How do I apply for a Jewellers permit / Jewellery permit in South Africa?
Need help we can assist applicants and they ensure that all the required documentation is in order before Jewellers permit applications submitted to the regulator. We know exactly what is needed! And that when your application for a Jeweller permit is submitted it will result in obtaining the Permit! Contact Xanchia on WhatsApp 079 969 9580 or e-mail for assistance.
- Download the application form (PMJ) below from the SOUTH AFRICAN DIAMOND AND PRECIOUS METALS REGULATOR
2.Completing the application for a Jewellers Permit
Complete the form in block letters and in black pen.
Where options are given mark the appropriate block.
Complete the form in English and do not use abbreviations.
only a signed original hard copy is acceptable.
Documents to submit with the application
Ensure that all the required documentation accompanies the application below;
1/Proof of Business Premises
2/Proposed Business Plan, Inclusive of BEE ( See GUIDELINES ON BROAD-BASED SOCIO-ECONOMIC Below)
3/Company Registration Forms
4/Copy of Resolution. If acting in a representative capacity
5/Police Clearance Certificates
6/Copy of I.D Document
7/Tax Clearance Certificate
8/ Shareholders Agreement
9/Proof of Adequate Financial Ability
10/Proof of Technical Ability;
GUIDELINES ON BROAD-BASED SOCIO-ECONOMIC
EMPOWERMENT CHARTER
The Mining Charter was developed in terms of section 100 of the Mineral and Petroleum Resources Development Act, Act No. 28 of 2002 with the aim of transforming the mining industry. The Mining Charter requires applicants for mining rights to comply with certain empowerment principles. An application which does not address these principles will not be considered.
The Mining Charter is referred to in the Diamond Amendment Act No. 29 of 2005 and the Diamonds Amendment Regulations issued under the Diamonds Act of 1986. The Mining Charter is also referred to in the Precious Metals Act of 2005 and the Precious Metals Regulations issued under the Precious Metals Act. The regulations issued under the Diamonds Act and the Precious Metals Act requires the applicant for licence or permit to submit a business plan inclusive of the Mining Charter principles. Furthermore, Section 6 of the Precious Metals Act provides that in considering an application for any licence, permit or certificate the Regulator:
(a) must have regard to the promotion of equitable access to and local beneficiation precious metals;
(b) must have regard to the requirements of the broad-based socio-economic empowerment Charter (i.e the Mining Charter) developed in term of section 100 of the Mineral and Petroleum Resources Development Act of 2002
A similar provision is made in the Diamonds Amendment Act No. 29 of 2005. Section 5 (1) of Part 1, Chapter II state that the Regulator shall have regard to the promotion of equitable access to and local beneficiation of the Republic’s diamonds when considering an application for any licence or permit, read with section 5(2) (a) of the Act which provides that when considering an application, all elements of the Mining Charter will be a decisive factor in granting such licences.
Hereunder is a simplified summary of the Mining Charter that will assist the applicants for licences and permits in terms of the Precious Metals Act and the Diamonds Act as amended. The applicant is however still required to fully comply with the Mining Charter where applicable.
- HUMAN RESOURCES DEVELOPMENT
Human Resources Development Plan is broken down into three, namely skills development plan, mentorship plan, internship and bursary plan.
1.1 Skills Development Plan
The applicant should provide a detailed skills development plan that outlines how the applicant intends to empower the employees, in particular empowerment groups, through training and provision of relevant skills. The applicant should provide employees with skills training during their employment in order to improve their earning capacity and marketability after the closure of the business.
1.2 Mentorship Plan
The applicant should provide a detailed mentorship plan for the employees and empowerment groups which are in line with the skills development plan detailing how the plan would be implemented. The mentoring should be done with a purpose, for instance, to prepare HDSA’s for higher positions. Mentoring should be read together with employment equity. Employment equity requires the licence holder to have 10% women participation in the diamond or precious metals industries and 40% HDSA participation in management within 5 years from the date the licence was issued. Mentoring should be done not only with the purpose of providing skills but also with the purpose of achieving participation in management.
