Theme: Interrogating Implementation: Why is it a Challenge? Topic : The Relocation of De Beers Sales from London to Gaborone: Diamond Industry Opportunities & Challenges Neo Moroka Resident Director, De Beers National Business Conference 12 biennial, 2012

Anglo American has Around 145,000 people in 30 countries. Market capitalisation of around US$30b PlatinumDiamondsCopperNickelIron Ore and Manganese Metallurgical Coal Thermal Coal Background: About De Beers Source:Anglo American  Anglo American - 85% As of August 2012 De Beers has only 2 Shareholders:  Government of Botswana -15%

About De Beers De Beers:  was established in 1888 & is the world’s leading rough diamond company  is a member of the Anglo American plc group  has expertise in what the diamond industry terms the diamond pipeline (i.e., exploration, mining, sorting, valuing, cutting, polishing, marketing and selling of diamonds)  is currently operating in Botswana, Namibia, South Africa, Canada & India  employs more than 16,000 people across its operations 2

Significant Milestones in Botswana  1967:De Beers geologists discover the Orapa & Letlhakane diamond pipes  1969:Debswana a partnership between Botswana Government & De Beers is formed  1973:De Beers geologists discover the Jwaneng diamond pipe  2004:Botswana Government acquires a 15% share in the De Beers Group  2006:Botswana Government & De Beers agreement to establish the Diamond Trading Company Botswana (DTCB) sort, value & for the first time sell a portion of Botswana’s production in Botswana  2006:Botswana Government licensed cutting and polishing factories to set up in Botswana  2008:Opening of DTCB with more than 3,000 local manufacturing jobs  2009:De Beers commemorates 40 years of partnership in Botswana. First DTCB sight takes place  2011:Botswana Government and De Beers announce the 10 year agreement for the sorting, valuing and sales of Debswana’s diamond production and De Beers agrees to transfer its London-based rough diamond sales activity to Botswana by end of  2012: After 80 years of Aggregating its rough in London De Beers commenced aggregation in Gaborone (August, 2012) 3

De Beers in Botswana 50/50 Partnership between GRB & De Beers 85% Anglo American & 15% GRB 4

A New Home for De Beers De Beers:  Has so far Invested over P170m in extending the DTC Botswana building for its Sales Functions  Will sell to 76 of the worlds leading sight holders in the country 10 times annually  Will create nearly 160 roles in various disciplines with De Beers locally  Over 90 De Beers UK staff and their families will relocate to Gaborone  Has refurbished a number of its company properties at a further investment of P24m  Has acquired about 20 properties for rental in 2012 and will need 55 more in 2013  Will require security services – has engaged G4S security primarily for securing properties 5

Opportunities for Botswana 6 The value of migrating business is approx. US$6b/P45b and will provide opportunities for:  Employment opportunities for citizens (24 so far employed)  Skills transfer (De Beers brings a wealth of knowledge)  Technology (De Beers sorting technology)  Accommodation sector  Restaurants / catering (Food industry)  Schools / Education  Transport services  Security services  Tourism & Hospitality  Leisure / entertainment

Challenges  Diamond Security (in transit)  National Security  International Flights & Airport Capacity (First class services such as a VIP Lounge)  Financial services  Infrastructure  Technology infrastructure (bandwidth)  Hotel standards  Work ethic and Customer service  Health Services  Electricity Supply  Country Ambassadorship 7

Q & A Session THANK YOU