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Report toStakeholders 2017
Governance and Excellence
CONTACT INFORMATION:Enquiries about this report can be directed to Debswana Corporate Affairs Manager, Ms Boikhutso Malela at [email protected] or +267 364 4303.
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CONTENTS
FOCUS AREA: OPERATIONAL PERFORMANCE 23
FOCUS AREA: STAKEHOLDER ENGAGEMENT 39
FOCUS AREA: HEALTH AND SAFETY 27
FOCUS AREA: OUR COMMUNITIES 45
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
2017 IN NUMBERS 4
FOCUS AREA: OUR EMPLOYEES
ACRONYMS 70
GRI CONTENT INDEX 71
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OUR APPROACH TO SUSTAINABILITY 17
FOCUS AREA: OUR NATURAL ENVIRONMENT 63
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DEBSWANA STAKEHOLDER REPORT 2017
OUR VALUES
BE PASSIONATE
We will be exhilarated by the product we
sell,the challenges we face and the
opportunities we create.
PULL TOGETHER
Being united in purpose and action,
we will turn the diversity of our people, skills and experience into an unparalleled source of strength.
BUILD TRUST
We will always listen first, then act with openness, honesty
and integrity so that our relationships
flourish.
SHOW WE CARE
We care deeply about each other and the
people whose lives we touch, our
communities and the environment we share.
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.
SHAPE THE FUTURE
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 executional
excellence and reward those who deliver.
Dintlefatso Gabana
EMPLOYEE ASSISTANCE PROGRAM COORDINATOR
Many times I have been
asked to facilitate sessions at
Debswana Corporate
Centre; I never say no, the
passion would not let me. If
we all in our little spaces had
such burning desires,
intense energy and such
relentless spirits, so many
diamond dreams would be
turned into realities.
Ramasu Keolebogile
MAINTENANCE ARTISAN FITTER
On a daily basis before
carrying out a task I sit
down with other involved
parties and we discuss the
task thoroughly so as to
reach what is esprit de corps which is a sense of unity,
common interests and
responsibilities of which the
most important is to get the
task done safely and
successfully.
Kelapile Maruping
STOCK TAKER
My favorite value is
‘Build Trust’ because the
value has instilled in me a
sense of responsibility and
pushed me to aim for
better results every time I
execute my tasks. For
example, I am a service
provider and I aim to
please my customers. As
such I live the value by
providing my customers
with what they need in a
timely and effective
manner.
Shirto Faith
TEACHER - GRADE 1
‘Good morning boysand girls’…are the words I
have uttered every
morning for the past 7
years to pupils that I have
taught at Acacia School.
These children are our
future and they must be
shown some care in order
for them to succeed, after
all they are leaders of
tomorrow.
Itumeleng Pitsonyane
TEACHER - GRADE 1
As an energetic and
results oriented teacher, I
live by the value, ‘Shape the Future.’ I have shown this by
‘going the extra’ mile and
working tirelessly over the
weekends and during the
school holidays to enable
pupils to realise their full
potential.
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CODE OF CONDUCT AND BUSINESS ETHICS
ALWAYS DOING RIGHT
CODE OF CONDUCTDebswana remains committed to ethical leadership and integrity as a core value. In 2017, the company Code of Conduct was reviewed and relaunched to employees and contractors. The process involved re-training employees and contractors on the code. This was followed by mandatory declaration of business interests/conflict of interests for all employees at management level as well as Supply Chain Management employees. The Code of Conduct policy was designed in such a way that it covers all De Beers and Anglo American Business Integrity standards that are applicable to Debswana. All the other relevant policies such as Gifts, Entertainment and Hospitality Policy, Policy on Conflict of Interests and Procurement Policy were also reviewed and re-briefed to employees and contractors.
The training was conducted company-wide during 2017 over a period of six months and covered all levels of employees. This was augmented through the use of posters and Intranet banners. The Code was also uploaded on the Debswana website for external stakeholders.
The key principles contained in the Code of Conduct are as follows:
• Health, safety and the environment• Fair and proper treatment of employees and
business partners• Community relations• Political activities by employees• Bribery• Gifts, entertainment and hospitality• Conflict of interests• Dealing with suppliers, institutional
stakeholders and Government• Money laundering• Protection of diamonds and company assets• Communicating with media• Ethics hotline
ETHICS HOTLINE
The Debswana Whistleblowing facility is managed
through Deloitte Tip-offs Anonymous and has
been operational since 2007. The whistleblowing reporting mechanisms are the Ethics hotline, email and walk-ins. Over the years Debswana has evidenced a preference of walk-in reporting over the use of the hotline facility indicating confidence in the system.
Hotline numbersLandline: 0800600644 | Orange: 1144 | Mascom: 71119721 | Email: [email protected]
DEBSWANA STAKEHOLDER REPORT 2017
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INDICATOR
2016
DEBSWANA STAKEHOLDER REPORT 2017
2017 INNUMBERS
Total Recordable Injury Frequency
Rate (TRIFR)
Total Debswana Employees
Carats Recovered (000)
Percentage of Debswana
Employees that are Female
HIV/AIDS Mortality Rate
Sustainability Assurance
Tonnes Treated
(000)
0.3%
21%
18,581
5,421
20,501
0.22
2017
0.17
21%
0.3%
22,854
22,660
5,439
All the mines retained their ISO 14000:2004 and OHSAS
18001:2007 certifications in 2017. Overall Social Way Score 3.91
exceeding the stretch target of 3.5.
All the mines retained their ISO 14000:2004 and OHSAS
18001:2007 certifications in 2016. Overall Social Way Score 3.32
exceeding the target of 3.
2015
0.8%
21%
20,523
5,432
20,368
0.38
All the mines retained their ISO 14000:2004 and
OHSAS 18001:2007 certifications in 2015.
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INDICATOR
2016Community Members who made use of the
Mine Hospitals*
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
Water Consumption (Mining Operations)
(million m3)
Procurement Spend: Citizen
owned Companies
Loss of Life Incidents
Corporate Social Investment Total
Spend (million Pula)
Energy Consumption
(Mining Operations) GWh
Number of employees
registered in the HIV Programme 806
17.8
1
29%
18.48%
439.22
2017
10.6
823
0
26%
17.41%
476.48
161,90184,000
2015
845
15.0
0
18%
23.04%
445.35
70,863
DEBSWANA STAKEHOLDER REPORT 2017
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STATEMENT BY THE DEBSWANA BOARD CHAIRMR. CARTER MORUPISI
DEBSWANA STAKEHOLDER REPORT 2017
2017: Another strong year for Debswana
On behalf of the Debswana Board,
I would like to start by thanking
Debswana employees for the
remarkable performance in 2017.
It is through their efforts that this
was another successful year for
our company. We attained strong
production performance while
maintaining a good safety
record.
RUPISI
year
oard,
g
7.
his
ng
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Values are at the core of Debswana. The way we live these values and our behaviour are even more important; doing the right thing is integral to our people and our business. We have robust policies and control procedures which help us ensure that good business ethics are embedded across the company. This is key to our success.
As a result of these efforts, over the course of 2017, cost efficiency has improved, productivity increased and diamond production rose. While we anticipate stronger demand in 2018 than in 2017, we must continue to implement our strategy of managing risks, reducing costs sustainably and producing carats in a way that benefits all our stakeholders.
Even with an exemplary safety performance, there is still a long way to go to reach the ambitious targets we have set ourselves. I am confident that we will eventually achieve our target of ZERO HARM and the Board remains supportive and united behind this safety pledge.
Looking ahead, safety remains a value and priority across the group; it is the first item on every Board agenda. This has reinforced our determination to ensure that at all times our employees maintain the determination to achieve
ZERO HARM. The 0.17 Total Recordable Injury Frequency Rate (TRIFR), compared to 0.22 in 2016, illustrates that there is progress towards this goal.
In conclusion, our 2017 results across all Debswana operations demonstrate both the strength and the resilience of our company. Against the background of the Volatile, Unpredictable, Complex and Ambiguous world we live in and all industry pressures, it is a remarkable achievement that Debswana remained Always Ahead.
BOARD CHANGES:
There were changes in the Debswana Board during the course of the year. I warmly thank the three outgoing members – Arthur Paul Hewett, Athalia Lesiba Molokomme and Kgomotso Abi – for their many years of service and substantial contributions to the Company. I am pleased to announce the appointments of Malebogo Itumeleng Mpugwa, Burger Greeff, Moses Dinekere Pelaelo, Dr. Obolokile Thoti Obakeng and Abraham Keetshabe – all strong leaders who bring great experience and energy to their new positions as Board members.
THE CORNERSTONE OF DEBSWANA’S ACHIEVEMENTS HAS BEEN GOOD GOVERNANCE, ETHICAL BEHAVIOUR, AUDITABLE AND DEFENSIBLE RESULTS.
