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Petra Diamonds Limited Sustainability Report 201216STRATEGY AND GOVERNANCEStrategy and GovernanceDeveloping our approach continuedMaterial issuesUsing a combination of our risk management and stakeholder engagement process, as well as consultations with key Group and operational management responsible for issues relating to sustainability, we have defined the material sustainability issues facing Petra in FY 2012.MembershipsAt a Group level, various employees belong to professional bodies, as funded by the Company but aimed at personal development/exposure.In South Africa, Petra is a member of the South African Chamber of Mines. Petra's Group Human Resource Development Manager, Sheridan Rogers, is on the Board of the Mining Qualifications Authority and Petra has representation on the Mining Education Trust Fund (Petra only provides funding in line with member requirements).In Tanzania, Petra is a member of the Chamber of Mines and its sub-committees. Ignas Balyorguru, the Williamson Human Resources Manager, was appointed by the Minister for Labour, Economic and Social Development as a counsellor on the Labour, Economic and Social Council of Tanzania.Product stewardship and assuranceWe are committed to upholding the high value placed on diamonds, which are given to celebrate life's most special moments and are considered as prized possessions. We will only operate in countries which are members of the Kimberley Process and only sell diamonds that have been mined from Petra-owned operations, thereby providing assurance that 100% of our production is certified as 'conflict-free'. We monitor and manage each step in the diamond production process to the highest ethical standards: from exploration and mining, through to processing, sorting and finally marketing and sale. We are committed to a transparent and equitable sales process and are proud to offer the majority of our production for sale in Johannesburg, thereby contributing to beneficiation in Africa.During FY 2012, there were no incidents of non-compliance or complaints raised with regards to our sales and marketing processes.Client satisfactionPetra's marketing team maintains an open dialogue with all customers and customer satisfaction is considered its primary priority. Petra receives feedback from clients regarding production, assortments, market movements and pricing. Any feedback regarding production is noted and considered for the next production cycle. Petra has an open door policy with clients if they have any queries or concerns, and the Company always assists as far as possible. Confidentiality is of the utmost importance to Petra. When previewing production, each client is allocated a private viewing room and invoices are issued directly to the clients. No tender information is divulged about results or top buyers and other related matters.RESPONSIBLE MININGStakeholder engagementCommunity development Local procurementManagement of stakeholder expectationsLabour relationsEmployee development and retentionEmployee diversityResource usageEnvironmental stewardshipRehabilitation and restorationClimate changeRisk managementHuman rightsEthical conductProduct assuranceSecurityLegal complianceHealth and safety systemsSafety performanceOccupational healthCommunity healthGOVERNANCE AND ETHICSHEALTH AND SAFETYENVIRONMENTCOMMUNITYEMPLOYEES

Petra Diamonds Limited Sustainability Report 201217STRATEGY AND GOVERNANCEStrategy and GovernanceCase study: Petra and IFCPetra and IFCPetra is proud to count IFC as a key financing partner to the Group. IFC's support is an important and independent validation of the quality of Petra's asset base and its strong management team.Petra is proud to count IFC as a key financing partner to the Group. IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector. Its objective is to help developing countries achieve sustainable growth by financing investment and mobilising capital in the international financial markets, therefore providing opportunities for people to escape poverty and improve their lives. IFC's first financial commitment to Petra focused on providing financing to the Williamson mine in Tanzania, as recognition of the important socio-economic benefits that this operation brings to its local community. After carrying out a detailed due diligence process, IFC agreed to provide funding of US$40 million to Petra in 2010, marking its first time providing financing to a diamond mining group.Since this time, the relationship between Petra and IFC has continued to develop and strengthen. As IFC has become more familiar with the wider Petra Group, it has recognised the important contributions that each of the Company's projects make to their local communities. In November 2012, IFC participated in a consortium of banks to provide new debt facilities to the Group of ca. US$244 million, of which US$60 million were provided by IFC.In South Africa, Petra has acquired four major kimberlite mines (Finsch, Cullinan, Koffiefontein and Kimberley Underground), which could otherwise have been closed down, and is providing long-term security to the mines' employees and their dependents. Petra has extensive local community projects in place across its South African operations, with a focus on poverty alleviation, job creation and skills development.In Tanzania, Petra's Williamson mine plays a vital role in terms of supporting the Mwadui community, including providing potable water to the local township. The mine has a long legacy of corporate social responsibility ever since its inception in 1940. Amongst its many valued contributions are the Mwadui Hospital, which provides comprehensive medical services to employees and their families free of charge, and the Mwadui primary school, which provides free education and is considered one of the top schools in the country.Commenting on the partnership, Tom Butler, IFC Global Head of Mining, said, "Petra Diamonds is committed to working with local communities and implementing projects that follow best practice environmental and social standards. We are pleased to be able to support the company in its African expansion plans." Commenting on the relationship with IFC, Johan Dippenaar, Petra Diamonds' CEO, said, "IFC's continued support endorses the quality of our asset base, as well as our strong commitment to corporate social responsibility. Our operations clearly demonstrate the positive role that diamond mining can play in terms of development in Africa."The Mwadui primary school is owned and operated by Williamson and provides free education to 460 learners