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SOCIO-ECONOMIC ASSESSMENT

2010

ENVIRONMENTAL IMPACT ASSESSMENT

FOR THE ELIZABETH BAY

OPTIMISATION STUDY Prepared by

P.O. Box 20837

Windhoek

Tel: +264 (61) 223-336

Enquiries: Stephanie van Zyl

E-mail: [email protected]

Prepared for

PICSES ENVIRONMENTAL SERVICES (PTY) LTD

P.O. Box 31228

Tokai

Cape Town

O D W BN I A M O N D S E U I L D

A

mailto:[email protected]

Socio-Economic Assessment: Elizabeth Bay Optimisation Study

March 2010


March 2010

Executive Summary

Introduction and Background

Namdeb‟s land production has decreased significantly since 2009, as onshore resources are

nearing depletion; the situation hastened by the effects of the world economic meltdown.

The company is investigating innovative projects to prolong economic activity.

In the Southern Resource Area, which forms part of the Resource Extension Project at

Elizabeth Bay (EBay), Namdeb identified viable diamond deposits below the accreted

southern portion of the beach. The EBay Optimisation Study involves extending the Life of

Mine (LOM) of Namdeb‟s Northern Coastal Areas to include this additional deposit. It would

enable the Company to meet its objective of acquiring maximum sustainability and to

continue contributing towards the socio-economic well-being of its workforce and their

families.

Namdeb have contracted Pisces Environmental Services (Pty) Ltd to undertake the updating

of the required EIA Study on their behalf. Enviro Dynamics (Pty) Ltd are involved in this EIA

to facilitate the Public Participation Process and to update a previous Socio-economic

specialist assessment completed for the proposed Inshore and Inner Shelf projects, also

being considered by Namdeb.

This Report contains the findings of the Socio-economic Assessment for the Elizabeth Bay

Optimisation Study. The tasks performed for this assignment involved interviews with

relevant Namdeb personnel and other stakeholders, a literature review, risk identification

process, impact assessment, and reporting.

The existing Socio-economic Environment

Namdeb‟s workforce, which is 96% Namibian, comes from all regions throughout Namibia.

The revenue received from this company through income, taxes and royalties, therefore

benefits the entire country.

This document provides a general impression of the Namibian economy, then focuses on the

Project Region, the Karas Region, a sparsely populated portion of the country in the far-

south. The baseline assessment also provides a socio-economic sketch of Lϋderitz, the most

important town influenced by Namdeb‟s operations at Elizabeth Bay.

Namdeb employees are of the best remunerated in the industry and enjoy excellent benefits

and free social services, accommodation and related infrastructural services. Namdeb has

all the required policies in place as far as best practice health and safety, emergency

response, training and development, social responsibility, corporate accountability,

environmental management and other corporate responsibility matters are concerned.

There are a number of new economic activities being considered in Karas, including a dam

with association irrigation schemes between Keetmanshoop and Lϋderitz, additional

agricultural activities in the Aussenkehr area, and tourism initiatives associated with the

newly proclaimed /Ai-/Ais Richtersveld Transfrontier Park and the Sperrgebiet National

Park.

There are also a number of projects initiated in Lϋderitz to increase the economic viability

of the town, although economic activity is generally hampered by the remote location of

the area and the lack of natural and physical resources available. However, Namdeb‟s

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March 2010

overall economic contribution to Namibia, Karas and the southwestern coastal area of

Namibia is significant. If downscaling at Namdeb continues as initiated in 2009, without

new projects to extend the LOM, then significant and long-term socio-economic

consequences would ensue.

Impact Assessment

Following the baseline assessment of the existing socio-economic conditions amongst the

affected communities, this document contains an assessment and description of the positive

and negative socio-economic consequences that may be expected as a result of the

proposed EBay Optimisation Study.

A number of positive socio-economic impacts will result. These impacts will aid in

mitigating the long-term consequences from the reduced mining activities at EBay and

Namdeb‟s other areas of operation. The positive impacts identified are:

Employment – provision of work provides an income, with ancillary support for

employees and their families; which will also boost the Namibian economy.

Training and Skills Transfer - the improved mining methods and screening and

treatment processes at EBay will inevitably lead to training and skills transfer to

Namibians.

Provision of Social Services - the new employees will receive a wide range of

social services and free access to municipal infrastructure, as well as a wide range

of benefits within the workplace. A system that encourages full accounting for

services is, however, encouraged in order to promote financial independence and

self-reliance amongst employees on the one hand, and improved cost-effectiveness

on the other. It is recommended that Namdeb strengthens this drive by compiling

an integrated policy in collaboration with all stakeholders.

Contribution to Taxes, Royalties and Dividends to Government will increase the

national budget and thereby contribute to the national economy.

Secondary Economic Boost – the Project will aid in sustaining secondary industries

in Lϋderitz, and elsewhere in Namibia.

All these impacts are considered to be of medium to low significance; the estimated staff

compliment being limited and targeting existing staff as far as possible. The positive impact

is related mostly to sustaining existing and restoration of previous socio-economic benefits

and livelihoods, rather than the creation of new ones.

A negative socio-economic impact is increased informal settlement and associated unwanted

ecological and social impacts, as people come to Lϋderitz in search of a job at the new EBay

project. Besides this negative impact one may expect a decline of existing unwanted social

pathologies as ex-employees and jobless people in Lϋderitz are once again given a new hope

and a future.

A joint social and labour plan combining efforts of Namdeb and De Beers Marine Namibia

would show commitment to jointly taking on cumulative socio-economic impacts.

Collaborative efforts should also be more effective from a practical and financial point of

view.

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Table of Contents

1 Introduction ........................................................................................................................................ 7

1.1 Background .............................................................................................................................. 7

1.2 Brief 9

1.3 Study Area ............................................................................................................................... 9

1.4 Approach to Study ................................................................................................................. 10

1.4.1 Methodology ............................................................................................................... 10

1.4.2 Assumptions and Limitations ..................................................................................... 11

2 The Affected Socio-economic Environment .................................................................................... 12

2.1 Overview of Namibia .............................................................................................................. 12

2.2 Global and Local Economic Activity ....................................................................................... 13

2.2.1 The Global Economy .................................................................................................. 13

2.2.2 The Domestic Economy and effect on the Mining Sector .......................................... 13

2.3 Namibia’s Vision .................................................................................................................... 14

2.4 Karas Region ......................................................................................................................... 14

2.4.1 Overview .................................................................................................................... 14

2.4.2 Population and Settlement ......................................................................................... 15

2.4.3 Economic Status ........................................................................................................ 16

2.4.4 Lüderitz ....................................................................................................................... 18

2.5 Namdeb and its Workforce .................................................................................................... 20

2.5.1 Namdeb’s formal Economic Contribution ................................................................... 20

2.5.2 The Namdeb Workforce ............................................................................................. 21

3 Impact Assessment ......................................................................................................................... 33

3.1 Employment ........................................................................................................................... 34

3.1.1 Discussion .................................................................................................................. 34

3.1.2 Enhancement ............................................................................................................. 36

3.1.3 Summary .................................................................................................................... 36

3.2 Training and Skills Transfer ................................................................................................... 36

3.2.1 Discussion .................................................................................................................. 36

3.2.2 Enhancement ............................................................................................................. 36

3.2.3 Summary .................................................................................................................... 37

3.3 Provision of Social Services ................................................................................................... 37

3.3.1 Discussion .................................................................................................................. 37

3.3.2 Enhancement ............................................................................................................. 37

3.3.3 Summary .................................................................................................................... 37

3.4 Taxes and Royalties .............................................................................................................. 38

3.4.1 Discussion .................................................................................................................. 38

3.4.2 Enhancement ............................................................................................................. 38

3.4.3 Summary .................................................................................................................... 38

3.5 Economic Boost ..................................................................................................................... 38

3.5.1 Discussion .................................................................................................................. 38

3.5.2 Enhancement ............................................................................................................. 39

3.5.3 Summary .................................................................................................................... 39

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March 2010

3.6 Increased Informal Settlement and Associated Impacts ....................................................... 39

3.6.1 Summary .................................................................................................................... 40

3.6.2 Mitigation .................................................................................................................... 40

3.7 The no-project alternative ...................................................................................................... 40

4 Conclusions and Recommendations .............................................................................................. 41

5 References ...................................................................................................................................... 42

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March 2010

Acronyms

AA Affirmative Action

C&I Commercial and Industrial

CMD Certificate in Management Development

CV Curriculum Vitae

dBa Decibels Adjusted

DBMN De Beers Marine Namibia

EBay Elizabeth Bay

EBOS Elizabeth Bay Optimisation Study

EMP Environmental Management Plan

GDP Gross Domestic Product

HCMD Higher Certificate in Management Development

HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome

HPDs Hearing Protection Devices

IDP Individual Development Plan

ML Mining Licence

MLA Mining Licence Area

MUN Mineworkers Union of Namibia

NMS Namdeb Medical Scheme

NOSA National Occupational and Safety Association

NQA Namibia Qualifications Authority

NIMT Namibian Institute for Mining Technology

OHSAS Occupational Health and Safety Assessment Series

OTMCo Oranjemund Town Management Company

PPA Participatory Poverty Assessment

RAP Restricted Area Permit

SABS South African Bureau of Standards

SAP System Application and Products

SHE Safety, Health and Environment

SMMEs Small, Medium and Micro Enterprises

TAC Total Allowable Catches

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March 2010

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March 2010

Figure 1: Locality of Elizabeth Bay within ML 43

– see red polygon (Source: Pulfrich, 2010).

1 Introduction

1.1 Background

Namdeb Diamond Corporation (Namdeb) holds

nine diamond mining licences covering

portions of land and sea along the southern

coast of Namibia (Figure 1).

At Elizabeth Bay, situated 30 km south of

Lüderitz in Mining Licence 45 (ML45, see Figure

1), full-production dry mining operations

commenced in 1991 at the EBay Mine. This

mine targets the aeolian deflation deposits

(wind-blown material deposited in

depressions) that are accessible relatively

close to the surface. In 2003 Namdeb

embarked upon the EBay Resource Extension

Project, which involved the upgrading of the

Elizabeth Bay processing plant to allow

handling of both wet and dry sediments, as

well as cemented grits and sands.

