Report to Stakeholders 2017 Governance and Excellence
1 CONTACT INFORMATION: Enquiries about this report can be directed to Debswana Corporate Affairs Manager, Ms Boikhutso Malela at [email protected] or +267 364 4303.
2 CONTENTS
2017 IN NUMBERS 4
STATEMENT BY THE DEBSWANA BOARD CHAIR 6 DEBSWANA MANAGING DIRECTOR’S STATEMENT 8 ABOUT THIS REPORT 10 OUR ORGANISATION 10 OUR VALUE CHAIN 12 GOVERNANCE 14
OUR APPROACH TO SUSTAINABILITY 17
FOCUS AREA: OPERATIONAL PERFORMANCE 23
FOCUS AREA: HEALTH AND SAFETY 27
FOCUS AREA: OUR EMPLOYEES 33
FOCUS AREA: STAKEHOLDER ENGAGEMENT 39
FOCUS AREA: OUR COMMUNITIES 45
FOCUS AREA: OUR NATURAL ENVIRONMENT 63
ACRONYMS 70
GRI CONTENT INDEX 71
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OUR VALUES
BE PASSIONATE PULL TOGETHER BUILD TRUST SHOW WE CARE SHAPE THE FUTURE We will be exhilarated Being united in We will always listen We care deeply about We will find new ways. by the product we purpose and action, first, then act with each other and the We will set demanding sell,the challenges we we will turn the openness, honesty people whose lives we targets and take both face and the diversity of our people, and integrity so that touch, our tough decisions and opportunities we skills and experience our relationships communities and the considered risks to create. into an unparalleled flourish. environment we share. achieve them.We will source of strength. We will always think insist on executional through the excellence and reward consequences of what those who deliver. we do so that our contribution to the world is real, lasting and makes us proud.
Dintlefatso Gabana Ramasu Keolebogile Kelapile Maruping Shirto Faith Itumeleng Pitsonyane
EMPLOYEE ASSISTANCE MAINTENANCE ARTISAN STOCK TAKER TEACHER - GRADE 1 TEACHER - GRADE 1 PROGRAM COORDINATOR FITTER
Many times I have been On a daily basis before My favorite value is ‘Good morning boys As an energetic and asked to facilitate sessions at carrying out a task I sit ‘Build Trust’ because the and girls’…are the words I results oriented teacher, I Debswana Corporate down with other involved value has instilled in me a have uttered every live by the value, ‘Shape the Centre; I never say no, the parties and we discuss the sense of responsibility and morning for the past 7 Future.’ I have shown this by passion would not let me. If task thoroughly so as to pushed me to aim for years to pupils that I have ‘going the extra’ mile and we all in our little spaces had reach what is esprit de corps better results every time I taught at Acacia School. working tirelessly over the such burning desires, which is a sense of unity, execute my tasks. For These children are our weekends and during the intense energy and such common interests and example, I am a service future and they must be school holidays to enable relentless spirits, so many responsibilities of which the provider and I aim to shown some care in order pupils to realise their full diamond dreams would be most important is to get the please my customers. As for them to succeed, after potential. turned into realities. task done safely and such I live the value by all they are leaders of successfully. providing my customers tomorrow. with what they need in a timely and effective manner.
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CODE OF ALWAYS DOING RIGHT CONDUCT AND BUSINESS ETHICS
CODE OF CONDUCT The key principles contained in the Code of Conduct are as follows: Debswana remains committed to ethical leadership and integrity as a core value. In 2017, • Health, safety and the environment the company Code of Conduct was reviewed and • Fair and proper treatment of employees and relaunched to employees and contractors. The business partners process involved re-training employees and • Community relations contractors on the code. This was followed by • Political activities by employees mandatory declaration of business • Bribery interests/conflict of interests for all employees at • Gifts, entertainment and hospitality management level as well as Supply Chain • Conflict of interests Management employees. The Code of Conduct • Dealing with suppliers, institutional policy was designed in such a way that it covers all stakeholders and Government De Beers and Anglo American Business Integrity • Money laundering standards that are applicable to Debswana. All the • Protection of diamonds and company assets other relevant policies such as Gifts, • Communicating with media Entertainment and Hospitality Policy, Policy on • Ethics hotline Conflict of Interests and Procurement Policy were also reviewed and re-briefed to employees and contractors. ETHICS HOTLINE
The training was conducted company-wide during The Debswana Whistleblowing facility is managed 2017 over a period of six months and covered all through Deloitte Tip-offs Anonymous and has levels of employees. This was augmented through been operational since 2007. The whistleblowing the use of posters and Intranet banners. The Code reporting mechanisms are the Ethics hotline, was also uploaded on the Debswana website for email and walk-ins. Over the years Debswana has external stakeholders. evidenced a preference of walk-in reporting over the use of the hotline facility indicating confidence in the system.
Hotline numbers Landline: 0800600644 | Orange: 1144 | Mascom: 71119721 | Email: [email protected]
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2017 IN NUMBERS
INDICATOR 2015 2016 2017 Total Recordable Injury Frequency Rate (TRIFR) 0.38 0.22 0.17
Tonnes Treated (000) 20,523 18,581 22,854
Carats Recovered (000) 20,368 20,501 22,660
Total Debswana Employees 5,432 5,421 5,439
Percentage of Debswana Employees that are Female 21% 21% 21%
Sustainability Assurance All the mines retained All the mines retained their ISO All the mines retained their ISO their ISO 14000:2004 and 14000:2004 and OHSAS 14000:2004 and OHSAS OHSAS 18001:2007 18001:2007 certifications in 2016. 18001:2007 certifications in 2017. certifications in 2015. Overall Social Way Score 3.32 Overall Social Way Score 3.91 exceeding the target of 3. exceeding the stretch target of 3.5.
HIV/AIDS Mortality Rate 0.8% 0.3% 0.3%
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INDICATOR 2015 2016 2017 Community Members who made use of the Mine Hospitals* 70,863 84,000 161,901
Water Consumption (Mining Operations) (million m3) 23.04% 18.48% 17.41% Energy Consumption (Mining Operations) GWh 445.35 439.22 476.48 Procurement Spend: Citizen owned Companies 18% 29% 26%
Corporate Social Investment Total Spend (million Pula) 15.0 17.8 10.6
Loss of Life Incidents 0 1 0
Number of employees registered in the HIV Programme 845 806 823
Community Members who made use of the Mine Hospital: *2015- Employees and Spouses only | *2016 – Employees and Spouses only | *2017 – Employees, Spouses and Zone of Influence (ZoI) Communities
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STATEMENT BY THE DEBSWANA BOARD CHAIR MR. CARTER MORUPISIRUPISI
2017: Another strong year for Debswana On behalf of the Debswana Board,oard, I would like to start by thankingg Debswana employees for the remarkable performance in 2017.7. It is through their efforts that thishis was another successful year for our company. We attained strongng production performance while maintaining a good safety record.
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THE CORNERSTONE OF DEBSWANA’S ACHIEVEMENTS HAS BEEN GOOD GOVERNANCE, ETHICAL BEHAVIOUR, AUDITABLE AND DEFENSIBLE RESULTS.
Values are at the core of Debswana. The ZERO HARM. The 0.17 Total Recordable way we live these values and our Injury Frequency Rate (TRIFR), behaviour are even more important; compared to 0.22 in 2016, illustrates that doing the right thing is integral to our there is progress towards this goal. people and our business. We have robust policies and control procedures which In conclusion, our 2017 results across all help us ensure that good business ethics Debswana operations demonstrate both are embedded across the company. This the strength and the resilience of our is key to our success. company. Against the background of the Volatile, Unpredictable, Complex As a result of these efforts, over the and Ambiguous world we live in and all course of 2017, cost efficiency has industry pressures, it is a remarkable improved, productivity increased and achievement that Debswana remained diamond production rose. While we Always Ahead. anticipate stronger demand in 2018 than in 2017, we must continue to implement BOARD CHANGES: our strategy of managing risks, reducing costs sustainably and producing carats in There were changes in the Debswana a way that benefits all our stakeholders. Board during the course of the year. I warmly thank the three outgoing Even with an exemplary safety members – Arthur Paul Hewett, performance, there is still a long way to Athalia Lesiba Molokomme and go to reach the ambitious targets we have Kgomotso Abi – for their many years of set ourselves. I am confident that we will service and substantial contributions to eventually achieve our target of ZERO the Company. HARM and the Board remains supportive and united behind this safety I am pleased to announce the pledge. appointments of Malebogo Itumeleng Mpugwa, Burger Greeff, Moses Dinekere Looking ahead, safety remains a value Pelaelo, Dr. Obolokile Thoti Obakeng and priority across the group; it is the and Abraham Keetshabe – all strong first item on every Board agenda. This leaders who bring great experience and has reinforced our determination to energy to their new positions as Board ensure that at all times our employees members. maintain the determination to achieve
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DEBSWANA MANAGING DIRECTOR’S STATEMENT MR. BALISI BONYONGO
2017 was the year of Governance and Excellence at Debswana and I am delighted to report that Debswanaebswana mamaintainedintained ititss googoodd performance for 2017. The companypany continued to contribute positively to our shareholders by remainingaining pprofitablerofitable during the yeyearar under review. In 2017, we were able to iimprovemprove on our robust 2016 safety performance. Much to our regret,gret, we still experiencedexperienced injuries. We consequently redoubled our effortsfforts in safetsafetyy leadershleadershipip anandd culture to deliver the high safety standardsandards for which the entire De Beers Group workforce strives.
While there is more work to be done,one, I’m pleasedpleased with our 20172017 achievements. Costs have come down,, productivityproductivity and efficiency have improved and our diamond productiontion rose. Against a challengingchallenging setting we have maintained our focus of putting peoppeoplele andand safety first, focusing on improving our operatingg efficiency and delivering on oourur social performance programme.
HOW RELEVANT IS ECONOMIC, ENVIRONMENTALNVIRONMENTAL AND SOCIAL SUSTAINABILITY TOO OUROUR BUSINESS?BUSINESS? “The answer is very simple. Think aboutbout the fourfour ladies in a coffee shop on 5th Avenue inin New York,York, who are discussing the merits of buyingng natural diamonds, synthetic diamonds or alternativesrnatives such as rubies. If, during the course off their discussion, a news item would flash onn the TVTV screen in the corner of the coffee shop about a community up in arms at one of our minesmines because they feel aggrieved by the way wewe conduct our business, how would that affectaffect their decision to buy natural diamondss or not? Therefore, doing our business in a socio-economically and environmentallyly responsible manner is core to our businessness and is embedded in everything we do”” said Mr Balisi Bonyongo.
