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De Beers > Investing in the Future > Economics
     CAPITAL INVESTMENT    
 


Our capital investment prolongs the life of current mines and brings into production the diamond deposits of the future. It includes stay-in-business investment (e.g. to replace earthmoving equipment) and the construction of new projects.

New projects provide economic benefits to all stakeholder groups by creating employment, generating procurement income and improving the region's investment climate by catalysing other investment. Of the 2005 capital investment, 61% (US$379 million) was made in Africa, and a further 32% (US$198 million) was invested in Canada.

New projects
In 2005, US$115 million was committed to converting the Dock Express 20 (renamed "Peace in Africa"), a second-hand ship purchased earlier that year, into a marine mining vessel. The ship will mine the sea areas off South Africa and is scheduled to go into full production in 2007. This is the first marine mining project in South Africa, leveraging the expertise of De Beers Marine Namibia. Major contracts for implementation have already been awarded, with South African suppliers contracted to provide a diamond treatment plant as well as the mooring and mining systems for the vessel. A further US$177 million was approved towards the re-development of South Africa's Voorspoed mine. Outside of Africa, investment focused primarily on the Snap Lake and Victor projects, due to come into production in 2007 and 2008 respectively.

Exploration
In 2005, US$113 million was spent on exploration, of which over 60% was in Africa. Exploration in Africa is in its most advanced stages in Botswana, Angola and DRC. Further funds have been set aside for exploration in South Africa during 2006.

Public infrastructure
Mines are often located in remote areas, necessitating the provision of infrastructure. The provision of such infrastructure also benefits local communities and host countries. We have contributed significantly by providing and maintaining access to roads, water, energy, education and healthcare as outlined below.

Roads, water and energy: Debswana is building a major road in Botswana (linking Letlhakane with the main Orapa-Francistown road), at a projected spend of P28 million (US$5.1 million) on completion. Employees and other residents of the mine towns are provided with access to water and energy. Debswana has in the past drilled boreholes for outlying communities and trained them in how they should be maintained, providing a sustainable source of water. In certain instances, De Beers Exploration in India converted drill holes in Andhra Pradesh into boreholes to enable the local community to have access to water. Drilling for community wells will likely take place in Angola once drill rigs are fully operational.

Health and education: Investment in health and education is considerable across the family of companies. The mine hospital at Jwaneng cost P33 million (US$6.5 million) to run in 2005 with 67% of this allocated to local communities. Of the hospital's inpatients, 90% are community members (non-employees or employee families). Jwaneng's Infectious Disease Care Centre (IDCC) serves members of the community only. The IDCC is a state of the art HIV/AIDS centre funded by Debswana at a cost of P2.3 million (US$450 000) every year. Company hospitals and highly subsidised schools exist at Orapa (Botswana), Oranjemund (Namibia) and Williamson (Tanzania).

 
 
 
 
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