DEBSWANA STAKEHOLDER REPORT 2017
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DEBSWANA MANAGING DIRECTOR’S STATEMENTMR. BALISI BONYONGO
2017 was the year of Governance and Excellence at Debswana and I am delighted to report that Debswana maintained its good performance for 2017. The company continued to contribute positively to our shareholders by remaining profitable during the year under review. In 2017, we were able to improve on our robust 2016 safety performance. Much to our regret, we still experienced injuries. We consequently redoubled our efforts in safety leadership and culture to deliver the high safety standards for which the entire De Beers Group workforce strives.
While there is more work to be done, I’m pleased with our 2017 achievements. Costs have come down, productivity and efficiency have improved and our diamond production rose. Against a challenging setting we have maintained our focus of putting people and safety first, focusing on improving our operating efficiency and delivering on our social performance programme.
DEBSWANA STAKEHOLDER REPORT 2017
HOW RELEVANT IS ECONOMIC, ENVIRONMENTAL AND SOCIAL SUSTAINABILITY TO OUR BUSINESS?
“The answer is very simple. Think about the four ladies in a coffee shop on 5th Avenue in New York, who are discussing the merits of buying natural diamonds, synthetic diamonds or alternatives such as rubies. If, during the course of their discussion, a news item would flash on the TV screen in the corner of the coffee shop about a community up in arms at one of our mines because they feel aggrieved by the way we conduct our business, how would that affect their decision to buy natural diamonds or not? Therefore, doing our business in a socio-economically and environmentally responsible manner is core to our business and is embedded in everything we do” said Mr Balisi Bonyongo.
ebswana maintained its good pany continued to contributeaining profitable during the year to improve on our robust 2016
gret, we still experienced injuries. fforts in safety leadership and
andards for which the entire De
one, I’m pleased with our 2017 , productivity and efficiency have tion rose. Against a challenging of putting people and safety first,
g efficiency and delivering on our
NVIRONMENTAL O OUR BUSINESS?
bout the four in New York,ng natural rnatives f their n the TV about a mines we affect
s or a ly ness ”
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OUR COMMITMENT TO SAFETYOnce again, the entire group leadership reaffirmed that the Safety and Health of each employee is more than a priority; it is a value that is ingrained in the way we conduct our business and live our lives. This philosophy was adopted in 2017 and resulted in the introduction of the new safety value, Put Safety First, which will be officially launched in 2018.
Debswana is fundamentally concerned with the health and safety of both its employees and contractors through its commitment to achieving a Zero Harm work environment. In line with this target, it is most gratifying to report a 2017 Total Recordable Injury Frequency Rate (TRIFR) of 0.17 versus a target of 0.25; the best result recorded in Debswana’s history.
While this injury rate represents a world-class safety performance, we remain focused on upholding and enhancing our safety programmes, to ensure that each one of our colleagues returns home safely, every day. In 2018, we will maintain our focus on demonstrating good practice through sound conscious safety leadership and ensure a successful transition to the new ISO 14001:2015 environmental standards across all sites.
THE DEBSWANA OF TODAY AND TOMORROWWe will always look for ways to improve what we do, irrespective of the volatile and uncertain environment we operate in. To meet the challenges of today, we must always think ahead. Debswana’s ability to plan, schedule and invest properly for the long term has always been our competitive advantage.
In 2017, we ramped up production at Orapa plants, resumed production at Damtshaa Mine, progressed pre-feasibility study on the Cut 3 project and commissioned the Letlhakane Tailings Plant (LTP). 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.
To ensure sustainability of our business we also progressed our most compelling expansion projects, namely Cut 8 and Cut 9, at Jwaneng Mine. In 2018, the Cut 8 Project will contribute significantly to the Jwaneng Mine carat production and take over as the main ore source until 2030.
ENABLING OUR COMMUNITIESDebswana operates amongst various communities and always strives to continuously engage them, minimise social risks and uplift their livelihoods. We do this through our social performance programme guided by the Social Way framework. The Social Way is a governing framework for best practice which provides assurance that Debswana has processes in place to adequately mitigate social impacts and maximise socio-economic benefits for communities.
In 2017, Debswana achieved a 3.91 score during the Anglo American Social Way moderated assessment held in November 2017, thus exceeding the 3.0 threshold and 3.5 stretch targets. This is an improvement from the score of 3.32, that was achieved in 2016. This continued improvement is a strong commitment by Debswana towards developing and improving the livelihoods of the people residing around our operations.
DEBSWANA’S APPROACH TO SUSTAINABILITY REPORTINGI am excited to unveil our first issue of our Report to Stakeholders which conforms to the Global Reporting Initiative (GRI) Sustainability Reporting Standards. The GRI standards represent global best practice for reporting on a range of economic, environmental and social impacts.
Thank you for taking the time to read our report.
DEBSWANA STAKEHOLDER REPORT 2017
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ABOUTTHIS REPORTThis is Debswana Diamond
Company’s first annual Report to
Stakeholders (RTS) that is
aligned with the Global
Reporting Initiative (GRI)
Sustainability Reporting
Standards. This report has been
prepared in accordance with the
GRI Standards: Core option.
This report builds on the 2016
RTS; and covers performance for
the period 1st January to 31
December 2017. OUR ORGANISATIONDebswana 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.
DEBSWANA STAKEHOLDER REPORT 2017
Debswana, being a private
company, does not publish its
financial statements. The
boundary of this report includes
the Company’s operations and
projects described in the section
‘Our Organisation’. There was no
need for restatement of
information from the previous
report. Assurance of some of the
information in this report was
included in a broader assurance
engagement for Anglo American.
Debswana intends to have
relevant sustainability information
assured for the next report.
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Debswana adopted the Towards Sustainable Mining
(TSM) protocols in 2012. TSM is an industry-led
voluntary programme, developed by the Mining
Association of Canada to demonstrate the industry’s
commitment to responsible mining in a tangible
and credible manner. It is a set of tools and
indicators designed to drive performance and
ensure that key environmental, safety and
community risks are managed responsibly at each
mining facility.
Debswana also endorses the International Finance
Corporation’s performance standards on managing
environmental and social risks, and implements
these standards as far as they are applicable to us. We
also support the Equator Principles on responsible
investment and the Kimberley Process which aims at
stemming the illicit flow of conflict diamonds, as
well as Anglo American’s Social Way Programme.
Debswana is a member of, and supports various
industries and associations inclusive of national
bodies such as Business Botswana, Kalahari
Conservation Society, International Council on
Mining and Metals and the Responsible Jewellery
Council. Debswana applies the precautionary
principle by conducting environmental and social
impact assessments for any new project or extension
of existing projects.
DEBSWANA STAKEHOLDER REPORT 2017
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DEBSWANA STAKEHOLDER REPORT 2017
1. MINING
Drilling and blasting is used to break up millions of tonnes of rock and assist in the loading and transportation of ore and waste rock. Kimberlite and waste rock are then loaded into massive trucks by large shovels and taken to the primary crusher and waste dumps, respectively.
Diamonds have a higher density than the rock that hosts them. Once the ore has been crushed to a manageable size, it is mixed into a slurry of ferrosilicon and water in a process known as Dense Media Separation (DMS). The heavier diamonds sink in the slurry while the rest of the lighter material 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.
Crushing, scrubbing and recrush processes are used to break and fracture the ore, liberate diamonds and reduce particles to a manageable size.
Comminution is from the Latin word comminutus, meaning to lessen. In mining terms, comminute means to reduce to minute particles.
2. COMMINUTION
3. CONCENTRATION
OUR VALUE CHAINThe diamond value chain comprises processes that progressively add value to the diamond resource, from mining to sales. As the diamond resource passes through each intervention phase, additional value is added.
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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.
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 mixed and passed over a grease belt, the diamonds adhere to the grease. Diamonds also emit a unique signature under laser light.
The tailings (waste or residue) from concentration, recovery and sorting, are disposed of in mineral residue dumps
4. RECOVERY 6. RESIDUE DISPOSAL
5. SORTING AND SALES
DEBSWANA STAKEHOLDER REPORT 2017
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DEBSWANA STAKEHOLDER REPORT 2017
GOVERNANCEOur company is governed by a unitary board consisting of 12 board members. During 2017, three board members completed their terms and five new board members were appointed. The Board is ultimately accountable for the Company’s activities and deals with all Company business not specifically delegated to its Committees or Management, and monitors the use of resources to achieve the aims of the Company.
The Board meets four times per year and is assisted in executing its responsibilities by four board committees.
AUDIT COMMITTEEThe Audit Committee is an important element of the Board’s system of monitoring and control, and, with the exception of the Managing Director who is an ex-officio member, it comprises directors who do not hold executive office within the Company. The Committee meets at least three times annually to monitor the adequacy of financial information reported to the Shareholders, to monitor internal controls, accounting policies and financial reporting, and to provide a forum for communication between the Board, external auditors and internal auditors.
