Debswana Diamond Company (Pty) Ltd

Debswana Diamond Company (Pty) Ltd is a unique partnership between the Government of the Republic of Botswana and De Beers Centenary AG. The main purpose of the company is to mine, recover and sort diamonds. Although Debswana uses the most up to date technology to carry out its business, it is the people it employs and the skills they bring that make Debswana a successful operation. The Botswana diamond mining industry is characterised as the lifeblood of the country, nurturing the entire population to a higher standard of living and better quality of life.

Debswana is the world's leading diamond producer by value and has played a significant role in the transformation of Botswana’s economy that it was. It is the largest non-government employer and the largest earner of foreign exchange in Botswana.

Debswana's mining operations have been largely responsible for transforming Botswana from an agriculturally based economy in the 1960s to a country that has consistently displayed one of the highest economic growth rates in the world.

Operations

Debswana Diamond Company is by far the world's largest diamond producer by value. Debswana's diamond mining operations are situated at Jwaneng, Orapa, Letlhakane and Damtshaa.

Jwaneng is the richest diamond mine in the world and is situated 170 kilometers west of the capital Gaborone. Orapa, Letlhakane and the youngest Damtshaa mines are located roughly 240 kilometers west of Francistown. The Orapa pipe is the world's second largest diamond-producing kimberlite pipe.

Sorting and valuation of the diamonds produced by these operations is undertaken at the Botswana Diamond Valuing Company (BDVC), a wholly owned subsidiary of Debswana, in Gaborone.

A landmark agreement between De Beers and the Botswana government in May 2006 will see the two long-time partners embarking on a watershed initiative that can potentially enhance the economic profile of Botswana. Diamond Trading Company Botswana, a 50/50 partnership between De Beers and the Botswana Government has been established and is expected to replace BDVC early in 2008.

Jwaneng mine

The mine became fully operational in August 1982, when it was officialy opened by the then President of Botswana, His Excellency Sir Ketumile Masire.
In 2006, Jwaneng produced 15.6 million carats. In the coming years, production will vary according to the mining plans of approximately 12.5 to 15 million carats per year. This excellent rate of recovery, combined with the very high quality of the diamonds, continues to make Jwaneng Mine the richest diamond mine in the world, by value.
In 10 years, Jwaneng Mine is planning to move from open-cast mining into underground operations. This will begin a new chapter at Jwaneng Mine and extend the life of the operation by another 10-15 years.
In addition to achieving its annual production targets, Jwaneng mine maintains an excellent safety record. Since 1984, the mine has achieved one of the lowest disabling injury incident rates in Botswana. Last year (2006) the mine was awarded the OSHAS 18001 accreditation.
The mine's first "five star" NOSA rating was achieved in January 1986 and has been maintained in subsequent years. Jwaneng will begin implementation of SAFEMap Competency Based Safety during the third quarter of 2006 to augment its excellent safety processes.
Jwaneng Mine also continues to retain the ISO 14001 Environmental certification and was the first organization in Botswana - and the first amongst the Debswana operations - to receive the ISO 14001 accreditation in 2000. Within the boundaries of the Jwaneng mining lease, there is the Jwana Game Park, which is proud to host a field unit of Cheetah Conservation Botswana. The game park is also host to the globally threatened Lappet-faced Vulture. Plans are being formulated to improve the park for educational and recreational activities.

Orapa mine

Orapa is a conventional open pit mine, situated 240 km west of Francistown. The mine began production in July 1971 and is the oldest running Debswana operation. Orapa's production continues to contribute significantly to Debswana's total carat output with 17,3 million carats being recovered in 2006.
Debswana maintains a 100-bed hospital in Orapa that caters for employees and acts as a referral hospital for the region. Employees' children have access to pre-primary and primary schools run by Debswana.
Orapa is committed to its environmental responsibilities and focuses on water conservation, waste management as well as maintenance of Orapa Game Park.
In 2004 the Orapa and Letlhakane Mines were awarded some of the highest international accolades being the National Occupational Safety Association (NOSA) five star with a score of 91.5% and ISO 14001 re-accreditation which is the equivalent of an impeccable environmental management programme. In addition, the Orapa and Letlhakane Mines achieved 2 million fatality free shifts. This means that throughout 2004 and in part of 2003 there were no fatality occurrences.

