Gem Diamonds Limited · LSE:GEMD
Gem Diamonds — Investor Presentation (2014)
33 slides from Gem Diamonds's investor presentation, Sep 12, 2014
Slide 1: Ghaghoo Diamond Mine 2007–2014
GHAGHOO DIAMOND MINE 2007–2014 GHAGHOO DIAMOND MINE: 2007–2014 a
Slide 2: Inside front cover
IFC GHAGHOO DIAMOND MINE End paper glued here 2007–2014
Slide 3: Foreword
Foreword This is a brief telling of the story of a remarkable project at the conclusion of its first phase. It is a celebration of the people who turned “nowhere” into a development that has changed the face of diamond mining in Botswana. As we step into the future, we carry with us all that we have
Slide 4: Contents
Contents THE DEVELOPMENT TIMELINE 08 Where it all started 2007 2012 18 From open pit to underground May Gem Diamonds acquires the Gope Exploration Company January Development of the decline, using an open-face tunnel shield, starts. from De Beers and Xstrata for US$34,1 million. April Civil work for
Slide 5: When we first came to Gope there was nothing there
“When we first came to Gope there was nothing there. Bush stretched as far as the eye could see. The project needed vision, courage, experience, determination and belief from the outset.” CLIFFORD ELPHICK, GEM DIAMONDS CEO An aerial view of the Gope site in 2007 shortly after Gem Diamonds bought the
Slide 6: Where it all started
Where it all started 4 The ore body that was to become Ghaghoo Diamond Mine was the deposit for development by other mining companies. “Gope was government is experienced and understands the mining issues discovered in 1981 by Falconbridge Limited, a Canadian resources regarded then as too small for
Slide 7: Gope fast facts and assembling the team
1 2 3 5 [5-6] When De Beers dismantled the shaft headgear, a fire GOPE FAST FACTS destroyed all the infrastructure that had been developed. All Located in the south-east portion of attempts to reopen the old shaft were therefore unsuccessful. the Central Kalahari Game Reserve. Had that infrastructur
Slide 8: The pioneer camp
4 1 THE PIONEER CAMP The logistics of the Gope deposit have always been daunting, not least the provision of food and accommodation. Never was this task more formidable than in the very early days. But right from the start, CMSB rose to the occasion. 3 2 5 6 7 [1] The pioneer camp in November 2007.
Slide 9: The SEIA process
1 5 THE SEIA PROCESS During 2007 and 2008, much energy was devoted to the social and environmental impact assessment (SEIA). It involved plant and wildlife surveys; soil, water and air quality studies; archaeological surveys; visual and socio-economic impact assessments and an extensive public parti
Slide 10: Sand in whatever form was always going to be a construction challenge
“Sand in whatever form was always going to be a construction challenge – and at Ghaghoo it didn’t disappoint!” HAILE MPHUSU, MANAGING DIRECTOR GEM DIAMONDS BOTSWANA The Ghaghoo construction site at the end of 2012 with the concrete segments for the tunnel in the forefront and the diamond processing
Slide 11: From open pit to underground
From open pit to underground 3 4 The 2008 global financial crisis and the 18-month hiatus it enforced underground was the logical option to get around the sand and on the development of the Gope reserve, also forced new thinking. establish the deposit’s true diamond grade and actual market price.” T
Slide 12: The box cut and sand tunnel
[1] The box cut in September 2011. [2] In November 2011 the 3 4 5 box cut was ready for the arrival of the tunnel shield. [3] The open-faced tunnel shield, or cookie cutter as it was known, was put in place in December 2011. [4] Some of the 7 630 precast concrete segments that were used to construct
Slide 13: The diamond processing plant and mine dams
1 THE DIAMOND PROCESSING PLANT 2 3 THE MINE DAMS 6 The processing facility comprises a primary crusher with a capacity It takes, on average, 1m3 of water to process a tonne of kimberlite of 100t/h, an autogenous milling and screening section, a 65t/h to liberate diamonds. At 0,75m3 per tonne, Ghagho
Slide 14: Innovation: the name of the Ghaghoo game
1 2 INNOVATION: THE NAME OF THE GHAGHOO GAME • Gem Diamonds took the conscious decision to go the When the economics of mining changed in the 2008 global owner-managed route instead of appointing an engineering, economic crisis, the Gem Diamonds team was ready and willing to procurement and construc
Slide 15: We kept people happy and productive in tents in the desert
“We kept people happy and productive in tents in the middle of the desert. I would not have thought it possible but we managed it!” IAN MCADAM, PROJECT DIRECTOR GEM DIAMONDS BOTSWANA The services building, the first permanent structure in the Gahghoo camp, was officially opened in April 2012. 26 GHA
Slide 16: Home away from home
Home away from home 7 Ghaghoo is the only mine in Botswana without a nearby town or 1 6 village where the employees live. The mine’s remote location means that employees work 12-hour shifts each day for a continuous number of days, and spend all their days off at home. While on site, home is a tente
Slide 17: From the old to the new camp
2 5 7 [5] The new camp’s foundations and slabs required aggregate that was hauled to site at great cost and with great difficulty by CCB. These rather basic scales were used to weigh the aggregate. [6] The first tents in the new camp. [7] The first dining area in the new camp (October 2011). [8] Who
Slide 18: Every day was a challenge
“Every day was a challenge. We had very few people and systems and almost no backup. Ghaghoo gave me a considerable education outside of pure mining.” HOWARD MARSDEN, FIRST OPERATIONS MANAGER GHAGHOO DIAMOND MINE The 165km of sand road between Lephepe and the mine has posed a formidable logistical c
Slide 19: Taming the logistics beast
Taming the logistics beast 6 [6-7] In July 2014 a custom-made 4x4 bus replaced the previous version: a capsule that was fitted to a truck to carry passengers. [8-9] Cathrine Mutizwa from CCB manages the staging camp, ensuring, with her team, the transport of people, goods and equipment to the mine.