REMUNERATION AND NOMINATIONS COMMITTEEThe 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 COMMITTEEThe 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 COMMITTEEThe 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 COMPLIANCEDebswana is committed to conducting its business strictly within the law as well as in compliance with ethical standards. While Debswana believes that this is the right thing to do, it also remains alive to the fact that failure in this respect, may invite the possibility of unenforceable contracts, litigation that would otherwise have been averted, payment of damages, regulatory fines, deteriorating reputation and market position. Our stance is embedded in, among others, the Company’s Code of Conduct and Business Ethics, the Legal Risk Management Policy and the Debswana Compliance Framework. No significant fines or non-monetary sanctions for non-compliance with laws and/or regulations, and in particular, those involving the environment, social and economic aspects were incurred by Debswana in the year 2017.
MANAGING CONFLICT OF INTERESTDebswana 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 SUSTAINABILITYThe 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.
The implementation, coordination and monitoring of the various sustainability programmes is delegated to management which is assisted by the Debswana Corporate Sustainability Committee (DCSC) providing oversight of performance, risks and opportunities regarding:
• Occupational Health and Safety
• Environment
• Social Performance
The DCSC reports to the Executive Committee (EXCO) and consists of the General Managers of the four mining operations and the Director of Technical Services and Sustainability (Chair).
Orapa No. 2 Plant and the CompletelyAutomated Recovery Plant (CARP)
DEBSWANA STAKEHOLDER REPORT 2017
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DEBSWANA STAKEHOLDER REPORT 2017
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21 Towards sustainable mining (TSM) 21 Assurance of our sustainability performance 21 Material topics
OUR APPROACHTO SUSTAINABILITY
DEBSWANA STAKEHOLDER REPORT 2017
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DEBSWANA STAKEHOLDER REPORT 2017
OUR APPROACHTO SUSTAINABILITY
Managing sustainability impacts affects every
part of our business and is embedded in the
day-to-day operations. Sustainability is one of
five pillars of the Debswana 2018 High
Performance Organisation (HPO) Strategy.
Delivery of Carats Volume
RevenueImprovement
CostPerformance
OrganisationalCapability
Horizon 1 and 2 Projects
Sustainability
Delivery of Carats to plan
Cash Cost per Ton moved
Gross Profit Margin %
Towards Sustainable
Mining (A Ratings)
SHAREHOLDER DISTRIBUTIONS
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
Figure 1: Debswana’s High Performance Organisation Strategy
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DEBSWANA STAKEHOLDER REPORT 2017
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DEBSWANA STAKEHOLDER REPORT 2017
Elements that drive corporatesustainability in Debswana
Culture impacts decisions on environment which impact reputation and compliance
Environmental impact increases cost of closure and compromises relationship with communities
Culture impacts decisions on health and safety which impact
reputation and compliance
Employees are from the community and we use
common resources
CULTUREBUSINESS ETHICS AND INTEGRITY
COMPLIANCE | GOVERNANCE | REPORTING
EMPLOYEESHUMAN RIGHTSOCCUPATIONAL
HEALTH & HYGIENESAFETY
ENVIRONMENTRESOURCES (LAND, WATER, ENERGY, AIR
QUALITY) BIODIVERSITY, WASTE
COMMUNITIESMINE 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
contribution to the success of Botswana through world
class sustainability performance in the mining
industry
SustainabilityCommitment
Strategic Outcomes
Financial Success | ReputationResource Security | License to Operate
SafetyOccupational Health
CommunityMine Closure
Environmental ImpactWasteWaterEnergy
Sustainability, Culture, Values, Attitudes and Behaviours
Governance | Sustainability Team | Standards and Codes | Performance Culture
Internal and External Communication
Strategic sustainability priorities and key topics for the short to medium term include:
• Safety culture and behavioural issues
• Occupational illnesses
• Fatigue management
• Development of renewable energy capacity
• Reduce climate change through reduced energy and
greenhouse gases emissions
• Integrated Closure Plan System – concurrent
rehabilitation and reduction of closure liability
• Building of the mine closure fund
• Contractor management
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ASSURANCE
SITE ASSURER QUARTER RESULTTSM
VERIFICATION AUDIT
SHECONTRACTOR
AUDIT
DATAINTEGRITY
ISOOHSAS
TSM YEAR-ENDREVIEW
ISO OHSASINTERNAL
AUDIT
ISO 14001:2015 INTERNAL
AUDIT
All sites PWC Q1102 A ratings vs 81
A threshold and stretch of 86 As.
OLDM Internal Audit
Q1 Moderate
OLDM
Jwaneng MineTuv Sud
Q2Q2
Recertified
Recertified
All sites Internal Audit
Q1 Moderate – all findingshave been closed
All sites Internal Audit
Q4
Q4
3.92
Jwaneng Mine
Shangoni Q3 Closure of findings ongoing
OLDM Internal Audit
OLDM recommended to proceed for certificationunder the new standard
TOWARDS SUSTAINABLE MINING (TSM)Implementing the TSM protocols enables Debswana to continually assess its performance against the six sustainability indicators, namely, energy and emissions, tailings management, community management, biodiversity management, crisis management and safety management. The performance rating under each protocol ranges from C, which is no management system in place, to AAA, which is Leadership and Excellence. Debswana annually sets TSM performance targets linked to the Level 1 scorecard for business performance indicators.
In 2017, Debswana attained a total of 107 A ratings against a threshold target of 102 A’s and stretch target of 107 A’s. Jwaneng mine contributed 54 A ratings and OLDM 53 A’s.
ASSURANCE OF OUR SUSTAINABILITY PERFORMANCE
Throughout the year several aspects of sustainability are assured by various external service providers as well as internal audit. The table below shows these assurance activities during 2017.
OLDM
Jwaneng MineSSD - DCC
Q4Q4
53 A ratings
54 A ratings
SOCIALPERFORMANCEASSESSMENT
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.
Table 1 : Internal and external assurance activities in 2017
DEBSWANA STAKEHOLDER REPORT 2017
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DEBSWANA STAKEHOLDER REPORT 2017
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FOCUS AREAOPERATIONAL PERFORMANCE
24 Operational overview 25 Life of Mine (LoM)
DEBSWANA STAKEHOLDER REPORT 2017
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DEBSWANA STAKEHOLDER REPORT 2017
OPERATIONAL OVERVIEW
JWANENG
2016 2017 2016 2017 2016 2017
OLDM TOTALJWANENG
2016 2017 2016 2017 2016 2017
OLDM TOTAL
TOTAL DIAMONDS RECOVERED
(million carats)
TOTAL VOLUME MOVED
(million tonnes)
TOTAL WASTE MINED
(million tonnes)
11.97 11.86
128.05 120.10
109.42 105.13
28.25 30.71
7.30 7.67
156.30 150.82
116.72 112.80
8.53 10.83 20.50 22.69
Table 2: Production figures for Debswana operations (2016-2017)
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Diamond production for the year increased by 11% from 20.5 million carats to 22.66 million carats, in line with the production ramp-up plan. Total tonnes moved decreased by 3% from 156.30 million tonnes in 2016 to 150.82 million tonnes, in line with the approved production plans for the year.
Letlhakane Mine ceased mining ore from the open pit in 2017. The sustainability of the operation was prolonged by the new Letlhakane Tailings Plant which commenced commissioning in the third quarter of 2017; this will be completed by the end of the first quarter in 2018. In the fourth quarter of 2017, Damtshaa Mine commenced ramp-up readiness for the 2018 production year.
LIFE OF MINE (LoM)
The life of our mines has a significant impact on productivity and longevity of the mines. The Business Planning Committee oversees the continuous review of the LoM over two time horizons:
• Horizon 1 (short to medium term – business today) This component has primarily to do with improving efficiencies. The rolling five-year LoM plan is updated quarterly and reviewed annually.
• Horizon 2 (long term – beyond business today) This looks at potential fundamental ways of changing our way of doing business so as to expand the LoM. Technology plays an important role in these considerations.
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FOCUS AREAHEALTH AND SAFETY
28 Safety 29 Occupational Health
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DEBSWANA STAKEHOLDER REPORT 2017
SAFETYSafety 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.
Debswana has undertaken a re-baselining of Fatal Risk Control Standards (FRCS) and an assessment of leadership and safety culture in order to address significant incidents we have experienced. Two partnerships were initiated with Hatch on engineering, system and processes related to FRCS and Sentis, a globally recognised team of psychologists focusing on safety leadership. To improve Debswana’s safety culture, management launched the Conscious Safety Leadership approach. In October 2017, engagement with executive management
and trained them on conscious leadership with three objectives: • To provide leaders with an understanding of the desired approach to managing cultural change,
• To work with the executive, challenging the current approach to leading safety culture and identifying potential changes to how things are managed at a leadership level, and
• To get an aligned picture of where Debswana is trying to go in the safety culture of the organisation..
Jwaneng Mine Team wins the 2017 Botswana Chamber of Mines Inter-Mine First Aid Competitions
28
SAFETY
FATALITIES
LTIFR
TRIFR
HPIs
SAFETY
SAFETY
SAFETY, HEALTH,
ENVIRONMENT
0
NA
NA
0.38
1
0.01
23
0.21
0
NA
NA
0.25
0
0.02
33
0.17
METRICPILLAR
TARGET
2016 2016 2017
TARGETYEAR END
2017
YEAR END
Table 3: Debswana safety records (2016-2017)
Figure 2: Debswana safety performance trend (2011-2017)
Fatal
2011
160140120100
80604020
0
1.601.401.201.000.800.600.400.200.00
2012 2013 2014 2015 2016 2017
LTI RWI MTI LTIFR CIFR TRIFR
SAFETY PERFORMANCE DEBSWANA (RECORDABLE INJURIES)
We will continue to implement measures to drive down our injury rates even further.
