Memorandum from Debswana (Presentation
given during the Committee's visit to Botswana, March 2006)
OBJECTIVE
To inform Members of the International Development
Committee, House of Commons on:
— The role Debswana plays in the
economic development of Botswana.
— Debswana's contribution to the
communities it operates in.
— Debswana is an equal partnership
between the Government of Botswana and De Beers.
— Formed in 1969 after negotiations
led by Sir Seretse Khama, then President and Harry Oppenheimer,
then chairman of De Beers.
Debswana is:
— The worlds largest diamonds
producer by value at 29% followed by Russia at 19% and South Africa
at 15%.
— Debswana is Botswana's main
revenue source.
— Debswana is the largest employer
after government (6,500) employees).
— It operates four mines namely:
— Jwaneng Mine, the worlds richest
(1982 started production);
— Orapa Mine, worlds second largest
diamond pipe (started production 1971); and
— Letlhakane and Damtashaa, satellite
mines of Orapa (started production 1976 and 2002 respectively).
Botswana before diamonds
At the time of Independence, September 1966:
— Botswana was one of the least
developed and poorest nation in the world.
— The majority of the population
was dependent on subsistence agriculture and beef production.
— The literacy rate was low.
— There was virtually no infustructure,
apart from Cecil Rhodes railway line completed in 1897.
— There was less that 10 kilometres
of tarred road.
— Availability of skilled and
professional human resources was no better with the country having
less then 50 university graduates.
DEBSWANA—HUMBLE
BEGINNINGS
Botswana today
— Botswana is considered the richest
non-oil producing country in Africa.
— The discovery of diamonds in
1967, after a protracted search of 12 years, dramatically changed
the pace of development in Botswana.
Debswana's contribution
— The welfare and economic success
of Botswana is inextricably linked to diamonds.
— 80% of Botswana's total exports;
— 45% of Gross Domestic Product (GDP);
and
— more than 50% of government revenue.
— Thanks to diamonds and Debswana
Botswana now has:
— More than 7,529 kilometres of tarred
road.
— Botswana boasts the highest per
capita income in Africa.
— Once there were just three secondary
schools, now there are more than 300.
— For many years the country has been
enjoying free education for all.
Employment
— Total number of employees—6,500.
— 98% of current Debswana employees
are Botswana citizens.
— Main source of skilled human
resources are scholarships and apprenticeship schemes.
Contribution to the community
— Housing—over 2,000 accommodation
units for employees and their families.
— Encouraging home ownership in
surrounding villages.
— Airports and aircrafts.
— Sports facilities open to the
community (Golf, rugby, soccer, squash, tennis, cycling, bowling,
pool, snooker, gymnasium etc).
— Game parks at both Orapa and
Jwaneng Mines (20 species, over 1,500 animals).
Hospital services:
— Debswana employees, spouses,
dependants and public.
— Referral hospital for the District
beyond 100 km radius.
— International COHSASA accreditation.
— IDCC (Infectious Disease Care
Centre) launched in 2003 and has seen over 1,400 people.
Examples of Debswana 2005 Projects
True to its value of citizenship Debswana takes
active part in community development. Debswana spent:
| — Scholarships
| P24 million |
| — Letlhakane Road | P20.5 million
|
| — ART Program | P2.3 million
|
| — Donations fund | P3 million
|
Corporate citizenship
— Small/medium business development initiative established
by Debswana and De Beers.
— Peo has helped start 45 businesses. To date, 1,000
jobs have been created and the current total investment is P16
million.
— Some of the beneficiary's of the Debswana
Donations Fund include:
| — 12 Sports organisations | P710 000
|
| — three Environmental organisations
| P325 000 |
| — 30 Centres for the disabled |
P1,249,392 |
| — Other community projects | P551 528
|
COMPANY'S
RESPONSE TO
HIV/AIDS
Debswana approach to HIV/AIDS Management
— Debswana was the first company in the world
to provide free anti-retroviral treatment to employees and their
spouses. An early and innovative program.
— The ART program has now been extended to
employees children.
— Company policy in place.
— Employment depends on ability to work, not
diagnosis.
— Various support structures in place.
— ART fund established to extend productive
lives.
Safety Health and Environment (SHE)
Debswana is committed to SHE, and requires compliance from
every employee and contractor.
International accreditations:
— COHSASA accreditation (health).
— ISO 14001 accreditation (environment).
— Debswana Operations are preparing for OHSAS
18001 certification (safety).
Major Environment Aspects
Diamond mining is an essentially clean, non-toxic activity,
but we also have in place an environment management programme
and internationally accredited standards to manage:
— Hazardous substances (acid used to clean
diamonds—a closed system),
— Energy (electricity) used, and
March 2006
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