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OUR COMMITMENT TO SAFETY
Once again, the entire group leadership reaffirmed To ensure sustainability of our business we also that the Safety and Health of each employee is more progressed our most compelling expansion projects, than a priority; it is a value that is ingrained in the way namely Cut 8 and Cut 9, at Jwaneng Mine. In 2018, the we conduct our business and live our lives. This Cut 8 Project will contribute significantly to the philosophy was adopted in 2017 and resulted in the Jwaneng Mine carat production and take over as the introduction of the new safety value, Put Safety First, main ore source until 2030. which will be officially launched in 2018. ENABLING OUR COMMUNITIES Debswana is fundamentally concerned with the health and safety of both its employees and Debswana operates amongst various communities and contractors through its commitment to achieving a always strives to continuously engage them, minimise Zero Harm work environment. In line with this target, social risks and uplift their livelihoods. We do this it is most gratifying to report a 2017 Total Recordable through our social performance programme guided Injury Frequency Rate (TRIFR) of 0.17 versus a target by the Social Way framework. The Social Way is a of 0.25; the best result recorded in Debswana’s history. governing framework for best practice which provides assurance that Debswana has processes in place to While this injury rate represents a world-class safety adequately mitigate social impacts and maximise performance, we remain focused on upholding and socio-economic benefits for communities. enhancing our safety programmes, to ensure that each one of our colleagues returns home safely, every In 2017, Debswana achieved a 3.91 score during the day. In 2018, we will maintain our focus on Anglo American Social Way moderated assessment demonstrating good practice through sound held in November 2017, thus exceeding the 3.0 conscious safety leadership and ensure a successful threshold and 3.5 stretch targets. This is an transition to the new ISO 14001:2015 environmental improvement from the score of 3.32, that was achieved standards across all sites. in 2016. This continued improvement is a strong commitment by Debswana towards developing and improving the livelihoods of the people residing THE DEBSWANA OF TODAY AND around our operations. TOMORROW We will always look for ways to improve what we do, DEBSWANA’S APPROACH TO irrespective of the volatile and uncertain environment SUSTAINABILITY REPORTING we operate in. To meet the challenges of today, we must always think ahead. Debswana’s ability to plan, I am excited to unveil our first issue of our Report to schedule and invest properly for the long term has Stakeholders which conforms to the Global Reporting always been our competitive advantage. Initiative (GRI) Sustainability Reporting Standards. The GRI standards represent global best practice for In 2017, we ramped up production at Orapa plants, reporting on a range of economic, environmental and resumed production at Damtshaa Mine, progressed social impacts. pre-feasibility study on the Cut 3 project and commissioned the Letlhakane Tailings Plant (LTP). Thank you for taking the time to read our report. The LTP is expected to reach production capacity in 2018 and is critical as it will extend the life of the Letlhakane operation by a further 20 years.
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Debswana, being a private ABOUT company, does not publish its financial statements. The THIS REPORT boundary of this report includes the Company’s operations and This is Debswana Diamond projects described in the section ‘Our Organisation’. There was no Company’s first annual Report to need for restatement of Stakeholders (RTS) that is information from the previous aligned with the Global report. Assurance of some of the information in this report was Reporting Initiative (GRI) included in a broader assurance Sustainability Reporting engagement for Anglo American. Debswana intends to have Standards. This report has been relevant sustainability information prepared in accordance with the assured for the next report. GRI Standards: Core option. This report builds on the 2016 RTS; and covers performance for the period 1st January to 31 OUR ORGANISATION December 2017. Debswana Diamond Company (Pty) Limited is a 50/50% partnership between the Government of the Republic of Botswana and the De Beers Group of Companies.
Debswana is the world’s leading diamond producer by value and the largest private sector employer in Botswana, with more than 5 000 employees and 6 000 contractors. The company produced 22.7 million carats (up 11% from 20.5 million carats in 2016).
Debswana operates four diamond mines: Jwaneng, Orapa, Letlhakane and Damtshaa Mines (the latter three are grouped under the acronym OLDM), with headquarters in Gaborone. In addition, Debswana has a fully owned subsidiary, Sesiro Insurance Company (Pty) Limited. All diamonds from Debswana are sold to De Beers and the Okavango Diamond Company.
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Debswana adopted the Towards Sustainable Mining investment and the Kimberley Process which aims at (TSM) protocols in 2012. TSM is an industry-led stemming the illicit flow of conflict diamonds, as voluntary programme, developed by the Mining well as Anglo American’s Social Way Programme. Association of Canada to demonstrate the industry’s commitment to responsible mining in a tangible Debswana is a member of, and supports various and credible manner. It is a set of tools and industries and associations inclusive of national indicators designed to drive performance and bodies such as Business Botswana, Kalahari ensure that key environmental, safety and Conservation Society, International Council on community risks are managed responsibly at each Mining and Metals and the Responsible Jewellery mining facility. Council. Debswana applies the precautionary principle by conducting environmental and social Debswana also endorses the International Finance impact assessments for any new project or extension Corporation’s performance standards on managing of existing projects. environmental and social risks, and implements these standards as far as they are applicable to us. We also support the Equator Principles on responsible
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OUR VALUE CHAIN Crushing, scrubbing and recrush processes are used to The diamond value chain comprises break and fracture the ore, processes that progressively add value liberate diamonds and reduce to the diamond resource, from particles to a manageable size. mining to sales. As the diamond Comminution is from the resource passes through each Latin word comminutus, intervention phase, additional value meaning to lessen. In mining terms, comminute means to is added. reduce to minute particles.
1. MINING 3. CONCENTRATION
2. COMMINUTION
Drilling and blasting is used to Diamonds have a higher density break up millions of tonnes of than the rock that hosts them. Once rock and assist in the loading the ore has been crushed to a and transportation of ore and manageable size, it is mixed into a waste rock. Kimberlite and slurry of ferrosilicon and water in a waste rock are then loaded into process known as Dense Media massive trucks by large shovels Separation (DMS). The heavier and taken to the primary diamonds sink in the slurry while crusher and waste dumps, the rest of the lighter material respectively. floats.The concentrate that contains diamonds (sinks) is transported to the recovery plant and the material that floats (tailings) is transported to the recrush plant for further comminution.
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Diamonds have several remarkable properties that are exploited to recover them from the stream of prepared concentrate. Diamonds fluoresce when irradiated with x-rays. They also repel water and are attracted to grease. When the concentrate is The tailings (waste or residue) mixed and passed over a grease belt, from concentration, recovery the diamonds adhere to the grease. and sorting, are disposed of in Diamonds also emit a unique mineral residue dumps signature under laser light.
5. SORTING AND SALES
4. RECOVERY 6. RESIDUE DISPOSAL
Diamond sorting, cleaning, packaging and weighing takes place in a Fully Integrated Sorthouse (FISH), part of the Aquarium facility. FISH maximises diamond security while optimising diamond sorting through the use of laser technology. Debswana diamonds are then sorted and valued by the Diamond Trading Company Botswana (DTCB) in Gaborone before being sold to De Beers and the Okavango Diamond Company.
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GOVERNANCE AUDIT COMMITTEE The Audit Committee is an important element of the Board’s system of monitoring and control, and, with the Our company is governed by a unitary board consisting exception of the Managing Director who is an ex-officio of 12 board members. During 2017, three board member, it comprises directors who do not hold members completed their terms and five new board executive office within the Company. The Committee members were appointed. The Board is ultimately meets at least three times annually to monitor the accountable for the Company’s activities and deals with adequacy of financial information reported to the all Company business not specifically delegated to its Shareholders, to monitor internal controls, accounting Committees or Management, and monitors the use of policies and financial reporting, and to provide a forum resources to achieve the aims of the Company. for communication between the Board, external auditors and internal auditors. The Board meets four times per year and is assisted in executing its responsibilities by four board committees. REMUNERATION AND NOMINATIONS COMMITTEE The Remuneration and Nominations Committee’s (Remco) primary mandate is to make recommendations on the compensation, incentivisation and performance targets of any executive directors, as well as salary scales for executive management. In addition, Remco’s remit is to review and recommend for approval by the Board, the structure and funding levels of any executive bonus and incentive schemes.
TECHNICAL COMMITTEE The Technical Committee’s primary focus is to consider, inter alia, technical issues, mining plans and proposals, capital expenditure, and Company budgets in addition to providing overall technical assurance to the Board and making appropriate recommendations for approval by the Board.
SUSTAINABILITY COMMITTEE The Sustainability Committee monitors and evaluates all aspects of the Company’s sustainability activities including social performance, safety, environment and occupational health. The Committee reviews, provides assurance and makes recommendations to the Board of Directors on key sustainability issues and CSI projects.
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LEGAL AND REGULATORY COMPLIANCE Debswana is committed to conducting its business The implementation, coordination and monitoring strictly within the law as well as in compliance with of the various sustainability programmes is delegated ethical standards. While Debswana believes that this is to management which is assisted by the Debswana the right thing to do, it also remains alive to the fact Corporate Sustainability Committee (DCSC) that failure in this respect, may invite the possibility of providing oversight of performance, risks and unenforceable contracts, litigation that would opportunities regarding: otherwise have been averted, payment of damages, regulatory fines, deteriorating reputation and market • Occupational Health and Safety position. Our stance is embedded in, among others, • Environment the Company’s Code of Conduct and Business Ethics, • Social Performance the Legal Risk Management Policy and the Debswana Compliance Framework. The DCSC reports to the Executive Committee (EXCO) and consists of the General Managers of the No significant fines or non-monetary sanctions for four mining operations and the Director of non-compliance with laws and/or regulations, and in Technical Services and Sustainability (Chair). particular, those involving the environment, social and economic aspects were incurred by Debswana in the year 2017. Orapa No. 2 Plant and the Completely MANAGING CONFLICT OF INTEREST Automated Recovery Plant (CARP) Debswana is committed to ensuring that all business is conducted in accordance with the good standards of corporate governance. Accordingly, the manner in which Debswana conducts business should be based on integrity and ethical behaviour. Potential or perceived conflicts of interest can be as damaging to reputation as actual conflicts and must be avoided where possible. In line with the Code of Conduct we have issued a policy on managing conflict of interest. The policy stipulates when, how and by who a declaration of interest must be submitted by employees, and how any situations of potential conflict of interest should be managed.
GOVERNANCE OF SUSTAINABILITY The Board Sustainability Committee provides review, oversight and assurance of: • Implementation of the Social Way; • Annual Corporate Social Investment Budget; • Safety and Occupational Health; • Impact of Operations on the Environment, Public Health and Safety; and • Reputation Management and Stakeholder Engagement.
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OUR APPROACH TO SUSTAINABILITY
21 Towards sustainable mining (TSM) 21 Assurance of our sustainability performance 21 Material topics
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Managing sustainability impacts affects every OUR APPROACH part of our business and is embedded in the day-to-day operations. Sustainability is one of TO SUSTAINABILITY five pillars of the Debswana 2018 High Performance Organisation (HPO) Strategy.
Figure 1: Debswana’s High Performance Organisation Strategy
SHAREHOLDER DISTRIBUTIONS
Delivery of Delivery of Cash Cost per Gross Profit Towards Carats Volume Carats to plan Ton moved Margin % Sustainable Mining (A Ratings)
Revenue Cost Organisational Horizon 1 and 2 Sustainability Improvement Performance Capability Projects
Sustainability key outcomes include: the attainment of financial success, social license to operate, responsible use and security of natural resources, lasting positive reputation and legacy.
