Living up to DIAMONDS
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Living UP TO DIAMONDS REPORT TO SOCIETY 2010 FULL REPORT Miss Chandapiwa Monamati, haul Cat truck 789 operator at Orapa Mine A CONTENTS 1 18 About this report Economics 2 33 Chairman’s introduction Ethics 4 48 Acting CEOs’ introduction Employees 6 64 Operating highlights Communities 9 79 Performance Summary Environment 11 94 Our approach to sustainability Appendix 12 96 Reporting on our approach Assurance Statements 14 100 Engaging with stakeholders Further information 16 Managing our sustainability risks For further information on the De Beers Family of Companies and its sustainability performance, please see the online resources below: Living UP TO DIAMONDS GRI COMPLIANCE TABLE De Beers Family of Companies Report to Society 2010 This table sets out how the Global Reporting Initiative (GRI) Reporting Framework Reports referenced has been applied in our sustainability reporting, and how our reporting links to the UN Global Compact and UN Millennium Development Goals. It primarily covers the De Beers Family of Companies Report to Society 2010 (RtS) – Living up Operating & Living Financial Review to Diamonds – and its counterpart Summary Review, but also makes reference UP TO DIAMONDS 2010 REPORT TO SOCIETY 2010 to the Operating and Financial Review 2010 (OFR). We have prepared the table SUMMARY REVIEW in order to help stakeholders quickly find the information they want. Mine. truck operator at Orapa 789 haul Monamati, Cat Miss Chandapiwa RtS – Report to Society 2010 Application of the GRI Reporting Framework forms a key part of our commitment Both the detailed Report and its counterpart Summary Review are to continuous improvement and to achieving the highest levels of sustainability available for download from www.debeersgroup.com/sustainability performance. It is our belief, and the independent assessment of SGS, an Page number references are to the detailed Report to Society. REPORT TO SOCIETY 2010 assurance provider, that we have applied the GRI Reporting Framework OFR – Operating and Financial Review 2010 Available both online and as a PDF download from SUMMARY REVIEW to the highest A+ standard. www.debeersgroup.com/ofr2010/index.html Page number references are to the PDF download. Independent SGS United Kingdom Ltd was commissioned by De Beers to conduct an independent assurance of the De Beers Report to Society, Summary Review 2010. Assurance In addition we have carried out a full evaluation of the GRI Application Level against GRI G3 (2006) and the requirements of the GRI Mining and Metals Sector Supplement. This evaluation includes the contents of the Summary Review 2010, GRI compliance table on the website, the full Report to Society 2010 and the Operating and Financial Review 2010. We are of the opinion that De Beers’ reporting is in line with Application level A+. Our full assurance statement can be found in the De Beers Report to Society, Summary Review 2010. Miss Chandapiwa Monamati, haul truck Cat 789 operator at Orapa Mine. 1 De Beers Family of Companies Report to Society 2010 www.debeersgroup.com Report to SocietyB 2010 Our GRI compliance table Summary Review Our company De Beers was established in 1888. It is the world’s leading diamond company, with unrivalled expertise in the exploration, mining and marketing of diamonds. 1 3 2 4 This map illustrates the countries in which De Beers conducts exploration, mining, rough diamond sales and downstream value-creating businesses. The global diamond value chain 01 02 03 04 Exploration Mining Rough diamond sales Cutting, polishing Modern exploration uses highly The vast majority of De Beers’ De Beers sorts and sells rough and manufacturing sophisticated technologies to production comes from diamonds to independent clients Cutting and polishing of diamonds, determine the economic viability underground and open-pit known as ‘Sightholders’ through and the manufacture of diamond of deposits. De Beers Exploration kimberlite mines. We also our rough diamond sales jewellery, takes place around the currently focuses on Angola, mine alluvial stones along the operations: DTC, NDTC and world and is concentrated in the Botswana, Canada, India and south-west African coast using DTCB. These clients cut and following major centres: India, South Africa. onshore extraction techniques polish diamonds prior to the China, Tel Aviv, Antwerp, New and specialised ships. De Beers manufacture of jewellery. York, Botswana, Namibia and is not involved in informal We also sell rough diamonds to South Africa. De Beers Diamond small-scale mining. Sightholders and other registered Jewellers (DBDJ) has its own customers through Diamdel, design and development capacity. an online auctioning platform. About this Report: We believe this Report together with the Operating and Financial Review 2010 and its supporting online resources represent an A+ application of