Petra Diamonds Limited Sustainability Report 201231ENVIRONMENTAL PERFORMANCEEnvironmental PerformanceProtecting our environment continuedEnvironmental incidentsEnvironmental incidents represent a major risk to our reputation and long-term licence to operate. We aim to minimise environmental incidents at all our operations and have put in place processes to manage, as effectively as possible, any incidents which do occur. We classify incidents according to their severity. $ A major environmental incident is associated with widespread, long-term, irreversible (within five years) negative ecological impacts with a high risk of legal liability. $ A moderate incident is associated with a widespread or localised, medium-term, reversible (within five years) significant ecological impact and/or has a risk of legal liability. $ A minor incident is limited to the immediate area of occurrence associated with a short-term ecological disturbance, environmental nuisance or a transgression of an internal standard (including complaints from interested and affected parties) that does not result in any environmental impact after a once-off internal intervention.$ An environmental near-hit incident is one with no effect on the natural environment, but with the potential to cause an effect. There are two reporting systems in place for operations to report environmental incidents. The underground pipe mines (Finsch, Cullinan, Kimberley Underground and Koffiefontein) have an electronic data management system in place called IsoMetrix. Incidents are recorded and managed on an ongoing basis and are only recorded as closed once all allocated actions have been addressed.Williamson and the Fissure Mines have documented systems in place where the Chief Safety Officer on site keeps a record of any reported incidents. The Environmental Officer is responsible for ensuring that appropriate corrective action is taken when necessary. At the Botswana exploration operations, the reporting system consists of report back by exploration field staff. A formalised system is currently under development. During FY 2012 one moderate environmental incident was reported at Kimberley Underground, when a pump failure resulted in considerable amounts of slimes overflowing and eventually flowing into Paardebergvlei (a seasonal wetland on a neighbouring De Beers property). No rehabilitation work was required as the ecosystem for the vlei has not been affected, but should a future need be identified, Petra will work together with De Beers on this in the future.The incident was reported to the authorities as required by law and we are undertaking significant work to prevent similar incidents in future, including:$ creating additional capacity at pollution control facilities (sumps) and installing bigger pumps;$ installing a back-up power supply system to ensure that power failures will not cause such negative impacts in future; and$ inspecting the slimes lines at least once a day to check for leaks. Minor incidents recorded were mostly water pollution related incidents at Cullinan, Kimberley Underground and Star. We are taking steps to ensure that further discharges of contaminated water into water bodies do not take place. No fines or instructions were issued to Petra for environmental infringements during the Year.PerformanceResource usagePetra requires a range of natural resources across its mines. We recognise the importance of using resources responsibly and monitor our usage carefully, ensuring that materials are reused or recycled wherever possible.The main materials used at our operations are fuel, LPG, lubricating oils, steel and timber.Weight of materials used by weight or volume in FY 2012:OperationTimber(kg)Steel(kg)Fuel¹(litres)Gases²(kg)Lubricating oils (litres)Finsch n/a³n/a1,878,9080126,948Cullinann/an/a1,719,5992,009219,163Koffiefonteinn/a368,000921,491044,094Kimberley Undergroundn/a415,000413,34315315,572Helam134,576147,66184,957012,305Sedibengn/a167,000154,24628821,883Star463,30210,92055,178187,375Williamson7,650108,0002,145,552Cooking gas: 54011,250Gas welding: 14,073Group total605,5281,216,5817,373,27417,081458,590Notes:1. Figures expressed as a combination of diesel and petrol consumption.2. LPG only.3. Figures for certain materials usage at certain operations are not available.Recycling 2012Materials recycled in FY 2012:OperationMetal(t)Used oil(litres)Conveyorbelting(t)Tyres(number)Paper(kg)Cullinan95954,040323803,160Finsch46942,8987503,868Koffiefontein2860101,360Kimberley Underground33712,0356275978Helam790000Sedibengn/a20,400000Starn/an/a000Williamson4512,00001500Group total2,175141,3731148059,366
Petra Diamonds Limited Sustainability Report 201232ENVIRONMENTAL PERFORMANCEEnvironmental PerformanceProtecting our environment continuedPerformance continuedWater usage Water is a scarce resource and we have identified the management of water as one of the Company's most significant environmental risks due to the impact of climate change. Our operations are water intensive and changes in temperature may affect the availability of raw water for treatment processes and impact on natural water sources that sustain the communities around our operations. Petra is therefore committed to utilising water responsibly and efficiently.Petra does not have a specific Water Management Policy, but our operations comply with all applicable laws and regulations and regularly monitor and manage water consumption and quality. In terms of the South African National Water Act, one Integrated Water Use License ("IWUL") has been issued to Finsch, while applications for four more operations have been submitted. Regular inspections and audits are performed internally to identify shortcomings in our resource management processes. In Tanzania, permits have been issued for water extraction for use in our operations. These cover the extraction of a total of 26,870m3 per day from three dams. Botswana is an arid country and water use is managed at all times.Total water used by our operations rose by 62% in FY 2012 to 14,593,831m3, while our diamond production effectively doubled, demonstrating our keen focus on this important area. Controlling our water usage will remain a core environmental priority. Practical initiatives we are undertaking include the establishment of a water purification plant at Cullinan to increase the re-use of water and limit the water usage per carat produced.We do not use harmful reagents when processing ore to liberate diamonds, however dust and iron silicate used in the processing of kimberlite ore do become trapped in the water as suspended solids. Wherever possible, we recycle water and remove or reclaim solids, reducing the environmental impact of our operations and improving operational efficiency. Approximately 42% of water used across our operations was recycled in FY 2012. Water withdrawal by source in FY 2012OperationMunicipal(m3)Groundwater (m3)Total% recycled2012¹Finsch 1,579,973 1,105,225 2,685,19865Cullinan 352,161 494,174 846,33599Koffiefontein396,438928,108 1,324,54699Kimberley Underground 116,159 3,397,481 3,513,6400Helam84,288 200,750 285,03832Sedibeng1,054 1,367,999 1,369,05355Star 81,158 453,571 534,72930Williamson04,033,7924,033,79262Botswana 0>1,500>1,50001. There is considerable variation on the amount of water that can be recycled per operation, as it is dependent on the type of system in place at each mine.Water sources significantly affected by withdrawal of water in FY 2012OperationWater sourceQuantitywithdrawn (m3)Finsch Vaal River 1,579,973CullinanWilge River 570,264KoffiefonteinKalkfontein Dam 800,000Kimberley UndergroundNone 0HelamElands River 84,288SedibengNone 0StarNone 0BotswanaGroundwater>1,500WilliamsonNone0Water scarcity There has been no impact on any operation or the communities in which we operate due to water scarcity, except in Botswana where water often has to be transported over considerable distances. Closer boreholes have been drilled to Petra's exploration sites to alleviate this issue.Water monitoringAll operations have formal monitoring networks and schedules. Surface and groundwater is monitored for quality and quantity at regular intervals ranging from monthly to biannually, depending on the operation's risk profile. We monitor closely the quality of water from our operations that is released into surrounding water sources. Results from the monitoring indicate that discharges from the mines are high in salts but do not indicate acid mine drainage.