the state diamond trader strategic plan and budget 2014 – 2015
TRANSCRIPT
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.
2
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.
3
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.
4
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
5
Strategic Objective 1
To contribute to the growth of the local diamond beneficiation industry
6
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
7
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;
8
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.
9
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.
10
Strategic Objective 2
To develop efficient means to market diamonds not suitable for local beneficiation
11
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
12
Outcome: Objective 2
- To be the leading and innovative rough diamond trader for the local beneficiation industry
13
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
14
Strategic Objective 3
To develop and acquire appropriate financial and human resource capacity for the SDT
15
Outcome: Objective 3
To be an efficient, innovative and development orientated organisation (in terms of learning and development)
16
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
17
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
18
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
19
Budget for 2014-2015
20
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
21
The State Diamond Trader