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Our communities

Partnering with communities

Our Members are committed to the local sourcing of goods and services, building infrastructure such as roads and schools, partnering with local governments to advance healthcare and education, helping local businesses to develop and flourish and ensuring lasting benefits for generations to come.

Our impact

60%

of the total benefit created by diamond mining is retained by local communities.

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Our key focus areas

DPA Member operations depend on the local economies for the procurement of goods and services. Each year, DPA Members infuse US$6.8 billion in surrounding communities through local sourcing, which in turn supports the growth of small and medium enterprises.

Local purchasing not only helps small businesses, but it also has a broader ‘multiplier effect’. Local contracts deliver direct benefits, such as demand for goods and services, and indirect benefits further downstream -- such as demand for raw materials. For example, increased spending in construction to build a new health care clinic stimulates additional spending in sectors that supply the project both directly and indirectly, such as raw materials and engineering services. Owning a small or medium-sized company brings with it a host of challenges, and our Members offer additional support, beyond financial investment and long-term contracts. For example, Petra has established an Enterprise Development Resource Centre at each of its South African operations to serve as a link between local businesses and the mine’s supply chain. Similarly, De Beers Group’s Zimele initiative provides developmental funding, training and mentoring across a broad spectrum of businesses and industries. As of June 2017, the program had supported 3,054 jobs and 262 enterprises.

Modern diamond mining makes an important contribution to the economies of diamond producing nations. The positive benefits of these types of investments are clear from the remarkable progress that has been made in countries like Botswana over the last 50 years.

In addition to local sourcing, DPA Members provide revenue to local and national governments through corporate taxes, royalties and dividends. In 2016, DPA Members paid more than US$3 billion to local and national governments Local administrations responsibly invest the revenue generated by diamond mining into infrastructure, healthcare, education, and social security, for example. The revenue provides stable income for local governments ensuring ongoing resources for programs and services.

Local communities also derive significant benefits from DPA Members’ investments in infrastructure development. DPA Members created US$42 million in benefits associated with infrastructure in 2016 (excluding the value of projects initiated in 2016 that will be completed over the next few years).

Diamonds are frequently located in remote environments where communities may lack basic services. As part of their commitment to creating a sustainable industry, Members recognize the responsibility they have not only to employees but also to the surrounding community. They work with communities to identify where social programs are needed and provide financial support to strengthen existing programs or develop new ones.

In 2016, Members contributed US$292 million in benefits related to social programs. Programs ranged from education and healthcare to training and skills development, charitable foundations and cultural events.

In 2016, ALROSA, for example, sponsored 5,300 sporting and cultural events, attracting roughly 220,000 people. The company’s Cultural and Sports Center organizes more than 130 clubs and classes for workers and their families.

Education is one of the key areas in which DPA Members invest in local communities through their social programs. De Beers Group, for example, has founded schools that provide education to students from their mining operations’ surrounding areas, regardless of whether their parents are De Beers Group employees. In Tanzania, Petra’s Williamson mine owns and operates the Mwadui primary school which provides free education in English to 460 students.

The provision of healthcare services and programs are also a common feature of Members’ contributions to local communities, and mine hospitals are an important provider of primary health care. De Beers Group’s mine hospitals received 88,000 community visits in 2015, making up almost half of all visits to the hospitals annually. Petra’s Williamson Diamond Hospital in Tanzania pilots a number of health programs in conjunction with the Tanzanian government, including mother and child health, malaria prevention, voluntary counselling and testing and antiretroviral treatment for HIV/AIDS. Murowa supports five rural health centers which serve a population of roughly 50,000.