WORLD NEWS TOMORROW – BRUXELLES: Baron Baretzky, the Chairman of the International CAMS-Regulator Committee said last Friday, that a new reform of the mineral policy of Africa is vital, in particular, that of South Africa. He criticized the Kimberly Process for lacking the understanding and the real needs of people. The South African Government that is pursuing the road of a Beneficiation Bill leaves much to say and could further destabilize investments in South Africa, he said. The Current perception of mineral reforms is edging onto robin-hood tactics and could lead to a total collapse of the mineral industry, he warned.
Baron Baretzky have been pushing for a Quality Assurance Bill to be implemented in South Africa to avoid the exploitation of minerals both internally and externally. He was widely criticized for this proposal during last year by the Diamond Board of South Africa. “The road-map of beneficiation is not an answer to the problem and nor will it ease the poverty he said” The South African GDP accounts for about 7-8 percent to its mineral industry and more than 40% on the economy interests is within the mining sector.
The risk of ending the same as other failed African countries are vary large, he indicated. With the growing instability of the South African security issues, it becomes clear that the warning signs is written on the walls of the country. The window for such new reform might already be closed, Baron Baretzky added. He explained that the idea of mining and land distribution is not a healthy sign and playing Robbin-hood is not a long term solution and warns that this would cripple the long terms interest in the Mining sector that would lead to starvation. South Africa is now 18 years into a new democracy and its time to wake up and realize that the world has dealt with the past and moved on.
South Africa have gone from a healthy economy to a trouble some situation in just two years. The rand dropped roughly 9 times in value since 1993, leaving huge risk for foreign investors in the Diamonds and mining sector. Baron Baretzky emphasized that the global economies would not assist as they used to do due to the growing international recession and would not be able to facilitate South Africa in the next time of need. In conclusion, Baron Baretzky indicated that there is an urgent need for a proper regulation on the diamond industry as this could spiral out of control and perpetuate local crime and terrorism.
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