This followed the discovery of diamonds in Africa in 1866, south of what became the diamond city, where diamonds were first mined in the 1870s.
The company has evolved from humble beginnings in the nineteenth century to become the leader of the diamond industry - exploring for, mining, and trading rough diamonds and retailing premium diamond jewellery whilst employing the highest ethical standards throughout the value chain of its operations.
Five focus areas
De Beers Consolidated Mines (DBCM) currently has five focus areas of operation, firstly in improving the growth in revenue and containing costs, secondly making quality investments and bringing those projects in on time and on budget, thirdly, focusing on mining operations that best fit the company strategy and furthering the transformation programme in the country by selling other operations to consortia with Black Economic Empowerment (BEE) credentials.
The fourth focus is on the talented people who make DBCM work effectively, and the fifth addresses the sustainability of the business by being a leading corporate citizen and maintaining a high reputation and gaining access to opportunities to ‘Grow the Business Beyond 2014’.
De Beers today and tomorrow
In 2007, De Beers Consolidated Mines (DBCM) embarked on becoming more efficient, effective and profitable. As a result, DBCM is focusing its assets to grow the company beyond 2014, while providing added value to its shareholders and stakeholders.
The company is 26 per cent owned by BEE company Ponahalo representing a wide range of shareholders in communities, gender and disabled, employees and retired De Beers workers, as well as leading empowerment business people.
In 2008 the company began operating seven mines; Venetia, Cullinan, The Oaks, Kimberley, Finsch, Namaqualand and the South African Sea Areas. In the course of this year Voorspoed will be added, The Oaks will close and some of the sales will be concluded.
In 2007, DBCM recovered a 14,9 million carats from 29,5 tons treated. A key highlight was Venetia Mine realising one million carats in a single month, August 2007.
In line with the growth aspirations on the company, the mining vessel, Peace in Africa, marked its first day of operation on 16 June 2007, and began the first major off-shore mining operation in South African waters. 2008 will see the first full year of production.
In September 2007, DBCM sold only the underground operation part of Kimberley Mines to Petra Diamonds and their BEE partner, Sedibeng. This part of the mine is expected to reopen in the years ahead and is being maintained by Petra.
The Kimberley Mines operation of DBCM continues to produce approximately one and a half million carats a year. In October 2007, the sale of the Tailings Mineral Resources in Kimberley, to the Small Miners Forum, was concluded.
In November, a sale agreement was signed for Cullinan Diamond Mine (CDM) with Petra and their BEE partner, Thembinkosi Investments.
In November 2007, Cullinan Diamond Mine mining right conversion was approved and in the course of this year the parties expect the sale to be concluded following fulfilment of the requirements expected by the various relevant authorities.
DBCM is undertaking some early stage exploration reconnaissance programmes searching for future potential resources.
In the early 2008 the staff complement at DBCM was 5376. This marks an approximately 15 per cent reduction since the introduction of staff optimisation initiatives. The company offered attractive packages for voluntary retrenchments and early retirements.
The past years have seen strides forward in DBCM’s quest for transformation in the workplace and the consequential wide presence of women in all levels of the mining operations, from female haul truck drivers at various mines, to metallurgists, and at Kimberley Mines the appointment of the first female operations manager in De Beers 120 years of existence.
Safety overview
In 2007, DBCM achieved a record low number of lost time injuries incurred in a year with a lost time injury frequency rate (LTIFR) of 0.21. This LTIFR is the same as that for 2006.
No fatalities were incurred in DBCM mines for the 2007 production year. Finsch Mine achieved a significant milestone of six million fatality-free shifts, for which it received a prestigious award from the Department of Minerals and Energy. This is a record in mining in South Africa. All DBCM mines are ISO 14001 and OHSAS 18001 certified.
Outlook for 2008
Construction of Voorspoed Mine in the Free State Province is ahead of the revised schedule and is expected to become fully operational sooner than expected in 2008, with the ramp up towards full production anticipated in mid 2009.
The commissioning of the Finsch Mine treatment plant upgrade in mid 2008 will add an additional 1, 4 million tonnes per annum of treatment capacity primarily aimed at increasing the levels of tailings retreatment, while improving the effectiveness of the plant.
DBCM plans to continuously improve on its processes to foster organisational effectiveness and excellence based on the lean manufacturing principles, encompassed under an internal campaign, dubbed the ‘Diamondreams Business System’.
The company is recognised for its extensive community social investment programmes and innovative HIV/AIDS initiatives. It was the first company in the world to provide free anti-retroviral treatment to all its mining and diamond sorting employees and their spouses or partners.
The company will also look at strengthening its corporate social investments programmes of the De Beers Fund and other channels to continue adding value in the communities where it operates.