Following submission of the EIA for the EBay

Resource Extension Project, environmental

clearance was obtained in July 2003 and the

new mine commenced with production two

years later. In 2009, with the world economic

meltdown and the international diamond

market facing an oversupply, Namdeb

considered fixing the existing plant and

processing X-ray tailings or continueing with

conventional mining in 2010. This is, however,

not financially feasible and the decision was

therefore made to halt production at EBay, placing the plant under care and maintenance with a

skeleton staff complement of 63 remaining. Contractor services were similarly scaled down.

Three options remain for the future of the Elizabeth Bay Mine:

1. Close down the EBay mine. This would involve redeployment of personnel on other Namdeb

Projects or retrenchment, and cancelling of the various commercial agreements in place at

the mine. Costs for this option amount to ~N$85 million.

2. Launch a new project at EBay with the Pre-feasibility and Feasibility Phases running until

mid-2010, and the plant undergoing maintenance during that time. Costs for this option

amount to ~N$58 million.

3. Treatment of recovery tailings during the launch of the new project and plant maintenance.

Costs for this option amount to ~N$48 million.

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March 2010

Figure 2: Locality of the Southern Resource Area, the EBay processing plant and identified resources within

ML45 (Source: Pulfrich, 2010).

The preferred option s therefore the launch of a new project (EBay Optimisation Study) whilst

continuing to retreat recovery tailings. Although this would imply a slight reduction in the

personnel complement for 2009/10, implementation of the new project would provide for an

increase in the labour complement post-2010, and extend the LOM for Northern Coastal Areas after

closure of operations at Pocket Beaches.

Although the Elizabeth Bay mine has historically been a marginal operation as regards production,

its socio-economic contribution in the Lüderitz area has been of great importance. Average annual

contributions comprise:

N$ 60.8 million in salaries,

N$ 0.1 million to the Lüderitz local authority in the form of rates and taxes,

N$ 35.5 million to contractor services,

royalties to the government of the Republic of Namibia,

contribution to local business, and

corporate social investment (Netta, 2010).

In the Southern Resource Area (Figure 2), which forms part of the Resource Extension Project,

Namdeb identified viable diamond deposits below the accreted southern portion of the beach. The

area potentially extends beyond the low water mark. The successful extension of mining operations

to include this additional deposit would enable Namdeb to meet its objective of acquiring maximum

sustainability to 2020 when ML45 expires. It would also enable Namdeb to continue contributing

towards the socio-economic well-being of its workforce and their families, the region and the

country, adding at least another N$ 1 billion in revenue. In future, however, operations must be

profitable and cost effective to meet the requirements of the share-holders.

The project is currently in the Pre-Feasibility

Phase during which various trade-off options

for mining and treatment systems are being

investigated. The project will progress to the

Feasibility Phase in the second quarter of

2010.

Namibia‟s Environmental Assessment Policy

and Environmental Mangement Act (2007)

require a revision of the 2003 EIA and

Environmental Management Programme

(EMPR), to include the new proposals for the

Southern Resource Area under the Elizabeth

Bay Optimisation Study (EBOS). Namdeb

decided to revise and update the EIA that

was conducted for the Resource Extension

Project (Burke, 2003) and include all the

activities associated with the proposed

future mining of the southern accreted area. Namdeb have contracted Pisces Environmental

Services (Pty) Ltd to undertake this EIA-Amendment on their behalf. Enviro Dynamics are involved

in this EIA Study to facilitate the Public Participation Process and to undertake a Socio Economic

assessment.

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March 2010

1.2 Brief

The Terms of Reference provided for this socio-economic study (Pulfrich, 2010); the relevant

section reads as follows:

“A specialist report shall be compiled evaluating the potential effects of the proposed

mining operations on the southern accreted shoreline of Elizabeth Bay on the socio-

economic environment in the area. This should include:

- a review of the baseline socio-economic environment in the project area, updating the

information provided in the 2008 specialist report for the Inner Shelf Project (Van Zyl,

2008);

- a description of the economic benefits of the proposed project during the pre-

feasibility, feasibility and full-scale commissioning phases, at a local, regional and

national level. This should include, but not be limited to additional employment,

training and skills transfer, improvements in infrastructure, health care levels and

facilities, and multiplier effects on local economies;

- an evaluation of the potential negative economic consequences of the proposed

operations on other users of the marine and coastal environment (e.g. rock lobster

industry, eco-tourism), including possible cumulative impacts resulting from an

expansion in the current level of activity;

- an outline of the potential impacts of the “no-go” option relative to the potential socio-

economic benefits should the project not go ahead;

- appropriate management recommendations and mitigation measures that can be

implemented to reduce the risks and minimise potential impacts/ maximise potential

gains.”

Even though the overall Terms of Reference for this EIA requires updating of the document compiled

for the Resource Extension Project (Burke, 2003), the socio-economic component, i.e. this study, is

based on the socio-economic specialist report for the Inner Shelf EIA, the latter providing a more

comprehensive and updated state of the project environment‟s socio-economic affairs.

This report therefore contains the findings of the socio-economic assessment of the proposed

Elizabeth Bay Optimisation Study.

1.3 Study Area

Figure 2 shows the area defining the source of the impacts. However, the spatial scale of the

impacts extend beyond this area since they are to be assessed at site-specific, local, regional,

national and international scales, as defined below (see Figure 3):

site specific – restricted to within 1000 m of the area of disturbance,

local – limited to within 10 km of the disturbance or to the Mining Licence Area,

regional – within the confines of the southern Namib /Karas Region,

national – within the borders of Namibia, or

international - extending across the Namibian boundary.

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March 2010

Figure 3: Namibia, showing its regions potentially affected by this proposed project.

1.4 Approach to Study

1.4.1 Methodology

The following approach was followed for this assignment:

Interviews – interviews were held with key personnel within Namdeb to obtain

relevant data about the project, the baseline socio-economic conditions and

relevant Company policies.

Literature search – publications such as the 2001 Census, the Karas Poverty Profile,

Household Income and Expenditure Survey (2004), as well as in-house reports were

consulted to sketch the conditions of the communities affected by Namdeb‟s

current operations. The data provided for Namdeb‟s overall socio-economic

situation was fully described in Van Zyl (2008). The document provides a summary

and update of that earlier work, which may be consulted for further details, and

then focuses on the immediately affected socio-economic environment, i.e.

Lϋderitz.

Risk identification – socio-economic opportunities and risks identified are based on

the dialogue with stakeholders during the Public Participation Process for this EIA, a

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March 2010

scan of risks identified within the Company for its other operations, and expert

judgement.

Impact Assessment – the methodology for carrying out the impact assessment was

provided by Pisces Environmental Services (2010), as summarised in Section 3.

Reporting – The outline of this report follows the guidelines for contents of EIA

reports contained in Namibia‟s Environmental Assessment Policy and Draft

Regulations of the Environmental Management Act of 2007.

1.4.2 Assumptions and Limitations

Since the economic meltdown and associated downscaling of activities at Namdeb,

the updating of information has similarly been interrupted, with the last Company

annual report published in 2007.

The latest socio-economic statistics come from the 2001 Population and Housing

Census. Where smaller studies were done following this national cencus covering

the project area, the applicable data is used, although such data are sparse.

Figures used in this document are therefore not necessarily accurate because of the

outdated baseline information.

The data given for the Namdeb situation are for 2008, the year prior its major

downscaling efforts of 2009, to best reflect normal operating conditions at the

Company.

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2 The Affected Socio-economic Environment

This section focuses on the key social and economic conditions that currently fall within Namdeb‟s

sphere of influence. Enviro Dynamics (2008) provides a full description of the country‟s national

social and economic status, narrowing down to a description of the Karas Region and provides a

description of socio-economic conditions within Namdeb and the main supporting town Oranjemund.

This document contains a summary the above work, then focuses on the project immediate

environment, i.e. Lϋderitz and the current status of Namdeb and its employees.

2.1 Overview of Namibia

The Namibian economy is one of moderate performance and growth, which has kept pace with

regional trends. In 2007 the country‟s Gross Domestic Product (GDP) amounted to N$ 5.2 billion,

made up of primary industries (agriculture, fishing and fish processing on board, and mining and

quarrying) 23%, secondary industry (manufacturing, electricity and water provision and construction

- 20.4%) and tertiary industry (services- 48.5%) (Bank of Namibia, 2008, 2010).

Mining totally dominates Namibia's heavy industry, which is also the major export earning sector.

The country‟s mining sector generated N$ 6.5 billion during 2007 contributing 12.4% towards the

GDP. The diamond mining industry delivered N$ 3.1 billion of this total (Bank of Namibia, 2008,

2010). In 2005, exports from the mining sector reached N$ 7.6 billion and employed 7,507

permanent employees. Employment creation has, however, dwindled in the mining sector since

1995 as large established mines‟ ability to create employment diminishes. Namdeb land operations

reduced its workforce by about 1,700 employees between 1995 and 2001.and by another 1,400

between 2003 and 2010. (Simonis Storm Securities, 2006; Namdeb, 2010). Technological

advancements have resulted in a shift in mining-input mix as machinery replaces human capital.

Namibia‟s mining industry contributes significantly to infrastructure and community development.

Sustainable resource exploitation and increased local down-streaming to the benefit of the

Namibian population generally are amongst Namibia‟s objectives within the sector. Most of the

large mining outfits are born of large multi-national companies. This puts Namibia at risk of a love-

and-leave attitude from concession holders if Government does not implement and enforce strict

compliance with environmental standards supporting sustainable development.

Lately much emphasis has been put on the lack of development of local downstream industries for

mining to increase value addition, create employment and related ripple effects in the economy.

Downstream industries presently comprise diamond cutting and polishing copper smelting and zinc

refining.

Diamonds dominate Namibia‟s mineral production, while uranium, base metals, fluorspar and table

salt are also produced. Precious metals and dimension stone are produced to a lesser extent. The

uranium industry is booming in Namibia. Uranium exploration and mining activities are expected to

have a significant impact on the Namibian economy during the next few years.