OCCUPATIONAL HEALTH
Noise Induced Hearing Loss
Noise Induced Hearing Loss is one of the occupational risks in Debswana’s operations and noise levels above 85 decibels (db) have been identified in plants, engineering workshops and mining areas. The risk groups are artisans, drivers and plant operators. Operations adopted the use of custom fitted hearing protection for people working in areas that have noise levels above 85db. The benefits of custom fitted hearing protection include:
Consequently, improvements have been noted in the way management and employees apply themselves to major tasks as well as daily routine tasks. As a next step, an inclusive implementation team comprising Contractors, Employees, Supervisors and Leaders across the business will engage in a series of workshops in the first quarter of 2018 in order to crystalise the envisioned safety culture of 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.
The primary responsibility of safety leaders is to ensure the prevention of loss of life and injuries. We did not incur any fatalities in 2017 and the Total Recordable Injury Frequency Rate (TRIFR) for Jwaneng was 0.17 and 0.18 for OLDM against a target of 0.25 and a stretch target of 0.20. This was the best TRIFR recorded in the history of Debswana.
• Reduces noise to below 85db as compared to disposable ear plug and muffs
• Improves the ability to hear warning alarms and
hold conversations
• Comfortable and convenient - fits well, seals the ear and is more effective
In OLDM, 1334 custom made ear plugs were fitted against a target of 865 for at risk employees. The target was exceeded to include intermittently exposed managers and supervisors. In Jwaneng, a total of 1023 employees were equipped with earplugs against a target of 1240 and the 217 outstanding employees will be equipped by the end of February 2018.
Fatigue management
The issue based risk assessments conducted at Debswana operations indicated that fatigue is a significant risk amongst shift workers. A fatigue management standard and monitoring system were designed in 2017. The implementation of the fatigue management programme will assist in the Company’s continued efforts to reduce injuries, cost and property damages; increased morale, wellbeing and productivity.
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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.
the OH management systems; raising awareness on the programmes; as well integrating OH risks into project design. Through this strategy, Debswana is the only company in Botswana, which has a well-established Occupational Hygiene programme.
PARTNERSHIPS Department of Mines: Partnerships on opportunities for competency development on Occupational Hygiene.
Botswana Bureau of Standards: Involvement in the development of national technical standards in the areas of health and safety.
University of Botswana: Environmental Health Department as a strategic partner for sourcing and training of OH talent, input into curriculum as well potential opportunities for experiential training/learning and internship programmes for the students that aspire to join Debswana in future. We salute Keneilwe Matjola!
Occupational Hygiene (OH) is about preventing and managing occupational diseases in the workplace. OH is a relatively new discipline in Botswana. In recent years, Debswana witnessed a steady growth in the number of its employees acquiring accreditation with the SAIOH as Occupational Hygiene Assistants, Occupational Hygiene Technologists and Occupational Hygienist. Of the 14 accredited people in the field of Occupational Hygiene in Botswana, 12 are employed by Debswana. Keneilwe who is the only certified Occupational Hygienist at Debswana and in Botswana, works at the Debswana Corporate Centre.
Keneilwe was awarded the Occupational Hygienist of the year award based on the practice and management of Occupational Hygiene programmes in her area of work, partnerships with government ministries, parastatals and academic institutions. Besides this qualification, Keneilwe has a degree in Environmental Health, a post graduate diploma in Occupational Hygiene and a master’s degree in Business Administration.
Some of the key highlights of the basis for this award include:
DEBSWANA OH MANAGEMENT:
Defining strategies for managing OH risks such as fatigue, vibration, ergonomics, noise and dust emanating from our processes, implementation and sustenance of
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DEBSWANA STAKEHOLDER REPORT 2017
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FOCUS AREAOUR EMPLOYEES
34 Workforce 34 Industrial relations 34 Skills development 35 Employee Wellness Programme 36 Localisation of expertise 36 Gender Diversity and Inclusion
DEBSWANA STAKEHOLDER REPORT 2017
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OPERATIONS/OFFICE NUMBER OF
EMPLOYEES
GABORONE
JWANENG
ORAPA
LETHLAKANE
DAMTSHAA
TOTAL
450
2093
2285
370
241
5439
WORKFORCEOur employees enable us to achieve our aims and objectives and are critical for the implementation of our strategy. Several programmes are implemented to increase the well-being of our employees.
Table 4: Debswana work force as at 31st December 2017
INDUSTRIAL RELATIONSDebswana remains committed to upholding fundamental principles and rights at work including, but not limited to, freedom of association, the right to organise and collective bargaining. The Botswana Mine Workers Union has been granted recognition as a collective bargaining agent for employees in job grades A to C in accordance with the relevant statutory instruments. Employment relations at Debswana is founded on the principles of freedom of association, workplace democracy and collective bargaining.
The relationship between the company and the Union is regulated through a recognition agreement which legitimises joint negotiation and consultation as a mechanism for fostering cooperation and mutual understanding between the parties. As a result of this arrangement, the Company and the Union have been able to negotiate and implement various collective labour agreements pertaining to terms and conditions of employment, safety health and environment, and other matters of mutual interest to the Company and the workforce. The agreements are generally meant to remain in force and effect for a period of three years unless circumstances warrant interim review.
DEBSWANA STAKEHOLDER REPORT 2017
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aligned to the World Health Organisation and National requirements.90-90-90: By 2020, 90% of all people living with HIV will know their HIV status. By 2020, 90% of all people with diagnosed HIV infection will receive sustained antiretroviral therapy. By 2020, 90% of all people receiving antiretroviral therapy will have viral suppression.
The strategy going forward is to move from a single disease approach to an integrated wellness model which will include management of non-communicable diseases such as diabetes, hypertension and mental health.
At the end of 2017, 1178 people had registered on the Company’s Disease Management Programme (823 employees and 355 dependents). 89% of employees living with HIV are on the first line of treatment, 10% on second line, and 1% on third line of treatment, respectively. The mortality rate for 2017 was 0.3% while HIV viral suppression was 97%.
Debswana had no cases of malaria in 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 our skills development programmes and feedback from annual performance assessments informs the review of individual development plans, if required. We follow a 70:20:10 approach with 70% of inputs focused on on-the-job learning, 20% on mentoring and coaching, and 10% on formal training.
The three employees who were diagnosed with tuberculosis in the previous two years have completed their treatment. The newly diagnosed employee is still undergoing treatment.
Our Health Risk Assessment has identified employee indebtedness as the top risk and to this end we rolled out an employee financial wellbeing programme - Sedimosa - to elevate financial literacy, improve debt management and offer rehabilitation. Progress was noted in the reduction of employees receiving less than 40% take-home pay during 2017. In 2018, the programme will focus on improving training uptake which should result in better management of personal debt.
Table 6: Number of employees diagnosed with tuberculosis
2015 2016 2017
2 1 1
During 2018, we will stress test the output from the Strategic Workforce Plan and undergo a gap analysis review to determine the skills required as well as our readiness in providing the business with the requisite skills. This will inform a plan that will be rolled out in the different areas of the business.
EMPLOYEE WELLNESS PROGRAMME
Employee wellness continues to be a key focus area for Debswana. The Company acknowledges that it cannot only focus on job related skills but also has to look at the employee as a whole person. Only when each employee is functioning optimally, can the Company expect their full productivity; thus several programmes are in place to support employee well-being beyond the work place.
In the past Debswana has been successful in terms of HIV management and mitigated the risk to business continuity. The Company performed well with regards to the 90-90-90 Strategy and achieved over 90% for all the elements; it continues to implement the treat-all-approach which is
Table 5: Average hours of training per employee, by employee category
Employee Jwaneng Orapa DCC Male Female Male Female Male FemaleGBF3 32.0 GBF4 8.0 4.0 13.3 120.0GBF5 14.0 26.7 60.0 9.3 171.4GBF6 12.9 7.3 9.6 9.6 21.6 75.2C Band 29.4 5.8 20.1 12.8 9.9 6.4B Band 20.1 4.6 47.7 13.0 52.3 30.6A Band - - - - 40.0 40.0
OLDM 2017 Employee Long Service Awards
Note: A grey-out block indicates that there were no employees in this category.
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36
LOCALISATION OF EXPERTISEThe gradual replacement of international expertise with national expertise is a priority for Debswana. The Department of Labour is a key stakeholder in this process. Key to the success of this programme is the empowerment of citizens, including transfer of skills, so that they are able to take over the roles handled by non-citizen experts. Localisation of expertise is integrated in the overall succession planning for the company. As at 31 December 2017, the total number of employees at Debswana stood at 5 439. The number of citizen employees was 5 365, representing 98.64% of the total workforce. The total number of expatriates was 74, representing 1.36% of the total workforce. Countries that the expatriates come from include South Africa, Zimbabwe, Zambia, Kenya, Uganda and Great Britain.