Our approach is to develop and maintain a harmonious relationship with key components that are impacted by our operations in order to ensure our license to operate: • Our employees • Our communities • Our natural environment • Our suppliers • Our legislative requirements
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Elements that drive corporate sustainability in Debswana
CULTURE Culture impacts decisions on BUSINESS ETHICS AND INTEGRITY Culture impacts decisions on environment which impact COMPLIANCE | GOVERNANCE | REPORTING health and safety which impact reputation and compliance reputation and compliance
ENVIRONMENT EMPLOYEES RESOURCES (LAND, HUMAN RIGHTS WATER, ENERGY, AIR OCCUPATIONAL QUALITY) HEALTH & HYGIENE BIODIVERSITY, WASTE SAFETY
Environmental impact increases Employees are from the cost of closure and compromises COMMUNITIES community and we use common resources relationship with communities MINE CLOSURE | ENGAGEMENT
Sustainability related risks are integrated in our risk management process. This is reflected in our Risk Universe.
For Debswana to be recognised for its lasting Sustainability contribution to the success of Strategic sustainability priorities and key Commitment Botswana through world topics for the short to medium term class sustainability include: performance in the mining industry • Safety culture and behavioural issues • Occupational illnesses Strategic Outcomes • Fatigue management Financial Success | Reputation Resource Security | License to Operate • Development of renewable energy capacity • Reduce climate change through reduced energy and greenhouse gases emissions • Integrated Closure Plan System – concurrent Safety rehabilitation and reduction of closure liability Occupational Health • Building of the mine closure fund Community Mine Closure • Contractor management Environmental Impact Waste Water Energy
Sustainability, Culture, Values, Attitudes and Behaviours Governance | Sustainability Team | Standards and Codes | Performance Culture Internal and External Communication
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TOWARDS SUSTAINABLE MINING (TSM) Implementing the TSM protocols enables Debswana to In 2017, Debswana attained a total of 107 A ratings continually assess its performance against the six against a threshold target of 102 A’s and stretch target of sustainability indicators, namely, energy and emissions, 107 A’s. Jwaneng mine contributed 54 A ratings and tailings management, community management, OLDM 53 A’s. biodiversity management, crisis management and safety management. The performance rating under each ASSURANCE OF OUR SUSTAINABILITY protocol ranges from C, which is no management system PERFORMANCE in place, to AAA, which is Leadership and Excellence. Debswana annually sets TSM performance targets linked Throughout the year several aspects of sustainability are to the Level 1 scorecard for business performance assured by various external service providers as well as indicators. internal audit. The table below shows these assurance activities during 2017. Table 1 : Internal and external assurance activities in 2017
ASSURANCE SITE ASSURER QUARTER RESULT TSM VERIFICATION 102 A ratings vs 81 AUDIT All sites PWC Q1 A threshold and stretch of 86 As. SHE CONTRACTOR AUDIT OLDM Internal Q1 Moderate Audit
DATA INTEGRITY All sites Internal Q1 Moderate – all findings Audit have been closed
ISO OHSAS OLDM Q2 Recertified Tuv Sud Jwaneng Mine Q2 Recertified TSM YEAR-END REVIEW OLDM Q4 53 A ratings SSD - DCC Jwaneng Mine Q4 54 A ratings ISO OHSAS INTERNAL AUDIT Jwaneng Shangoni Q3 Closure of findings Mine ongoing ISO 14001: 2015 INTERNAL OLDM recommended to AUDIT OLDM Internal Audit Q4 proceed for certification under the new standard SOCIAL PERFORMANCE ASSESSMENT All sites Internal Q4 3.92 Audit
MATERIAL TOPICS Towards the end of 2017, Debswana undertook its first formal process of identifying material sustainability issues in accordance with the GRI requirements. The issues identified during this process will inform management priorities for 2018, as well as the content of the 2018 Report to Stakeholders. Going forward Debswana will conduct a review of the materiality process.
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FOCUS AREA OPERATIONAL PERFORMANCE
24 Operational overview 25 Life of Mine (LoM)
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OPERATIONAL OVERVIEW
Table 2: Production figures for Debswana operations (2016-2017)
JWANENG OLDM TOTAL 22016016 22017017 20162016 20172017 20162016 22017017 TOTAL DIAMONDS RECOVERED (million carats) 11.97 11.86 8.53 10.83 20.50 22.69
TOTAL VOLUME MOVED (million tonnes) 128.05 120.10 28.25 30.71 156.30 150.82
TOTAL WASTE MINED (million tonnes) 109.42 105.13 7.30 7.67 116.72 112.80
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Diamond production for the year increased by 11% LIFE OF MINE (LoM) from 20.5 million carats to 22.66 million carats, in line with the production ramp-up plan. The life of our mines has a significant impact on productivity and longevity of the mines. The Business Total tonnes moved decreased by 3% from 156.30 Planning Committee oversees the continuous review of million tonnes in 2016 to 150.82 million tonnes, in line the LoM over two time horizons: with the approved production plans for the year. • Horizon 1 (short to medium term – business today) This component has primarily to do with improving Letlhakane Mine ceased mining ore from the open pit in efficiencies. The rolling five-year LoM plan is updated 2017. The sustainability of the operation was prolonged quarterly and reviewed annually. by the new Letlhakane Tailings Plant which commenced commissioning in the third quarter of 2017; this will be • Horizon 2 (long term – beyond business today) completed by the end of the first quarter in 2018. In the This looks at potential fundamental ways of changing fourth quarter of 2017, Damtshaa Mine commenced our way of doing business so as to expand the LoM. ramp-up readiness for the 2018 production year. Technology plays an important role in these considerations.
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FOCUS AREA HEALTH AND SAFETY
28 Safety 29 Occupational Health
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SAFETY Safety of our employees is paramount to Debswana. A safety culture is promoted in everything we do. It is one of our values and is the first thing we discuss at our meetings.
Jwaneng Mine Team wins the 2017 Botswana Chamber of Mines Inter-Mine First Aid Competitions
Debswana has undertaken a re-baselining of Fatal Risk and trained them on conscious leadership with three Control Standards (FRCS) and an assessment of objectives:
leadership and safety culture in order to address • To provide leaders with an understanding of the significant incidents we have experienced. Two desired approach to managing cultural change, partnerships were initiated with Hatch on engineering, system and processes related to FRCS and Sentis, a • To work with the executive, challenging the current globally recognised team of psychologists focusing on approach to leading safety culture and identifying safety leadership. potential changes to how things are managed at a leadership level, and To improve Debswana’s safety culture, management • To get an aligned picture of where Debswana is trying launched the Conscious Safety Leadership approach. In to go in the safety culture of the organisation. October 2017, engagement with executive management .
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Consequently, improvements have been noted in the way The primary responsibility of safety leaders is to ensure management and employees apply themselves to major the prevention of loss of life and injuries. We did not incur tasks as well as daily routine tasks. As a next step, an any fatalities in 2017 and the Total Recordable Injury inclusive implementation team comprising Contractors, Frequency Rate (TRIFR) for Jwaneng was 0.17 and 0.18 Employees, Supervisors and Leaders across the business for OLDM against a target of 0.25 and a stretch target of will engage in a series of workshops in the first quarter of 0.20. This was the best TRIFR recorded in the history of 2018 in order to crystalise the envisioned safety culture of Debswana. Debswana and finalise the implementation roadmap. These initiatives are rolled out in partnership with key stakeholders such as the Botswana Mine Works Union and Contractors.
Table 3: Debswana safety records (2016-2017)
PILLAR 2016 2016 2017 2017 METRIC TARGET YEAR END TARGET YEAR END
SAFETY FATALITIES 0 1 0 0
SAFETY LTIFR NA 0.01 NA 0.02
SAFETY TRIFR 0.38 0.21 0.25 0.17
SAFETY, HEALTH, ENVIRONMENT HPIs NA 23 NA 33
Figure 2: Debswana safety performance trend (2011-2017)
SAFETY PERFORMANCE DEBSWANA (RECORDABLE INJURIES) 160 1.60 • Reduces noise to below 85db as compared to 140 1.40 disposable ear plug and muffs 120 1.20 100 1.00 • Improves the ability to hear warning alarms and 80 0.80 hold conversations 60 0.60 40 0.40 • Comfortable and convenient - fits well, seals the ear 20 0.20 and is more effective 0 0.00 2011 2012 2013 2014 2015 2016 2017 In OLDM, 1334 custom made ear plugs were fitted Fatal LTI RWI MTI LTIFR CIFR TRIFR against a target of 865 for at risk employees. The target was exceeded to include intermittently exposed We will continue to implement measures to drive down managers and supervisors. In Jwaneng, a total of 1023 our injury rates even further. employees were equipped with earplugs against a target of 1240 and the 217 outstanding employees will be OCCUPATIONAL HEALTH equipped by the end of February 2018. Noise Induced Hearing Loss Fatigue management Noise Induced Hearing Loss is one of the occupational The issue based risk assessments conducted at Debswana risks in Debswana’s operations and noise levels above 85 operations indicated that fatigue is a significant risk decibels (db) have been identified in plants, engineering amongst shift workers. A fatigue management standard workshops and mining areas. The risk groups are and monitoring system were designed in 2017. The artisans, drivers and plant operators. Operations adopted implementation of the fatigue management programme the use of custom fitted hearing protection for people will assist in the Company’s continued efforts to reduce working in areas that have noise levels above 85db. The injuries, cost and property damages; increased morale, benefits of custom fitted hearing protection include: wellbeing and productivity.
29 DEBSWANA STAKEHOLDER REPORT 2017
30 DEBSWANA STAKEHOLDER REPORT 2017
OCCUPATIONAL HEALTH MANAGER KENEILWE MATJOLA RECEIVES AWARD!
On 26 October 2017, during the Annual Conference of the Southern African Institute for Occupational Hygiene (SAIOH), Ms Keneilwe Matjola was awarded the title of Occupational Hygienist for the year 2016.
Occupational Hygiene (OH) is about preventing and the OH management systems; raising managing occupational diseases in the workplace. OH is awareness on the programmes; as well a relatively new discipline in Botswana. In recent years, integrating OH risks into project design. Debswana witnessed a steady growth in the number of its Through this strategy, Debswana is the only employees acquiring accreditation with the SAIOH as company in Botswana, which has a Occupational Hygiene Assistants, Occupational Hygiene well-established Occupational Hygiene Technologists and Occupational Hygienist. Of the 14 programme. accredited people in the field of Occupational Hygiene in Botswana, 12 are employed by Debswana. Keneilwe PARTNERSHIPS who is the only certified Occupational Hygienist at Department of Mines: Partnerships on Debswana and in Botswana, works at the Debswana opportunities for competency development on Corporate Centre. Occupational Hygiene. Keneilwe was awarded the Occupational Hygienist of the year award based on the practice and management of Botswana Bureau of Standards: Involvement in Occupational Hygiene programmes in her area of work, the development of national technical partnerships with government ministries, parastatals and standards in the areas of health and safety. academic institutions. Besides this qualification, Keneilwe has a degree in Environmental Health, a post graduate University of Botswana: Environmental Health diploma in Occupational Hygiene and a master’s degree Department as a strategic partner for sourcing in Business Administration. and training of OH talent, input into curriculum as well potential opportunities for Some of the key highlights of the basis for this award experiential training/learning and internship include: programmes for the students that aspire to join Debswana in future. DEBSWANA OH MANAGEMENT: We salute Keneilwe Matjola! Defining strategies for managing OH risks such as fatigue, vibration, ergonomics, noise and dust emanating from our processes, implementation and sustenance of
31 DEBSWANA STAKEHOLDER REPORT 2017
32 DEBSWANA STAKEHOLDER REPORT 2017
FOCUS AREA OUR EMPLOYEES
34 Workforce 34 Industrial relations 34 Skills development 35 Employee Wellness Programme 36 Localisation of expertise 36 Gender Diversity and Inclusion
33 DEBSWANA STAKEHOLDER REPORT 2017
INDUSTRIAL RELATIONS WORKFORCE Debswana remains committed to upholding fundamental Our employees enable us to achieve our principles and rights at work including, but not limited to, freedom of association, the right to organise and aims and objectives and are critical for collective bargaining. The Botswana Mine Workers Union the implementation of our strategy. has been granted recognition as a collective bargaining Several programmes are implemented to agent for employees in job grades A to C in accordance increase the well-being of our with the relevant statutory instruments. Employment relations at Debswana is founded on the principles of employees. freedom of association, workplace democracy and collective bargaining.
