UPDATE ON CUT 9 TRANSITION TO OWNER-MINING MODEL

In a bid to keep stakeholders informed and updated on Debswana Diamond Company Jwaneng Mine’s Cut 9 transition from a fully-outsourced operation to a Hybrid model; the company would like to provide an update to stakeholders.

The Hybrid model will entail Jwaneng mine directly operating and managing the Cut 9 mining operation and only outsourcing some key services and resources. The mine has progressed the process of acquiring required outsourced services, such as drilling, tyre management, maintenance and labour services. These are in various stages in the process.

Unfortunately, the Labour Service Provider tender did not achieve the desired results because the submissions did not adequately address the requirements for the Cut 9 mining operation. The company recognizes a need to workshop the scope and process more broadly with potential bidders to ensure requirements are fully understood. As such the Debswana Board of Directors has approved the recommendation to re-tender. A new tender with revised guidelines will be issued in the immediate future and, in the spirit of empowering local citizen companies, provide sufficient time to explain the details of the scope of services. In addition, providing more time will allow for tenderers to compile comprehensive and competitive proposals. The revised guidelines will assist to bridge the misinterpretation of scope of services by the majority of the bidding companies hence promote the achievement of the desired outcome.

What Debswana was and is seeking to achieve as a consequence of this tender process, is to contract with a company that would source, own and manage a variety of skills to discharge on what is required and not outsource the whole Cut 9 mining operation as has been the case.

The Debswana Board of Directors have approved the interim plan to allow re-tendering process. Debswana will source labour directly from the market, under Fixed Term Contracts, to work in the Cut 9 mining operation for a specific period. It is important to note that with both these processes underway,  the company does not anticipate any impact on production.

Advertisements for the Cut 9 mining operation positions will be published soon. Debswana remains committed to its Citizen Economic Empowerment Policy (CEEP).

The company is also committed to ensuring that the mining operations are not adversely impacted by this transition. Safety is Debswana’s number one priority and we will ensure zero harm throughout the transition process.

We will continue to appraise stakeholders on developments throughout the transition process.