Gender diversity and inclusionManagement has included gender diversity as a strategic focus area for Debswana. The company has conducted a baseline study across the organisation to get a full appreciation of the situation on the ground.
The baseline study helped us to develop plans in the work place to address findings which were grouped into key themes such as policies, enabling environment, KPIs, succession planning and training. One of the key findings from the study was that women only accounted for 21 percent of the workforce and only 19 percent were in Senior Leadership positions. This was based on a total employment figure of 5,439 employees plus 5,000 contractors. These percentages are comparable to a selection of global mining companies and peer diamond companies in Southern Africa.
Despite this, we have taken a position that these figures are not good enough for us. Debswana leadership has therefore committed to building a stronger business by creating an inclusive culture, where diversity of all forms is highly valued.
Table 7: Composition of Debswana employees in terms of citizens and expatriates
DEBSWANA EMPLOYEES NUMBER PERCENTAGE
CITIZENS
EXPATRIATES
TOTAL NUMBER OF
EMPLOYEES
5365
74
5439
98.64%
1.36%
100%
“There are some aspects of one’s physical and mental health that may seem beyond individual control, and this may well be the case for many. However, there are also a number of things people have the power to do to improve their quality of life. This was a message shared by Health Services employees during their Wellness Reloaded event. The event was held at the Jwaneng Mine hospital grounds in January 2017.
The purpose of the awareness campaign was to remind Health Services employees about the importance of their health status, and of the
importance of sound financial management. In his keynote address, Senior Safety and Sustainable Development Manager, Tumelo Ntlhayakgosi, said that the mining industry has inherent demands and pressures associated with work. He shared that, as a business, it is critical for Debswana to continually enhance and protect employees’ health, wellness and productivity. Ntlhayakgosi commended the Health Services department for their unwavering commitment towards the culture of wellness. He praised the importance that the team places upon healthy lifestyles that promote safety, productivity and efficiency in the work environment”.
2017 WELLNESS RELOAD FOR HEALTH SERVICES EMPLOYEES
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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.
Debswana leadership has therefore committed to building a stronger business by creating an inclusive culture, where diversity of all forms is highly valued.
DEBSWANA STAKEHOLDER REPORT 2017
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FOCUS AREASTAKEHOLDER ENGAGEMENT
40 Stakeholder engagements at corporate level 41 Stakeholder engagements at operations
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39
STAKEHOLDER ENGAGEMENTDebswana has various key stakeholders it partners with in its business endeavours. These include:
STAKEHOLDER ENGAGEMENTS AT CORPORATE LEVELAt corporate level Corporate Affairs is the custodian of stakeholder engagement and the Head of Corporate Affairs is officially the Company Spokesperson. Departmental and topic specific stakeholder engagement is led by functional leads including the Managing 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 a monthly basis, the company holds business performance update meetings for employees (all employees at the Centre and middle and upper management employees at the Mines) and provides a written business performance update to all employees at the mines.
During the first quarter of the year an external stakeholder engagement was held, led by the Managing Director, and was attended by around 200 stakeholders representing the media, diplomats, analysts, government officials, as well as its joint venture partners. The objective of the meeting was to share a business update, annual results and plans for the 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.
• Traditional authorities • Tribal administration • Government • Farmers • Development groups (e.g. VDC, VET, VHC etc.) • 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. • Internal stakeholders are important to the business as employees are the reason Debswana can operate and interface with external stakeholders.
Stakeholder engagement takes place at two levels: at corporate and mining operation level.
40
STAKEHOLDER ENGAGEMENTS AT OPERATIONS
In line with corporate level stakeholder engagements, external stakeholder engagements are held at Debswana’s operations with the Company’s mines holding annual business updates with local stakeholders (including local media, traditional authorities and businesses), Members of Parliament and contractors. The Company also offers mine tours to interested stakeholders.
More intensive stakeholder engagement takes place at operations. Debswana’s approach to stakeholder engagement is defined by Step 2 in the Socio-Economic Assessment Toolkit (SEAT). Reviewed every three years, the Stakeholder Engagement Plan and the Social Management Plan are outputs of the Socio-Economic Assessment Toolbox (SEAT) process. They define the approach to engaging each stakeholder group,
including frequency, medium and purpose of these engagements. A key emphasis in the process is to give external and internal stakeholders the opportunity to share their perceptions and experiences of the Debswana operation. This is done with a view to enhancing understanding and finding solutions to issues raised. Debswana’s stakeholders include neighbouring communities and various organisations within them: traditional authorities, land-users, schools, businesses, non-governmental organisations, and local,
district and regional governmental bodies. For the purposes of the SEAT process a sample of these stakeholders are engaged. This is in contrast to legislative impact assessment processes where extensive engagement, particularly with all directly affected stakeholders, is required.
During the 2017 SEAT process a wide number of different stakeholder groups were engaged through focus groups, workshops, working groups, general meetings and one-to-one interviews.
Main issues raised by stakeholders at mine level.The positive issues and impacts identified by stakeholders include:• Increased engagement by the mines with communities, including by mine leadership (heads of departments)• 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• The role of the mine hospital in enabling access to improved health care• Poverty-eradication efforts through the provision of funds, help with establishing small-scale projects (e.g. vegetable gardens) and the provision of basic infrastructure (e.g. village generators)• Assistance with building houses for vulnerable individuals resulting in improved security and wellbeing• Employment of some local residents which brings income into local households and helps to contribute to the local economy• Opportunities for villagers to rent out their houses to contractor employees, which generates income at the household level• The mines’ engagement and collaboration at the local level (e.g. with local authorities – councillors and dikgosi) was also acknowledged as valuable• Appreciation for emergency response in times of crisis• The mines’ role in addressing crime at the local level
A key emphasis in the process is to give external and internal stakeholders the opportunity to share their perceptions and experiences of the Debswana operation.
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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
DEBSWANA STAKEHOLDER REPORT 2017
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External stakeholders indicated that they would like to see improvement in:• Where possible provision of social infrastructure and services
• The time taken by contractors to pay salaries to their contractor employees, as well as their salaries commensurate with local living standards
• Expectations of employment at the mine amidst low skill levels
• Increased participation of the mine in community events
• The fulfilment of legacy commitments made by the mine
• The extension of safety practices by mine employees beyond the mine borders
• Inadequate stakeholder engagement
• The design, implementation and monitoring of CSI initiatives
• Social ills in the zone of influence
• Access to the lease area
• Resettlement due to mine requirements
• Squatting
• The impact on natural resources
These concerns were incorporated in the updated Social Management Plans of the mines and are reported on in this report where applicable.
Debswana’s exhibition stall at the 2017 Botswana International Trade Fair
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44
FOCUS AREAOUR 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
In 2015, Debswana adopted the Anglo American Social
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
best-practice social management system, and sets out
clear requirements to ensure that policies and systems
are in place to:
• engage with affected and interested stakeholders
• avoid, prevent, and, where appropriate, mitigate
and remediate adverse social impacts, and
• maximise development opportunities.
There are 10 requirements in the Social Way that
are relevant to Debswana covering the areas of social
risk management, stakeholder engagement, socio-
economic development, social commitments and
incident management, community health, safety
and security management, contractor management,
resettlement and cultural heritage. Under Requirement
4 of the Social Way, Socio-economic Development
(SED) is the most demanding in terms of scope and
complexity. SED consists of seven pillars which forms
the basis for reporting on our social performance:
• Local procurement
• Local employment
• Enterprise development
• Employee volunteering
• External capacity building
• Synergies on infrastructure use
• Corporate Social Investment (CSI)
In 2017, Debswana conducted three-yearly reviews
of the Socio Economic Assessments (SEAT) at both
operations to define the needs and realities of the
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.
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.
Jwaneng Mine Social Performance team sharing information with Employees and Business Partners
Debswana has embarked on a journey to create an enabling environment for citizen owned small, medium to micro enterprises (SMMEs)
46
SUPPLY CHAIN CONTRIBUTIONS
Debswana recognises procurement opportunities
emerging from its business activities as effective
economic impacts multipliers through which citizen
economic empowerment aspirations can be realised,
to effectively deliver socio-economic development in
Botswana. In collaboration with its business partners
and stakeholders, Debswana has embarked on a
journey to create an enabling environment for citizen
owned small, medium to micro enterprises (SMMEs)
to play an active role in Debswana’s supply chain to
strengthen its local supply base.
LOCAL PROCUREMENT
A list of goods and services reserved for citizen owned
companies has been increased to include elements
of the core business such as production drilling and
crushing of aggregates.
Advertisements on local newspapers for invitation
to tenders are made explicit to invite citizen owned
companies to participate. Where practical, projects
scope or order volumes are split to manageable scale
for SMMEs to handle. Effort is made to minimize
the chances of giving many orders/contracts to one
service provider at the same time to ensure that more
companies remain active and jobs are created and
saved.
