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Petra Diamonds Limited Sustainability Report 201226OUR PEOPLEOur PeopleFostering our team continuedAdult basic education and trainingOne challenge facing Petra and our employees is the poor standard of education in South Africa, which has an illiteracy rate of 23%. On average, the illiteracy rate of Petra's South African workforce is 22%. In order to facilitate communication and understanding, improve our workers' skills and comply with the South African Mining Charter, Petra is committed to increasing the literacy levels of its employees through adult basic education and training ("ABET"). The purpose of Petra's ABET programme is to:$ provide individuals with the opportunity to gain a minimum level of education; $ provide employees with a basic education that allows for further development through South Africa's further education and training system; $ develop employees' skills and knowledge through participation in sector specific training opportunities; and$ develop a culture of lifelong learning.We have ABET facilities in place at all of our South African operations. Such facilities are provided by Petra in the case of the larger pipe mines and Sedibeng, whereas the other Fissure Mines (Helam and Star) have access to community ABET centres.ABET programmes may be run internally and presented by Company-employed facilitators or outsourced to other accredited, regulated providers, or a combination of the aforementioned, depending on the facilities available at each operation. In Tanzania, where the Williamson mine is located, the workforce has a much higher level of basic education, and it is estimated that 95% of Williamson employees are functionally literate and numerate. Likewise in Botswana, where our workforce is comparatively very small, ABET is not necessary.Portable skills trainingTo support the continued employability of our workforce, Petra has established portable skills training programmes at all our South African operations. These programmes provide employees with the opportunity to acquire a portable skill, which may prove useful upon leaving the mining industry. Training on offer includes carpentry, air conditioning repairs, computer skills, plumbing and brick-making. These programmes are also open to the local community to assist with wider skills development. There are currently no formal portable skills programmes in place in Tanzania and Botswana, although in the former we give continuous training in the workplace and distance learning programmes and short courses are well attended.Bursary schemeThe bursary scheme is part of Petra's SLP in South Africa. The bursaries give promising students the opportunity to study for a degree in a relevant discipline. In FY 2012, a total of 14 students were on the bursary scheme, although three have now been suspended for poor academic performance. Budget allocated for FY 2012ca. US$193,562 (R1,579,462)Budget allocated for FY 2013ca. US$269,181 (R2,196,520)LearnershipsA learnership is a registered and accredited learning programme in South Africa, which combines practical work experience with academic learning. Petra's learnership programmes are aligned to the Company's business plan and therefore aim to address skills shortages and job vacancies both at our mines and within the mining industry as a whole, with the objective therefore being to increase the pool of available labour both internally and externally.Learners are recruited from inside and outside the Company. Currently we have learners on a number of programmes ranging from various engineering disciplines (electrical, fitter, instrumentation, etc.) to rock breaking and metallurgy.In calendar 2012, 11 learners completed their programme. This number will increase to 36 in calendar 2013. Most of these learners will be absorbed into our workforce.The table below indicates the number of learnerships across Petra's South African operations currently and the expected pass out rate over the next four years. EqualityOur Disciplinary Code and employment policies prohibit any kind of discrimination.In South Africa, we have an Employment Equity Policy and have set up Employment Equity Committees at all of our mines, with membership drawn from employer and employee representatives, which monitor the implementation of Employment Equity Plans. These plans detail the identified barriers to equitable employment and specify affirmative measures to be implemented by each operation. Our Employment Equity Policy and plans are currently being reviewed to enable the Company to comply with the targets set in the Mining Charter. Diversity Champions have been trained and a diversity awareness workshop was conducted with Petra's Senior Management in FY 2012. LearnershipsExpected completion date2012201320142015Total Vacantearliestfinish 2015 Part-timeTotal Engineering: Diesel Mechanic122 5 5Engineering: Electrical1634144 18Engineering: Fitter 15 62 8Engineering: Fitter and Turner12 362 8Engineering: Instrumentation 11 1Engineering: Mechanician 11 13 3Engineering: Plater/Boilermaker5 3816 16Engineering: Plater/Welder 21362 8Engineering: Rigger1 1132 5Metallurgy Learnership 5 5 813Mining: Rockbreaking L2 and L3 137 20 22211361721851210107Section 18.1 Candidates¹:61Section 18.2 Candidates²:25Engineering Section 28 Candidates³: 6Notes:1. Section 18.1 Candidates refer to learners who are our employees. 2. Section 18.2 Candidates refer to learners who are not our employees but come mainly from our host communities. 3. Engineering Section 28 Candidates refer to learners who complete an apprenticeship following a more experiential approach and not a formal learnership.

