Largest, Most Sophisticated Diamond Sorting Facility in the World Begins
Operations in Botswana
Botswana and De Beers turn natural resources into shared national wealth
GABORONE, Botswana, March 18 /PRNewswire-USNewswire/ -- The largest and most
advanced diamond sorting facility in the world was officially opened today by
His Excellency the President of Botswana Festus G Mogae, and Nicky
Oppenheimer, Chairman of De Beers Group. Already the world's largest producer
of diamonds by value, the opening of the new technology driven facility
establishes Botswana as the world leader in the sorting and valuation of rough
diamonds. The development and construction of the building was funded by De
Beers, and will serve as the home of the Diamond Trading Company Botswana (DTC
Botswana), a unique 50:50 joint venture between the Government of the Republic
of Botswana and De Beers.
Beneficiation, a strategy shared by the Government of Botswana and De Beers,
ensures that a portion of Botswana's most important natural resource stays in
the country longer, so that value can be added through local companies and
local expertise. This strategy of turning natural resources into shared
national wealth is anticipated to stimulate the development of a new industry
in Botswana and create approximately 3,000 new jobs in the country. The jobs,
primarily in diamond cutting, polishing, sales and marketing, will account for
a 30% increase in diamond industry jobs in Botswana and a 10% increase in the
country's total number of manufacturing jobs. In addition, job creation in
secondary business sectors such as banking, security and Information
Technology will support Botswana's economic vision to generate jobs and drive
maximum value from the country's diamond resources.
DTC Botswana will sort and value all rough diamonds produced by Debswana (a
50/50 joint venture between the Government of Botswana and De Beers to mine
the country's diamonds) and, for the first time in Botswana, perform local
sales and marketing activities for rough diamonds. Through its Diamond
Academy in Botswana, the DTC is ensuring the skills transfer, training and
development of local employees. DTC Botswana will be the primary vehicle for
creating a sustainable and profitable downstream industry in Botswana that
will:
-- Provide maximum long term value from diamonds to the country through world
class sorting, valuing, selling and marketing practices in Botswana
-- Develop new employment opportunities in Botswana
-- Ensure that new skills and capabilities are created amongst Botswana's
citizens
-- Be a catalyst for other businesses to invest in Botswana
In addition, the vast majority of De Beers' global production will be
aggregated in Botswana by DTC International by 2009.
Speaking at the Ceremony, President Festus Mogae said "For the citizens of
Botswana, the Diamond Trading Company Botswana will bring with it increased
employment and training opportunities. It will further provide Government with
another significant revenue stream, to finance further development. It will
also raise our nation's global profile by becoming a benchmark brand of local
excellence."
Nicky Oppenheimer, speaking about the creation of DTC Botswana, noted that the
opening of the building was a true celebration, and an important milestone in
the enduring partnership between De Beers and the people of Botswana.
"The unique contribution that diamonds have made in countries like Botswana
gives us cause to reflect on what lessons might be drawn from this success,
and whether these might be deployed effectively elsewhere on the continent.
We have, for example, learned the value of building local capacity through
employing local people and ensuring local management of our operations; of
supporting local businesses through preferential procurement and the provision
of support through enterprise funds; of engaged support for initiatives that
promote good governance and transparency and we have learned the value of
industry leadership in driving an ethical business that underwrites consumer
confidence in diamonds. Above all we have learned that building strong
mutually beneficial partnerships wherever we work creates a shared
responsibility for success," he said.
Botswana produces 22% of world output of gem diamonds by value. Revenue from
diamonds represents 33% of the country's GDP. The wealth generated from
diamond revenues has been used to build and develop healthcare, education and
transport. In the four decades since diamonds were discovered in 1966,
Botswana has transformed itself from among the poorest countries in Africa to
one of the most democratic and wealthiest on the continent, with one of the
world's highest economic growth rates (4.7% annually in 2006-07). This
dramatic and rapid development of Botswana's upstream and now downstream
industry, and the prudent mix of stability, good governance and effective
management of its diamond resource, provides a much wider commentary on what
business' role should be in African development. Botswana is a prime example
of how a country's natural resources can be turned into shared national wealth
in the African context.