Engagement with financial institutions (banks) and
original equipment manufacturers (OEM) were
initiated to avail primary and support equipment as
well as funding to build capacity for citizen owned
companies to enable them to take up emerging
opportunities in Debswana’s supply chain.
As a result of this collaboration with critical stakeholders
and business partners to deliver citizen economic
empowerment aspirations. Debswana can now
confidently award tenders to citizen owned companies
that have demonstrated capability to deliver in terms
of skills, experience and the ability to put together a
team that can deliver despite the fact that they may not
have the equipment; well knowing that banks will fund
them and the OEMs will supply the equipment, train
the contractor in operations, maintenance and provide
technical support over the duration of the contract.
Procurement Price Preferential (PPP) margins have
been revised-up to align with that of the Government
of Botswana’s Economic Diversification Drive (EDD)
to give citizen owned companies preference over their
foreign competitors. A commitment has been made to
ensure that orders and contracts of less than BWP10
Million are seriously considered for citizen owned
companies where practical.
Figure 4: Debswana % of total Procurement Budget Spend on Citizen owned Companies (2014 – 2017)
20%
25%
30%
35%
10%
15%
5%
2014 20162015 20170%
15%
29%
18%
26%
Figure 3: Debswana Budget Spend on Citizen owned Companies (2014 – 2017) (million BWP)
2000
1000
1500
500
2014 20162015 20170
9631279
904
1511
47
Debswana has engaged and invited its first and second
tier suppliers/contractors to commit to support the
citizen economic empowerment agenda. It has also
been made contractual that they employ and develop
Batswana as well as supporting citizen owned SMMEs
and the local community. Foreign companies doing
business with Debswana have been encouraged to
setup their production facilities locally to improve
their chances of winning upcoming procurement
opportunities.
Over the past three years Debswana’s local spend has
been about 80% while foreign spend varies around
20%. In 2017, we have seen significant improvement
in the amount of the local spend that goes to Botswana
citizen owned companies. The figure stood at 26% of
the local spend, which translates to BWP 1.51 Billion,
which is an improvement from BWP 1.2 Billion
achieved in 2016.
LOCAL EMPLOYMENT
Debswana is committed to employing and developing
citizens of Botswana in its operations. Currently the
Company employs more than 98.64% citizens across
all sites. The same level of commitment to local
employment and capacity building has been accorded
to its suppliers and contractors. 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. In 2017,
these requirements were made contractual through
the citizen economic empowerment policy.
In response to the shifting policy direction Danoher
(Pty) Ltd, which have been Debswana’s contractor
for crushing of aggregates and stemming materials
for both Jwaneng and Orapa mines has invested in
employing and training citizens of Botswana in both
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
ENTERPRISE DEVELOPMENT
Enterprise development enables Debswana to
actively support the development of competitive and
sustainable citizen-owned SMMEs, to create alternative
livelihoods to diversify the economy of Botswana. The
Company is also committed to collaborating with its
stakeholders and other developmental partners to play
an active role in creating a conducive and supportive
environment for enterprise to thrive.
Debswana’s performance is significantly dependent
on that of its suppliers/ contractors and as a result,
recognises supplier development as a strategic
imperative to enable citizen owned companies to
effectively compete for supply chain opportunities
emerging from its business activities.
In the period 2015 – 2017 Debswana supported a
Leather Incubator in Gaborone, owned and run by the
Local Enterprise Authority (LEA), to capacitate youth
to play an active role in the leather industry. Debswana
employees from Jwaneng Mine participated in the
design and testing of the tool bags to be used in the
construction and mining industry. The Company paid
for the samples during the initial design phase, allowed
its technicians to participate in the design phase and
allowed the prototypes to be tested and evaluated at its
operations. It also allowed the LEA team that was working
on the project to visit Jwaneng Mine to appreciate the
environments under which their products will be used.
The tool bags are currently produced by youth at the
incubator and sold to Debswana and its contractors at
Jwaneng and Orapa Mines.
Tokafala Enterprise Development Programme Tokafala, a partnership between the Government of the
Republic of Botswana, Anglo American, De Beers and
Debswana, was launched in 2013 to offer comprehensive
support to entrepreneurs through business mentoring,
business management and business plan development
advice, selective loan financing and market access. In
this regard, Tokafala complements Debswana’s Citizen
Economic Empowerment Policy objectives.
The four entities signed a Memorandum of Agreement
in 2017, agreeing to workshop strategic priorities for
2019 and beyond, in line with direct and indirect
creation of jobs in Botswana, through capacitating
enterprises, supporting the Government’s economic
diversification mandate through catalysing sustainable
entrepreneurship in non-traditional sectors primarily
amongst the youth and supporting enterprises to attain
access to finance and business mentoring of SMMEs.
Jwaneng Mine Enterprise Development Capacity Building Programme for
in partnership with the Companies and Intellectual Property Authoriy (CIPA)
49
In 2017, Tokafala provided support to six enterprises
at Orapa, Letlhakane and Damtshaa Mines in building
construction, civils, steel fabrication and electrical
engineering. The programme involved a 12-month
period of intensive business mentorship support.
Strengthening Youth Development Through Enterprise (STRYDE)Debswana also partnered with Tokafala Ltd to initiate a
programme for building youth capacity in the Jwaneng
and Boteti environs, under the banner Strengthening
Youth Development Through Enterprise (STRYDE).
The programme will target a total of 200 youth at both
environs, with a minimum of 50% female participation
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.
• 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.
OUR VERY OWN VOLUNTEER AT THE NETBALL YOUTH WORLD CUP
When Botswana hosted the World Cup for Netball Youth,
Dudu Nare of DCC Security- Projects volunteered her
time to help with all the arrangements. Being an avid
netball player in her younger days and working with
people from all over the world on a daily basis in her
work, made her at ease with the scores of netball players
from all over the world. The highlight for her during
the games was meeting the President of Botswana
on one of the days that she was looking after seating
for dignitaries at the University of Botswana sports
complex. Well done Dudu on your service for your
country and for representing the Debswana brand!
Dudu Nare
Botswana National Netball Team
50
NALEDI DIKGOMO – GOULDEN
Naledi Dikgomo – Goulden was invited to form part
of the Organising Committee to deliver the Netball
World Youth Cup 2017 held in Gaborone, Botswana.
Through this appointment she volunteered her
time and utilising the Company sports leave to carry
duties inclusive of chairing the committee, providing
guidance to stakeholders, reporting to the Ministry of
Youth, Sport and Culture, Botswana National Sports
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.
Thank you for hosting such a lovely welcome dinner
for the INF Board and Staff – it was great to meet
everyone and thank them personally for their efforts.
The memories of this World Youth Cup will last forever
for everyone who was there. We look forward to
receiving the final report of the event to hear of your
recommendations for future hosts and to learn of the
impact it has had for Botswana Netball Association and
the country of Botswana”.
BLANKETS FOR PATIENTSOLDM 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
says.
“I volunteer as a librarian on Saturdays and also
currently offer ad-hoc free tutoring lessons, homework
assistance and storytelling for the little ones. I have a
team of other volunteer librarians; there are currently
four of us who handle the Monday to Friday time slots
with the full support of the Education Manager, Fidelis
Machola and the Senior Support Services Manager,
Thatayaone Sithole.”
Otsile says she chose to go the Library route because we
live in an increasingly digital world where the culture of
reading an actual book has really gone down. “Growing
up, I loved books and these were easily accessible at
the public library. I missed reading and had used the
Orapa Library before, I registered for membership in
2009 and realised that this is the town’s treasure that is
not well known. I saw a lot of opportunities especially
for children and it was only natural that I volunteer to
introduce and run the weekend slot, and my highlights
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
Hospital. This will include proceeds from the previous
walks, ensuring a state of the art maternity wing.
According to the OLDM General Manager, Bakani
Motlhabani, the project was agreed on with the
involvement of community and sub-district stakeholders.
The aim is for this to assist in decongesting the hospital
and improving the level of healthcare service.
Motlhabani also shared that this initiative is one
of the many examples that clearly define the true
partnership between the employees, contractors and
the community of Boteti. It is an event which provides
us with the opportunity to make a meaningful impact
in the lives of the needy. “While we have one of the best
primary care systems, it is important that, as the private
sector we complement and support Government in
providing good healthcare services,” he said.
53
CYCLE RACE MAKES BIG BUCKS FOR CHARITY
Cyclists from all over the country thronged Jwaneng
for a noble gesture of raising funds for charity through
the annual General Manager’s Cycle Race.
The race raised close to BWP400 000 in cash which will
all go towards charity in line with the objectives of the
initiative that started in 2004.
Patron of the race Jwaneng Mine General Manager,
Albert Milton, said he was mostly humbled by
participation of children aged five to sixteen years who
religiously take part in the race.
“This signifies a good future for cycling sport in
Botswana, and it is up to us who have had long
experience in this particular sport to encourage,
mentor and support the children to ensure that we
leave a good legacy,” he said.
