18 Aug 2019
DiamondWorld Directory
Home |
News
Home
Export tax could cut South African diamond supplies:Analyst
Local cutting industry to grow only by reducing costs, improved productivity
By: AFNS
|
Apr 25 2007 12:00AM
|
Reference: 855  

DecreaseIncrease

The inclusion of a 5 percent export tax, which is part of the South African government’s Diamond Amendment Act, may have the effect of cutting rough diamond supplies by up to 30 percent and, ultimately, result in the loss of about 5,000 mining jobs, said analyst James Allan, speaking at the Diamonds Africa 2007 conference in Johannesburg.

Allan said that the 5 percent export tax would create a price differential for local diamond cutters that could create an additional 500 jobs in the cutting industry, but added the “unintended consequences” would be a less competitive South African mining industry, which may result in a dramatic falloff in production and a much larger reduction in employment in the mining sector.

In Allan’s opinion, the local cutting industry can only be grown by reducing costs and improved productivity. He said that South African cutters find it very difficult to compete with India and China, when their cutting costs vary between $45 per carat $100 per carat, whereas in India the costs are between $1 per carat and $8 per carat and in China between $6 per carat $12 par carat.

For South Africa to become a major diamond beneficiation center, it would have to cut its production costs to not more than $20 per carat, Hotchreiter stated.

Another unintended consequence of the Diamond Amendment Act, Allan said, is that South Africa could become a diamond smuggling center.

Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
Advertisement
M. Suresh234x60
Search News by City
Advertisement
Kosher 23460
Advertisement
HouseAd_Trade Fair
Recent Issue
2019
AVAILABLE NOW...!
Advertisement
Kosher 23460
News in Pictures
Videos
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
Spotted: Who Wore What (August 2018)
Pictures: 4
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 16512
GJEPC Chairman Interview
Views: 15284
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 22139
Promo for IJ Awards 2012 at NDTV Profit
Views: 34946
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 38385
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 12690
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 36431
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 34387
Member of:
Supporter of: