Debswana Targets 20m carats In 2010

Staff Writer | Monday January 11, 2010 00:00

 

The company produced approximately 17.1 million carats of diamonds in 2009, or around 50 percent of its normal levels. Debswana's output was 32.3 million carats in 2008 and 33.6 million carats in 2007. Debswana, De Beers largest mining venture, closed its mines for two months at the beginning of 2009 due to the reduced demand for rough diamonds.

The company produced approximately 17.1 million carats of diamonds in 2009, around 50 percent of 'normal levels,' Esther Kanaimba, Debswana spokesperson,  said in an interview with Rapport News last week. 'We expect production to reach 60 percent of normal levels in 2010, to about 20 million carats,' she said. Debswana's output was 32.3 million carats in 2008, and 33.6 million carats in 2007.

Kanaimba explained that the company is ready to respond to market demand and would ramp up production accordingly, but added that, based on current trends, production will only reach full capacity again in 2012.

Debswana, the largest of the De Beers mining units, closed its mines for two months at the start of 2009 due to reduced demand for rough diamonds brought about by the global economic downturn. While the Damtshaa mine will remain shut for the remainder of 2010, production will come from its three other operations - the Jwaneng, Orapa and Letlhakane mines.

Kanaimba further confirmed reports that the company is planning to cut more than 1,000 jobs in 2010 but stressed that the layoffs were part of an operations review and not a result of the weaker economic environment.

'We are reviewing our operations in a four-tier programme which we embarked on about two years ago to assess how we operate our mines to make the company more efficient,' Kanaimba said.

'We have identified areas where there are too many layers and these are the positions that will be affected.'

Under the operations review, Debswana is looking to make its organisational structures more efficient, while seeking ways to contain costs, improve revenue and ensure sustainability. While Kanaimba could not confirm the exact number, she said more than 1,000 employees will be affected.

These layoffs will start at management level in the first half of the year, after which 'the rank and file' workers will be assessed, as the process is expected to be completed by the end of 2010, she reported. Debswana currently employs 5,260 people.