About De Beers:
De Beers, established in 1888, is the world's leading diamond company with
unrivalled expertise in the exploration, mining and marketing of diamonds. De
Beers and its joint venture partners operate in 25 countries across five
continents employing more than 22,000 people, 17,000 of whom are based in
southern Africa. From its mining operations across Botswana, Namibia, South
Africa, Tanzania and Canada, De Beers produces and markets approximately 40
percent of the world's supply of rough diamonds. As part of the company's
operating philosophy, the people of De Beers are committed to Living up to
Diamonds by making a lasting contribution to the communities in which they
live and work. De Beers encourages sustainable working to ensure long-term
positive development for Africa, and returns approximately US$4.9 billion to
the continent every year. For further information about De Beers visit
www.debeersgroup.com
Botswana, Diamonds, and De Beers
Botswana is a landlocked country roughly the size of the state of Texas, with
a population of 1.7 million.
Botswana is the largest producer of diamonds in the world by volume and by
value, contributing about 22% of the global output of rough diamonds.
Diamonds account for 33% of GDP, 80% of foreign earnings and 39% of public
revenue. Revenue from Botswana's diamond industry is the lifeblood of the
country, nurturing the entire population to a higher standard of living and a
better quality of life.
In 1967 De Beers geologists discovered diamonds in Botswana. In 1969 the
Government of Botswana and De Beers signed a joint venture agreement to form a
company called Debswana to mine, recover, sort, value and market rough
diamonds from the mines in Botswana.
Debswana currently has 5 diamond mines, producing 33.6 million carats per year
(2007).
Debswana is the largest private sector employer in Botswana with 6500
employees, of which 95% are citizens of Botswana.
DTC Botswana
DTC Botswana is a 50/50 joint partnership between the Government of Botswana
and De Beers, established to sort and value Debswana's diamond production. It
also sells diamonds from around the world to clients of DTCB who have cutting
and polishing factories in Botswana.
DTC Botswana will be the largest and most sophisticated rough diamond sorting
and valuing operation in the world
-- De Beers is investing US$83 million in the construction of a new building
that will house DTC Botswana.
-- The building will incorporate state of the art sorting equipment designed
and manufactured by DTC International.
-- The building will have capacity for 45 million carats and able to
accommodate up to six hundred employees.
DTC Botswana will bring new skills to the Botswana diamond industry
-- The company will undertake not only the sorting and valuing of Debswana's
diamonds, but also local sales and marketing activities.
-- DTC International is currently training a number of BDVC staff to support
the state of the art sorting equipment that will be used by DTC Botswana.
DTC Botswana will be instrumental in the further development of the Botswana
downstream industry
-- There are now 16 clients of DTC Botswana who have made firm commitments to
cut and polish diamonds in the country.
-- With DTC Botswana destined to have its own local clients, it is anticipated
that more diamonds will be supplied locally by the end of the decade.
-- The development of the Botswana downstream industry will be supported by
the DTC Botswana's local sales and marketing team.
The establishment of DTC Botswana will be a catalyst for the development of
other business opportunities.
-- The diamond industry in Botswana will require the support of various
business sectors, including banking, security and IT.
-- With the further development of the Botswana downstream industry, it is
estimated that there will be about 3000 jobs created in Botswana by the end of
the decade.
SOURCE De Beers
Kirsty Lane, Botswana, +267 7132 8882, Kirsty.lane@debeersgroup.com, Lynette
Gould, London, +44 (0) 7740 393260, Lynette.gould@dtc.com, or Tom Tweedy,
Johannesburg, +27 (0) 83 308 0083, tom.tweedy@debeersgroup.com, all of De
Beers
