In 2009, De Beers Consolidated Mines Ltd (DBCM) recovered 4.8 million carats from 11.3 million tonnes treated. The fall in production from 2008 levels, when 12.0 million carats were extracted from 21.8 million tonnes, was instigated as a direct response to a significant drop in DTC Sightholder demand for rough diamonds. Despite challenges faced in 2009, DBCM exceeded its target for carats recovered and tonnes treated by 5%.

With the onset of the global recession, and consequent need to reduce production and operating costs, DBCM implemented a structural review of the business. The review also sought to ensure absolute readiness for an eventual upturn in the market.

DBCM capitalised on its revised production schedule by reallocating underutilised resources to important projects such as eliminating a backlog in waste stripping at Venetia Mine. By late 2009, the waste backlog was reduced by 15.9 million tonnes (35% ahead of target) allowing the stripping completion date to be brought forward to early 2010. At the close of the year, Venetia mine had made a significant contribution of 2.2 million carats towards DBCM’s total production.

In September 2009, Voorspoed Mine recovered a record monthly production of 94,000 carats. Total production for the year ended at 532,000 carats, up from 128,000 in 2008.

In 2009, we saw the successful conversion of all DBCM’s old-order mining rights into new mining rights. In addition, heavy minerals prospecting rights were executed off the West Coast of South Africa.

Wage negotiations between DBCM management and the National Union of Mineworkers were successfully completed in the second half of the year.

The combined LTIFR for DBCM was 0.25 in 2009, compared to an LTIFR of 0.16 in 2008. DBCM suffered no fatalities in 2009. Notably, the Namaqualand mine completed the year without incurring a single lost time injury.

All DBCM mines are ISO 14001 and OHSAS 18001 certified.

Through the Disability Employment Equity Programme, Voorspoed Mine, together with the Ponahalo De Beers Disabled Persons’ Trust, successfully integrated the first group of employees with disabilities into the mine.

In 2010, DBCM will invest significant effort in rolling out its Continuous Business Improvement programme aimed at enabling efficiencies in all aspects of the business. The achievement of ‘Zero Harm’ and cash conservation at all operations is central to this strategy.