Jewellery Council’s legal challenge to the erroneous application of the Mining Charter policy document

The Jewellery Council urgently needs your help as it prepares a legal challenge to the ways in which the Mining Charter policy document is being erroneously applied to jewellery manufacturers. A copy of a presentation by Edward Nathan Sonnenbergs (ENS) outlining its implications can be found here. The Council is concerned that most jewellers don’t seem to understand the ramifications of the Charter, which include forcing a sole proprietor to change to a company, and demanding that companies with a turnover of over R1 million acquire a 26% beneficiation partner (BEE partner) in order to comply. The SADPMR have started conducting transformation audits even though Jewellers Permits are not due for renewal. You can view the Transformation Audit Form which they will be requiring you to complete here.

Briefly, the legal challenge will be based around the following terminology in the Precious Metals Act and the Mining Charter, which suggests a recommendation and not an enforceable requirement:

“… the South African Diamond and Precious Metals Regulator (SADPMR) to have regard to the requirements …. “

The legal fees are estimated at R800 000, towards which the JCSA Board has approved an amount of up to R400 000 with the provision of a Rand for Rand match from members. The Council believes they have a strong case but the shortfall will have to be borne by the industry and the response from members has been very poor. This requested contribution is not obligatory, but essential for the process to proceed. In failing to collect the remaining R400 000 from members, the legal process will have to be terminated. This is the only opportunity to challenge the implications of the Charter. If all members contributed R1000-R2000, the target would be reached.

If you cannot contribute financially and you feel you have been forced by the Regulator to try to fulfil an unrealistic compliance requirement, it is imperative that you participate in the test case process, which will help to strengthen the Council’s legal argument. Ideally, these incidents should be as current as possible, and you are welcome to contact JCSA Chief Executive Officer Lorna Lloyd if you wish to discuss your business scenario.

Jewellers who have queries regarding compliance can phone the SADPMR on 011 223-7000 and request to be put through to the Licensing Department. Please note that regarding renewals, a licence/permit/certificate remains valid until the application has been granted or refused. Therefore operations may continue provided the renewal application has been lodged timeously.

We must stand together as an industry to protect our livelihoods. Please consider a contribution! The bank details are:
Nedbank Parktown
Parktown Branch
Account number: 1944 121 854
Branch code: 194405
Deposit reference: company name-MC2019

Once the process has been completed, all unused funds will be proportionately refunded.