Sale of rough diamonds
Trans Hex makes its total South African production available to local beneficiation licence holders by way of its tender sales system, ensuring that one of South Africa’s most significant diamond outputs, by value, is made available to all potential purchasers. In total, more than 15% of Trans Hex’s South African-mined diamonds are beneficiated locally.
Trans Hex Diamond Cutting Works
Trans Hex Diamond Cutting Works (THDCW) is a small-sized, black-empowered cutting and polishing factory that beneficiates a percentage of the Group’s South African-mined diamonds.
Aligned to government’s call for greater beneficiation of locally produced minerals, the cutting and polishing operation was established in 2008 as part of the Group’s beneficiation strategy and to take advantage of the downstream benefits of the diamond industry.
Trans Hex is a 75% shareholder, with the balance owned by a BEE partner in the industry. One of the key barriers to entry into the market for any diamond-polishing operation is access to finance. As such, Trans Hex provided the start-up capital of approximately R6 million and has contributed on an ongoing basis towards the working capital costs.
THDCW contributed to the Group’s profits for the first time in the 2012 reporting period.
THDCW is housed in a state-of-the-art premises within Jewel City, Johannesburg. The premises also hosts Trans Hex’s and West Coast Resources’ rough diamond tender sales, offering the cutting works a unique opportunity to capitalise on tender clients and effectively consolidate the rough diamond tender sales and polished diamond sales of both companies.
International clients include buyers from Belgium, India, Israel and China.
The factory has 19 employees, two of whom are qualified Gemologists who grade the diamonds to ensure that strict quality standards are adhered to and that the gems are cut to perfection.