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Report to Stakeholders 2010-2011

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Report to Stakeholders 2010-2011 Debswana_CV_V3 Tuesday, July 19, 2011 3:45:05 PM Mining the Resource, Enriching the Nation Report to Stakeholders 2010 - 2011 Shaping the Future for Sustainable Development Debswana_AR_ 2010_16Jul11.indd 1 7/19/2011 12:26:50 PM Our Purpose Our Values To turn diamond dreams into lasting reality. We will be exhilarated by the product we sell, the challenges we face and the opportuni- ties we create Our Vision To be a global benchmark dia- %H3DVVLRQDWH mond business. Our Mission Being united in purpose and action, we will turn the diversity of our people, skills and We mine and recover diamonds experience into an unparalleled source of strength safely, optimally and responsibly. 3XOO7RJHWKHU We will always listen first, then act with openness, honesty and integrity so that our relationships flourish %XLOG7UXVW The people whose lives we touch, their communities and the nations and the environment we share, all matter deeply to us. We will always think through the consequences of what we do so that our contribution to the world is real, lasting and makes us proud Show We Care We will find new ways. We will set demanding targets and take both tough decisions and considered risks to achieve them. We will insist on exceptional excellence and reward those who deliver Shape the Future Debswana_AR_ 2010_16Jul11.indd 2 7/19/2011 12:26:51 PM Contents 4 Debswana Board of Directors 5 Debswana Management 6 Performance Overview by the Managing Director 11 About Debswana Diamond Company 12 2010 at a Glance 17 Corporate Governance 19 Strategy 22 Environment, Community, Occupational Health and Safety (ECOHS) 25 People 26 Community Development and Outreach 32 Major Projects 37 Mining Operations 47 Financial Performance for the year ended 31 December 2010 52 Glossary Debswana_AR_ 2010_16Jul11.indd 3 7/19/2011 12:26:51 PM Debswana Board of Directors Mr. N. F. Oppenheimer Mr. E. M. Molale Chairman Deputy Chairman Mr. S. M. Brown Mrs. L. K. Mohohlo Dr. A. L. Molokomme Mr. D. N. Moroka Mr. S. M. Sekwakwa Mr. B. B. Paya Mr. J. A. Thamage Mr. S. H. Brennan Mr. B. Marole Mr. J. K. Gowans (Retired March 2011) (Effective March 2011) Managing Director Managing Director (Retired December 2010) (Effective January 2011) 4 Debswana Report to Stakeholders 2010 - 2011 Debswana_AR_ 2010_16Jul11.indd 4 7/19/2011 12:26:53 PM Debswana Management Mr. Jim Gowans Mr. Steve Axcell Mr. Tabake Kobedi Mr. L. Boyce Sebetela Mrs. Ntoti Mosetlhe Managing Director Deputy Managing Director Group Manager Group Manager Group Manager Finance Corporate Strategy Human Resources Mr. Bonny Thebenyane Mr. Balisi M. Bonyongo Dr. Adrian Gale Mr. Albert Milton Mrs. Ludo Tema Group Secretary and Corporate General Manager General Manager General Manager Legal Counsel Services Manager Jwaneng Mine Orapa and Letlhakane Mines Morupule Colliery Limited Mr. Fred Jansen Mr. Mpho M. Kewakae Mrs. Esther V. Kanaimba-Senai Ms. Tshego Modise Group Manager Group Manager Group Manager Group Manager Safety, Health and Environment Security Liaison Public and Corporate Affairs Internal Audit Debswana Report to Stakeholders 2010 - 2011 5 Debswana_AR_ 2010_16Jul11.indd 5 7/19/2011 12:26:56 PM Performance Overview by the Managing Director I am pleased to present the inaugural Debswana environmental, social and governance performance in • Safety, Health and Environment Report to Stakeholders, an annual publication order to demonstrate our commitment to sustainable that will showcase operational performance and development. • Production deal in more depth with issues related to our role in Botswana’s socio-economic development, our SAFETY, Health AND ENVIronment • Projects sustainability programmes as well as our corporate social responsibility and investment work within Safety continues to be our number one priority and • Cost Management communities in which we operate and across the in 2010 it was one of our major challenges especially entire country. if we compare to 2009 when our performance • Stakeholder Engagement was better. Just as we were about to celebrate the This is the first step we are taking towards complying second consecutive fatality free year, disaster struck • Future Outlook with the Global Reporting Initiative (GRI) sustainability in December 2010 at the new Orapa Power Station reporting framework which focuses on reporting on and we regrettably lost a life. 6 Debswana Report to Stakeholders 2010 - 2011 Debswana_AR_ 2010_16Jul11.indd 6 7/19/2011 12:26:57 PM I am pleased to report that both our operations, Orapa and Letlhakane Mines as well as Jwaneng Mine, maintained their ISO 14001 and 18001 certification. Mr. Jim Gowans Managing Director Our Lost Time Injury Frequency Rate for the year was Letlhakane Mines came second, while Jwaneng Mine recognition of the high level of service provided by Performance Overview by the Managing Director 