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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

33

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]


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INDICATOR

2016


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


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STATEMENT BY THE DEBSWANA BOARD CHAIRMR. CARTER MORUPISI


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.


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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.


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.


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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, 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.


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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


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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)


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21 Towards sustainable mining (TSM) 21 Assurance of our sustainability performance 21 Material topics

OUR APPROACHTO SUSTAINABILITY


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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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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


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22

FOCUS AREAOPERATIONAL PERFORMANCE

24 Operational overview 25 Life of Mine (LoM)


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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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26

FOCUS AREAHEALTH AND SAFETY

28 Safety 29 Occupational Health


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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.


29


30

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


31


32

FOCUS AREAOUR EMPLOYEES

34 Workforce 34 Industrial relations 34 Skills development 35 Employee Wellness Programme 36 Localisation of expertise 36 Gender Diversity and Inclusion


33

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.


34

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.


35

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


37

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.



38

FOCUS AREASTAKEHOLDER ENGAGEMENT

40 Stakeholder engagements at corporate level 41 Stakeholder engagements at operations


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.


41

Omphile Ntabeni, Senior Project Manager, hosted members of the media to a tour of the Letlhakane Mine Tailings Resource Treatment Plant

Phenyo Maoto, Senior MRM Manager addressing contractors during a safety stand-down at Jwaneng Mine


42

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


43

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

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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