Milton also thanked all the sponsors who had
demonstrated commitment towards helping the
underprivileged members of the society.
When giving welcome remarks, Senior Manager
Human Resource Management, Tshepang Mazwigwila,
explained that the annual cycle race demonstrates
that sport plays an important function in unifying
communities irrespective of how diverse they are.
“This has solidified the great support we have from
our communities such as Sese, Lefhoko, Maboane and
other villages around the Mine,” he said.
54
DEBSWANA MOTHERHOOD CLUB
The Debswana Motherhood Club is a group of women
at the Debswana Corporate Centre (DCC) whose
vision is to provide information and guidance to both
employees and communities to become healthier,
pursue their goals and discover their talents. Formed in
2013, the 25 member ladies club has been involved in
activities ranging from giving to charities in Gaborone
and surrounding villages and arranging for motivational
talks for employees based at the Corporate Centre.
Deborah Retief Memorial Hospital Children’s wing Visit -December 2017This was a special day dedicated to the children at
Deborah Retief Memorial Hospital. Motherhood Club
donated gifts ranging from; a fridge, 20 chairs, and
edutainment DVDs to the hospital.
Father’s Day Commemoration at DCC – June 2017
Motherhood Club also planned a special day for the
Corporate Centre workforce in commemoration
of Father’s day under theme ‘Parenting in the 21st
Century’.
EXTERNAL CAPACITY BUILDING
The mines, their suppliers and contractors play an
important role in developing external capacity to
local institutions. The Debswana CSI programme also
includes several capacity building initiatives.
OLDM is reviewing the capacity needs of local
authorities and other government entities in the zone
of influence; and continuing to profile the communities
in its zone of influence in order to assess the resources
already present within the communities so that these
can be optimally utilised.
At Jwaneng, capacity development trainings were
facilitated for different community structures
including the Community Policing Cluster, traditional
leadership, public security officers and members of the
Jwaneng Town Council. These trainings were facilitated
to enhance the capacity of the stakeholders to respond
during a disaster or emergency.
Jwaneng Mine has partnered with the community
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
CORPORATE SOCIAL INVESTMENT (CSI)
CSI enables Debswana to engage in community
development activities that do not directly leverage
core business, but that are essential in obtaining and
maintaining the Company’s social license to operate
and in demonstrating commitment and care towards
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
programme where several sports were supported
including karate, basketball, chess, and rugby to
the value of BWP1 million
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,
Betesankwe, Lefhoko, Mokhomma, Samane, Tsonyane,
Maokane, Pitseng, Sesung, Seherelela and Sekoma
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
Disease Centre Clinic (IDCC), and since 2002, has
been accredited by the Council for Health Service
Accreditation in Southern Africa.
In 2010, Jwaneng Mine’s Cut 8 Project (a waste removal
project that has extended the life of mine) completed
a BWP2.2 million expansion of facilities at the hospital.
Jwaneng Mine Hospital Superintendant Dr Mwamba Nsebula taking the Health and Wellness Assistant Minister, Honourable Phillip Makgalemele on a tour of the hospital facilities
Tsienyane Primary School Minibus handover by Senior Manager, Support Services, Thatayaone Sithole to the Minister of Local Government and Rural Development and Boteti West Member of Parliament Hon Slumber Tsogwane
56
• Tsodilo Hills Project: Construction of the Rhino
Trail Staircase valued at BWP1 million, was
completed and officially launched on the 27th
October 2017 by His Excellency the President of
Botswana.
• Somarelang Tikologo (ST) Glass Recycling Project:
Debswana donated BWP650 000 for the purchase
of a vehicle and a recycling machine.
• Debswana First Division League: The division
receives BWP2 million per annum to run the
league. Debswana also provided funding for the
audit of the annual financial statements of the First
Division League by PriceWaterhouseCoopers.
• Debswana sponsored the Debswana Developmental
Botswana Open Chess Championship to the tune
of BWP277 800.00 per annum for a period of four
years. This is an annual tournament that brings
together the best players from across southern
Africa. It focuses on grassroots development of
chess with players aged between 6 – 18 years also
taking part. The sponsorship also goes towards
running the Debswana Chess League.
• Debswana has been supporting the development
of agriculture through the annual sponsorship
of BWP700 000 to the National and District
Agricultural shows. In 2017, BWP100 000 was used
to resuscitate the Molepolole District show.
• Debswana supported the Botswana National
Netball Association with BWP1.2million to train the
national team who were hosting the Netball World
Youth Cup games.
The OLDM mine complex CSI projects for 2017
included:
• Tsienyane (Rakops) Primary (BWP650 000): A
school bus for disabled students was procured and
handed to the community.
• The Seaseole Primary School classroom block
(BWP 3 797 696) was handed over to the school.
• OLDM contributed (BWP754 000) towards
education in the Boteti Sub District.
The completed Seaseole Primary School class room block in Letlhakane
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
boarding schools in larger towns such as Francistown
where the learning opportunities are greater.
Diamond Dreams Academic Awards Ceremony in Jwaneng
Completed Lefhoko Diamond Village project
59
Land Management, Water and Sanitation Services to
convene relevant stakeholders to assess it. An ‘Inter-
Ministerial’ committee was established to evaluate and
advise on the proposal. It had representation from the
following:
• Ministry of Land Management, Water and
Sanitation Services;
• Ministry of Environment, Natural Resources
Conservation and Tourism;
• Ministry of Local Government and Rural
Development;
• Ministry of Investment, Trade and Industry,
• Ministry of Mineral Resources, Green Technology
and Energy Security, and the
• Ministry of Tertiary Education, Research, Science
and Technology.
To achieve “Boteti Tomorrow”, the initiative proposed
the following;
• Establishment of a Diamond museum capturing
Orapa as the first great diamond mine in Botswana
and leveraging on its history and positive impact on
the nation.
• Create a corridor linking Orapa and Makgadikgadi
Pans by expanding the game park area.
The Adrian Gale Diamond Museum was officially
opened in March 2018 by the former President of
Botswana, His Excellency Lieutenant General Dr.
Seretse Khama Ian Khama. The layout and design tell
the mining story in galleries of display rooms which
reflect mining processes, equipment, products, office
space upstairs, a diamond display room and an outdoor
area with big mining trucks. Phase 2 of the construction
will include a curio shop, coffee shop, storage area and
a visitors’ lounge.
The extended Orapa Game Park area was also officially
opened in March 2018 by the former President of
Botswana, His Excellency Lieutenant General Dr.
Seretse Khama Ian Khama. The aim is to use diamond
mining as a catalyst for future tourism activity in
Boteti, and for the Park to also serve as a sanctuary for
endangered species.
Development of a business park to stimulate economic
activity.
Establishing a Technical University or Institute of
Technology from the current training facility, which is
a national benchmark in technical training.
At Jwaneng mine CSI projects for 2017 included:
• The Tsonyane Kgotla Office (BWP2 Million) is
complete and awaiting handover.
• The Mahotshwane Kgotla offices (BWP1.5 Million)
are 90% complete, electrification of the main
building is ongoing.
• The Maboane water project (BWP800 000) was
completed and has been handed over to the
Maboane community.
• The Jwaneng Technical College Library Revamp
project (BWP150 000) was completed and has been
handed over to the College.
• The Wheel Chairs project (BWP350 000) is
complete and has been handed over to the
beneficiaries.
• Construction of Lefhoko Primary School Kitchen
(BWP1.5 Million): The building will be completed
in 2018.
• Construction of Tsonyane Clinic (BWP2 Million)
The building will be completed in 2018.
The 2017 CSI budget of BWP15 million was underspent
by approximately BWP4.4 million, due to projects not
being started and completed on time (before year
end). Most of this will be spent during 2018 in addition
to the Company’s 2018 CSI budget.
SUSTAINABLE TOWNS
The Orapa Today Boteti Tomorrow (OTBT) programme
was conceived in 2011, through the visionary leadership
of the former General Manager, the late Dr. Adrian
Gale. The first part of this programme (Orapa Today)
is to make Orapa a great place to live and work. The
second part (Boteti Tomorrow) is to build a sustainable
alternative economy other than diamond mining for
the Boteti Sub District, whilst Debswana still has many
more years of diamond mining.
OTBT has four components; Lease and Game park
expansion project, Technical College, Business Park
and a Diamond Museum. Two significant projects which
form part of ‘Orapa Today and Boteti Tomorrow’,
were progressed in 2017. These were the Game Park
expansion and Diamond Museum.
For implementation and governance, Debswana,
through Orapa, Letlhakane and Damtshaa Mines
(OLDM) submitted a proposal to the Government
of Botswana in 2013, which sought to diversify the
economic base of the Boteti region from mining. The
proposal was subsequently directed to the Ministry of
60
The Park currently boasts a large variety of species.
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.
The Department of National Museum and Monuments
has contributed significantly to the conceptualisation
of the expansion of the Game Park and development of
the Diamond Museum; by linking the two as a combined
tourist package for the high volume of tourists on transit
to the Makgadikgadi. The Makgadikgadi Framework
Management Plan is part of the broader sustainable
development and management of cultural and natural
heritage in the Boteti region.
