27 Apr 2021

 The transition of the Cut 9 expansion project from Majwe Mining Joint Venture to Debswana Diamond Company has been successful.

According to a press statement from Debswana, the successful transition was reached on April 4.

The Cut 9 contract was a P12-billion waste stripping project which started in 2019 and was expected to end in 2027.

The release says the Cut 9 transition demonstrates that Debswana has prioritised implementation of the Citizen Economic Empowerment Policy (CEEP), which the company adopted in 2017 with a deliberate aim to significantly increase the amount of money spent on local procurement of goods and services from citizen-owned companies.

“The Debswana CEEP is in alignment with the national Citizen Economic Framework whose intention is to reduce the import bill by buying from Botswana based companies and to spur employment creation as well enhance economic diversification,” says the release.

It further states that Debswana remains committed to its high-level strategic objectives in the area of Corporate Socio Investment (CSI); as such the hybrid model used to deliver Cut 9, once fully operational, will significantly impact on the desired CSI and CEEP initiatives.

Among the initiatives, states the release, is a component rebuild centre, where Debswana intends to continue work on the socio-economic development project. 

A re-scoping exercise is also underway. 

It further says Debswana CEEP and CSI will increase citizen ownership participation with several key contracts from the Cut 9 works reserved and awarded to citizens.

In the past five years, Jwaneng Mine spent P4.6 billion on citizen-owned companies, who trade in the specialties of civil, electrical, and mechanical engineering as well as fire suppression, construction, water solutions, industrial cleaning and environmental management, among others, says the release. 

It further states that the Cut 9 operation will continue with its intent to extend the life of diamond mining in Jwaneng to 2035.

“Production has been stable throughout the transition from contract mining to the interim project arrangement, which entails that Jwaneng Mine directly operates and manages Cut 9 mining operation and only outsources some key services and resources”, says the release.

The re-tendering process for Cut 9 labour sourcing services is planned to be concluded in December.

The release notes that Debswana recently undertook a recruitment drive of fixed term contract employees, who will work at the Cut 9 operation while a labour service provider is being sought through a public tender. 

To date, 320 out of 413 vacancies have already been filled under Cut 9 recruitment, while the recruitment for the remaining 93 positions will be completed by the end of this month.

Recruitment is also ongoing through business partners working for Cut 9 operation, notes the release, further clarifying that other tenders are at various stages of the process such as a short term drilling contractor, who is in place to ensure smooth transition while a longer term contract tender is currently out.

It also explains that this is for a 100 per cent citizen-owned company.

The running of the contractor’s camp clinic procurement process is being adjudicated and the re–tendering for the labour sourcing services has been restarted. 

Smaller contracts such as the provision of food and bussing of employees have been awarded to 100 per cent citizen-owned companies, states the release. ends