The relationship between the company and the Union is regulated through a recognition agreement which Table 4: Debswana work force as at 31st December 2017 legitimises joint negotiation and consultation as a mechanism for fostering cooperation and mutual OPERATIONS/ understanding between the parties. As a result of this OFFICE NUMBER OF arrangement, the Company and the Union have been EMPLOYEES able to negotiate and implement various collective labour agreements pertaining to terms and conditions of GABORONE 450 employment, safety health and environment, and other matters of mutual interest to the Company and the JWANENG workforce. The agreements are generally meant to 2093 remain in force and effect for a period of three years unless circumstances warrant interim review. ORAPA 2285
LETHLAKANE 370
DAMTSHAA 241
TOTAL 5439
34 DEBSWANA STAKEHOLDER REPORT 2017
SKILLS DEVELOPMENT Developing our employees’ talents increases their productivity and serves as a motivational tool. Skills development programmes are aimed at targeted groups as well as individual employees. They are based on a needs analysis and a gap assessment. Skills development is directly related to performance management and is reviewed annually. Individual development plans form the basis of OLDM 2017 Employee Long Service Awards our skills development programmes and feedback from annual performance assessments informs the review of aligned to the World Health Organisation and National individual development plans, if required. requirements.90-90-90: By 2020, 90% of all people living with HIV will know their HIV status. By 2020, 90% of all We follow a 70:20:10 approach with 70% of inputs focused people with diagnosed HIV infection will receive on on-the-job learning, 20% on mentoring and coaching, sustained antiretroviral therapy. By 2020, 90% of all and 10% on formal training. people receiving antiretroviral therapy will have viral Table 5: Average hours of training per employee, by employee category suppression.
Employee Jwaneng Orapa DCC The strategy going forward is to move from a single disease approach to an integrated wellness model which Male Female Male Female Male Female will include management of non-communicable GBF3 32.0 diseases such as diabetes, hypertension and mental GBF4 8.0 4.0 13.3 120.0 health. GBF5 14.0 26.7 60.0 9.3 171.4 At the end of 2017, 1178 people had registered on the GBF6 12.9 7.3 9.6 9.6 21.6 75.2 Company’s Disease Management Programme (823 C Band 29.4 5.8 20.1 12.8 9.9 6.4 employees and 355 dependents). 89% of employees B Band 20.1 4.6 47.7 13.0 52.3 30.6 living with HIV are on the first line of treatment, 10% on second line, and 1% on third line of treatment, A Band - - - - 40.0 40.0 respectively. The mortality rate for 2017 was 0.3% while Note: A grey-out block indicates that there were no employees in this category. HIV viral suppression was 97%. During 2018, we will stress test the output from the Strategic Debswana had no cases of malaria in 2017. Workforce Plan and undergo a gap analysis review to determine the skills required as well as our readiness in Table 6: Number of employees diagnosed with tuberculosis providing the business with the requisite skills. This will inform a plan that will be rolled out in the different areas of 2015 2016 2017 the business. 2 1 1
EMPLOYEE WELLNESS PROGRAMME The three employees who were diagnosed with Employee wellness continues to be a key focus area for tuberculosis in the previous two years have completed Debswana. The Company acknowledges that it cannot only their treatment. The newly diagnosed employee is still focus on job related skills but also has to look at the undergoing treatment. employee as a whole person. Only when each employee is functioning optimally, can the Company expect their full Our Health Risk Assessment has identified employee productivity; thus several programmes are in place to indebtedness as the top risk and to this end we rolled out support employee well-being beyond the work place. an employee financial wellbeing programme - Sedimosa - to elevate financial literacy, improve debt management In the past Debswana has been successful in terms of HIV and offer rehabilitation. Progress was noted in the management and mitigated the risk to business continuity. reduction of employees receiving less than 40% take-home The Company performed well with regards to the 90-90-90 pay during 2017. In 2018, the programme will focus on Strategy and achieved over 90% for all the elements; it improving training uptake which should result in better continues to implement the treat-all-approach which is management of personal debt. 35 DEBSWANA STAKEHOLDER REPORT 2017
2017 WELLNESS RELOAD FOR HEALTH SERVICES EMPLOYEES
“There are some aspects of one’s importance of sound financial physical and mental health that may management. In his keynote address, seem beyond individual control, and Senior Safety and Sustainable this may well be the case for many. Development Manager, Tumelo However, there are also a number of Ntlhayakgosi, said that the mining things people have the power to do to industry has inherent demands and improve their quality of life. This was a pressures associated with work. He message shared by Health Services shared that, as a business, it is critical for employees during their Wellness Debswana to continually enhance and Reloaded event. The event was held at protect employees’ health, wellness and the Jwaneng Mine hospital grounds in productivity. Ntlhayakgosi commended January 2017. the Health Services department for their unwavering commitment towards The purpose of the awareness campaign the culture of wellness. He praised the was to remind Health Services importance that the team places upon employees about the importance of healthy lifestyles that promote safety, their health status, and of the productivity and efficiency in the work environment”.
LOCALISATION OF EXPERTISE Gender diversity and inclusion The gradual replacement of international expertise with Management has included gender diversity as a strategic national expertise is a priority for Debswana. The focus area for Debswana. The company has conducted a Department of Labour is a key stakeholder in this baseline study across the organisation to get a full process. Key to the success of this programme is the appreciation of the situation on the ground. empowerment of citizens, including transfer of skills, so that they are able to take over the roles handled by The baseline study helped us to develop plans in the work non-citizen experts. Localisation of expertise is place to address findings which were grouped into key integrated in the overall succession planning for the themes such as policies, enabling environment, KPIs, company. succession planning and training. One of the key findings from the study was that women only accounted for 21 As at 31 December 2017, the total number of employees percent of the workforce and only 19 percent were in at Debswana stood at 5 439. The number of citizen Senior Leadership positions. employees was 5 365, representing 98.64% of the total workforce. The total number of expatriates was 74, This was based on a total employment figure of 5,439 representing 1.36% of the total workforce. Countries employees plus 5,000 contractors. These percentages are that the expatriates come from include South Africa, comparable to a selection of global mining companies Zimbabwe, Zambia, Kenya, Uganda and Great Britain. and peer diamond companies in Southern Africa.
Table 7: Composition of Debswana employees in terms Despite this, we have taken a position that these figures of citizens and expatriates are not good enough for us. Debswana leadership has therefore committed to building a stronger business by DEBSWANA EMPLOYEES NUMBER PERCENTAGE creating an inclusive culture, where diversity of all forms is CITIZENS highly valued. 5365 98.64%
EXPATRIATES 74 1.36% TOTAL NUMBER OF EMPLOYEES 5439 100%
36 DEBSWANA STAKEHOLDER REPORT 2017
Debswana leadership has therefore committed to building a stronger business by creating an inclusive culture, where diversity of all forms is highly valued.
ELIMINATING UNCONSCIOUS GENDER BIAS BEGINS WITH TRAINING SENIOR LEADERS
In its endeavour to support gender equality in the company, Debswana saw it imperative to train senior leadership on unconscious gender bias in the workplace. The training was facilitated by a well experienced expert on the subject, Alison Elizabeth Bourne. During an interview, Bourne explained that business researchers have pointed out that the more diverse and inclusive the organisation is, the greater the chances of success of that particular organisation. Jwaneng Mine General Manager, Albert Milton, during his opening remarks at the senior leadership training workshop on unconscious bias, confirmed that Jwaneng Mine internal resources have already been capacitated to ensure that the unconscious bias training is cascaded to all Debswana employees.
37 DEBSWANA STAKEHOLDER REPORT 2017
38 DEBSWANA STAKEHOLDER REPORT 2017 FOCUS AREA STAKEHOLDER ENGAGEMENT
40 Stakeholder engagements at corporate level 41 Stakeholder engagements at operations
39 STAKEHOLDER ENGAGEMENTS AT STAKEHOLDER CORPORATE LEVEL At corporate level Corporate Affairs is the custodian of ENGAGEMENT stakeholder engagement and the Head of Corporate Affairs is officially the Company Spokesperson. Debswana has various key stakeholders Departmental and topic specific stakeholder engagement it partners with in its business is led by functional leads including the Managing endeavours. These include: Director’s office.
In 2017, Debswana hosted various internal and external engagements with key stakeholders inclusive of: employees, contractors, media, government departments, commercial banks, parastatals and embassies, to update them on business performance, safety and key projects. On • Traditional authorities a monthly basis, the company holds business performance • Tribal administration update meetings for employees (all employees at the • Government Centre and middle and upper management employees at • Farmers the Mines) and provides a written business performance • Development groups (e.g. VDC, VET, VHC etc.) update to all employees at the mines. • Vulnerable groups, including women and children • Media • Non-governmental organisations • Schools • Parastatals • Business partners • Political groups/authorities • Youth • Internal stakeholders – employees • Contractors & Suppliers
The identified stakeholder groups and their locations were chosen based on the following factors: • Communities where the mines have an impact in their geographic location such as, but not limited to, villages affected by water withdrawal, areas impacted by dust and areas that provide labour. • Communities that have an expectation from the mine that need to be addressed. • Stakeholders that are currently in contact with the operations for their particular mandates, e.g. those that the mines require services from and vice versa. These include tribal administration, contractors and suppliers. During the first quarter of the year an external stakeholder • Internal stakeholders are important to the business engagement was held, led by the Managing Director, and as employees are the reason Debswana can operate was attended by around 200 stakeholders representing the and interface with external stakeholders. media, diplomats, analysts, government officials, as well as its joint venture partners. The objective of the meeting was Stakeholder engagement takes place at two levels: at to share a business update, annual results and plans for the corporate and mining operation level. year.The Company also saw an opportunity in the 2017 Botswana Consumer Fair to expose different stakeholders to the diamond value chain and the contribution Debswana and diamonds were making to the lives of Batswana. 40 DEBSWANA STAKEHOLDER REPORT 2017
STAKEHOLDER ENGAGEMENTS district and regional governmental bodies. For the AT OPERATIONS purposes of the SEAT process a sample of these stakeholders are engaged. This is in contrast to legislative In line with corporate level stakeholder engagements, impact assessment processes where extensive engagement, external stakeholder engagements are held at particularly with all directly affected stakeholders, is Debswana’s operations with the Company’s mines required. holding annual business updates with local stakeholders (including local media, traditional authorities and During the 2017 SEAT process a wide number of different businesses), Members of Parliament and contractors. stakeholder groups were engaged through focus groups, The Company also offers mine tours to interested workshops, working groups, general meetings and stakeholders. one-to-one interviews.