Petra Diamonds Limited Sustainability Report 201227OUR PEOPLEOur PeopleFostering our team continuedEquality continuedZero incidents of discrimination (on grounds of race, colour, sex, religion, political opinion, national extraction, or social origin) were reported in FY 2012.The Company has initiated a diversity management programme in order to inform management and employees about issues affecting women in mining and we regularly consult with unions representing women in mining. Our aim is to fill as many available positions as possible with suitably qualified female candidates and our key challenge is to attract and retain skilled women. Our approach to gender diversity complies with the South African Mining Charter.No gender distinction is made with regard to salary scales. We offer the same remuneration per employee category, regardless of gender.The total number of women employed by Petra is 669, 14% of the Group's workforce.The total number of women employed by Petra in management positions is 39, 0.8% of the Group's management. We have identified Williamson as a target for improving the proportion of women in the workforce as social stereotypes in Tanzania, together with a very small personnel turnover ratio at the mine, have limited employment opportunities for women. As and when employment opportunities become available at Williamson, affirmative action and measures are being taken by Petra to promote the employment of women, thus gradually improving the female to male ratio.Labour relationsPetra has aligned its principles with the International Labour Organisation Declaration on fundamental Principles and Rights at Work through compliance with the Labour Relations Act (Act 66 of 1995), which regulates collective bargaining and outlaws any form of child forced labour, and the Employment Equity Act (Act 55 of 1998), which prohibits any kind of unfair discrimination. We respect our workforce's right to exercise freedom of association and collective bargaining across all of our operations. Any union that has achieved sufficient representation in the workplace may request recognition. Union membership across our operations represents 77% of the total workforce. Our employees in South Africa belong to three unions: the NUM, which represents the majority of our workforce in South Africa, the United Association of South Africa ("UASA") and Solidarity. 23% of our South African workforce is not affiliated with a union. In Tanzania, 84% of our employees are affiliated with the Tanzania Mines, Energy, Construction and Allied Workers Union ("TAMICO"), while 16% are unaffiliated.At an operational level, there are grievance procedures in place for employees, with final recourse to the Commission for Conciliation, Mediation and Arbitration ("CCMA") in South Africa or with the Commission for Mediation and Arbitration ("CMA") in Tanzania.Petra has historically had a strong track record of stable labour relations, but further to the labour unrest which was experienced in South Africa in calendar 2012, the Company remains vigilant with regards to this area and continues to monitor the situation across its South African mines. We at Petra believe that dialogue is the key and we are therefore focused on continuing to communicate openly with our employees, trade unions and local community representatives. There were zero strikes and lockouts exceeding one week's duration at any of our operations in FY 2012.Benefits received by employees are negotiated in either collective bargaining agreements or in individual agreements with employees who are not covered in collective agreements. These include issues related to their conditions of employment, and other site specific benefits such as medical travel assistance, school buses, school subsidies, etc. which can be included in either individual or collective agreements, or in the corporate social responsibility programmes of the operation concerned. In South Africa, the period of notification relating to operational changes varies depending on the nature of the change in question and parties involved in the consultation process. However, the minimum notification provided by legislation ranges from one week to one month and is governed by the Labour Relations Act. Certain changes, for example the implementation of Continuous Operations, are covered in collective bargaining agreements (three months' notice in this specific case). In Tanzania, changes can be implemented with 24 hours' notice. In Botswana, the minimum notification period can be between one week to one month and is not specified in agreements. Accommodation and living conditionsIn accordance with the South African Mining Charter, Petra has developed an accommodation strategy which is organised at an operational level. Each mine has its own policy regarding the accommodation it provides. Some of our employees are accommodated in hostels. In FY 2012 the hostels at Cullinan and Finsch were upgraded to private single accommodation. In FY 2013 we will complete the upgrading of the facilities at Helam and Star. The total number of employees currently residing in hostels/single quarters is 466, 10% of the total number of permanent employees across the Group.MinesHostel(room sharing)Single quartersPercentage of the workforceFinsch-16022% Cullinan -10510% Helam 145-25% Sedibeng -163% Star 40-20%Plans are in place to convert all hostels into family units or at least single quarter accommodation by 2014, in accordance with the Mining Charter. In Tanzania, Williamson provides accommodation for all permanent employees and some contractors, and in Botswana, tented field camps accommodate employees on field operations.