The country's manufacturing sector contributed on average 13 percent to GDP between 2005 and

2009. Its main activities are meat processing, processing natural products for export or producing

basic consumer goods, metal and pre-cast concrete products and fish processing on shore. The

country‟s fishing grounds are some of the world‟s richest and fish processing is one of the country‟s

main industrial activities. Despite recent increases in domestic output, Namibia remains dependent

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March 2010

on South Africa for the bulk of her consumer goods. The performance of this sector has been

positive with an annual growth of 5 percent between 2005 through to 2009 and it is projected to

grow by 3.4 percent in 2010.

Almost 70% of the Namibian population is reliant upon farming (mostly subsistence) for their

livelihoods. The Government services sector employs the second largest proportion of the

population after the agricultural sector.

The inequality in income distribution in Namibia is large and unemployment is very high (estimated

at 37% in 2004) because of a dearth of skilled labour. The unemployment rate among the youth (15-

24 years) is much higher at about 60%, which is one of the highest in Africa. More than half of the

labour force is unskilled or semi-skilled. Nationally, 23.4% of Namibia‟s households are in severe

poverty (Central Bureau of Statistics, 2004).

2.2 Global and Local Economic Activity

2.2.1 The Global Economy

Available domestic and global indicators point to a general slowdown in most economic activities.

The most notable slowdowns were in the number of motor vehicles sold and mining output,

especially diamonds, gold, zinc, concentrate, and blister copper. Economic activity has re-emerged

in the United States, China as well in South Africa during the last quarter of 2009, confirming that

these countries have exited the so-called technical recession. GDP growth is still contracting in the

Euro area due to weak performance of their largest economies such as Portugal, Spain, Ireland and

Greece. The global economic situation still faces a high level of unemployment in advanced

economies that present a drag of consumption. There is also a high level of public dept in many

advanced economies. These factors create uncertainty about future fiscal sustainability.

2.2.2 The Domestic Economy and effect on the Mining Sector

Influenced by the global economic downturn, the Namibian economy is estimated to have

contracted by approximately 1%, brought about mainly by expert orientated sectors of the mining

and tourism industries. There has been a slowdown in inflationary pressures; the annual rate of

inflation declined by 0.7% in 2009 to 6.3% in January 2010. This decline was mainly on account of

decelerated food-price inflation (Bank of Namibia, 2008, 2010).

The effects of the world economic slowdown were transmitted to Namibia‟s mining industry, which

mostly exports to many of the world‟s major economies. Despite this, Namdeb recorded

extraordinary performance with over 2 million carats mined in the 2007/2008 financial year.

However, with the main diamond market of the United States suddenly contracting, the world

diamond industry correspondingly faced an oversupply. Namdeb and De Beers Marine Namibia

(DBMN) were obliged to suspend production and to introduce severe cost cutting measures.

Namibia‟s new, yet growing, diamond cutting and polishing industry also felt the brunt of the crisis.

The Honourable Minister of Mines and Energy estimated that some 1,000 workers in this industry

were laid off (Chamber of Mines, 2009). Table 1 below shows how unit prices of various minerals

had fallen from 2007 to 2008. This caused severe cost-cutting measures at most of the mines.

Weatherly Mines Namibia, for instance, decided to place all its mines under care and maintenance,

recognising that the plummeted prices made continued production economically unviable. The

uranium and gold industries were able to sustain production and showed favourable economic

results.

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March 2010

Namibia’ Vision 2030

“By the year 2030, the region has achieved stability and full regional integration within the

structure of reformed and democratised international relations. Namibia will have achieved a

level of transformation from an aid recipient country to a provider of development assistance.

Namibia will have received and productively utilised benefits of technology, trade, investment

and capital flows” (Republic of Namibia, 2005).

Table 1: Unit prices for various minerals for 2007 and 2008 (Source: Chamber of Mines,

2009).

Mineral Unit Year end Price (2007) Year end price (2008)

Uranium US$ / pound 90 54

Gold US$ / troy ounce 833.75 843.50

Copper US$ / ton 6,676.50 2,770.00

Zinc US$ / ton 2,290.00 1,100.00

Lead US$ / ton 2,532.00 900.00

2.3 Namibia’s Vision

Namibia‟s Vision 2030 is the overarching document that sets out the Country‟s goals for reaching

economic stability, social equity, and ecological sustainability in future.

2.4 Karas Region

2.4.1 Overview

Namdeb‟s mining licences are located in the Karas Region in the far south of Namibia. The Karas

Region is Namibia‟s largest, at 161,325 km2, and also the least densely populated (at 0.4 persons

per square kilometre, compared to the national average of 2.2 persons per square kilometre). This

density is reduced by the Sperrgebiet, which covers a large section of the region and where

settlement has been restricted for the last century. South Africa borders this Region on the south

and the southeast, Botswana on the east, the Hardap Region on the north, and the Atlantic Ocean

on the west. It comprises six political constituencies: Keetmanshoop Urban and Rural, Berseba,

Lüderitz, Oranjemund, and Karasburg. There are two municipalities governed by Municipal Councils

(Keetmanshoop and Karasburg), one governed by a Town Council (Lüderitz), five governed by Village

Councils (Bethanië, Koës, Berseba, Tses, Aus), one „open‟ mining town (Rosh Pinah) and one

„closed‟ mining town (Oranjemund). There are also five „settlement areas‟ that are directly

supported by the Regional Council for administrative purposes, comprising the two border towns of

Ariamsvlei and Noordoewer, and the small settlements of Grünau, Warmbad, Koës, Tses, Aroab,

Bethanie and Aus (Central Bureau of Statistics, 2004).

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March 2010

2.4.2 Population and Settlement

According to the final report from the 2001 census (Central Bureau of Statistics, 2003), there were

69,329 residents in the Karas Region as of August 2001, i.e. 3.8% of Namibia‟s estimated total

population of 1,830,330. Projections place the present Karas population at 77,875, which will

increase to an estimated 88,612 by 2020. More than half of the population (53.3%) were males and

46.7% were females, compared to 48.5% males nationally, reflecting high levels of male in-migration

seeking employment. Of all households in the Karas Region, 35.5% were female-headed (Central

Bureau of Statistics, 2004).

Only 60% of the people living in Karas were born there; this reflects the large number of migrants

from other areas. Almost 6% of the Karas people came from outside the country. Most of the in-

migrants (22.3%) are from the four north-central regions and Kavango, while 3.9% and 3.5% come

from Hardap and Khomas, respectively (Central Bureau of Statistics, 2004).

The mines in the region attract workers from outside the Karas Region, as do the irrigation farms at

Naute Dam and along the Orange River. This migration often leads to extended family structures of

people migrating there not only to work in the formal sector, but to provide services through the

informal sector to the employed and their families. Although the mines take responsibility for

servicing its workers and their extended families through private facilities and by contributing to

government services, many of the irrigation farms along the Orange River do little in this regard

(National Planning Commission, 2007).

Population growth in the Karas Region has slowed, as it has throughout Namibia. The relatively high

prevalence of HIV directly affects the extent and quality of the active labour force of the country.

Compared to national population growth, the Karas Region is growing more slowly, at 1.3% per

annum. It is partially due to the fact that a number of spouses of males in the Region live in the

northern and central parts of Namibia. At 4.1, household size in the Karas Region is the second

lowest in Namibia, compared to a national average of 5.1 (Central Bureau of Statistics, 2004).

Fifty-four percent of the population of the Karas Region lived in urban areas in 2001, well above the

estimated national average of 33%. Near the Project Area the urban percentage of the population is

significantly higher than for the Karas Region as a whole, with almost all of the area‟s population

living in the coastal towns of Lüderitz and Oranjemund, and the inland town of Rosh Pinah.

Following Keetmanshoop, Lüderitz had the second highest population of 13,295 i.e. 19.2% of the

Region‟s estimated total population.

With such a highly-urbanised population, reliance on wage employment is especially significant.

This is not only important for the Karas Region itself but also for other regions as the Karas Region is

the source of income for many households (especially in the northern regions of Oshana, Omusati,

Ohangwena and Kavango) via remittances and the transfer of funds for investment.

The demographics sketched above reflect the high proportion of migrants in Karas in different ways:

only 60% of people living there were born there;

a lifetime in-migration of 35%, compared to less than 4% for Namibia;

a high proportion of the population (63%) are between 15 and 29 years old;

a large urban population (54% compared to Namibia as a whole (33%), (only the proclaimed

urban municipalities are considered urban, all other proclaimed and unproclaimed villages

16


March 2010

and settlements, including Aussenkehr, are considered rural, thus this statistic is even

higher in reality);

the skewed male-female ratio (53.3%-46.7%) – more men are employed by the mines and

fisheries;

a relatively high labour force participation rate (67% compared to 54% of Namibia as a

whole); and

almost 70% of the population‟s main source of income is through wages and salaries.

2.4.3 Economic Status

Economic Activity

Entire towns in the Karas Region have been sustained by mining activities, remittances have been

generated and distributed to other parts of Namibia, and a significant contribution has been made

to the national economy through the payment of royalties and taxes. Diamond mining from Namdeb

alone generated 13.4% of the nation‟s revenues from taxes on income and profits in 2007.

(Namdeb, 2007 b) The zinc mine at Rosh Pinah is similarly important, with lesser inputs from

fishing, livestock farming, tourism, the port of Lüderitz and services. The long-term nature of the

diamond mining activities has resulted in considerable reliance on this industry to drive the

economy of this part of Namibia, and indeed has provided a reliable income source to the national

treasury over many decades. The zinc mine at Rosh Pinah represents the largest single investment

in Namibia since Independence in 1990.

Agriculture has, for some time, been centred largely on small livestock production. The Karakul

pelts industry is experiencing a significant come back after a long period of low economic activity

while the Ostrich industry is experiencing a decline in production operations. Agricultural

processing industries in the Karas Region include the ostrich abattoir near Keetmanshoop, and light

industries in Keetmanshoop, Karasburg and Lüderitz.

Crop and irrigated agriculture is the region‟s new growth industry, with a pest-free climate, good

access to water infrastructure encouraging the steady development of farming enterprises growing

crops such as table grapes, dates, fruit, and vegetables. There are irrigation schemes along the

Orange and Löwen Rivers, with more schemes being considered at Aussenkehr and at Sendlingsdrift

near Rosh Pinah (Karas Regional Council, n.d). The Government of Namibia is considering

constructing the Neckertal Dam in the Fish River, between Lϋderitz and Keetmanshoop; the aim of

which is to provide irrigated land and improved livelihoods in the area.