More intensive stakeholder engagement takes place at Main issues raised by stakeholders operations. Debswana’s approach to stakeholder engagement is defined by Step 2 in the Socio-Economic at mine level. Assessment Toolkit (SEAT). Reviewed every three years, The positive issues and impacts identified by stakeholders the Stakeholder Engagement Plan and the Social include: Management Plan are outputs of the Socio-Economic • Increased engagement by the mines with communities, Assessment Toolbox (SEAT) process. They define the including by mine leadership (heads of departments) approach to engaging each stakeholder group, • Active involvement of chiefs in social development projects • A formalised socio-economic development programme that includes a focus on local employment and local procurement • Support for learner and teacher development through the Debswana Government Schools Development Programme, the Diamond Dream Academic Awards and the Adopt-a-School programme • Establishment of a number of forums where people can raise concerns and grievances directly with the mines • The mines’ role in the provision of infrastructure and services in the township and the local communities • Capacity building of local people A key emphasis in the • The role of the mine hospital in enabling access to process is to give external and internal improved health care stakeholders the • Poverty-eradication efforts through the provision of opportunity to share funds, help with establishing small-scale projects (e.g. their perceptions and vegetable gardens) and the provision of basic experiences of the infrastructure (e.g. village generators) Debswana operation. • Assistance with building houses for vulnerable individuals resulting in improved security and wellbeing • Employment of some local residents which brings including frequency, medium and purpose of these income into local households and helps to contribute engagements. A key emphasis in the process is to give to the local economy external and internal stakeholders the opportunity to • Opportunities for villagers to rent out their houses to share their perceptions and experiences of the contractor employees, which generates income at the Debswana operation. This is done with a view to household level enhancing understanding and finding solutions to • The mines’ engagement and collaboration at the issues raised. Debswana’s stakeholders include local level (e.g. with local authorities – councillors and neighbouring communities and various organisations dikgosi) was also acknowledged as valuable within them: traditional authorities, land-users, schools, • Appreciation for emergency response in times of crisis businesses, non-governmental organisations, and local, • The mines’ role in addressing crime at the local level
41 DEBSWANA STAKEHOLDER REPORT 2017
Omphile Ntabeni, Senior Project Manager, hosted members of the media to a tour of the Letlhakane Mine Tailings Resource Treatment Plant
Phenyo Maoto, Senior MRM Manager addressing contractors during a safety stand-down at Jwaneng Mine
42 DEBSWANA STAKEHOLDER REPORT 2017
Debswana’s exhibition stall at the 2017 Botswana International Trade Fair
External stakeholders indicated that they • The extension of safety practices by mine employees beyond the mine borders would like to see improvement in: • Inadequate stakeholder engagement • Where possible provision of social infrastructure • The design, implementation and monitoring of CSI and services initiatives • The time taken by contractors to pay salaries to their • Social ills in the zone of influence contractor employees, as well as their salaries commensurate with local living standards • Access to the lease area • Expectations of employment at the mine amidst low • Resettlement due to mine requirements skill levels • Squatting • Increased participation of the mine in community • The impact on natural resources events These concerns were incorporated in the updated Social • The fulfilment of legacy commitments made by the Management Plans of the mines and are reported on in mine this report where applicable.
43 44 FOCUS AREA OUR COMMUNITIES
47 Local procurement 48 Local employment 49 Enterprise development 50 Employee volunteering 55 External capacity building 56 Corporate Social Investment (CSI) 60 Sustainable Towns 61 Dealing with grievances 61 Resettlement
45 Diamonds share a special bond with everyone who depends on them for their livelihood. As a major global diamond producer, Debswana is acutely aware of the obligations that such standing requires of the Company. Debswana subscribes to the philosophy that its entrepreneurial success should be underpinned by social and economic responsibility.
In 2015, Debswana adopted the Anglo American Social Jwaneng Mine Social Performance team sharing information with Employees and Business Partners Way as the Company’s formal framework to manage social risks and impacts. The purpose of the Social Way is to secure and maintain our social license to operate. The Social Way provides a governing framework for a Debswana has embarked on a best-practice social management system, and sets out journey to create an enabling clear requirements to ensure that policies and systems environment for citizen owned are in place to: small, medium to micro • engage with affected and interested stakeholders enterprises (SMMEs) • avoid, prevent, and, where appropriate, mitigate and remediate adverse social impacts, and • maximise development opportunities. • Local procurement There are 10 requirements in the Social Way that • Local employment are relevant to Debswana covering the areas of social • Enterprise development risk management, stakeholder engagement, socio- • Employee volunteering economic development, social commitments and • External capacity building incident management, community health, safety • Synergies on infrastructure use and security management, contractor management, • Corporate Social Investment (CSI) resettlement and cultural heritage. Under Requirement 4 of the Social Way, Socio-economic Development In 2017, Debswana conducted three-yearly reviews (SED) is the most demanding in terms of scope and of the Socio Economic Assessments (SEAT) at both complexity. SED consists of seven pillars which forms operations to define the needs and realities of the the basis for reporting on our social performance: communities within the respective zones of influence. The data generated provided useful input for business impact strategies and stakeholder relationship management for the year 2018. These reviews are also used to assess the effectiveness of our SED/CSI programmes.
46 SUPPLY CHAIN CONTRIBUTIONS Debswana recognises procurement opportunities Advertisements on local newspapers for invitation emerging from its business activities as effective to tenders are made explicit to invite citizen owned economic impacts multipliers through which citizen companies to participate. Where practical, projects economic empowerment aspirations can be realised, scope or order volumes are split to manageable scale to effectively deliver socio-economic development in for SMMEs to handle. Effort is made to minimize Botswana. In collaboration with its business partners the chances of giving many orders/contracts to one and stakeholders, Debswana has embarked on a service provider at the same time to ensure that more journey to create an enabling environment for citizen companies remain active and jobs are created and owned small, medium to micro enterprises (SMMEs) saved. to play an active role in Debswana’s supply chain to strengthen its local supply base. Engagement with financial institutions (banks) and original equipment manufacturers (OEM) were Figure 3: Debswana Budget Spend on Citizen owned Companies initiated to avail primary and support equipment as (2014 – 2017) (million BWP) well as funding to build capacity for citizen owned
2000 companies to enable them to take up emerging 1511 1500 1279 opportunities in Debswana’s supply chain. 963 904 1000 500 As a result of this collaboration with critical stakeholders 0 20142015 2016 2017 and business partners to deliver citizen economic empowerment aspirations. Debswana can now LOCAL PROCUREMENT confidently award tenders to citizen owned companies that have demonstrated capability to deliver in terms A list of goods and services reserved for citizen owned of skills, experience and the ability to put together a companies has been increased to include elements team that can deliver despite the fact that they may not of the core business such as production drilling and have the equipment; well knowing that banks will fund crushing of aggregates. them and the OEMs will supply the equipment, train Figure 4: Debswana % of total Procurement Budget Spend on the contractor in operations, maintenance and provide Citizen owned Companies (2014 – 2017) technical support over the duration of the contract.
35% 29% 30% 26% Procurement Price Preferential (PPP) margins have 25% 18% been revised-up to align with that of the Government 20% 15% 15% of Botswana’s Economic Diversification Drive (EDD) 10% to give citizen owned companies preference over their 5% 0% foreign competitors. A commitment has been made to 20142015 2016 2017 ensure that orders and contracts of less than BWP10 Million are seriously considered for citizen owned companies where practical.
47 LOCAL EMPLOYMENT Debswana has engaged and invited its first and second Debswana is committed to employing and developing tier suppliers/contractors to commit to support the citizens of Botswana in its operations. Currently the citizen economic empowerment agenda. It has also Company employs more than 98.64% citizens across been made contractual that they employ and develop all sites. The same level of commitment to local Batswana as well as supporting citizen owned SMMEs employment and capacity building has been accorded and the local community. Foreign companies doing to its suppliers and contractors. Debswana demands, business with Debswana have been encouraged to through its contracts, that the contractor gives setup their production facilities locally to improve preference to citizens of Botswana in employment and their chances of winning upcoming procurement procurement opportunities, and play an active role in opportunities. corporate social responsibility programmes. In 2017, these requirements were made contractual through Over the past three years Debswana’s local spend has the citizen economic empowerment policy. been about 80% while foreign spend varies around 20%. In 2017, we have seen significant improvement In response to the shifting policy direction Danoher in the amount of the local spend that goes to Botswana (Pty) Ltd, which have been Debswana’s contractor citizen owned companies. The figure stood at 26% of for crushing of aggregates and stemming materials the local spend, which translates to BWP 1.51 Billion, for both Jwaneng and Orapa mines has invested in which is an improvement from BWP 1.2 Billion employing and training citizens of Botswana in both achieved in 2016. operation and maintenance of crushing plants. Today the Company employs 100% citizens of Botswana and they run its operations, which is a step in the right direction to give them exposure to be able to establish and run their own operations.
Debswana demands, through its contracts, that the contractor gives preference to citizens of Botswana in employment and procurement opportunities, and play an active role in corporate social responsibility programmes.
48 Jwaneng Mine Enterprise Development Capacity Building Programme for ]RQHRILQÁXHQFH600(V in partnership with the Companies and Intellectual Property Authoriy (CIPA)
ENTERPRISE DEVELOPMENT Enterprise development enables Debswana to operations. It also allowed the LEA team that was working actively support the development of competitive and on the project to visit Jwaneng Mine to appreciate the sustainable citizen-owned SMMEs, to create alternative environments under which their products will be used. livelihoods to diversify the economy of Botswana. The The tool bags are currently produced by youth at the Company is also committed to collaborating with its incubator and sold to Debswana and its contractors at stakeholders and other developmental partners to play Jwaneng and Orapa Mines. an active role in creating a conducive and supportive environment for enterprise to thrive. Tokafala Enterprise Development Programme Tokafala, a partnership between the Government of the Debswana’s performance is significantly dependent Republic of Botswana, Anglo American, De Beers and on that of its suppliers/ contractors and as a result, Debswana, was launched in 2013 to offer comprehensive recognises supplier development as a strategic support to entrepreneurs through business mentoring, imperative to enable citizen owned companies to business management and business plan development effectively compete for supply chain opportunities advice, selective loan financing and market access. In emerging from its business activities. this regard, Tokafala complements Debswana’s Citizen Economic Empowerment Policy objectives. In the period 2015 – 2017 Debswana supported a Leather Incubator in Gaborone, owned and run by the The four entities signed a Memorandum of Agreement Local Enterprise Authority (LEA), to capacitate youth in 2017, agreeing to workshop strategic priorities for to play an active role in the leather industry. Debswana 2019 and beyond, in line with direct and indirect employees from Jwaneng Mine participated in the creation of jobs in Botswana, through capacitating design and testing of the tool bags to be used in the enterprises, supporting the Government’s economic construction and mining industry. The Company paid diversification mandate through catalysing sustainable for the samples during the initial design phase, allowed entrepreneurship in non-traditional sectors primarily its technicians to participate in the design phase and amongst the youth and supporting enterprises to attain allowed the prototypes to be tested and evaluated at its access to finance and business mentoring of SMMEs.