1.3 Internship and Bursary Plan
The aim is to provide bursaries and scholarships to HDSA especially in the fields related to the diamond and precious metals industries (for instance science and engineering). Furthermore, the applicant should have an internship plan through which the bursary holders can be exposed to practical training.
- EMPLOYMENT EQUITY PLAN
The applicant should provide employment equity statistics, accompanied by a plan on how the applicant would achieve 10% women participation in the relevant industry and 40% HDSA participation in management within 5 years from the date on which the licence or permit was issued. The applicant should have an employment equity plan. In the plan, the applicant must establish employment equity targets and time frames, particularly in the senior and junior management categories.
- PROCUREMENT PLAN
The applicant should provide a procurement plan and its implementation for the progression of procurement from HDSA companies or individuals. Procurement can be broken down into three levels, namely capital goods, services and consumables. Under the procurement plan, the applicant should give HDSA a preferred supplier status as part of empowerment. The applicant should identify the type of procurement needed. Where no HDSA tenders to supply goods,
services or consumables because of lack of capital or resources, established companies should partner with the HDSA for the supply of the above. Examples of procurement provided above are not exhaustive. Any type of procurement which aims to empower HDSA will suffice.
- OWNERSHIP AND JOINT VENTURE
The diamond and precious metals industries are required to achieve 26% (within 10 years) and 15% (within 5 years) ownership of the diamond and precious metals industries assets by each applicant. This can be achieved through fairly structured transactions for the selling of shares or equity to the HDSA, partnerships and joint ventures with the HDSA. For instance:
❖ HDSA controlled entity, i.e. 50% + 1 vote which includes management control
❖ joint ventures or partnerships, i.e. 25% + 1 vote
NB: An entity’s turnover is not a consideration in terms of the Mining Charter. All forms of business undertakings must comply with the Mining Charter as stated in the Act.
- MONITORING AND REPORTING
The applicant should undertake to report on an annual basis their progress towards achieving their commitments in the BEE plan. The reports should be verified by the applicant’s external auditors. On the other hand, the Regulator will monitor the progress on implementation.
- UNDERTAKING
There should be an undertaking by the applicant for the implementation of the BEE plan. The undertaking should be signed by the applicant to adhere to the BEE plan and a clearly stated time frame which will constitute terms and conditions for granting such licenses so that in the event of a breach, the license can be revoked.
NB: PLEASE TAKE NOTE THAT THIS DOCUMENT DOES NOT IN ANY WAY WHATSOEVER SUBSTITUTE NOR AMEND THE MINING CHARTER AS PROVIDED FOR IN THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT NO. 28 OF 2002.
Legality
The holder of a jeweller’s permit must keep proper books of account and must submit all prescribed information to the Regulator not later than 90 days after the end of the financial year. It is an offence to contravene this provision.43
It is an offence to conduct any jewellery activity elsewhere than on the licenced premises, or at the place described or endorsed on the licence.44
It is an offence for the holder of a jeweller’s permit to be in possession of unwrought or semi-fabricated precious metal at any place elsewhere than on the licenced premises, or at the place described or endorsed in the licence unless he is transporting it in accordance with the legal requirements of Act.45
It is an offence to conduct business under a name that differs from the name used on the licenced premises, or place unless a new licence in respect of the additional premises or place is granted.46
If the holder of a jeweller’s permit is asked or approached to participate or facilitate in any unlawful conduct relating to precious metals he must forthwith and in writing advise the Regulator.47
If a jeweller’s permit has expired, or its renewal is refused or has been cancelled, or the authorised activities are discontinued permanently, the person who held the licence must forthwith submit to the Regulator a declaration as to the unwrought precious metal in his possession as at the date (of expiry, etc.) and it is an offence not to do so.
It is also an offence not to dispose of the unwrought precious metal (in accordance with the Act) within 30 days of the declaration.4849
For assistance to complete the application contact Xanchia on +27799699580
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