The main tourist destination of Karas is probably the Fish River Canyon, while the Aus-Lüderitz area

is also frequently visited. The historic legacy of diamond mining along the coast, provide for value

added to the visitor-experience; this opportunity is already being utilised with tours offered to the

historical Kolmanskop near Lϋderitz. The Sperrgebiet holds more opportunities for tourism

development because of its unique and unspoilt landscapes, with great potential for an eco-tourism

driven industry. Cross border developments such as the upcoming opening of the Mata Mata border

post in the east, and the newly proclaimed /Ai-/Ais Richtersveld Transfrontier Park in the south

promise to further encourage regional tourism links.

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March 2010

“To become a centre of excellence in the realm of Regional Councils in

Namibia…..by becoming a region with a common sense of purpose and

common goals and objectives to make certain the communities of the

Karas Region grow and prosper in the face of challenges that lie

ahead…”(own emphasis) (Republic of Namibia, 2005).

According to the Namdeb Rehabilitation Plan (Enviroscience,

2007), the immediate Elizabeth Bay area‟s end land use is

industrial/mariculture, while the surrounding area is zoned as

nature-based tourism (Figure 4).

Livelihoods and Poverty

While the Karas Region has the Nation‟s second highest level of

per capita income (behind the Khomas Region), at 21.4% the

percentage of households in severe poverty is near the national

average. However, according to the Regional Poverty Profile

for Karas (Republic of Namibia, 2007), there are pockets of

extreme poverty in the Region, which are hidden by the

statistical averages, and the perception of those who

participated in the Participatory Poverty Assessment to

compile the Profile are of the opinion that they are getting

poorer.

Poverty in the environs of the Project Area occurs in informal

settlements around Lüderitz and Rosh Pinah, as well as on

commercial farms inland from Lüderitz. The migration workers

at Aussenkehr also live under informal settlement conditions.

Poverty in the environs of the Project Area is well below the

national and regional levels, because of the urbanised nature

of the population, the well-off economic status of Oranjemund

households and the high level of employment amongst

households in Lüderitz.

In a recent village-level Participatory Poverty Assessment (PPA) (Republic of Namibia, 2007)

conducted in the Karas Region in six poor communities, namely Aussenkehr, Aroab, Lüderitz,

Tseiblaagte, Gabis and Pfalz, the priority issues that are linked to poverty were identified as

follows:

Unemployment, which emerged as the priority problem.

Alcohol abuse.

HIV/AIDS. From discussions at all the sites it was clear that if alcohol abuse is addressed,

the spread of HIV/AIDS would be greatly reduced. Furthermore, alcohol abuse is

inextricably linked as both a cause and effect of unemployment.

Water provision.

Access to local authorities or leaders and governance issues.

The Vision Statement for the Karas Regional Council has a strong focus on poverty reduction:

Figure 4: Excerpt from Namdeb's Rehabilitation Plan (Enviroscience, 2007). Only land uses within Namdeb’s licence area are shown in this

map.

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March 2010

2.4.4 Lüderitz

The closest settlement to Elizabeth Bay is the coastal town of Lüderitz, situated some 30 km

northwards. The area has been used by the Nama for millenia, while Adolf Lüderitz opened a

trading station in 1883 at the site where the Portuguese explorer Dias landed and named it Angra

Pequeña in 1488.

Population, Housing and Settlement

The 1,342 hectares of land covering the town is divided into three residential areas: Lüderitz Town

itself and the two neighbourhoods of Nautilus (medium-density) and Benguela (high-density).

Expansion of the town is constrained by the Atlantic Ocean on one side and the Sperrgebiet on all

the others. Its environment is harsh, with a hyper-arid climate and a rocky, very sparsely vegetated

terrain.

Despite these conditions, the population is estimated to be over 25,000 (Pers Comm Sheefeni,

2010). In 2001 the unemployment rate was 29%, but is probably higher now. Figures calculated

from the 2001 Census figures show a ration of 116.3 men to 100 women residing there. Previously

the work in Lüderitz was mostly carried out by men, but the town now has a more balanced age and

gender structure. A large proportion is within the working age-group and the majority (56.4%) are

male-headed.

The Karas Regional Poverty Profile (Republic of Namibia, 2007) describes the lives of Lüderitz‟s poor

community. The least affluent suburbs of Lüderitz are situated on mostly rocky terrain. This,

together with a lack of space and harsh weather conditions in the overcrowded informal

settlements, makes it hard for people to grow any home produce – their livelihoods depend entirely

on cash income. The 2001 National Housing Census (Central Bureau of Statistics, 2004) reveals that

40% of the Lϋderitz constituency‟s‟ houses are made of corrugated iron sheeting. This corresponds

with the current estimate for the informal settlement housing component of 3,000 structures. If

one assumes the average household to be 4.1 (from the 2001 census), then the estimated informal

settlement population is 12,300 or just under half the town‟s population.

Housing demand is greater than supply, with rental and selling prices of houses, flats and erven

having increased dramatically over the past few years, making the price of decent accommodation

unreachable to those in the lower income brackets (pers. comm. Mbeeli, 2010). Not surprisingly,

housing expansion in low income neighbourhoods is mainly through „backyard squatting‟, with

consequent densification of poorer neighbourhoods (similar to patterns in the other coastal towns of

Swakopmund and Walvis Bay), and squatting on open land (known locally as the Sand Hotel

location). This has greatly overtaxed infrastructure, with sewage reticulation facing particular

problems.

Staff at the Lϋderitz Town Council nevertheless endeavour to keep pace with the growing housing

demand. There are currently vacant erven available in the N$10,000.00 to N$ 60,000.00 price

range. Another 600 ultra-low income erven are currently being planned, although administrative

approval procedures could hamper the availability of these erven for at least another three years.

(pers. comm. Sheefeni, 2010)

People come to this town because of the possibilities of working in the fishing industry, but

employment opportunities are limited. The main forms of livelihood are full-time salaried work in

the fishing and associated industries, Namdeb, the Town Council, Government, domestic work,

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March 2010

small business enterprises, piecework and state pensions. Those without work live on handouts

from family and friends, and activities of sex work and drug sales are also reported.

The community perceives the main problems causing poverty in Lüderitz to be unemployment,

shortage of housing, voicelessness, bribery and corruption, alcohol and drug abuse, HIV/AIDS and

lack of water and electricity provision (National Planning Commission, 2007).

The most common diseases in the Lüderitz area include pneumonia, diarrhoeal diseases, skin

diseases, tuberculosis, other respiratory diseases, and ear diseases (SIAPAC, 2001).

Infrastructure

The town is linked by a tar road to Keetmanshoop, 342 kilometres to the west, a railway line to

Keetmanshoop (albeit under-utilised and currently under construction), regular air services between

Cape Town and Windhoek via Swakopmund and Oranjemund, daily passenger service between

Lüderitz and Keetmanshoop, local taxies, and harbour sea links with Walvis Bay and ports in South

Africa. The Lüderitz airport is a small airport west of the town near Kolmanskop, capable of landing

small aeroplanes, with a medium-sized asphalt runway and a smaller gravel runway.

Lüderitz is supplied with water from the Koichabpan Water Scheme situated approximately 100 km

east of the town. The current demand for water in the town is close to the maximum capacity of

the pipeline, therefore the scheme will need to be expanded. Electricity is available through the

national grid supplied via a 133 kV power line from Keetmanshoop.

Namport is currently considering the expansion of the Lϋderitz harbour. This will accommodate

increased trade, which is expected to boost the importance of the port in the local economy. By

2001, cargo landed at Lüderitz was five times that of 1994, while cargo shipped out of Lüderitz port

in 2001 was ten times that of 1994 levels.

Social Services

Lüderitz has one secondary school and three primary schools, one hospital and a clinic, as well as

one police station.

The town has representatives from Government ministries including the Ministries of Works,

Transport and Communications; Justice; Basic Education, Sports and Culture; Home Affairs

(immigration, police, traffic); Finance (customs and excise); Fisheries and Marine Resources, Health

and Social Services; Environment and Tourism; and Mines and Energy. A district prison exists in

Lüderitz. A Local Authority Development Committee has recently been established in Benguela

Township, with a trust established and funds raised for neighbourhood development activities.

Economy

The economy of Lüderitz has historically been dominated by the fishing industry. However, despite

shifts in the Total Allowable Catches (TAC) of rock lobsters, landings of rock lobsters have declined

over the past fourteen years, due to both anthropogenic impacts as well as natural perturbations.

The rock lobster industry currently employs 400-500 people, with seasonal employment of six

months per annum being common. Direct beneficiaries are estimated at some 3,000-4,000 people,

plus local economic activity in Lüderitz itself. Consequently, the industry is in secular decline;

insufficient funds are generated by the sector to allow investment in the aging fleet (average age 30

years) or in new equipment. Companies are also no longer expanding to new fishing areas or

employing new fishing techniques (SAIPAC, 2001).

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March 2010

Tourism has increased in importance, but the number of tourist nights still remains low, with most

tourists only spending an average of two nights. Prominent hotels and accommodation

establishments include the Nest Hotel (145 beds), the Seaview Zum Sperrgebiet, with 43 beds, the

Bay View Hotel (56 beds), and Kapps Hotel (44 beds). There is also the Lüderitz Bay Guest House,

and the Guest Houses Zur Waterkant, Haus Sandrose and Kratzplatz, as well as the Shark Island Rest

Camp, which provides 23 camp sites, each accommodating up to eight people. Occupancy nights at

establishments in Lüderitz is low, at only 37.8% (SIAPAC, 2001). Nevertheless, local economic

activity still remains stagnant, and recent commercial initiatives (e.g. the Waterfront) are operating

in a challenging environment. Phase 2 of the Waterfront Development, which is intended to give

tourists a reason to stay longer and providing small enterprise employment opportunities for local

residents, is currently being implemented. This project involves the renovation of the old power

station to accommodate holiday apartments, sporting facilities an aquarium and a maritime

museum. The space between the building and the edge of the sea will be upgraded and revitalised

to form an important link for pedestrians and tourists between the Nest Hotel and the CBD. Phase 2

of the Waterfront Development will also include a new hotel and holiday apartments and additional

office and retail space.

Key tourism points of interest include Diaz Point, where a replica of the cross planted by Dias in

1488 has been placed and a lighthouse exists, Sturmvogelbucht where a whaling station was built in

1913/14, the „Ghost‟ mining town at Elizabeth Bay and the Bogenfels Arch south of Lüderitz, and

Kolmanskop Ghost Town just east of Lüderitz. In addition, the stark scenery surrounding Lüderitz

and other places of interest elsewhere in Karas Region (e.g., the wild horses near Aus west of

Lüderitz, the Fish River Canyon, etc.) are also common tourist attractions.

Various investors have intermittently considered the establishment of a wind farm at Lϋderitz; the

area boasts favourable aeolian conditions to support the generation of energy from wind. With the

current high demand for power in Namibia, international investors are once again considering their

investment options in this sector.

2.5 Namdeb and its Workforce

2.5.1 Namdeb’s formal Economic Contribution

Below follows a summary of the detailed account of Namdeb‟s formal economic contribution

provided in (Enviro Dynamics, 2008). Figures are generally provided for 2008, i.e. the last year in

which Namdeb was in full production before the effects of the economic meltdown forced the

company to downsize.

In 2007, Namdeb‟s diamond sale revenue was N$ 4.56 billion. Profit before taxation was N$ 776

million, of which 82% (N$ 633 million) benefited Government in the form of taxes. Namdeb‟s value

added distribution for 2007 is depicted in Figure 5. Diamond revenue contributed 5.9% to the GDP

in 2007. Comparatively in 2009 during downsizing, N$ 337 million was spent on royalty taxes, which

is relatively low, yet a sizeable contribution to the Namibian economy.

Diamond revenue arising from Namdeb‟s activities formed 1.48% of Namibia's GDP at current prices

in 2007, with all diamonds contributing 5.9% to the GDP.

21


March 2010

Figure 5: Namdeb's value added distribution for 2007 (Namdeb, 2007).

2.5.2 The Namdeb Workforce

Profile

In 2008, Namdeb‟s total staff compliment was 3,104 employees consisting of 2,493 permanent

employees, 512 fixed-term contractors and 99 temporary staff. The total current total staff

complement is 1551, which indicates that Namdeb has downsized its operations by more than half

since 2008. Namdeb‟s Northern Coastal Areas comprise the Pocket Beaches, the EBay Mine and the

Contractor Treatment Facility (CTF) in Lüderitz, which in 2008 together had a total staff

compliment of 320. This figure dropped to 63 for the EBay Mine and CTF during the recent

treatment of x-ray tailings, and was been further reduced to <25 in early 2010. All benefits offered

by the Namdeb to their staff complement now only reaches a limited number of people compared to

the past when the company made a significant impact to the country‟s socio-economic well-being.

It is therefore imperative for the company to investigate all possible alternatives to sustain the

socio-economic benefits offered through the production of diamonds to the world market.

Only 11% of the personnel of Namdeb‟s workforce are completely unskilled and without a high

school education. The majority of permanent employees and fixed-term contractors have at least

Grade 12 (B-Band, 52%). The personnel in the C-band of the company have attained additional skills

to Grade 12; they make up 31% of the work force. The D- and E-band employees are those with a

professional qualification, comprising almost 6% of the staff complement.

The Namibianisation of the Namdeb workforce is a key initiative driven throughout the Company.

The Namibian workforce mostly comprises lower band employees. Professional Namibians for this

industry are in short supply, so the majority of skilled staff is recruited from South Africa,

Zimbabwe, Britain, and several other African and European countries. Strategies in place to

optimise the size of the Namibian workforce throughout all Bands of the Company include giving

preference to qualified Namibians, supporting Namibian training authorities, sponsoring Namibian

22


March 2010

students through bursary schemes, enhancing the Company‟s image to attract local skills, and

improving stakeholder engagement.

Namdeb staff report that the largest proportion of the employees comes from Namibia‟s north-

central regions – the Oshana, Ohangwena, Oshikoto and Omusati Regions. Many employees also

come from the Karas and Khomas Regions.

Benefits

Permanent employees enjoy monthly packages, which include a cash component (basic salary,

holiday leave allowance, and car allowance). Other benefits include leave, removal expenditure,

accommodation, medical aid, provident fund, funeral benefits, education grants, and subsidised

access to the private schools in Oranjemund. The Mine also offers other social entertainment

facilities such as various sports clubs and facilities, good security and other indirect benefits such as

a very well kept town and infrastructure, although these facilities are mostly offered in Oranjemund

and less so in Lϋderitz.

Housing

Namdeb offers its personnel two housing options, namely a free housing option or a package with

housing and utility allowances. Professional staff mostly opt for the free housing option as they

usually rent or purchase houses elsewhere in Lϋderitz, while the unskilled workforce generally opt

for the housing allowance. Semi-skilled staff are obliged to make use of the housing allowance.

The semi-skilled and unskilled staff cannot afford to rent a house with their allowances; they

therefore mostly rent rooms or erect informal houses. Some employees do, however, purchase

houses from the National Housing Enterprise (pers. comm, Mbeeli, 2010).

Work hours and shifts

Office-based personnel work a 5-day/40-hour week. Personnel on shifts work a 14-day on/14-day

off cycle. During the 14-day work cycle, they work a 12-hour shift followed by a 12-hour rest

period.

Training and Development

The purpose of the Corporate Training Policy is to create a learning organisation in which employees

are educated, trained and developed in skills required by Namdeb to operate in an ever-changing

environment.

Namdeb Bursaries and Tertiary Education Grant Scheme

In 2008, Namdeb provided bursaries to thirty-three Namibians at various tertiary academic

institutions pursuing studies in various technical disciplines core to Namdeb‟s operations.

Namdeb‟s Graduate Trainee programmes provide graduates with the opportunity of gaining practical

on-the-job experience and exposure after they have completed their degrees.

In support of harnessing talent, Young Professional‟s Fora are hosted. Such fora allow Graduates

from all disciplines the opportunity of sharing and learning from each other as a peer group, as well

as from senior managers who share their experiences. Their disciplines range from technical areas

of Mining, Engineering, Metallurgy, and Mineral Resources to those of Human Resources and

Finance.

23


March 2010

Technical Training

In 2007 N$ 676,581 was spent on Namdeb artisans through various external courses. Fifty Job

Attachments from Namibian institutions such as Namibian Institute for Mining Technology (NIMT),

Valombola Vocational Training Centre, Windhoek Vocational Training Centre and the Mechanical

Training Institute were accommodated.

In 2007, 25 Trade Bursars in the fields of Electrical, Diesel Mechanic, Millwright as well as Fitter and

Turner were offered bursaries. In 2008 there are 19 Trade bursars and 5 C&I Operative Trainees in

conjunction with the Chamber of Mines (Namdeb, n.d.).

Supervisory and Leadership Development Programmes

Namdeb collaborates with the MacCauvlei Learning Academy to develop employees for supervisory

development including a Certificate in Management Development (CMD) and the Higher Certificate

in Management Development (HCMD) previously DPMM. These programmes supplement the

Namdeb‟s Affirmative Action (AA) strategy.

Affirmative Action Understudy Development

As per the AA Agreement between the Company and the Mineworkers Union of Namibia (MUN) of

August 2000, it is the responsibility of Line Managers to draw up an Individual Development Plan

(IDP) in consultation with identified understudies and their coaches/mentors. Progress on

Understudy development is tracked and monitored through various platforms where Line Managers

are expected to assess the readiness of such individuals.

In-house Training Programmes

Namdeb‟s Training Department include courses on effective interpersonal skills, effective

supervision, free-to-grow, time management, telephone skills, business writing skills, professional

office practices, and presentation skills.

Diversity Initiatives

Namdeb has implemented a Company-wide Diversity programme, which garners the competitive

strengths and advantages of a well-motivated and fully engaged workforce. This is being done

within the framework of their current Strategic Plan by:

Giving recognition to, and capitalising on, the differences and strengths within the

workforce.

Building appropriate bridges to promote and facilitate understanding, tolerance and

respect where workforce differences are fundamental.

Evolving consensus on what constitutes a reasonable corporate culture in the organisation.

The Namdeb “Further Affirmative Action Report” reflects the successful implementation of their AA

Policy and has been approved and accepted by the Employment Equity Commission of Namibia

(Namdeb, 2007a).

Labour Relations

The MUN - the country's largest union - represents more than 70% of Namdeb's employees. Despite

the difficulties with existing and future downscaling, no strikes, demonstrations or other labour

conflicts are being experienced. Representatives of the Mine Workers Union are involved in most

24


March 2010

Human Resources affairs and committees, including the Home Loan Scheme, the Medical Scheme

and the downscaling process.

Namdeb’s Medical Facilities and Services

The Namdeb Hospital at Oranjemund is a secondary medical care facility. The hospital offers an

outpatient clinic, emergency clinic, on-site clinics at Uubvlei and Daberas, dental clinic including

orthodontic treatment by a visiting specialist, other specialist medical practitioners visiting

Oranjemund once every quarter, a theatre where most surgical procedures can be performed and an

emergency evacuation site with SOS on standby.

The Namdeb Medical Scheme (NMS) cover includes evacuation by aircraft to an appropriate medical

centre if necessary. Prosperity Medical Aid is also made available to individuals who are not

covered by group schemes, such as domestic helpers and those in private enterprises.

Namdeb has been considering a new business model for the hospital, although this initiative is

currently on hold.

Occupational Health

The Occupational Health Strategy of the De Beers Group of Companies has the vision for the Family

of Companies “to be recognised for excellence in employee health by providing leadership and

assurance through effective policies, standards, and reviews to achieve zero harm with a healthy

and productive workforce”. The strategy provides a framework for Business Units to achieve:

A corporate culture of protecting, promoting and supporting health within and outside the

workplace.

Effective engineering controls to engineer out sources of potential health risk.

Pro-active monitoring, identification and mitigation of potential health risks.

Involvement of hygiene and health personnel.

Improvement and maintenance of a healthy working environment and work practices.

Maintenance and promotion of workers‟ health and working capacity (De Beers, Date

Unknown).

Error! Reference source not found. shows the average percentages of total employees, including

permanent employees and contractors working in risk environments for the period January to May

2008.