49 In 2017, Tokafala provided support to six enterprises OUR VERY OWN VOLUNTEER AT THE at Orapa, Letlhakane and Damtshaa Mines in building NETBALL YOUTH WORLD CUP construction, civils, steel fabrication and electrical engineering. The programme involved a 12-month When Botswana hosted the World Cup for Netball Youth, period of intensive business mentorship support. Dudu Nare of DCC Security- Projects volunteered her time to help with all the arrangements. Being an avid Strengthening Youth Development netball player in her younger days and working with people from all over the world on a daily basis in her Through Enterprise (STRYDE) work, made her at ease with the scores of netball players Debswana also partnered with Tokafala Ltd to initiate a from all over the world. The highlight for her during programme for building youth capacity in the Jwaneng the games was meeting the President of Botswana and Boteti environs, under the banner Strengthening on one of the days that she was looking after seating Youth Development Through Enterprise (STRYDE). for dignitaries at the University of Botswana sports The programme will target a total of 200 youth at both complex. Well done Dudu on your service for your environs, with a minimum of 50% female participation country and for representing the Debswana brand! in all the STRYDE cohorts.
A technical needs assessment was conducted during November and December 2017 to ensure that the STRYDE curriculum is relevant to the needs and aspirations of the target impact group.
The STRYDE programme consists of:
• Mobilisation to generate awareness and engage key stakeholders. • Core skills training over three months for selected participants. Dudu Nare • Aftercare support for a period of six months following the core skills training. • Monitoring and evaluation, which endures throughout the programme and post-exit to measure the full extent of impact generated.
EMPLOYEE VOLUNTEERISM Employee volunteerism takes place on an informal basis and includes utilising the skills of the Company’s staff to support various socio-economic development programmes, as well as assigning time for mentoring and coaching of citizen suppliers.
Botswana National Netball Team
50 Commission and taking care of and fully accounting for the resources given to her for preparation of the for Youth Cup. Hon. Molly Rhone-International Netball Federation President has since thanked Naledi for a job well done while on the committee to organise such a huge world event which was also a triumph for the continent of Africa.
“Your Organising Committee worked tirelessly to produce an event to meet world standards and they certainly delivered! We must applaud your fantastic volunteers who did a great job and were always ready to assist. Many thanks also to your sponsors and partners, without whom the event could not take place.
You must be tremendously proud of your team from the Botswana Netball Association who finished 10th overall in the competition. NALEDI DIKGOMO – GOULDEN Thank you for hosting such a lovely welcome dinner Naledi Dikgomo – Goulden was invited to form part for the INF Board and Staff – it was great to meet of the Organising Committee to deliver the Netball everyone and thank them personally for their efforts. World Youth Cup 2017 held in Gaborone, Botswana. The memories of this World Youth Cup will last forever Through this appointment she volunteered her for everyone who was there. We look forward to time and utilising the Company sports leave to carry receiving the final report of the event to hear of your duties inclusive of chairing the committee, providing recommendations for future hosts and to learn of the guidance to stakeholders, reporting to the Ministry of impact it has had for Botswana Netball Association and Youth, Sport and Culture, Botswana National Sports the country of Botswana”.
BLANKETS FOR PATIENTS OLDM Mini Business Area (MBA LEAN) Team made their own legacy through employee time. They donated 38 blankets to the Rakops Hospital, living true to “Show We Care” as a corporate value. The team conceived the idea at one of their lunch afternoons, when one member asked the team to think of a contribution to the communities around the mines which have many needy people. The team raised BWP3000 and bought blankets for the hospital, which services about 13 villages in the Boteti West constituency. The Rakops Hospital Superintendent, Dr. Rosemary Chalerwa, explained that being the regional service centre, they are inundated with influx of patients from the many villages around them. Currently, they service about 12 clinics. She said that there is a huge shortage of blankets. She said she was humbled when she heard that a group of people were raising funds from their own pockets to help alleviate their predicament. Well done to all who continue to live true to the Debswana values and show that we are a kind, caring, and compassionate business!
51 ENCOURAGING LITERACY AND READING
To Otsile Chaboneka who has chosen to volunteer to assist at the Orapa Public Library and tutor students in Mathematics and Science on weekends; living the Debswana value of ‘Show We Care’ means taking action to make a difference; she says it means demonstrating the aspect of Botho in one’s day to day interactions with others, both at work and at home. “There are a lot of painful things that are going around in the world, I felt helpless, I wanted to do something, however little, that can make a difference especially in my community” she Otsile says she chose to go the Library route because we says. live in an increasingly digital world where the culture of reading an actual book has really gone down. “Growing “I volunteer as a librarian on Saturdays and also up, I loved books and these were easily accessible at currently offer ad-hoc free tutoring lessons, homework the public library. I missed reading and had used the assistance and storytelling for the little ones. I have a Orapa Library before, I registered for membership in team of other volunteer librarians; there are currently 2009 and realised that this is the town’s treasure that is four of us who handle the Monday to Friday time slots not well known. I saw a lot of opportunities especially with the full support of the Education Manager, Fidelis for children and it was only natural that I volunteer to Machola and the Senior Support Services Manager, introduce and run the weekend slot, and my highlights Thatayaone Sithole.” are obviously the children, I love working with children, they are such a joy. I now have a team of firm regulars and the membership is growing.”
52 OLDM 2017 GM’S WALK RAISES OVER HALF A MILLION PULA
The 2017 General Manager’s Charity Walk hosted by OLDM has raised over BWP600,000 as a result of an overwhelming support from employees, contractors and the Boteti community. Funds raised in this year’s walk, which is an annual event, will go towards construction of a maternity wing at Letlhakane Primary Motlhabani also shared that this initiative is one Hospital. This will include proceeds from the previous of the many examples that clearly define the true walks, ensuring a state of the art maternity wing. partnership between the employees, contractors and the community of Boteti. It is an event which provides According to the OLDM General Manager, Bakani us with the opportunity to make a meaningful impact Motlhabani, the project was agreed on with the in the lives of the needy. “While we have one of the best involvement of community and sub-district stakeholders. primary care systems, it is important that, as the private The aim is for this to assist in decongesting the hospital sector we complement and support Government in and improving the level of healthcare service. providing good healthcare services,” he said.
53 CYCLE RACE MAKES BIG BUCKS FOR experience in this particular sport to encourage, CHARITY mentor and support the children to ensure that we leave a good legacy,” he said. Cyclists from all over the country thronged Jwaneng for a noble gesture of raising funds for charity through Milton also thanked all the sponsors who had the annual General Manager’s Cycle Race. demonstrated commitment towards helping the underprivileged members of the society. The race raised close to BWP400 000 in cash which will all go towards charity in line with the objectives of the When giving welcome remarks, Senior Manager initiative that started in 2004. Human Resource Management, Tshepang Mazwigwila, explained that the annual cycle race demonstrates Patron of the race Jwaneng Mine General Manager, that sport plays an important function in unifying Albert Milton, said he was mostly humbled by communities irrespective of how diverse they are. participation of children aged five to sixteen years who religiously take part in the race. “This has solidified the great support we have from our communities such as Sese, Lefhoko, Maboane and “This signifies a good future for cycling sport in other villages around the Mine,” he said. Botswana, and it is up to us who have had long
54 EXTERNAL CAPACITY BUILDING The mines, their suppliers and contractors play an DEBSWANA MOTHERHOOD CLUB important role in developing external capacity to local institutions. The Debswana CSI programme also The Debswana Motherhood Club is a group of women at the Debswana Corporate Centre (DCC) whose includes several capacity building initiatives. vision is to provide information and guidance to both employees and communities to become healthier, OLDM is reviewing the capacity needs of local pursue their goals and discover their talents. Formed in authorities and other government entities in the zone 2013, the 25 member ladies club has been involved in of influence; and continuing to profile the communities activities ranging from giving to charities in Gaborone in its zone of influence in order to assess the resources and surrounding villages and arranging for motivational talks for employees based at the Corporate Centre. already present within the communities so that these can be optimally utilised. Deborah Retief Memorial Hospital Children’s wing Visit -December 2017 At Jwaneng, capacity development trainings were This was a special day dedicated to the children at facilitated for different community structures Deborah Retief Memorial Hospital. Motherhood Club including the Community Policing Cluster, traditional donated gifts ranging from; a fridge, 20 chairs, and leadership, public security officers and members of the edutainment DVDs to the hospital. Jwaneng Town Council. These trainings were facilitated Father’s Day Commemoration at DCC – June 2017 to enhance the capacity of the stakeholders to respond Motherhood Club also planned a special day for the during a disaster or emergency. Corporate Centre workforce in commemoration of Father’s day under theme ‘Parenting in the 21st Jwaneng Mine has partnered with the community Century’. of Sese through the office of Kgosi and Village Development Committee (VDC) to facilitate sustainable developments and improve the quality of life in the village. Through this partnership, a series of capacity building activities for the community of Sese is continuously being undertaken by the mine in collaboration with other institutions such as Local Enterprise Authority, Construction Industry Trust Fund, CIPA and Botswana Red Cross. The activities amongst others, include: • Certified First Aid training courses for the Village Development Committee (VDC), Police officers, and Cluster policing committee; • Hazardous chemical handling training for the youth, police officers and VDC; • Fire management training; • Human Rights training; • Life skills and Behaviour Change Management training for vulnerable groups, including people living with disabilities; • Enterprise Development for out of school youth, unemployed women and small and medium enterprises. In 2017, close to 200 residents from surrounding villages were trained in beads and pottery making and 60% of the participants were Sese residents.
55 THE PARTNERSHIP BETWEEN JWANENG MINE HOSPITAL AND LOCAL GOVERNMENT
Established in 1982, Jwaneng Mine Hospital was initially built to provide for the medical and health-related needs of the mine workers and their dependents. Recognising that the success of any primary health care system is highly dependent upon an efficient patient referral system, Jwaneng Mine and the Government of Botswana entered into an agreement to extend health services to communities in the zone of influence. The Mine carries almost all costs, from overhead and medical treatment costs to the supply of medication and referrals to other hospitals for specialised care. The overall maintenance and upgrading of the hospital is also the sole responsibility of the Mine.
The hospital’s reach is about 200km. The hospital conducts between 75,000 and 80,000 consultations a year, predominantly on a referral basis from surrounding health facilities from Jwaneng, Sese, Tsienyane Primary School Minibus handover by Senior Manager, Support Services, Thatayaone Sithole to the Minister of Local Betesankwe, Lefhoko, Mokhomma, Samane, Tsonyane, Government and Rural Development and Boteti West Member of Maokane, Pitseng, Sesung, Seherelela and Sekoma Parliament Hon Slumber Tsogwane and communities beyond the mine’s 80km zone of influence. In addition to the usual services offered by a hospital, Jwaneng Mine Hospital also has an Infectious CORPORATE SOCIAL INVESTMENT (CSI) Disease Centre Clinic (IDCC), and since 2002, has CSI enables Debswana to engage in community been accredited by the Council for Health Service development activities that do not directly leverage Accreditation in Southern Africa. core business, but that are essential in obtaining and In 2010, Jwaneng Mine’s Cut 8 Project (a waste removal maintaining the Company’s social license to operate project that has extended the life of mine) completed and in demonstrating commitment and care towards a BWP2.2 million expansion of facilities at the hospital. its stakeholders.
