The draft of the Precious Metals Bill was tabled on Wednesday at the South African parliament, designed to reduce the regulation of platinum and other precious metal industries.

Industry officials have been calling for more relaxed regulations in the precious metals sector as red tape is believed by many to be damaging the industry.

Under the current system a plethora of institutions are responsible for the industry, including the governmental minerals and energy department and the South Africa Police Service. It is hoped that control can be passed to just one institution.

A memorandum attached to the new bill claims that South Africa's 1991 Minerals Act burdens "possessors of unwrought precious metal with cumbersome administrative procedures and restrict[s] dealing in and possession of unwrought precious metal unnecessarily".

The bill seeks to define platinum that has a purity of 99.9 per cent or more as "semifabricated precious metal", and is also looking to introduce a precious metals beneficiation licence that can be used by any sector of the manufacturing industry and will be valid for up to ten years.

Although South Africa's manufacturing sector accounted for 21 per cent of the country's gross domestic product during the 1980s, that amount has slipped back to 17 per cent, with over-regulation thought to be one of the major inhibitors in the industry.


Ÿ Adfero Ltd