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Petra Diamonds Limited Sustainability Report 201224OUR PEOPLEOur PeopleFostering our teamThe success of our business depends on our workforce. We believe that employees who are empowered and accountable for their actions work to the best of their ability, and have fostered a culture whereby innovation and creativity in the workplace is encouraged and rewarded. Through our health, safety and development programmes, we seek to create a healthy and motivated workforce within a safe, productive and efficient environment.We encourage diversity in our workforce and treat our employees with respect and dignity.We invest substantially in training programmes for our employees, in the knowledge that their personal development will contribute to the successful development of our operations. Petra has established a comprehensive set of Group-wide HR policies which, in turn, are augmented at an operational level to ensure they are applicable within the local context of each mine. Our revised Group Code of Ethical Conduct, together with other Group-level initiatives currently under development, will unify our principles and policies and reinforce Petra's existing commitment to the fair treatment and sustainable development of our workforce. We respect our employees' right to freedom of association and there are no operations within the Petra Group where the right to exercise freedom of association and collective bargaining are at risk; as such, the majority of our members are represented by a union.Organisational review Petra's rapid, acquisition-led growth has resulted in an influx of new staff to the Company. Consequently, our workforce has grown rapidly from a few hundred employees in 2006 to 5,575 today, including 807 contractors.In order to ensure all employees are familiar with Petra's HR policies and procedures we began an Organisational Culture Scan, a review of the organisational culture across our operations in FY 2012. The review will be conducted via focus groups, questionnaires and interviews involving staff in supervisory or decision-making roles.Once the review is complete, we will align practices at each of Petra's mines and embed an employee culture that supports the realisation of Petra's business objectives through appropriate behaviour, skills and processes. The project will be launched across the Group in FY 2013.Our workforceWe are committed to providing stable employment for our workforce. As at 30 June 2012, we employed a total of 5,575 people, including 807 contractors.OperationPermanentContractorsTotalFinsch 76254816Cullinan 1,081391,120Koffiefontein 46061521Kimberley Underground 581 0581Fissures 1,209101,219Williamson5636381,201Botswana8311Marketing707Head office 97299Total 4,7688075,575Our peopleWe recognise that our team is our greatest asset and essential to the delivery of our long-term strategy. We aim to foster a company culture that is dynamic and motivational, giving our employees the opportunity to fulfil their true potential.SUMMARY$ We believe that employees who are empowered and accountable for their actions work to the best of their ability$ We are committed to the training and development of employees in order to ensure the current and future skills needs of the organisation are met$ Our Leadership Development Programme works to develop the future 'leaders' within our Company$ We are focused on attracting and retaining skilled women in mining and aim to fill as many positions as possible with suitably qualified female candidates

Petra Diamonds Limited Sustainability Report 201225OUR PEOPLEOur PeopleFostering our team continuedLocal hiringAll Petra operations follow a policy of preferential local recruitment. In South Africa, it is part of the mines' Social and Labour Plan ("SLP") commitments to recruit from local communities that are regarded as their main labour sending areas, and is in some cases also contained within agreements with organised labour (e.g. with the National Union of Mineworkers ("NUM") in the case of Finsch). In practice, only vacancies for positions in the skilled bands, where there could be a skills shortage internally or in the host community, are advertised regionally or nationally. Even when a position has been advertised regionally or nationally, preference will still be given to local applicants. Major contractors to the operations are expected to apply the same recruitment principle when employing workers for contracts at these operations. Below is a summary of the breakdown of the proportion of Petra's workforce at the core South African operations from the local community:LocalProvincialNationalFinsch57%18%25%Cullinan64%16%20%Koffiefontein84%5%11%Kimberley Underground100%0%0%In Tanzania, Petra's entire workforce at Williamson is of Tanzanian nationality apart from eight expatriates. The breakdown of the Tanzanian workforce is as follows:LocalRegionalNationalWilliamson14%12%74%RetentionA key challenge for Petra is workforce retention, especially as the majority of our employees are classified as skilled or semi-skilled. We operate in remote areas and there is a limited pool from which we can draw our employees. Therefore we try hard to limit staff turnover (and dismissals).Petra is taking a number of steps to foster a vibrant company culture, in which employees are engaged in the development of the business, able to share in its success and encouraged to reach their full potential. Current internal projects underway include the Organisational Culture Scan (see Organisational Review section on page 24) and the Skills Audit Project (see Training and Development section to follow). In addition, Petra's employment terms and incentivisation structures are designed to attract, incentivise and retain individuals of a high calibre.In FY 2012, employee turnover was 12%; much of this was the result of competitor actions, which illustrates the ongoing skills shortage in our sector and the retention challenges we face. The breakdown of this Group turnover rate is provided below:SouthAfricaTanzaniaBotswanaTotalTerminations and voluntary turnover423220445Age group20-2567206926-3075407930-3586409036-4049004940-4547204946-5041104251-60589067Male371190390Female523055Training and developmentPetra is committed to the training and development of employees in order to ensure the current and future skills needs of the organisation are met. In FY 2012 we invested ca. US$3.3 million in staff training and development across the Group. In FY 2012 we launched the Skills Audit Project to evaluate employee skills in the context of the skills required by our business, now and in future. The project will help us refine our approach to training and employee development, clarify job descriptions, increase the focus on individual training and career development, and, ultimately, produce a more competent and engaged workforce. In order to match the skills required by our business, in particular the technical skills necessary for diamond mining, we have an ongoing need to train our workers. The Mining Charter of South Africa stipulates a training expenditure target of 4% of operations payroll for 2012, and at most of our South African operations we achieved this. Two of our Fissure Mines, Helam and Sedibeng, did not meet the target due to capacity and budgetary constraints. Spending at our other mines takes our average training expenditure above the 4% target as stipulated in the Mining Charter and in FY 2013 we aim to achieve the stipulated expenditure target at all of the operations. Leadership development programmeAs a growing company, Petra requires a productive and effective workforce who can lead the Company through its next stages of development. In addition to technical skills, this requires the ability to lead and motivate teams, to measure and manage team performance, manage resources, systems and processes, and develop and implement action plans to ensure operational objectives are met. Petra's leadership development programme ("LDP") is an important strategic tool to assist the organisation in the identification and development of employees who display the potential to fulfil leadership positions in the future.Candidates for the LDP are selected from employees, with a focus on Historically Disadvantaged South Africans ("HDSAs"), including women, who are potentially managers and supervisors. These employees have been earmarked as potential leaders and have a career path into management positions.Currently, 36 out of the 47 LDP candidates are HDSAs. The shortage of women in technical fields was identified as a key challenge for FY 2012 and we have made good progress with improving female participation, with the number in the scheme increasing from 14 to 17. We hope to continue with this upward trend going forward.Participants in the LDP receive regular performance and career development reviews. These include annual assessments by supervisors, mentors and the project team, as well as self evaluation. Personal development plans are reviewed, discussed and signed off each year at the beginning of the programme cycle by participants, their mentors and supervisors. Progress is also assessed through the submission of two individual assignments and a group assignment and presentation.To complement the LDP, we are introducing two additional programmes, the Supervisory Development Programme and the Executive Management Development Programme. These will focus on the development of employees currently in supervisory positions and ensure the management skills required for the growth of our Company are available.Regular performance and career development reviews are currently not available to the wider workforce in South Africa. In Tanzania and Botswana, no formal performance review programme currently exists.