The expanded Game Park and Diamond Museum
tourist package is complemented by the development of
the Makgadikgadi Heritage Trail Map, which includes
access roads and signage at Kaitshe escarpment,
Makgaba fossils, Mmakgama ruins, Mokgalo waga
Kgama and Mosu escarpment. A South Sua mini trail
is being developed from Kaitshe via Kokonje Island
to Sowa. Another mini trail, Ntwetwe pan, will be
developed for bird and game viewing.
Environmental impacts
Socio-economic development
Business ethics/business integrity
Figure 3: Categories of grievance received during 2017
29%
28%
43%
OLDM capacitating communities on safety at a Donkey Cart Road Safety Initiative in conjunction with Botswana Police and the Department of Roads
DEALING WITH GRIEVANCES
The Social Way programme records and manages
community complaints and grievances. In 2017, a total
of 17 grievances were recorded and managed through
the complaints and grievances procedure (including
timelines within which the complainant can expect
feedback).
RESETTLEMENT
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.
61
62
FOCUS AREAOUR 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
MANAGING OUR ENVIRONMENTAL IMPACTS
Debswana realises that it is dependent on the
natural environment to provide resources
used in its operations and environmental
services (e.g. waste absorption). The main
aspects of the Company’s environmental
impacts concern water, energy use and related
carbon emissions, and biodiversity. For
environmental parameters the information
relates to Debswana’s mining operations.
MANAGING OUR ENVIRONMENTAL IMPACTS
Debswana continues to implement an integrated
environmental management programme with the
view to minimise and mitigate the unavoidable
environmental impacts linked to the Company’s
operational processes. Mining by its nature impacts
the environment since it uses heavy duty machinery
and natural resources such as water. To better evaluate
and understand its interactions with the environment,
Debswana has implemented an Environmental
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.
Throughout its implementation of the EMS and
continual compliance to the legal requirements
governing mining in Botswana, Debswana further
conducts environmental impact assessments for
different life of mine projects. This process is not
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 is committed to minimising its environmental
footprint and its closure liability by ensuring that it
integrates the environmental and closure requirements
into its business planning processes. This process is
maintained and supported by adopting international
best practice standards to enhance and sustain the
implementation of the sustainability programme.
WATER USE
Debswana is continually seeking ways to improve its
water management strategies at all its operations, in line
with local best practice and international benchmarks.
A re-baseline study of the Water Efficiency Target
Tool was conducted and initiatives to save water were
identified and are being implemented at its operations.
To meet its production demands Debswana sources
its water from the wellfields against a 15 million cubic
meter quota per operation (Jwaneng Mine and OLDM,
respectively). The water quota is issued by the Water
Apportionment Board under the Department of Water
Affairs.
64
2014 2015 2016 2017
Jwaneng 12.00 11.70 9.93 7.99
OLDM 13.40 11.40 8.55 9.42
Total 25.40 23.10 18.48 17.41
BANDA MASWABI RECEIVES RECOGNITION!
Banda Maswabi, a Principal Hydrogeologist at the Debswana Corporate Center; recently received a letter of appreciation from the Managing Director of the Botswana Bureau of Standards (BOBS), on
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.
Water is a strategic resource for Botswana as a country and for Debswana. Therefore, it is fitting that Mr Maswabi should receive recognition for his contributions towards the formulation of standards on water quality.
We salute Banda Maswabi!
This table confirms the Company’s success in reducing
the amount of water used for mining operations
(31% reduction over a 3-year period).
Debswana is continually seeking ways to improve its water management strategies at all its operations, in line with local best practice and international benchmarks
Table 8: Water use at Debswana mining operations (million m3)
65
ENERGY USE AND CARBON EMISSIONS
Energy use is a major cost driver and also contributes
directly to carbon emission levels. Climate change is a
business risk and international best practice requires
investment in energy reduction and improved energy
efficiency.
The Government of Botswana has, through its
Sustainable Energy For All programme, indicated
commitment towards improving energy efficiency as
well as reducing carbon emissions. Debswana is aligned
with the Government of Botswana and the Anglo
Group of Companies to demonstrate commitment to
reducing carbon emissions.
The Company continuously reviews its energy use
and implements reduction measures. This includes
considering using renewable energy sources. A
re-baseline study of Energy and Carbon dioxide
management (ECO2MAN) was conducted. Initiatives
to save energy were identified and are being
implemented at both operations. The first important
action for both operations was to install appropriate
metering at significant energy consuming equipment
in order to provide real time data on efficiency. An
Asset Management Engineer responsible for Energy
was appointed in mid-October 2017 to develop policy
and drive implementation of an Energy Management
programme for Debswana. Energy Champions were
also appointed for Jwaneng Mine and OLDM. These
initiatives are already showing results.
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)
2014 2015 2016 2017
Jwaneng 106 717.95 118 374.68 97 844.06 222.57
OLDM 36 254.23 30 129.76 33 778.03 253.91
Total 142 972.18 148 504.44 131 622.09 476.48
The electricity usage levels are affected by production
levels. The significant increase in electricity use at
OLDM is attributed to the commissioning of the
Letlhakane Tailings Treatment Plant and production
resumption readiness work at Damtshaa Mine.
For 2018, Debswana has set itself a target of 2%
reduction in energy use against a 2016 baseline
(electricity and fuels) and by 2020 an 8% reduction
against the same baseline.
The table below shows the trends for CO2 emissions for
the period 2015-17.
Table 11: Total CO2 Emissions at Debswana operations (T CO2 Eqv)
2015 2016 2017
Jwaneng 520 365.71 537 880.49 482 924.1
OLDM 360 252.16 309 539.17 376 636.24
Total 880 617.87 847 419.66 859 560.34
For 2018, we have set a target of a 2.25% reduction
against a 2016 baseline, with a 9% reduction target
against the same baseline by 2020.
66
ENVIRONMENTAL INCIDENTS
Debswana maintains an environmental incident
reporting programme which allows it to understand
its hot spots. This allows for planning that targets the
problem areas and development of lasting solutions
to arrest the trends of environmental impacts linked
to business activities. The incidents are classified on
a scale of 1 to 5 with 1 being lower impact incidents.
In 2017, there were 197 environmental incidents
recorded, all classified as low impact incidents. No
major environmental incidents (Level 3 to 5) were
reported.
MINE CLOSURE
Debswana has embarked on a pilot project to reduce
mine closure liability costs during its ongoing operations
through the Integrated Closure Planning System
(ICPS) at both operations. The objective of the ICPS is
to identify concurrent rehabilitation opportunities to
reduce closure liability during the life of mine. Several
opportunities have been identified and the next step
is to conduct studies to ascertain feasibility of these
proposed projects.
FARMERS ENCOURAGED TO TRANSFORM AGRICULTURE
Debswana Managing Director, Mr. Balisi Bonyongo,
has implored all farmers to revolutionise agriculture
by strengthening agricultural production across the
entire value chain. This includes from input supply,
production, and post-harvest handling, to processing
and marketing. Mr. Bonyongo was speaking at the
official opening of the 2017 National Agricultural
Show, where Debswana served as the main sponsor.
Mr. Bonyongo emphasised that the mining of diamonds
and all other minerals will one day come to an end and
there is a need to focus on sustainable industries such
as agriculture. “With the right effort and resources,
agriculture can make a major contribution to the
diversification of our economy and contribute to our
nation’s food self-sufficiency. This is why Debswana
continues to support Government efforts in the
development of agriculture,” Mr. Bonyongo said.
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
BIODIVERSITY
The Debswana Biodiversity programme is a key
differentiator for diamonds versus synthetics. Game
parks around its operations highlight the Company’s
commitment to the conservation of biodiversity.
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. A unique feature of these is the
white and black rhino conservation programme, which
continues to deliver positive results.
“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
diamonds, but indeed upholds other sustainable
initiatives to ensure economic diversification.
Recognising this and upholding the Debswana mantra
of “Mining diamonds, enriching the nation,” Jwaneng
Mine recently spread its wings to donate wild animals to
Soda Ash Botswana, a Soda Ash Mining Company. The
Mine demonstrated through this contribution towards
biodiversity conservation that we can all do more to
better our environment for generations to come.
Tumelo Ntlhayakgosi - Senior S&SD Manager, Jwaneng
Mine, has explained that elands are one of the protected
species in Botswana therefore will be introduced to
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
403-2Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities
27-28
404-1 Average hours of training per year per employee 34-35
413-1Operations with local community engagement, impact assessments, and development programmes
41, 46
419-1 Non-compliance with laws and regulations in the social and economic areas 15
71
SUSTAINABLE DEVELOPMENT GOALS (SDGs) INDICATORS
72
OUR COMMUNITIES
HEALTH AND SAFETY
OPERATIONAL PERFORMANCE
SUSTAINABILITY
OUR EMPLOYEES
STAKEHOLDER ENGAGEMENT
OUR NATURAL ENVIRONMENT
REPORT FOCUS AREA INDICATORS
7373
74
NOTES
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