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Diamond Companies' CSR Performance Found to be Inadequate


Post Date: 31 Jul 2009    Viewed: 538

BusinessDay reports that according to research conducted by the Bench Marks Foundation, the diamond mining industry’s corporate social responsibility (CSR) performance in South Africa’s west coast region leaves much to be desired.


CEO of the Bench Marks Foundation, John Capel, stated that the study’s findings contradicted diamond mining companies’ claims regarding successful CSR. He noted: “Except for the Richtersveld community and to a lesser extent the people of Steinkopf, most communities on the west coast of South Africa do not benefit much from the CSR programs.”


Capel added: “The implementation and monitoring of diamond mining policies also seem to be problematic. As a result, serious environmental and social problems exist throughout the region.”


BusinessDay quotes Capel as saying that the situation was exacerbated at most west coast region towns by water shortages, interrupted electricity supply and road infrastructure that he believes should be included as part of corporate responsibility.


Three diamond exploration companies, De Beers, Alexkor and Trans Hex, took part in the study.


According to the report, despite De Beers’ claims about its successful CSR activities, there were problems of water shortage and electricity supply in Kamieskroon, Port Nolloth and the Richtersveld, and road infrastructure is underdeveloped.


Alexkor, a state-owned diamond company, was also criticized by diamond mine workers who stated that financial predicaments were an integral part of the agenda at the Alexkor mine.


In connection to the Trans Hex diamond exploration company, residents of Hondeklip Bay complained about damage that the company was causing to the environment: “Some of the (Hondeklip) complaints may be mirrored against the poorer financial performance of companies in general in the area. The group sustained a loss of R1,5m in 2008 compared to a profit of R51,8m in the corresponding prior period.”


The Bench Marks Foundation recommended increased cooperation among the mining companies, the national and local government, NGOs, traditional leaders and communities in order to resolve crucial development issues.


De Beers spokesman Tom Tweedy stated: “We are fully in agreement with the generic recommendations as we believe that these will enable the role players in the west coast diamond mining industry to improve the contribution that they make to the socio-economy of this region.”


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