As may be seen, about half of Namdeb employees are exposed to noise zones. Hearing conservation

is therefore a great concern within Namdeb and a hearing conservation programme has been

adopted, the aim of which is to achieve zero hearing loss by 2010. The hearing conservation

programme comprises the following elements (Namdeb, 1997):

Noise level measuring – The Loss Control Department annually measures all work areas to

monitor noise levels. Noise levels are measured if any change of work procedure or

equipment in any area is made since the previous measurement. This is done in

accordance with the SABS 083-1983 Code of Practice for the measurement and assessment

of occupational noise for hearing conservation purposes.

Reduction in noise levels – Reduction of noise levels to acceptable standards in all work

areas where it is practically possible and feasible.

Noise emission specifications are followed for purchase of new equipment.

Where impossible to suppress noise at source, the hearing of employees is protected by:

25


March 2010

- Enclosing the source of noise.

- Enclosing the employee working in a noisy environment; and

- Reducing the exposure time of the employee to the noise.

Figure 6: Averages (Jan to May 2008) of employees in risk environments.

Hearing protection devices (HPDs) are compulsory for people exposed to areas with ambient noise

levels equal to or greater than 85 dBA and these areas are declared as high-noise zones with the

necessary safety signs.

There are no cases recorded of patients with complete hearing loss, however, in 2008 28 employees

(including permanent employees and contractors) had experienced some degree of hearing loss, as

per categories 2, 3a or 3b determined by audiometric testing. It is compulsory for these employees

to wear HPDs.

Drivers of heavy vehicles are classified as employees in high risk environments, chiefly because of

the strain being placed on the skeletal frame by ongoing vibration.

Figure 7: Percentages of employees with chronic medical conditions (% of all cases on site in May 2008).

Source: (Namdeb, 2008).

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March 2010

In May 2008, there was a total of 286 or 7% of the total staff Namdeb compliment (permanent and

contractor staff) for that month with chronic medical conditions. The various chronic conditions

recorded as a percentage of the total number of staff with chronic diseases are shown in Error!

Reference source not found.. HIV prevalence is by far the largest problem of all the chronic

medical conditions in the company. However, HIV prevalence is 117, i.e. only 3% of the total

Namdeb staff complement (Namdeb, 2008 a).

Namdeb has undertaken to deal with HIV infected employees and employees with AIDS in the same

manner as any other life threatening disease, whilst recognising that the HIV/AIDS pandemic poses

unique challenges requiring specific focus. The aims of their HIV/AIDS and Life Threatening Disease

Policy are to:

provide guidelines for managing HIV/AIDS and other life threatening diseases in the

workplace;

protect the legal rights of employees who have life threatening disease;

minimise the spread of life threatening diseases and the impacts thereof;

encourage support to those with life threatening diseases; and

provide an appropriate medical treatment programme for the affected patients (Namdeb,

n.d.).

Namdeb recognises that the spread and effects of HIV/AIDS are strongly linked between its

production areas and the northern regions of Namibia from where most of their migrant workers are

sourced. They have initiated an HIV/AIDS awareness and training programme to clinics in these

areas. The Company further provides for the registration of one life partner onto the Namdeb

Medical scheme to receive free medical treatment.

The medical surveillance programme is adopted to provide hazard-specific medical surveillance and

to monitor the incidence of occupational disease. For the period under discussion, Namdeb have

not reported any cases of dust related occupational disease (considered a low risk in Company‟s

operational environment) or any other occupational diseases.

Emergency Response

Namdeb has adopted a Disaster Plan (Namdeb, 2003), which aims to address the importance of

coping with disasters and pending disasters within their operational areas. It applies to all

employees, contractors and visitors at Namdeb and covers all mitigation and disaster planning

efforts. Emergency Support Teams exist in terms of the Policy, which consist of permanent Fire

Personnel, Volunteer Fire Fighters, the First Aid Coordinator and the volunteer First Aid Team; the

entire team falls under the supervision of the Chief Fire Officer during an incident. Potential risks

covered under the Policy include fire, flood, mechanical accidents, motor vehicles accidents,

electrical accidents, terrorism, structural collapse, accidental release of radioactive material,

environmental accidents, and aircraft, diving and vessel accidents. Assets at risk according to the

Risk Assessment are the High Tension substations, the Shell and Jowells fuel storage facilities,

airport, hospital, all buildings, structures and sporting facilities, mine stores, vehicle fleet and the

Information Technology computer room.

The Disaster Plan is accompanied by the Disaster Procedure (PR-LC-01).

27


March 2010

Health and Safety

Namdeb‟s Health and Safety Policy articulates the Company‟s commitment to “promoting and

maintaining good working conditions to safeguard employees and affected people against injury

and occupational health risks and to manage all issues of health and safety as an integral part of

company business and planning” (Namdeb, 2008a).

The policy states that Namdeb will continuously identify risks, assess, prioritise and reduce safety

and health incidents by ensuring that operations are conducted within the documented and

implemented Namdeb Safety and Health Management System, applicable legislation and other

requirements to which the company subscribes. During 2006 Namdeb converted to OHSAS 18001

(Occupational Health and Safety Assessment Series) in line with internationally recognised safety

and health standards and De Beers Group strategy.

All employees and contractors are provided with the necessary training to enable them to conduct

activities in a responsible manner. Objectives and targets are reviewed on a regular basis and a

balanced scorecard approach to safety management has been implemented across the company.

External audits are conducted to ensure compliance to best practice. These include National

Occupational and Safety Association (NOSA) audits, AON Risk Audits and OHSAS 18001 conducted in

August 2006. During 2005 Namdeb was awarded with the following national and international safety

achievements:

Namdeb has a Safety and Health Agreement with the Mine Workers Union of Namibia, which allows

for a communication structure at various levels and a communication forum at senior management

level. Two Full Time Safety, Health and Environment (SHE) Representatives, elected by the

workforce, are employed and each business and functional unit Workplace SHE Representative is

elected and appointed in line with the Safety and Health Agreement.

Management of the SHE Programme is the responsibility of Management at all levels and the SHE

Department facilitates the implementation, monitoring and control of the SHE and Fire Prevention

Programmes across the organisation. Compliance to objectives and targets are being reviewed on a

monthly basis by the Namdeb top management team.

Figure 8 shows the figures for lost time injuries and fatalities recorded for the organisation since

2000. The last fatality was recorded in 2002.

Recorded 6,7 Million fatality free shifts end of July 2008

Retained NOSCAR status

Obtained OSHAS 18001 certification – November 2007

Reduced injuries and vehicle accidents by 50%

NOSA International Top 100 List EBay and ORM

Box 1: Relevant health and safety statistics for 2007/2008 (Namdeb HSE Department, 2008).

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March 2010

Figure 8: Lost time injuries and fatalities since 2000 (Namdeb, n.d.).

Since Namdeb introduced the Alcohol and Drug policy (past 2 years) only one vehicle accident

relates to alcohol abuse. Figure 9 shows the statistics for vehicles accidents since 2000.

Figure 9: Vehicle accidents since 2000 (Namdeb, n.d.)

1

0

2

4

6

8

10

12

14

16

18

2000 2001 2002 2003 2004 2005 2006 2007 2008

LTI Fatalities

58

72

42 4035

26

44

28

11

22

0

10

20

30

40

50

60

70

80

2000 2001 2002 2003 2004 2005 2006 2007 2008

Actual Limit 2008

29


March 2010

Alcohol and Drug testing

The Company employs four types of drug and alcohol testing:

Voluntary testing – voluntary testing stations are located at strategic points outside the

workplace for the purpose of self testing.

Fitness for work – the supervisor may test a person at the workplace if he suspects that the

person is under the influence of drugs or alcohol.

Post-accident testing – testing takes place after an injury or accident.

Random testing - implemented by random selecting candidates at the workplace.

Security

All persons entering the diamond area require a Restricted Area Permit (RAP) in terms of the

Diamond Act from the Ministry of Mines and Energy.

Before employment, all prospective employees, temporary staff and contractors are screened by

the Police Services of their country of origin. A Certificate of Conduct is required to verify the

individual‟s identity and risk profile. Short listed incumbents undergo a polygraph test, performed

by the Security Investigations Unit. All new employees are given a security induction course in their

first working week.

All employees and visitors to the mines are searched for drugs and alcohol and on disembarking

from the DBMN vessels the luggage is searched for diamonds and any property of the Company,

using a Scannex low dosage X-ray search facility. An electronic card system is in place to control

and track access to Oranjemund.

SMEs

The Oshipe Development Fund “promotes and facilitates the sustainable business development

and growth of SMEs, preferably owned partly or wholly by previously disadvantaged Namibians,

through the provision of financial assistance and professional business support “ (Namdeb, 2007).

During 2006, Oshipe made its first three investments in commercially viable businesses worth N$ 1.3

million. The largest of these is a vegetation production project at Oranjemund in which 20 jobs

were created. Oshipe also invested in Ongaka Slates cc, which produces finished tiles and bricks

from slates in the north of Namibia, and Rundu Radiator Services cc, a radiator and refrigerator

repair and maintenance business based in Rundu.

The commercial viability of the business forms the basis of Oshipe investment evaluation criteria.

Oshipe targets businesses that have the potential to be included in Namdeb‟s supply chain, with

investments between N$ 500,000 and N$ 1,000,000. Oshipe ends its involvement when the business

is self-sustainable, adequate skills transfer has taken place and managers have proven that they are

capable of managing the business on their own, ideally within 5 years (Namdeb, 2007a).

Social Responsibility

Revenue from diamonds has funded the construction of a maternity clinic in the north of the

country, the initial development of the University of Namibia, and the Namibian Institute for

Educational Development. Similar work continues through the Namdeb Social Fund, while the

Namdeb Employees Social Responsibility Fund contributes to other projects in Namibia.

30


March 2010

Labour Tenure Forecasts

Error! Reference source not found. shows Namdeb‟s workforce size since 2003 and their predicted

labour tenure forecasts until 2015. Figure 11 above shows the potential carat profile to be derived

from planned projects in Namdeb‟s Northern Coastal area. The blue polygon shows the dwindling

resources at the existing Elizabeth Bay plant, with 63 employees remaining at its operations. The

resources to be exploited through the extension project (dumps, gray beds and Phoenix) show the

potential carat production from these new ventures. As carat production declines into the future,

Namdeb will accordingly scale down its workforce.