Letlhakane mine

Letlhakane - "Little reeds"
Letlhakane Mine is situated 50 km from Debswana's Orapa operation and 190 km West of Francistown, in Central Botswana. The mine which was first discovered during the sampling and evaluation process at Orapa, became Debswana's second mine when it opened in 1975.
In 2006, diamonds recovered at the mine were 1 089 million carats. The mine is managed from the larger Orapa operation. Prospecting in the region of the Orapa kimberlite pipe continues.

Damtshaa mine

Damtshaa - "Water for a tortoise"
Four small diamond pipes (B/K1, B/K9, B/K12 and B/K 15) were discovered between 1967 and 1972 in an area 20km east of the Orapa kimberlite pipe. These pipes were grouped to form the Damtshaa Mine and are managed along with Letlakhane Mine from the Orapa operation. Damtshaa has been forecast to yield 5 million carats from 39 million tons of ore that are to be mined over the 31 year projected life of mine. 228 000 carats were recovered at Damtshaa in 2006.
Damtshaa mine was officially opened on the 25th October 2003 by the Vice President of Botswana Lt. General Seretse Khama Ian Khama who stated, "The Damtshaa mine is the latest addition to the strengthening and consolidation of our position as the leading nation in diamond production."

Commissioning of the Damtshaa Mine was carried out in the fourth quarter of 2002, with the first headfeed load recorded on the 28th October 2002. Production buildup commenced with full production reached in March 2003. The carat profile for Damtshaa Mine is not smooth through the years due to the varying grades of the different rock types in the pits. This has resulted in an average of 0,161Mcts per annum.

The mine has been incorporated to the Orapa & Letlhakane Mines safety and environmental programmes, and hence it is ISO14001 certified. It has thus far been audited twice by the SABS Surveillance Audit Team and confirmed to be compliant to ISO14001 requirements. An impressive feat for Damtshaa mine noted in 2004 is that in the two years that it has been operational, there have been no accidents involving employees being booked off sick.

Strategy of Debswana Diamond Company

In order to meet the rising costs of diamond production as well as the need to prepare for underground mining, Debswana has formulated a new strategy. Strategy 2010, dubbed ‘Project North Star’ which runs from 2006 – 2010, came into being also as a result of recognised inefficiencies in our business.

Project North Star follows the successful end to the 2000-2004 strategic period during which the company raised production from 24 to 30 million carats per annum.

Directors, Nicky Frank Oppenheimer is Chairman of Debswana Diamond Company

The Board is made up of 5 government directors, 5 De Beers Directors and one Ex Officio Director being the Managing Director of the Company who does not have a vote. Decisions are unanimous.

Nicky Frank Oppenheimer - MA (Oxon) – Botswana’s Presidential Order of Honor reciepient , is Chairman of Debswana Diamond Company. He is also Chairman of the De Beers Group and DB Investments, the consortium which owns De Beers.

Dr Akolang Russia Tombale - BSc (Nigeria) MSc PhD (Canada) - Deputy Chairman of the Debswana Diamond Company. Mr. Tombale is the Permanent Secretary in the Ministry of Minerals, Energy and Water Resources (MMEWR).

Linah Kelebogile Mohohlo - BA (Econ) MA (Finance & Investment) - the Governor of the Bank of Botswana, a position she has held since 1999.

Linah Kelebogile Mohohlo - BA (Econ) MA (Finance & Investment) - the Governor of the Bank of Botswana, a position she has held since 1999.

Blackie Marole – Debswana Managing Director . BA (Econ) MA (Econ) – appointed Managing Director of Debswana Diamond Company in October 2004. Mr. Marole was previously the De Beers manager responsible for producer relations in Johannesburg, South Africa.

Debbie Farnaby, passionate and energetic, is Group Director of Information Technologies for De Beers. She was appointed a Director of DBCM from June 2003. She heads the Rainbow Implementation Committee and is also a member of the De Beers Executive Committee.

Gareth Penny - Managing Director for the De Beers Group. Apointed after the retirement of Gerard Ralfe in February 2006.

Serwalo Seghwaghwa Gasegale Tumelo - BA (Econ) (Botswana), Advanced Dip. (Econ. Dev) (Manchester) - is the Permanent Secretary in the Ministry of Finance and Development Planning.

Sheila Khama is the Chief Executive Officer of De Beers Botswana, the representative office of the De Beers Family of Companies in Botswana.

Dr Athaliah Molokomme obtained her Bachelor of Laws degree from the University of Botswana and Swaziland in 1981, and a Masters in Law from Yale Law School, USA in 1983.