the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines. It also forms part of our Communication on Progress to the United Nations Global Compact. A summary of our compliance with the GRI and the 10 principles of the United Nations Global Compact is presented online at www.debeersgroup.com. C From its mining operations across Botswana, Namibia, South Africa Our values are encapsulated by the concept of Living up to Diamonds. and Canada, De Beers produces and markets approximately 35% of We aim to achieve this by making a lasting contribution to the world’s supply of rough diamonds by value. Together with our joint the communities in which our people live and work. In this venture partners, De Beers operates in more than 20 countries across Report to Society 2010, we demonstrate how we live up to diamonds six continents, and employs more than 16,000 people. by addressing material risks along the entire diamond pipeline, from mine to consumer. 1 2010 2010 Canada Tonnes Carats Start of treated recovered DE BEERS CANADA A production ’000 ’000 100% owned. A Snap Lake B Established 1998. B Victor Total 54,544 32,997 2 De Beers Canada 3,602 1,751 Namibia* Snap Lake 2007 869 925 NAMDEB Victor 2008 2,733 826 50/50 joint venture with C Atlantic 1 Namdeb 9,434 1,472 the Government of the D Alluvial Contractors C D Republic of Namibia. E Elizabeth Bay Land 1936 9,434 492 Established 1994. F Mining Area 1 Sea (m2 000) 1990 –980 G Orange River E F G Debswana 24,439 22,218 3 Orapa 1971 12,928 9,527 Botswana Letlhakane 1975 3,307 1,221 DEBSWANA Damtshaa 2002 –– 50/50 joint venture with H Damtshaa H I Jwaneng 1982 8,204 11,470 the Government of the I Orapa J Republic of Botswana. J Letlhakane DBCM 17,069 7,556 Established 1968. K Jwaneng K Kimberley mines and contractors 1980 5,493 823 Finsch 1961 4,483 1,583 4 L South Africa Namaqualand mines and contractors 1928 41 97 DE BEERS CONSOLIDATED MINES N Venetia 1992 4,036 4,288 74/26 partnership L Venetia O M Voorspoed 2008 3,016 732 with BEE partner M Voorspoed P SASA (m2 000) 2007 –33 Ponahalo Holdings. N Kimberley Established 1888. O Finsch Q P Namaqualand Q SASA Coverage 05 This Report to Society 2010: Living up to Diamond Jewellers (DBDJ) and Element Six Diamonds, and its counterpart (E6). Use of ‘our’ or ‘we’ in the Report and Diamond demand Summary We are involved in diamond Review, together comprise the sixth annual Summary Review therefore relates to the retail through De Beers sustainability report produced by the De De Beers Family of Companies, a collective Diamond Jewellers (DBDJ), an Beers Family of Companies. Both Report term used for both wholly-owned and independently managed retail and Summary Review are available for joint-venture business entities. download from . joint venture, and Forevermark, www.debeersgroup.com our proprietary diamond brand. The Report and Summary Review include More information on De Beers’ structure, Through Element Six (E6), our performance data for those businesses that operations and performance can be found industrial synthetic diamond De Beers either owns or has a shareholding in the 2010 Operating and Financial Review, supermaterials business, we in, and that have signifi cant economic, available online or as a PDF download at: supply tool and application social and environmental impacts. manufacturers across a diverse They also include narrative content on www.debeersgroup.com/ofr2010/ range of global markets. management approaches for independently index.html managed companies such as De Beers * Through 2010, Namdeb’s sea licence areas were mined under contractual service arrangement by De Beers Marine Namibia, 70% owned by DBsa. In MayD 2011, the Government of the Republic of Namibia and De Beers agreed to restructure the partnership, creating a 50/50 holding company with full ownership of Namdeb and De Beers Marine Namibia. REPORT TO SOCIETY 2010 At De Beers we believe in addressing SUSTAINABILITY ISSUES openly and honestly. Whether it ’s the development of SUSTAINABLE POSTMINING ECONOMIES, the global challenge of CLIMATE CHANGE, or ENSURING GLOBAL SUPPLY IS FREE OF confl ict diamonds. WE ARE COMMITTED TO ‘living up to diamonds’ IN ALL WE DO. 1 Report to Society 2010 Introduction from our Chairman In 2010 we saw a signifi cant recovery in demand for rough diamonds and consequently a turnaround in De Beers’ fi nancial performance and a return to signifi cant positive diamond sector growth in our producer countries. This recovery was, however, not solely due to improved market conditions – it owed a great deal to the steps we and our producer partners took to transform our business in response to the economic crisis. Our improved fi nancial performance does not, however, represent a positive impact of a mine depends on ensuring that the value of each complete turnaround in the fortunes of either the global economy and every carat mined is maximised. In practice, this means shifting or the diamond industry.