Figure 10: Total workforce complement since 2003 and predicted workforce until 2015 (Namdeb b,

2008).

If mining operations are scaled down as predicted, significant and long-term socio-economic

consequences would therefore ensue. These consequences would include immediate negative

impacts on the communities in Oranjemund and Lüderitz, as already transpired in 2009.

Notwithstanding the efforts to privatise and deregulate the town of Oranjemund, under current

conditions the town relies almost exclusively on diamond mining operations, and the trade

generated by employees in the diamond industry, particularly operations in the southern MLAs.

Lüderitz derives significant trade from mining activities in the northern licence areas. Downscaled

mining activities have had, and will have, an effect on these towns, as well as at a national level,

through a reduction in remittances to other areas in Namibia, and in contributions to the national

GDP. It should also be noted that salaries and benefits of Namdeb and DBMN employees are up to

three times the national average, and are regarded as the best in the mining sector (SIAPAC, 2006),

and this further increases the negative consequences of reduced employment in the diamond

industry.

31


March 2010

Figure 11 Projected carat production figures from all base and planned mining operations at Northern

Coastal Areas until 2020, illustrating the importance of the EBay Optimisation study to the

potential carat profile (Namdeb 2010).

Namdeb’s Downscaling Strategy

Namdeb has various strategies in place to soften the blow of the downscaling process on their

employees and affected communities. The following mitigation strategies are being used during

downscaling by the Human Resources Department:

Temporary staff and contractors‟ agreements are not renewed at the end of their period;

Staff who are close to retirement age are offered early retirement;

Retired personnel are not replaced;

Generous voluntary separation packages are being offered; and

Namdeb employees enjoy preference to take on outsourced services (e.g. the Company‟s

printing services have recently been outsourced to ex-Namdeb employees).

Namdeb endeavours to maintain sound communication about the downscaling process to all its

stakeholders. Official briefs are communicated through to the staff from General Manager‟s level.

The Human Resources Department also provides presentations to departments on planned

movements and holds one-on-one discussions with affected personnel. They have published a

Frequently-Asked Questions article on the company intranet. The company has partnered with

Sternlink Financial Services to provide training in financial planning. Training is also provided to

ease the search for new positions such as interviewing skills and how to compile a CV.

At EBay the staff compliment was 320 before the economic meltdown, but has now been reduced to

<25. None of staff were retrenched; rather the strategy described above was followed. Most

32


March 2010

people volunteered to take the voluntary separation package. According to the Human Resources

Superintendent of the Northern Coastal Areas (pers. comm. Mbeeli, 2010), the bulk of these

employees are now employed elsewhere. Artisans have been employed by Navachab, Areva and

Langer Hienrich Mines. Some of the professional and skilled employees have started their own

businesses and consultancies.

33


March 2010

3 Impact Assessment

This section contains the socio-economic impact assessment for the proposed Elizabeth Bay

Optimisation Study.

The method used to determine significance ratings for this assessment was based on the following

convention:

Nature of impact: assesses the type of effect that the proposed activity will have on

the relevant components of the environment and includes “what

will be affected and how”.

Extent: indicates whether the impact will be:

site specific – restricted to within 1000 m of the disturbance,

local – limited to within 10 km of the disturbance or to the Mining

Licence Area,

regional – within the confines of the southern Namibian region,

national – within the borders of Namibia, or

International - extending across the Namibian/RSA boundary.

Duration: classifies the lifetime of the impact as being:

short term – days to <1 month,

medium term – months to <1 year,

long term – years to <10years, or

very long/permanent term - generations of affected biota.

Intensity (or Magnitude): establishes whether the impact is destructive or innocuous and

whether or not it exceeds set standards and is described as either:

low – where natural environmental functions and processes are

negligibly affected,

medium – where the environment continues to function but in a

noticeably modified manner, or

high – where environmental functions and processes are altered

such that they temporarily or permanently cease and/or exceed

legal standards/requirements.

The probability of the impact occurring, the status of the impact and the degree of confidence with

respect to the assessment of impact significance is stated as follows:

Probability: considers the likelihood of the disturbance occurring and is

described as:

improbable – low likelihood,

probable – distinct possibility,

highly probable – most likely, or

definite – disturbance will occur.

Degree of confidence

in predictions: is based on specialist knowledge and the availability of information.

These are classed as low, medium and high.

34


March 2010

The application of the above criteria to determine the significance of potential impacts will use a

balanced combination of duration, extent and intensity/magnitude, modified by probability,

cumulative effects and confidence.

Significance is described as follows:

Low: Where the impact will have a negligible influence on the marine

environment and no modifications or mitigations are necessary for

the given project description. This would be allocated to impacts of

any severity/ magnitude, if at a local scale/ extent and of

temporary duration/time.

Medium: Where the impact could have an influence on the environment,

which will require modification of the project design and/or other

mitigation measures. This would be allocated to impacts of

moderate severity/magnitude, locally to regionally, and in the short

term.

High: Where the impact could have a significant influence on the

environment and, in the event of a negative impact, the activity(ies)

causing it should not be permitted without substantial mitigation

and management, and pro-active rehabilitation commitments (i.e.

there could be a „no-go‟ implication for the project). This would be

allocated to impacts of high magnitude, locally for longer than a

month, and/or of high magnitude regionally and beyond.

Where negative impacts are identified, mitigation proposals are made to minimise or eliminate the

impacts, (i.e. ways of reducing negative impacts).

The impact evaluation takes into consideration the cumulative effects associated with this and

other facilities, which are either developed or in the process of being developed in the region.

3.1 Employment

3.1.1 Discussion

Once mining in the Southern Resource Area is in full production, the expected labour complement

per Patterson‟s Grade is estimated to be as follows:

Table 2: Labour budget for EBay (Jones, 2010)

Band Number % of total budget

A-Band (Unskilled without Grade 12) 18 14

B-Band (Unskilled with Grade 12) 56 43.5

C-Band (Grade 12 with skills) 47 36.5

D and E Bands (Professional staff with tertiary

qualifications)

8 6

TOTAL 129 100

Since EBay currently has a staff compliment of 63 people, the additional staff compliment, i.e.

people to be additionally recruited, will be 66. However, it should be noted that Namdeb has

35


March 2010

seconded some of its staff between projects; therefore existing staff on other projects may be

transferred back to EBay, thereby limiting the number of people to be employed from outside

Namdeb‟s quarters.

The operations will comprise a mining, screening and treatment component. The operations of the

mining component are yet to be finalised in terms of labour requirements and whether these are to

be outsourced to private contractors or carried out using own staff. The labour requirement for the

mining component is not included in the figures provided; the preliminary figure for this is 45

people.

As may be seen from the table, the major labour requirement will be for unskilled and semi-skilled

staff. There will also be a small opportunity for unskilled workers who have not completed their

secondary schooling to enter the labour market.

The optimised plant is likely to be less labour intensive than previous mining methods; thereby

reducing the number of job opportunities in relation to expected carat production when compared

to existing operations.

Figure 11 shows current downsizing trends within Namdeb. The additional staff needed at EBay to

produce carats at the Southern Resource Area will assist to mitigate the negative social impacts

related to the downsizing of existing operations, even though this positive impact is limited

compared to the overall downsizing plan.

Figure 11: Estimated future EBay staff complement post implementation of the EBay Optimisation study

vs. the baseline (Jones, 2010).

The income and benefits derived from the employment packages also reach the extended family

members within the employees‟ family structure. In the recent PPA (Republic of Namibia, 2007), it

was reported that one employee on average supports a network of about 10 people. Based on this

assumption some 1,290 people will benefit financially from the optimised conditions at EBay once in

full operation. The estimated labour value for the Project is N$ 23,3 Million for 2010, increasing to

an annual budget of N$ 34,5 Million for subsequent years when the plant is in full production.

36


March 2010

3.1.2 Enhancement

Namdeb should continue with their existing recruitment policy of giving preference firstly

to existing Company employees due for redundancy in other operations, followed by

suitable Namibians.

3.1.3 Summary

Impact Criteria Rating

Employment

Provision of work provides an income, with ancillary support for employees and their families; boosts Namibian economy.

Negative impact of Namdeb downscaling mitigated.

Status Positive.

Probability Definite; if the project is implemented.

Confidence High.

Extent Mostly national, limited international impact; employees are mostly from Namibia, with mostly the D- and E-Band staff to be recruited abroad.

Duration Long-term; the economic impact will benefit future generations if the income is applied wisely.

Intensity Medium to low; considering the overall staff complement required and the total number of people benefiting, i.e. 1,290.

Significance Medium to low – a limited number of Namibian families supported over a long period. Although the project mitigates downsizing trends, it does not completely restore EBay’s previous staff complement.

3.2 Training and Skills Transfer

3.2.1 Discussion

Namdeb reports that the Company will train people from within its existing complement if they

have the necessary qualifications. Otherwise the required unskilled labour will certainly gain

valuable skills through experience and purposeful training. Namdeb already has a training and

development policy in place, through which the staff of this project will also be legible for training

opportunities. Namdeb will involve the Namibia Qualifications Authority (NQA) to train Namibian

artisans if enough people are not available from within the Company. This means that Namdeb will

contribute towards training people to attain officially certified qualifications.

3.2.2 Enhancement

The suggestions already made to enhance training and skills transfer on this Project, are supported

and encouraged, namely:

Involvement of the NQA to train new employees to the level required.

Reviewing the Company‟s training and development programme to ensure it is best suited

to this Project.

An inventory should be made of all areas in the Project where goods and services may be

supplied by local SMMEs, or areas where SMMEs could be developed and trained to provide

the required goods and services and a programme developed to equip prospective SMMEs.

37


March 2010

3.2.3 Summary


Training and Skills Transfer Status Positive.

The implementation of the project lead to inevitable training and skills transfer to Namibians.

Probability Definite; if the project proceeds.

Confidence High.

Extent Mostly national.

Duration Long-term.

Intensity Medium.

Significance Medium.

3.3 Provision of Social Services

3.3.1 Discussion

The project will assist a portion of existing Namdeb employees to retain the privilege of the social

services offered, including good medical facilities, schools, sports activities, etc. and free

infrastructural services such as water, waste disposal, sewerage disposal and electricity. Free

housing or a housing allowance will be retained. A limited number of new employees will benefit

from these services too.

