Debswana
Encyclopedia
Debswana Diamond Company Ltd, or simply Debswana, is a giant mining
company located in Botswana
, and is the world's leading producer of diamond
s by value. Debswana is a joint venture
between the government of Botswana and the South Africa
n diamond company De Beers
; each party owns 50 percent of the company. Debswana operates four diamond mines in central Botswana, as well as a coal
mine.
s identified diamond-bearing deposits at Orapa in the 1960s. Over the next five years, the government of Botswana increased its ownership stake from an original 15% to a full 50%. In 1991, the company changed names to Debswana Diamond Company Ltd and moved its headquarters to Gaborone
.
in 2004. Largely because of this, Botswana is considered by two major investment services to be the safest credit risk
in Africa
. Diamonds account for fully one third of the nation's GDP
, over 90% of earnings from export
s, and 50% of government revenues. Debswana is the largest non-government employer in the country, employing approximately 6,300 people, of whom over 93% are Batswana. Debswana is also the largest earner of foreign currency.
, for not respecting the human rights of the Bushmen
living in Botswana. Since the mid-eighties, Survival International have published reports that the Botswana government has conducted a campaign of harassment to drive them out and give way to mining exploration. Louis Nchindo, Managing Director of Debswana, has said "The Government was justified in removing the Basarwa [’Bushmen'] from the Reserve… It is sensible of Government to take such action. Otherwise who would always want to remain in the Dark Ages while others move forward?". According to Stephen Corry
, Director of Survival International, the Bushmen are not backward or primitive, and their human and cultural rights must be respected.
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
company located in Botswana
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...
, and is the world's leading producer of diamond
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
s by value. Debswana is a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
between the government of Botswana and the South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
n diamond company De Beers
De Beers
De Beers is a family of companies that dominate the diamond, diamond mining, diamond trading and industrial diamond manufacturing sectors. De Beers is active in every category of industrial diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea...
; each party owns 50 percent of the company. Debswana operates four diamond mines in central Botswana, as well as a coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
mine.
Mines
The mines owned and operated by Debswana are:- Diamond mines:
- Orapa diamond mineOrapa diamond mineThe Orapa diamond mine is the world's largest diamond mine. The mine is located in Orapa, a town in the Boteti Sub-District of Botswana about west of the city of Francistown. Orapa is owned by Debswana, a partnership between the De Beers company and the government of Botswana...
, opened in 1971 - Letlhakane diamond mineLetlhakane diamond mineThe Letlhakane diamond mine is a diamond mine located in Botswana about west of the city of Francistown. Letlhakane, meaning "little reeds", is owned by Debswana, a partnership between the De Beers company and the government of Botswana. It is the second oldest of four mines operated by the...
, opened in 1975 - Jwaneng diamond mineJwaneng diamond mineThe Jwaneng diamond mine is the richest diamond mine in the world and is located in south-central Botswana about west of the city of Gaborone, in the Naledi river valley of the Kalahari. Jwaneng, meaning "a place of small stones", is owned by Debswana, a partnership between the De Beers company...
, opened in 1982 - Damtshaa diamond mineDamtshaa diamond mineThe Damtshaa diamond mine is a diamond mine located in Botswana about west of the city of Francistown. Damtshaa, meaning "water for a tortoise", is owned by Debswana, a partnership between the De Beers company and the government of Botswana...
, opened in 2003
- Orapa diamond mine
- Coal mine:
- Morupule CollieryMorupule CollieryThe Morupule Colliery is a coal mine located in Palapye, Botswana, and owned and operated by Debswana, a partnership between the government of Botswana and De Beers...
, opened in 1973
- Morupule Colliery
History
Debswana was formed as the De Beers Botswana Mining Company on June 23, 1969, after De Beers geologistGeologist
A geologist is a scientist who studies the solid and liquid matter that constitutes the Earth as well as the processes and history that has shaped it. Geologists usually engage in studying geology. Geologists, studying more of an applied science than a theoretical one, must approach Geology using...
s identified diamond-bearing deposits at Orapa in the 1960s. Over the next five years, the government of Botswana increased its ownership stake from an original 15% to a full 50%. In 1991, the company changed names to Debswana Diamond Company Ltd and moved its headquarters to Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
.
Production
All diamond mining in Botswana is controlled by Debswana; there are no private diamond mining operations in the country. Combined production of the company's four mines totaled 30 million carats (6,000 kg), nearly a quarter of the world's annual production of around 130 million carats (26,000 kg). The high value per weight of diamonds mined by Debswana has made the company the leading producer of diamonds by value in the world.Economic impact
Diamond mining activities have fueled much of the growth in Botswana's economy, allowing it to grow from one of the poorest countries in the world when it became independent in 1966 to a "middle income" nation, with $9,200 per capita incomePer capita income
Per capita income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate and dividing it by the total population...
in 2004. Largely because of this, Botswana is considered by two major investment services to be the safest credit risk
Credit risk
Credit risk is an investor's risk of loss arising from a borrower who does not make payments as promised. Such an event is called a default. Other terms for credit risk are default risk and counterparty risk....
in Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
. Diamonds account for fully one third of the nation's GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
, over 90% of earnings from export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
s, and 50% of government revenues. Debswana is the largest non-government employer in the country, employing approximately 6,300 people, of whom over 93% are Batswana. Debswana is also the largest earner of foreign currency.
Human rights
Debswana has been criticized by the international indigenous rights organization, Survival InternationalSurvival International
Survival International is a human rights organisation formed in 1969 that campaigns for the rights of indigenous tribal peoples and uncontacted peoples, seeking to help them to determine their own future. Their campaigns generally focus on tribal peoples' fight to keep their ancestral lands,...
, for not respecting the human rights of the Bushmen
Bushmen
The indigenous people of Southern Africa, whose territory spans most areas of South Africa, Zimbabwe, Lesotho, Mozambique, Swaziland, Botswana, Namibia, and Angola, are variously referred to as Bushmen, San, Sho, Barwa, Kung, or Khwe...
living in Botswana. Since the mid-eighties, Survival International have published reports that the Botswana government has conducted a campaign of harassment to drive them out and give way to mining exploration. Louis Nchindo, Managing Director of Debswana, has said "The Government was justified in removing the Basarwa [’Bushmen'] from the Reserve… It is sensible of Government to take such action. Otherwise who would always want to remain in the Dark Ages while others move forward?". According to Stephen Corry
Stephen Corry
Stephen Corry is a British anthropologist and indigenous rights activist, better known as the Director of the non-governmental organisation Survival International. He has also been the chairman of the Free Tibet Campaign since 1993.- Biography :...
, Director of Survival International, the Bushmen are not backward or primitive, and their human and cultural rights must be respected.