Debswana’s CSI budget is allocated 50% to corporate programmes and 50% to mine level programmes. CSI spend is focused on: • Community development • Sports development • Education and youth • Arts and culture • Agriculture • Environment • Health
Projects supported during 2017 at the corporate level include: • Botswana National Sports Commission – Re Ba Bona Ha which is a grassroots sports development Jwaneng Mine Hospital Superintendant Dr Mwamba Nsebula taking the Health and Wellness Assistant Minister, Honourable programme where several sports were supported Phillip Makgalemele on a tour of the hospital facilities including karate, basketball, chess, and rugby to the value of BWP1 million
56 The completed Seaseole Primary School class room block in Letlhakane
• Tsodilo Hills Project: Construction of the Rhino • Debswana has been supporting the development Trail Staircase valued at BWP1 million, was of agriculture through the annual sponsorship completed and officially launched on the 27th of BWP700 000 to the National and District October 2017 by His Excellency the President of Agricultural shows. In 2017, BWP100 000 was used Botswana. to resuscitate the Molepolole District show. • Somarelang Tikologo (ST) Glass Recycling Project: • Debswana supported the Botswana National Debswana donated BWP650 000 for the purchase Netball Association with BWP1.2million to train the of a vehicle and a recycling machine. national team who were hosting the Netball World • Debswana First Division League: The division Youth Cup games. receives BWP2 million per annum to run the league. Debswana also provided funding for the The OLDM mine complex CSI projects for 2017 audit of the annual financial statements of the First included: Division League by PriceWaterhouseCoopers. • Tsienyane (Rakops) Primary (BWP650 000): A • Debswana sponsored the Debswana Developmental school bus for disabled students was procured and Botswana Open Chess Championship to the tune handed to the community. of BWP277 800.00 per annum for a period of four • The Seaseole Primary School classroom block years. This is an annual tournament that brings (BWP 3 797 696) was handed over to the school. together the best players from across southern • OLDM contributed (BWP754 000) towards Africa. It focuses on grassroots development of education in the Boteti Sub District. chess with players aged between 6 – 18 years also taking part. The sponsorship also goes towards running the Debswana Chess League.
57 Jwaneng Mine General Manager Albert Milton handing over the Mabuane Water Reservoir to Kgosi Phetogo
58 LETLHAKANE SENIOR SECONDARY SCHOOL
Letlhakane Senior Secondary School, located in Letlhakane, is the only senior secondary school in the Boteti sub-district. With 1,667 students and 120 staff, of which 52 are non-teaching staff, the school is often stretched to the limit. The school approached OLDM as part of the Adopt-a-School programme, requesting funding for the procurement of IT equipment in order to adequately equip learners. Debswana agreed to fund BWP1.2 million over three years.
During this period, the school bought an interactive board, a Personal Address System, laptops, projectors and a student identification printer. A staff computer lab was set up as part of the project, along with Wi-Fi at the school. In addition to providing the funding, Debswana also helped with the set-up of the computers. There was an electrical problem at the school that impeded the project, and Debswana provided new switches, which were installed by the government’s Department of Building Services.
The technological enhancements at the school have opened a new world for both students and teachers, giving them access to online libraries, research sources for projects and a means to network and connect with other schools online. Since the implementation of the project, the school has seen an improvement in the performance of the students. In 2017, this improved from a national ranking of 20 to 7.
In addition, the provision of the facilities has enabled the school to retain its high performing students; these students would normally have been transferred to attend Diamond Dreams Academic boarding schools in larger towns such as Francistown Awards Ceremony in Jwaneng where the learning opportunities are greater.
Completed Lefhoko Diamond Village project
59 At Jwaneng mine CSI projects for 2017 included: Land Management, Water and Sanitation Services to • The Tsonyane Kgotla Office (BWP2 Million) is convene relevant stakeholders to assess it. An ‘Inter- complete and awaiting handover. Ministerial’ committee was established to evaluate and • The Mahotshwane Kgotla offices (BWP1.5 Million) advise on the proposal. It had representation from the are 90% complete, electrification of the main following: building is ongoing. • Ministry of Land Management, Water and • The Maboane water project (BWP800 000) was Sanitation Services; completed and has been handed over to the • Ministry of Environment, Natural Resources Maboane community. Conservation and Tourism; • The Jwaneng Technical College Library Revamp • Ministry of Local Government and Rural project (BWP150 000) was completed and has been Development; handed over to the College. • Ministry of Investment, Trade and Industry, • The Wheel Chairs project (BWP350 000) is • Ministry of Mineral Resources, Green Technology complete and has been handed over to the and Energy Security, and the beneficiaries. • Ministry of Tertiary Education, Research, Science • Construction of Lefhoko Primary School Kitchen and Technology. (BWP1.5 Million): The building will be completed in 2018. To achieve “Boteti Tomorrow”, the initiative proposed • Construction of Tsonyane Clinic (BWP2 Million) the following; The building will be completed in 2018. • Establishment of a Diamond museum capturing Orapa as the first great diamond mine in Botswana The 2017 CSI budget of BWP15 million was underspent and leveraging on its history and positive impact on by approximately BWP4.4 million, due to projects not the nation. being started and completed on time (before year • Create a corridor linking Orapa and Makgadikgadi end). Most of this will be spent during 2018 in addition Pans by expanding the game park area. to the Company’s 2018 CSI budget. The Adrian Gale Diamond Museum was officially SUSTAINABLE TOWNS opened in March 2018 by the former President of Botswana, His Excellency Lieutenant General Dr. The Orapa Today Boteti Tomorrow (OTBT) programme Seretse Khama Ian Khama. The layout and design tell was conceived in 2011, through the visionary leadership the mining story in galleries of display rooms which of the former General Manager, the late Dr. Adrian reflect mining processes, equipment, products, office Gale. The first part of this programme (Orapa Today) space upstairs, a diamond display room and an outdoor is to make Orapa a great place to live and work. The area with big mining trucks. Phase 2 of the construction second part (Boteti Tomorrow) is to build a sustainable will include a curio shop, coffee shop, storage area and alternative economy other than diamond mining for a visitors’ lounge. the Boteti Sub District, whilst Debswana still has many more years of diamond mining. The extended Orapa Game Park area was also officially opened in March 2018 by the former President of OTBT has four components; Lease and Game park Botswana, His Excellency Lieutenant General Dr. expansion project, Technical College, Business Park Seretse Khama Ian Khama. The aim is to use diamond and a Diamond Museum. Two significant projects which mining as a catalyst for future tourism activity in form part of ‘Orapa Today and Boteti Tomorrow’, Boteti, and for the Park to also serve as a sanctuary for were progressed in 2017. These were the Game Park endangered species. expansion and Diamond Museum. Development of a business park to stimulate economic For implementation and governance, Debswana, activity. through Orapa, Letlhakane and Damtshaa Mines (OLDM) submitted a proposal to the Government Establishing a Technical University or Institute of of Botswana in 2013, which sought to diversify the Technology from the current training facility, which is economic base of the Boteti region from mining. The a national benchmark in technical training. proposal was subsequently directed to the Ministry of
60 The Park currently boasts a large variety of species. Figure 3: Categories of grievance received during 2017 An important consideration in the expansion of the Game Park is post-mining activity linked to community- led tourism. The Park is also part of OLDM’s socio- economic mine closure ambitions. Environmental impacts 29% The Department of National Museum and Monuments 43% Socio-economic development has contributed significantly to the conceptualisation of the expansion of the Game Park and development of Business ethics/business the Diamond Museum; by linking the two as a combined integrity tourist package for the high volume of tourists on transit 28% to the Makgadikgadi. The Makgadikgadi Framework Management Plan is part of the broader sustainable development and management of cultural and natural DEALING WITH GRIEVANCES heritage in the Boteti region. The Social Way programme records and manages The expanded Game Park and Diamond Museum community complaints and grievances. In 2017, a total tourist package is complemented by the development of of 17 grievances were recorded and managed through the Makgadikgadi Heritage Trail Map, which includes the complaints and grievances procedure (including access roads and signage at Kaitshe escarpment, timelines within which the complainant can expect Makgaba fossils, Mmakgama ruins, Mokgalo waga feedback). Kgama and Mosu escarpment. A South Sua mini trail is being developed from Kaitshe via Kokonje Island RESETTLEMENT to Sowa. Another mini trail, Ntwetwe pan, will be developed for bird and game viewing. OLDM is currently executing a resettlement in Orapa which began in 2012. Debswana subscribes to the International Finance Corporation Standard on resettlement to manage the impact of resettlement and livelihood restoration. Debswana is currently developing a retrofitted Supplementary Resettlement Action Plan which will be concluded at the end of 2018.
OLDM capacitating communities on safety at a Donkey Cart Road Safety Initiative in conjunction with Botswana Police and the Department of Roads
61 62 FOCUS AREA OUR NATURAL ENVIRONMENT
64 Managing our environmental impacts 64 Water use 66 Energy use and carbon emissions 67 Environmental incidents 67 Mine closure 69 Biodiversity
63 Throughout its implementation of the EMS and MANAGING OUR continual compliance to the legal requirements governing mining in Botswana, Debswana further ENVIRONMENTAL conducts environmental impact assessments for different life of mine projects. This process is not IMPACTS only undertaken to comply with legislation but also to enable the business to better manage its environmental risks and impacts. The identified environmental risks and impacts are consolidated and built into the Environmental Management Programme, which documents the management actions and mitigation measures put in place to reduce the impacts of our operational activities. Debswana realises that it is dependent on the Debswana is committed to minimising its environmental natural environment to provide resources footprint and its closure liability by ensuring that it used in its operations and environmental integrates the environmental and closure requirements services (e.g. waste absorption). The main into its business planning processes. This process is aspects of the Company’s environmental maintained and supported by adopting international impacts concern water, energy use and related best practice standards to enhance and sustain the carbon emissions, and biodiversity. For implementation of the sustainability programme. environmental parameters the information WATER USE relates to Debswana’s mining operations. Debswana is continually seeking ways to improve its MANAGING OUR ENVIRONMENTAL water management strategies at all its operations, in line IMPACTS with local best practice and international benchmarks. A re-baseline study of the Water Efficiency Target Debswana continues to implement an integrated Tool was conducted and initiatives to save water were environmental management programme with the identified and are being implemented at its operations. view to minimise and mitigate the unavoidable environmental impacts linked to the Company’s To meet its production demands Debswana sources operational processes. Mining by its nature impacts its water from the wellfields against a 15 million cubic the environment since it uses heavy duty machinery meter quota per operation (Jwaneng Mine and OLDM, and natural resources such as water. To better evaluate respectively). The water quota is issued by the Water and understand its interactions with the environment, Apportionment Board under the Department of Water Debswana has implemented an Environmental Affairs. Management System (EMS) in line with the requirements stipulated in the ISO 14001 standard. The Company’s operations are subjected to independent external audits and are awarded certificates of compliance.
