Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
De Beers Group increased returns to governments, communities, supply chain partners and its joint venture partners by 26 per cent to US$5 billion in 2016, according to its latest Report to Society, published today.
The increase, delivered through taxes, payments for goods and services and dividends, reflects De Beers Group’s improved financial and operating performance in a year that it signed a milestone sales agreement with its Government partner in Namibia and opened the Gahcho Kué diamond mine in Canada.
De Beers Group generated further socio-economic benefit for its partners through the sale of US$1.4 billion of rough diamonds to local cutting and polishing businesses within its producer countries – a more than 70 per cent increase on 2015 – as part of its in-country beneficiation strategy.
Goods and services amounting to more than US$1 billion were procured by the company within its producer countries – a three per cent increase – ensuring greater value was realised across domestic supply chains.
The Report also highlights that De Beers Group:
Following extensive research undertaken over the course of last year, the company is also working on a project to investigate the potential of carbon-neutral mining through storing large volumes of carbon in kimberlite tailings, the rock material left over after diamonds are mined.
Bruce Cleaver, CEO, De Beers Group, said: “Last year our partnerships delivered significant value for the countries in which we operate. Through our US$1 billion investment in local goods and services, we helped put local supply chains to work, sustaining jobs and encouraging socio-economic development.
“As the world’s leading diamond company, we have a responsibility to the people in the countries we operate in to ensure the value of what we mine below ground is realised at a local level above ground.
“Diamonds are a finite and precious resource, so it remains our responsibility to mine them safely and sustainably, and always while focusing on delivering real benefits for our partners in our operating countries that will be realised long after our last mine closes.”
About De Beers Group
De Beers Group is a member of the Anglo American plc group. Established in 1888, De Beers Group is the world’s leading diamond company with expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers Group employs more than 20,000 people across the diamond pipeline and is the world’s largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company’s operating philosophy, the people of De Beers Group are committed to ‘Building Forever’ by making a lasting contribution to the communities in which they live and work, and transforming natural resources into shared national wealth. For further information about De Beers Group, visit www.debeersgroup.com.