Slide 20: Power, water and airstrip infrastructure
1 2 3 7 8 [7-8] Six generator sets, supplied by Aggreko, currently supply 9 the electricity needed to power Ghaghoo Diamond Mine. Options for combining solar energy with diesel-generated 4 5 power are currently being evaluated. It is estimated that solar energy can meet about 60% of the mine’s elect
Slide 21: This is a unique project, in a unique part of the world
“This is a unique project, in a unique part of the world, which will, in many different ways, add huge value to the company and the nation once it is completed.” HAILE MPHUSU, MANAGING DIRECTOR GEM DIAMONDS BOTSWANA Traditional dancers at the Kuru Bushman Dance Festival that Ghaghoo project team mem
Slide 22: Our neighbours, our partners
Our neighbours, our partners 4 [4] When the project gained momentum in 2011, the change from open pit to underground was shared in another round of public participation meetings. The SEIA team who conducted ]The Kalahari has been home to the San, or Basarwa, people for 1 2 the meetings were (from th
Slide 23: Final resting place of a child from the past
1 6 FINAL RESTING PLACE OF A CHILD FROM THE PAST AN ENGINE FOR LOCAL DEVELOPMENT In early 2011, Wim Biemond, the archaeologist who advised Gem Gem Diamonds is deeply aware of its responsibility towards the area Diamonds on the history of the mining area, discovered traces of in which it operates, bo
Slide 24: A focus for CSI: children are the future
1 4 A FOCUS FOR CSI CHILDREN ARE THE FUTURE During the public participation phase of the Ghaghoo project, Gem Gem Diamonds has decided to be actively involved in the schools in Diamonds gave the project-affected communities an undertaking the project-affected communities. that as soon as the mine be
Slide 25: Ghaghoo and the CKGR
Ghaghoo and the CKGR Angola Zambia CHOBE The Ghaghoo Diamond Mine lease area comprises 0,08% of the total CKGR. Its direct impact is therefore limited to a fraction of the NGAMILAND reserve. l Maun During the SEIA process a few endangered species were identified in the project area, such as leopard
Slide 26: The spirit, the common purpose, the commitment to working together
“The spirit, the common purpose, the commitment to working together must be retained and carried through into the new phase of the mine.” KAVIS KARIO, GENERAL MANAGER GHAGHOO DIAMOND MINE The historic first diamond recovered for sale from the Ghaghoo Diamond Mine is a 4,99ct stone. 48 GHAGHOO DIAMON
Slide 27: The future unfolds
The future unfolds 2 3 6 The underground Ghaghoo Diamond Mine is a feasibility study in A SMALL MINE OF HUGE SIGNIFICANCE production. This approach was followed to confirm the quality of Ghaghoo will forever be remembered for its logistical challenges. the deposit and to provide the information need
Slide 28: We have a superb mix of people at Ghaghoo
“We have a superb mix of people at Ghaghoo, combining experience, can-do personalities and drive. They are tough guys, for whom no problem is too big.” ALAN ASHWORTH, CHIEF OPERATING OFFICER GEM DIAMONDS Miners make their way out of the tunnel after a long day underground. 52 GHAGHOO DIAMOND MINE: 2
Slide 29: The people of Ghaghoo
The people of Ghaghoo 5 6 WE WILL NOT FORGET The building of Ghaghoo Diamond Mine claimed the lives of three of our colleagues. We pay tribute to them and 2 their part in the Ghaghoo story. On 28 May 2012, Opelo To come to fruition, great projects need great people. This section Mmolai (Moss), who w
Slide 30: Ghaghoo management team and staff
1 8 9 [1] The Ghaghoo Diamond Mine management team members are (back row) Kavis Kario, Million [8] Chakalisa Mahube, mine overseer. [9] Shift Nkwanyane, France bosses Obakeng Sosome and Joao Andriano. Mashinyana, Tichabona [10] The guys who dig for diamonds – one of the David, (front row) Modise thr
Slide 31: Ghaghoo Diamond Mine contractors
Ghaghoo Diamond Mine contractors 1 2 [1] Dr Temo Tomeletso and nurse Abram Mokaleng from MRI. [2] Two of Ghaghoo’s trained snake handlers: Mompati Lekwapa and Rebaone Basimane. [3] Bonge Saitsoketsa from Savuti According to Ian McAdam, the relationships with key contractors have been (and continue t
Slide 32: Inside back cover
IBC End paper glued here Topo Motsamai
Slide 33: Slide 33