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Years of Diamond Production Namdeb Annual Review 2007 1 Annual review 2007 years of diamond production Namdeb Annual Review 2007 1 years of diamond Our vision production Namdeb – the world’s leading alluvial-diamond mining company. Contents Preferential procurement 28 Vision, mission and values 1 Our mission 100 years of history 2 Social performance 30 How diamonds benefit Namibia 4 Environmental performance 36 We produce diamonds profitably, sustainably and Organisational profile 6 Associate companies 42 responsibly to the benefit of our shareholders and Chairman’s statement 8 Corporate governance 50 Financial performance 10 Board of directors 52 stakeholders, whilst making a lasting contribution Namdeb's year in review 14 Alternate directors 53 to Namibia. Managing director’s review 16 G;ossary 54 Economic performance 22 Statutory information 55 Building a sustainable Oranjemund 26 Contact details 55 Our values EXcellence Care Integrity TEamwork Diversity = EXCITED This Annual Review covers the period 1 January 2007 to 31 December 2007, and includes information on Namdeb’s operations, its subsidiaries and the contributions made to production by contractors. A separate, more detailed report, to stakeholders, that will highlight our contribution to sustainable development, will be presented later in the year. For more information on this or any other documentation on the company, Integrity please visit www.namdeb.com or contact External Affairs and Corporate Communications. EXcellence Care Diversity The quality of TEamwork The quality of To do something Recognising being honest and The ability to work being very good at fairly and with the value of firm in your moral well together something great attention including all principles www.namdeb.com 2 Namdeb Annual Review 2007 Namdeb Annual Review 2007 3 years of history The harvesting Sperrgebiet shipwreck is the find of the of diamonds in century for Namibia Namibia takes While the Namibian nation was marking the centenary since the discovery of diamonds, another fascinating discovery unfolded in April in the form of the oldest shape sub-saharan shipwreck yet in Namdeb’s mining area. The find yielded a wealth of objects including six bronze canons, several tons of copper, over 500 elephant tusks, In 1920, Sir Ernest Oppenheimer navigational instruments, weapons and thousands of Spanish and Portuguese gold formed Consolidated Diamond coins, minted in the late 1400s and early 1500s. For Namibia, it is the archaeological Mines of South West Africa (CDM); find of the century and a fitting way to celebrate the 100th year of diamond mining in in 1923, CDM concluded the the Sperrgebiet, where the shipwreck was found. Halbscheid Agreement with the South West African Administration, which granted CDM the mining rights for the Sperrgebiet. Oranjemund, a unique town that owes its existence A shiny treasure starts a diamond rush to diamond mining, was established Diamonds originated deep in the interior of southern Africa. Over millennia, the Orange River carried in 1936. It adopted its name from them to the Atlantic Ocean where they were deposited on ancient beaches, which in time became part its geographical position at the of the mainland. mouth of the Orange River, the national boundary between the Prior to the discovery of diamonds in the Republics of Namibia and South Namibian desert, some prospecting had Africa, and services the Mining taken place along the coast as early as Area 1 and Orange River mines. 1863. David Christiaan, a Hottentot Chief, gave a Cape Town firm (De Pass, Spence and Company) a concession extending from The birth of Angra Paquena (Lüderitz) to the Orange River and 32 kilometres inland from the coast. Namdeb In 1994, an agreement between De Beers and the Government of the Republic of Namibia resulted in the In 1908, railway worker Zacharia Lewala formation of Namdeb Diamond Corporation (Pty) Limited. All of the De Beers group’s existing Namibian stumbled on a shiny treasure that started a major mining licences and related rights were replaced by a consolidated and rationalised mineral agreement, diamond rush. As a result, diamond mining drawn up under Namibia’s post-independence mineral legislation. The formal signing ceremony, attended regulations were introduced in 1911 and the by Namibia’s Founding President Sam Nujoma and the then chairman of De Beers Centenary Julian Sperrgebiet or “forbidden territory” was declared. Ogilvie-Thompson, took place at State House in Windhoek. The key wishes expressed on that historic day were that Namdeb: • would grow to become an important global player in the diamond industry; and In this photograph from the early 1950s,workers remove diamond-bearing gravel from the bedrock at • would continue to be the leading national provider of government revenue, foreign exchange earner and Consolidated Diamond Mines of South West Africa. employer, while setting benchmarks in respect of excellence in people. 