalyst for the transformation and growth of the local diamond beneficiation industry.

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SDT: MISSION

The Mission of the SDT is to: – Ensure acquisition of and equitable access to rough diamonds with

particular focus on HDSAs;

– Promote the growth of the diamond beneficiation industry through relevant interventions; and to

– Establish and maintain a transformed client base of local diamond beneficiators.

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THE BUSINESS OF THE SDT

The SDT sells rough diamonds to approved customers through an application and approval process conducted annually

The entity is eligible by law and proclamation to purchase up to 10% of the run of the mine from all diamond producers in South Africa

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Strategic Objective 1

To contribute to the growth of the local diamond beneficiation industry

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Key Activities:

Implement the Marketing & Promotion strategy Implement Sales Strategy Develop and establish an incubation facility Facilitate training for 10 new HDSA entrants Facilitate access to international and local exhibitions and marketing

platforms for HDSA clients and new entrants Identify enterprises for growth into large scale beneficiation businesses Increase supply to the enterprise targeted for growth

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Outcomes: Objective 1

Strategic Objective 1 is intended to achieve the following outcomes:

-A sustainable, growing and transformed diamond beneficiation industry;

-An increase in the amount of rough diamonds beneficiated in SA;

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Outcomes: Objective 1 (continued)

- Enterprise Development in the Diamond Industry (SMMEs); and

- The establishment of large scale HDSA owned entities which are sustainable in the diamond cutting and polishing industry.

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Impact: Strategic Objective 1

The impact of the strategic objective will be, inter alia:-Job creation;

-The promotion of South Africa as a diamond beneficiation centre;

-An enabling environment and a platform for sustainable enterprise development client.

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Strategic Objective 2

To develop efficient means to market diamonds not suitable for local beneficiation

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Key Activities

Engage and agree with relevant stakeholders in the diamond pipeline on special purchasing model

Unlock and increase rough diamonds suitable for local beneficiators

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Outcome: Objective 2

- To be the leading and innovative rough diamond trader for the local beneficiation industry

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Impact: Strategic Objective 2

- An enhanced supply and increased availability of diamonds for local beneficiation

- To have all available rough diamonds suitable for local beneficiation made available to the local industry

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Strategic Objective 3

To develop and acquire appropriate financial and human resource capacity for the SDT

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Outcome: Objective 3

To be an efficient, innovative and development orientated organisation (in terms of learning and development)

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Key Activities

Develop and implement a funding strategy for the SDT Review HR Plan Efficiently implement HR Plan Identify skills gaps and capacity building requirements Implement HR capacity building dashboard

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Impact: Objective 3

The impact of the strategic objective will be:

-A highly motivated and satisfied workforce;

-Staff that can provide an excellent service to stakeholders; and

-Staff that will essentially act as ambassadors of the State Diamond Trader

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Strengths and Limitations

Strengths

Legislated position of the SDT

Access to rough diamonds

Perception of diamonds

Limited competition

Limitations

Funding Model

Availability of rough diamonds suitable for beneficiation in South Africa

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Budget for 2014-2015

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Sales 534,254,933

Cost of Goods Sold (513,706,667)

Gross Profit 20,548,267

Overheads (16,818,827)

EBIT 3,729,440

Interest income 2,811,885

Interest expenses (2,484,798)

Net income/(loss) 4,056,526

Strategic objectives linked to DMR and National outcomes

National Outcome DMR Programme SDT Strategic Objectives

 SDT Mandate

Promote the diamond beneficiation industry through research and development  

Create a better South Africa and contribute to a better and safer Africa

Mineral Regulation   To contribute to the growth of the local diamond beneficiation industry

Effective ,efficient and development orientated Public Service Administration

Develop and acquire appropriate financial and human resource capacity  

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The State Diamond Trader