0.19 against a target of 0.11. Notwithstanding these came in seventh. It is my hope that Debswana will the two hospitals. major setbacks, we are steadfast in our commitment retain the two trophies and even snatch the third at to attain our zero harm target and in this respect we the next competition. In the area of environmental management, a key have taken major steps and launched a company-wide milestone in 2010 was the completion of the Safety Risk Management Programme, which aims to On the health front, I am delighted to report that rehabilitation work at Mopipi dam, taking the dam provide appropriate safety training for all employees. Debswana successfully launched the ‘My Campaign’ to its natural flow for the first time in more than 25 HIV/AIDS strategy, the objective of which is to years. This project demonstrated our commitment to On a positive note, I am pleased to report that both ensure employees appreciate and optimally use and environmental sustainability, in line with our promise our operations; Orapa and Letlhakane Mines as well benefit from the company’s Disease Management of leaving a real and lasting legacy in the areas in as Jwaneng Mine, maintained their ISO 14001 and Programme and other wellness and HIV/AIDS service which we operate and beyond. 18001 certification. offerings. Our company takes an active interest in conservation, Under the auspices of the Botswana Chamber of Another achievement in this area was the re- and has created two viable game parks in the mining Mines, Morupule Colliery, a wholly-owned Debswana accreditation of the Orapa and Jwaneng hospitals lease areas around its two principal mines, Jwaneng subsidiary, did us proud by emerging first at the 2010 through the highly acclaimed Council of Health Services and Orapa. These parks provide a vital sanctuary for annual Intermine First Aid competitions, Orapa and Accreditation of Southern Africa (COHSASA) in wildlife in areas where wildlife has otherwise been Debswana Report to Stakeholders 2010 - 2011 7 Debswana_AR_ 2010_16Jul11.indd 7 7/19/2011 12:26:59 PM forced out through encroachment, cattle-farming and that lack of availability of equipment poses a threat to has already created over 2000 jobs for Batswana poaching. achieving the required production levels. during the construction phase. Production Mitigation plans have been put in place to ensure that Another major project that we undertook in 2010 Following a challenging 2009 due to the global the company achieves the revised target production is the construction of the 90 mega watts Orapa recession, our mines recorded excellent performance by the end of the year. Diamond revenue for the Turbine Power Plant which will go a long way in in 2010, producing 22.2 million carats compared same period was above the budget mainly as a result alleviating power shortage in Botswana and thus help to 17.7 million in the previous year. The company of the increase in diamond prices during the first curb business interruption due to power blackouts. sold 3.64 million carats higher than what had been quarter of this year. budgeted for. This was due to good production in the We also embarked on the expansion of the Morupule last quarter of 2009, which was sold in the first quarter Projects Colliery, which will see Botswana’s coal production of 2010. This was also due to higher than budgeted Our company achieved a number of milestones in capacity treble from the current one million tons per selling prices and increased consumer demand. As at 2010. The Jwaneng Cut 8 project, Debswana’s single annum to just over three million tons thus securing the first quarter of 2011, production remains below largest investment since our inception 42 years ago, power supply to the nation for the medium term. budget mainly as a result of lower than budgeted was commissioned and launched by His Excellency The expansion project will cost close to P1.5 billion tons mined and tons treated due to poor availability the President, Lieutenant General Seretse Khama Ian and is expected to be completed in 2012. in our mining fleets and process plants. It is evident Khama, in December 2010. This P24 million project 8 Debswana Report to Stakeholders 2010 - 2011 Debswana_AR_ 2010_16Jul11.indd 8 7/19/2011 12:27:00 PM In pursuit of creating a high performance organisation, able to save a commendable 6% on our operating Director and regular visits to the mines for face to the Operations Review Project that we launched costs. The challenge is to ensure that there is no face engagements. in 2008 has been completed and has laid the basis regressing on this achievement. We continuously on which to deliver the goal of a high performing preach cash conservation and encourage all our Our external stakeholders are key to our business. organisation operating at global benchmark teams to come up with innovative ideas to conserve Consequently Debswana undertakes various performance levels, by 2013 and beyond.
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