4 Namdeb Annual Review 2007 Namdeb Annual Review 2007 5 They create prosperity How diamonds Intellectual capital As the world’s leading alluvial-diamond mining company, Namdeb has a wealth of expertise acquired over many years of diamond mining and aims to create successful and sustainable mining benefit Namibia activity wherever it operates. The life of Namibia’s onshore operations has been extended through significant technological and human investment. Namdeb continues to strive to extend the life of all its mining operations in Namibia – whether through exploring for new deposits or investing in people and technology to optimise existing resources. De Beers’ partnership with the Namibian Government has ensured that Namdeb has access to knowledge and expertise in all aspects of diamond mining through They build the economy the diamond pipeline. The NDTC helps to ensure continued demand for Namibia’s most valuable resource. Integrity Economic muscle As a key participant in the Kimberley Process, Namibia sets benchmarks in the legislative and regulatory processes and Namdeb’s contribution to the economy through revenues generated and partnerships forged has management of diamond resources. Combined with good government practice, this ensures that revenue from Namibia’s meant that we are the country’s largest financial contributor. Diamonds are an important generator of diamonds is ploughed back into the economy for the benefit of all its people. export earnings, accounting for more than 40% of export revenue, 7% of government revenue and more than 10% of gross domestic product (GDP). Infrastructure Diamonds are Namibia’s single biggest export product and the backbone of the economy, acting as a catalyst for the provision Namdeb, De Beers Marine Namibia, NamGem and the Namibia Diamond Trading Company (NDTC) and extension of infrastructure such as roads, hospitals, houses and schools. Indeed, Namibia spends almost half of its revenue employ over 3 000 people, most of whom are Namibian citizens. This makes the Namibian De Beers on public services, working actively to alleviate poverty, fight disease and advance development. family of companies one of the country’s largest employers, and creates multiple opportunities for partners – not only in mining, but also in technology, enterprise development and academic research. Furthermore, for every 10 people employed at Namdeb, an additional five people are employed throughout the economy. They make a difference in people’s lives Through successful partnerships, and a deep commitment to the Namibian people, Namdeb believes its sustainable diamond mining enterprise has made tangible differences to the Namibian nation. Through its commitment to working together with both government and the people of Namibia, Namdeb has successfully ensured that the country’s most inaccessible diamond resources are turned into wealth that touches the lives of Personal strength all Namibians. As one of the country’s largest employers, Namdeb provides Supporting people exciting learning opportunities for Namdeb has successfully helped to develop Namibian society through its bursary students and employees, substantial investment in social, educational and environmental projects. both within and outside Namibia’s Millions of Namibian dollars have already been spent on projects of all sizes borders. Namdeb views education – from large-scale initiatives to small-business ideas. Namdeb remains the as critical to the growth of a thriving largest corporate responsibility contributor to the socio-economic development of the country. economy and has made significant investments in all levels of education Protecting people and training to help ensure a brighter Namdeb was the first company in Namibia to provide anti-retroviral treatment (ART) for permanent future for the country and its people. employees and their spouses/life partners, and is globally recognised as a leader in combating HIV/Aids in the workplace. Protecting lives People working at Namdeb operations enjoy among the highest levels of safety and environmental standards in the world. Almost all of Namdeb’s operations have achieved the highest NOSA ratings as well as ISO 14001 certification. Conserving the environment Namdeb continues to be involved in numerous conservation, monitoring and ecological history programmes which aim to minimise the potential impact of its operations on the environment. 6 Namdeb Annual Review 2007 Organisational profile Republic of Namdeb Diamond Corporation (Pty) Limited Namibia Founded 1994 Owned Equally by the Namibian Government and De Beers Société Anonyme Employees More
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