Thursday, June 30, 2016
De Beers's Report To Society 2008 (cached)
De Beers Payments (billion USD) to:
International Shareholders: $6.2
South African Workers: $0.269
South African Taxman: $1.4
De Beers paid US$6.2 billion (2007: US$6.2 billion) to stakeholders around the world
Payments to partners, joint ventures and suppliers amounted to US$4.8 billion (2007: US$4.9 billion).
About US$3.2 billion of this was paid for diamonds and services in Africa (2007: US$3.6 billion)
Payments to employees in Africa amounted to US$269 million (2007: US$332 million)
De Beers paid US$1.4 billion in taxes and royalties to governments; 87.9%
of this (US$1.2 billion) was paid to governments in Africa
A total of US$1.1 billion was allocated to preferential procurement in southern Africa and Canada (2007: US$1.0 billion)
More than US$1.1 billion in rough diamonds was supplied to Sightholders for manufacture in southern Africa (2007: US$1.0 billion)
If the global economic crisis has underlined the extent to which the diamond industry is key to the prosperity of our producer countries, it has also highlighted the importance of recent efforts to leverage diamond revenues as a catalyst for building strong diversified post-mining economies in these countries.
The deployment of natural resources wealth as a platform for developing diversified economies in Africa requires firstly an effective model for the creation and distribution of natural resource wealth and secondly an effective model for translating this wealth into a robust economic, social and political capital base. The remarkable contribution of diamonds to development in countries like Botswana, Namibia and South Africa owes a great deal to the effectiveness of our partnership model in achieving the former. The year 2008, however, will be remembered across the Family of Companies for the progress made in supporting governments to achieve the latter through beneficiation programmes.
De Beers support for government-led economic diversification efforts in producer countries has focused until recently on local procurement and enterprise development initiatives. Beneficiation by contrast aims to leverage the current pipeline position of producer countries by facilitating the development and promotion of local downstream diamond sorting, cutting and polishing industries that, it is hoped, will endure well beyond the life of existing mines.
While the short-term success of these initiatives will inevitably be impacted by the current economic downturn, the long-term supply and demand fundamentals of the diamond industry bode well for the success of this process.