The Company covers most areas of human well-being. It can be argued, however, that this trend

set by Namdeb of providing services for free may result in employees developing an unhealthy

dependency on the Mine, which should be counteracted.

3.3.2 Enhancement

Namdeb already has a number of initiatives in place to curb the dependency syndrome

amongst employees. These include training in sound financial planning and incentives to

invest in the property market outside of Oranjemund and Lüderitz. These initiatives

should be strengthened, and an integrated policy developed for the promotion of self-

sufficiency and independence amongst employees, involving all stakeholders in the

process.

It is recommended that a Social Closure Plan be compiled for the Mine.

3.3.3 Summary


Provision of social services

The new employees will receive the Namdeb package of social services. This includes a wide range of benefits within the workplace.

Status Positive.

Probability Definite; if project goes ahead.

Confidence High.

Extent Mostly national.

Duration Long-term.

Intensity Medium; but decreasing as financial position of Namdeb changes and services are offered at cost.

Significance Medium to Low.

38


March 2010

3.4 Taxes and Royalties

3.4.1 Discussion

The overall capital budget for the Elizabeth Bay Optimisation Project is N$ 58 Million. Benefits to

Government will be in the form of taxes, royalties and dividends. Taxes include rates and taxes to

the Lüderitz Municipality, and property and company income taxes to the Namibian Government.

Royalties are also payable to the Government for the mining operations in terms of the Minerals

Act.

3.4.2 Enhancement

None

3.4.3 Summary


Payment of taxes & royalties . Status Positive.

Probability Definite; if project is implemented.

Confidence Medium.

Extent National.

Duration Long-term.

Intensity Medium to Low.


3.5 Economic Boost

3.5.1 Discussion

If Namdeb continues to downscale its activities without any significant new internal or external

projects being implemented, the affected coastal area and the country is likely to suffer a

significant economic slump in the future. The tourism industry is likely to be strengthened with the

opening of the Sperrgebiet for tourism concessions and the establishment of the /Ai-/Ais

Richtersveld Transfrontier Park. However, the tourism industry is not likely to grow to the extent

needed to sustain the area economically.

The implementation of the Kudu Gas Project is in the balance. Other possibilities such as

mariculture and agriculture ventures in the area first have to be proven economically viable. The

viability of mariculture projects remains uncertain, while agriculture projects are geared toward

social upliftment, but with limited financial return.

While the Oranjemund economy is driven mostly by mining activities, Lϋderitz is sustained mostly by

the fishing industry. Other industries such as the Elizabeth Bay Mine and the tourism sector have a

role to play but they do not drive the economy. For this reason, the future of Lϋderitz is not solely

dependent on this project. However, many of the local contractors are being sustained by the

operations at Elizabeth Bay, and these will collapse without sustained operations there. Therefore

the implementation of the EBay Optimisation Study will assist in sustaining some of the secondary

industries and contractors in Lüderitz and assist in sustaining some of the retail outlets and other

services in the town.

39


March 2010

The staff complement of the Project will likely be from various regions in Namibia. Businesses in

those regions will also benefit from goods and services purchased by the Project staff and their

extended family members.

3.5.2 Enhancement

A programme should be developed to optimise the use of local SMMEs on the project by creating an

inventory of possible activities that may be outsourced to SMME‟s, identifying skills required, and

developing a training programme for selected SMMEs.

3.5.3 Summary


Secondary economic boost - aid in sustaining secondary industries e.g. through purchasing of local goods & services, local indirect employment, etc.

Status Positive.

Probability Definite; if project is implemented.

Confidence High.

Extent National.

Duration Long-term.



3.6 Increased Informal Settlement and Associated Impacts

The existing informal settlement problem in Lϋderitz is described in Section 2.4.4, indicating that a

large proportion of the town is made up of people living as backyard squatters and in settlements

that offer inadequate housing and infrastructure. This is testimony to the Lϋderitz Town Council

struggling to keep abreast with increasing demand for affordable housing. Although the Town

Council is planning to create another ultra-low income area, it is unlikely that this will alleviate the

existing need for affordable housing, the problem being a lack of economic activity and income

rather than the amount of available erven.

Informal settlement is normally associated with a number of unwanted impacts, including:

improper solid waste removal and disposal;

lack of sewage facilities leading to unhygienic conditions and increased spread of disease;

lack of proper shelter;

increased social pathologies such as drug and alcohol abuse and sex work, all causing

increased prevalence of HIV/AIDS; and

the unsustainable exploitation of surrounding natural resources such as wood and fish.

All these phenomena generally leave people without dignity, thereby strengthening the downward

poverty spiral.

A large percentage of the lower Bands of the previous EBay workforce are probably still in Lüderitz,

in the hope of finding another source of income. The social pathologies listed above have likely

increased because of reduced income and associated social problems. The new initiative at EBay

could assist to curb these trends. However, the public announcement of the project will potentially

contribute to the informal settlement problem, as the news spreads about the new venture, and as

Project employees are free to invite their relatives and acquaintances to the town.

40


March 2010

3.6.1 Summary


Increased informal settlement

Status Negative.

Probability Highly probable.

Confidence High.

Extent Local; but affecting relatives back home - National

Duration Permanent; if not adequately addressed.



3.6.2 Mitigation

Namdeb is encouraged to collaborate with the Lüderitz Town Council in devising the

overall Informal Settlement Strategy for the town.

The recruitment strategy for the Project should specifically address potential informal

settlement. Namdeb should work with the Regional Council on a planned information

campaign about the project, including the labour required, methods of recruitment, and

where people can apply.

Namdeb‟s policy of first employing ex-Namdeb employees should be very deliberately and

publically announced, stating the reality that there will be no, or limited, opportunities

for additional people.

Namdeb should build on to its wellness programmes to include coaching on the problems

associated with informal settlement and uncontrolled in-migration, living a life with one

partner, discouraging drug and alcohol abuse, and related topics.

3.7 The no-project alternative

It was stated in Section 2.5.2 that if mining operations are scaled down as predicted, significant and

long-term socio-economic consequences would ensue. The overall socio-economic benefits from the

EBay Optimisation Study would assist to curtail those negative consequences for the community that

is presently reliant on Namdeb for their livelihoods.

The mining of the Southern Resource Area at EBay is the only alternative to sustain mining

operations and associated socio-economic benefits in this area.

The employment opportunities will compensate partially for the job losses already implemented and

predicted by Namdeb over the next 10 years and combined with the other projects presently being

considered, including the Inshore, Inner Shelf, Deflation Deposit, Pocket Beaches and Orange River

Life of Mine Extension Projects, it may be possible to maintain overall carat production at near

current levels.

Over and above the direct loss of income to affected employees and their families, the country will

also forfeit the opportunity to earn the income from taxes, royalties, and dividends to shareholders.

41


March 2010

4 Conclusions and Recommendations

A number of positive socio-economic impacts will result from the implementation of the EBay

Optimisation Study. These impacts will aid in mitigating the long-term consequences from the

reduced mining activities at EBay and Namdeb‟s other areas of operation. The positive impacts

identified are:

Employment – provision of work provides an income, with ancillary support for employees

and their families; which will also boost the Namibian economy.

Training and Skills Transfer - the improved mining methods and screening and treatment

processes at EBay will inevitably lead to training and skills transfer to Namibians.

Advancement of technology in sampling, mining and metallurgical techniques will also take

place.

Provision of Social Services - the new employees will receive a wide range of social services

and free access to municipal infrastructure, as well as a wide range of benefits within the

workplace. A system that encourages full accounting for services is, however, encouraged in

order to promote financial independence and self-reliance amongst employees on the one

hand and improved cost-effectiveness on the other. It is recommended that Namdeb

strengthens this drive by compiling an integrated policy in collaboration with all stakeholders.

The Contribution of taxes, royalties and dividends to Government will increase the

national budget and thereby contribute to the national economy.

Secondary Economic Boost – the Project will aid in sustaining secondary industries in

Lϋderitz and elsewhere in Namibia.

All these impacts are considered to be of medium to low significance; the estimated staff

compliment being limited and as existing staff will be targeted as far as possible. The positive

impact revolves around sustaining existing socio-economic benefits and livelihoods rather than the

creation of new ones.

A significant negative socio-economic impact identified is increased informal settlement and

associated unwanted ecological and social impacts. At the same time it is expected that the

Project may assist to curb existing unwanted social pathologies as ex-employees are once again

given hope and a future.

A joint social and labour plan combining efforts of Namdeb and DBMN would show commitment to

jointly taking on cumulative socio-economic impacts. Collaborative efforts should also be more

effective from a practical and financial point of view. The two companies could for instance plan

environmental awareness raising campaigns, or strategically target certain social interventions from

a Group level.

42


March 2010

5 References

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Bank of Namibia (2008, 2010). Quarterly Bulletin. Windhoek: Bank of Namibia.

Burke, A. (2003). EIA of the porposed Southern Resource Extension Project. Unpublished Report.

Central Bureau of Statistics (2004). 2001 Population and Housing Census: karas Region. Basic

analysis and Highlights. Windhoek: National Planning Commission.

Central Bureau of Statistics (2003). Preliminary Results of the 2001 Census. Windhoek: Central

Bureau of Statistics.

Chamber of Mines (2009). Annual Review. Windhoek: Ministry of Mines and Energy.

CSIR (2004). Preliminary MOdelling of Suspendded and Shoreline Effects from Marine Dredgning at

Chameis Bay. Cape Town: Unpublished.

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Namdeb.

Husselman, D. (2008-07-15). HR Figures. (S. V. Zyl, Interviewer).

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Namdeb (2001). HIV/AIDS and Life Threatening Disease POlicy. Report No PO-HS-01. Unpublished

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Namdeb.

Namibia, T. C. (2009). Annual Review 2007/2008. Windhoek: Chamber of Mines.

National Planning Commission (2007). Karas Regional Poverty Profile. Windhoek: Solitaire Press.

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Netta, O. (2010). Proceedings of the Public Participation Meeting for the EBay Optimisation Study

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the Sperrgebiet or Diamond Area 1, in South-Western Namibia. Windhoek: DRFN and

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Services. (S. v. Zyl, Interviewer)

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economic assessment: EIA for the Elizabeth Bay Oprimisation Study. Unpublished Report.

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Windhoek: Unpublished Report.

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