64 Table 8: Water use at Debswana mining operations (million m3)
2014 2015 2016 2017 This table confirms the Company’s success in reducing the amount of water used for mining operations Jwaneng 12.00 11.70 9.93 7.99 (31% reduction over a 3-year period). OLDM 13.40 11.40 8.55 9.42 Total 25.40 23.10 18.48 17.41
Debswana is continually seeking ways to improve its water management strategies at all its operations, in line with local best practice and international benchmarks
behalf of the Standards Council and the Management of BOBS for his commitment to the development of Botswana Standards on Water Quality. Banda was an active participant in the BOBS Water Quality Technical Committee for a period of four years.
“Your contribution has played a vital role in the realisation of the BOBS’s mandate. Through your contribution, Botswana has established national standards that support industrial development, trade and consumer protection as well as the diversification of the country’s economy.
Your dedication and willingness to drive the standardisation agenda in this country is highly appreciated. It is our hope that you will continue to support the development and promotion of national standards in order to improve the quality of life of Batswana,” said Mrs Masego Marobela - Managing Director of BOBS in her letter of appreciation.
BANDA MASWABI RECEIVES Water is a strategic resource for Botswana as a RECOGNITION! country and for Debswana. Therefore, it is fitting that Mr Maswabi should receive recognition for his Banda Maswabi, a Principal Hydrogeologist at the contributions towards the formulation of standards Debswana Corporate Center; recently received a on water quality. letter of appreciation from the Managing Director of the Botswana Bureau of Standards (BOBS), on We salute Banda Maswabi!
65 Table 9 Electricity use at Debswana operations (GWh)
2014 2015 2016 2017
Jwaneng 234.00 227.30 251.40 222.57 OLDM 272.75 218.05 187.82 253.91 Total 506.75 445.35 439.22 476.48
Table 10: Diesel use at Debswana operations (m3)
ENERGY USE AND CARBON 2014 2015 2016 2017 EMISSIONS Jwaneng 106 717.95 118 374.68 97 844.06 222.57 OLDM 36 254.23 30 129.76 33 778.03 253.91 Energy use is a major cost driver and also contributes directly to carbon emission levels. Climate change is a Total 142 972.18 148 504.44 131 622.09 476.48 business risk and international best practice requires investment in energy reduction and improved energy The electricity usage levels are affected by production efficiency. levels. The significant increase in electricity use at OLDM is attributed to the commissioning of the The Government of Botswana has, through its Letlhakane Tailings Treatment Plant and production Sustainable Energy For All programme, indicated resumption readiness work at Damtshaa Mine. commitment towards improving energy efficiency as well as reducing carbon emissions. Debswana is aligned For 2018, Debswana has set itself a target of 2% with the Government of Botswana and the Anglo reduction in energy use against a 2016 baseline Group of Companies to demonstrate commitment to reducing carbon emissions. (electricity and fuels) and by 2020 an 8% reduction against the same baseline. The Company continuously reviews its energy use and implements reduction measures. This includes The table below shows the trends for CO2 emissions for considering using renewable energy sources. A the period 2015-17. re-baseline study of Energy and Carbon dioxide
management (ECO2MAN) was conducted. Initiatives Table 11: Total CO2 Emissions at Debswana operations to save energy were identified and are being (T CO2 Eqv) implemented at both operations. The first important action for both operations was to install appropriate 2015 2016 2017 metering at significant energy consuming equipment Jwaneng 520 365.71 537 880.49 482 924.1 in order to provide real time data on efficiency. An OLDM 360 252.16 309 539.17 376 636.24 Asset Management Engineer responsible for Energy was appointed in mid-October 2017 to develop policy Total 880 617.87 847 419.66 859 560.34 and drive implementation of an Energy Management programme for Debswana. Energy Champions were For 2018, we have set a target of a 2.25% reduction also appointed for Jwaneng Mine and OLDM. These against a 2016 baseline, with a 9% reduction target initiatives are already showing results. against the same baseline by 2020.
66 ENVIRONMENTAL INCIDENTS FARMERS ENCOURAGED TO TRANSFORM Debswana maintains an environmental incident AGRICULTURE reporting programme which allows it to understand its hot spots. This allows for planning that targets the Debswana Managing Director, Mr. Balisi Bonyongo, problem areas and development of lasting solutions has implored all farmers to revolutionise agriculture to arrest the trends of environmental impacts linked by strengthening agricultural production across the to business activities. The incidents are classified on entire value chain. This includes from input supply, a scale of 1 to 5 with 1 being lower impact incidents. production, and post-harvest handling, to processing In 2017, there were 197 environmental incidents and marketing. Mr. Bonyongo was speaking at the recorded, all classified as low impact incidents. No official opening of the 2017 National Agricultural major environmental incidents (Level 3 to 5) were Show, where Debswana served as the main sponsor. reported. Mr. Bonyongo emphasised that the mining of diamonds and all other minerals will one day come to an end and MINE CLOSURE there is a need to focus on sustainable industries such Debswana has embarked on a pilot project to reduce as agriculture. “With the right effort and resources, mine closure liability costs during its ongoing operations agriculture can make a major contribution to the through the Integrated Closure Planning System diversification of our economy and contribute to our (ICPS) at both operations. The objective of the ICPS is nation’s food self-sufficiency. This is why Debswana to identify concurrent rehabilitation opportunities to continues to support Government efforts in the reduce closure liability during the life of mine. Several development of agriculture,” Mr. Bonyongo said. opportunities have been identified and the next step is to conduct studies to ascertain feasibility of these proposed projects.
67 Debswana operates game parks at both its Jwaneng and Orapa, Letlhakane and Damtshaa Mines. These game parks total more than 60,000 hectares. They are a key resource to the communities of the Boteti and Southern Districts providing education, research and tourism opportunities.
68 “PRINCE OF MINES” CONTRIBUTES TO BIODIVERSITY
Jwaneng Mine, the “Prince of Mines” as nicknamed by the late second President of Botswana, Sir Ketumile Masire, continues to empower the nation. The Prince of Mines does not only enrich the nation through BIODIVERSITY diamonds, but indeed upholds other sustainable The Debswana Biodiversity programme is a key initiatives to ensure economic diversification. differentiator for diamonds versus synthetics. Game Recognising this and upholding the Debswana mantra parks around its operations highlight the Company’s of “Mining diamonds, enriching the nation,” Jwaneng commitment to the conservation of biodiversity. Mine recently spread its wings to donate wild animals to Soda Ash Botswana, a Soda Ash Mining Company. The Debswana operates game parks at both its Jwaneng Mine demonstrated through this contribution towards and Orapa, Letlhakane and Damtshaa Mines. These biodiversity conservation that we can all do more to game parks total more than 60,000 hectares. They are better our environment for generations to come. a key resource to the communities of the Boteti and Southern Districts providing education, research and Tumelo Ntlhayakgosi - Senior S&SD Manager, Jwaneng tourism opportunities. A unique feature of these is the Mine, has explained that elands are one of the protected white and black rhino conservation programme, which species in Botswana therefore will be introduced to continues to deliver positive results. an area where they were non–existent. Botswana Ash Managing Director, Montwedi Mphathi, shared an appreciation note for the noble gesture offered by Jwaneng Mine. He indicated that the 50 elands from Jwaneng Mine arrived safely and have started to adapt to their new home.
69 ACRONYMS
Acronym Full name BOBS Botswana Bureau of Standards CEEP Citizen Economic Empowerment Policy CIFR Classified Injury Frequency rate CSI Corporate Social Investment db Decibel DCC Debswana Corporate Centre DCSC Debswana Corporate Sustainability Committee EMS Environmental Management System Eqv Equivalent EXCO Executive Committee FRCS Fatal Risk Control Standards GRI Global Reporting Initiative GWh Giga Watt hour HPI High Potential Incident ICPS Integrated Closure Planning System LoM Life of Mine LTI Lost Time Injury LTIFR Lost Time Injury Frequency Rate LTP Letlhakane Tailings Plant m3 cubic meter MTI Medical Treatment Injury OH Occupational hygiene OLDM Orapa, Letlhakane and Damtshaa Mines OTBT Orapa Today Boteti Tomorrow REMCO Remuneration and Nominations Committee RTS Report to Stakeholders RWI Restricted Work Injury SAIOH Southern African Institute for Occupational Hygiene SEAT Socio-Economic Assessment Toolkit SED Social Economic Development SHE Safety, Health & Environment SMME Small, Medium and Micro-sized Enterprise S&SD Safety & Sustainable Development STRYDE Strengthening Youth Development Through Enterpri TRIFR Total Recordable Injury Frequency Rate TSM Towards Sustainable Mining VDC Village Development Committee VET Vocational Education & Training VHC Village Health Committee ZoI Zone of Influence
70 GRI CONTENT INDEX
Disclosure Topic Page 102-1 Name of organisation Cover page 102-2 Activities, brands, products and services 10 102-3 Location of headquarters 10 102-4 Location of operations 10 102-5 Ownership and legal form 10 102-6 Markets served 10 102-7 Scale of the organisation 10 102-8 Information on employees and other workers 34 102-9 Supply chain 12-13 102-10 Significant changes to the organisation and its supply chain 10 102-11 Precautionary principle or approach 11 102-12 External initiatives 11 102-13 Membership of associations 11 102-14 Statement of senior decision-maker 6-9 102-16 Values, principles, standards and norms of behaviour 2-3 102-17 Mechanisms for advice and concern about ethics 3 102-18 Governance structure 14 102-40 List of stakeholder groups 40 102-41 Collective bargaining agreements 34 102-42 Identifying and selecting stakeholders 40-43 102-43 Approach to stakeholder engagement 40-43 102-44 Key topics and concerns raised 40-43 102-45 Entities included in the consolidated financial statements 10 102-46 Defining report content and boundary 20 102-47 List of material topics 20 102-48 Restatements of information 10 102-49 Changes in reporting 10 102-50 Reporting period 10 102-51 Date of most recent report 10 102-52 Reporting cycle 10 102-53 Contact point for questions regarding this report inside front cover 102-54 Claims of reporting in accordance with the GRI Standards 10 102-55 GRI content index 71 102-56 External assurance 10, 20 202-1 Hiring from local communities 48 203-1 Infrastructure investments and services supported 56 203-2 Significant indirect economic impacts 49-50, 53-61 204-1 Proportion of spending on local suppliers 47-48 302-1 Energy consumption within the organisation 66 303-1 Water withdrawal by source 64 305-1/2 Scope 1 and 2 emissions 66 307-1 Non-compliance with environmental laws and regulations 15 Types of injury and rates of injury, occupational diseases, lost days, and 403-2 27-28 absenteeism, and number of work-related fatalities 404-1 Average hours of training per year per employee 34-35 Operations with local community engagement, impact assessments, and 413-1 41, 46 development programmes 419-1 Non-compliance with laws and regulations in the social and economic areas 15
71 SUSTAINABLE DEVELOPMENT GOALS (SDGs) INDICATORS
72 REPORT FOCUS AREA INDICATORS
HEALTH AND SAFETY STAKEHOLDER ENGAGEMENT
OPERATIONAL PERFORMANCE OUR COMMUNITIES
SUSTAINABILITY OUR NATURAL ENVIRONMENT
OUR EMPLOYEES
73 NOTES
74 www.debswana.com