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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.

Petra Diamonds Limited Sustainability Report 201233ENVIRONMENTAL PERFORMANCEEnvironmental PerformanceProtecting our environment continuedPerformance continuedWater monitoring continuedPercentage and total volume of water discharged OperationQuality¹DestinationAmount allowedto be released (m3)Actual amount releasedin 2012 (m3)Cullinan750Premiermynloop 2,886,000 69,947Finsch 0 0Koffiefontein2,000Mine Lake 2,264,256² n/aKimberley Underground3,800Du Toits Pan Not specifiedn/aHelam 0 0Sedibeng4,700Ghaap Escarpment1,460,000³ 474,500Star2,400Theronspruit 730,0004 62,112Botswana UnknownWilliamsonIn slurry formSlimes dam2,520,000 2,314,466 1. Expressed in terms of Total Dissolves Solids (TDS mg/l).2. Volume specified in Water Licence Application, yet to be approved. 3. Volume specified in Water Licence Application, yet to be approved (?4,000m3/day).4. Volume specified in Water Licence Application, yet to be approved (2,000m3/day).Water dischargeDischarge of polluted water into surrounding water sources represents a significant challenge for the Company. Two water bodies are affected by discharge from our operations:1. Theron SpruitThe discharge/seepage from Star's two fine tailings dams enters the Theron Spruit stream. The stream is non-perennial but the character has changed to perennial due to the seepage from the mine. 2. Du Toits PanThe Du Toits Pan is adjacent to the Kimberley Underground operation and is the lowest point in Kimberley. Thus all water (storm water as well as any affected water not contained in a system) drains into this area. During the Year both these water sources were affected by discharges:$ slimes spillages and effected water discharge into the Du Toits Pan in Kimberley - see section on Environmental incidents on page 31 for more information; and$ contaminated water discharge at Star Diamonds.We are taking steps to mitigate the impact of these discharges and ensure that further discharges of contaminated water into water bodies do not take place. In all our operations where figures are available the amount of water discharged to external sources is considerably below the permitted limits. Energy usageDiamond mining is an energy intensive activity. Our main sources of energy consumption are electricity and diesel, which represent a growing proportion of our cash on-mine costs due to rising electricity prices. The majority of energy used at Petra's operations is externally supplied, primarily by South Africa's national power utility, Eskom, and its equivalent in Tanzania, Tanesco. At Williamson, the Mwadui power station, which is run by Tanesco and located at the mine, generates power directly for its use. In FY 2012, the power station generated 590,560 kWh of electricity. Petra has also installed backup diesel generators at Williamson sufficient to run the existing plant at the mine should there be power supply disruptions.Indirect energy consumption broken down by primary sourceOperationElectricity (kWh)Diesel¹(litres)Other²(litres)Finsch 133,360,095 1,946,713 50,962Cullinan 156,212,008 8,250,652 13,066Koffiefontein47,689,310937,092 32,958Kimberley Underground42,880,188 369,89343,450Helam11,243,938 86,026 9,616Sedibeng15,074,497 127,868 12,309Star6,366,084 37,883 0Williamson17,682,480 2,082,491 0Group total430,508,60013,838,618162,361Our total energy consumed increased by 92% in FY 2012, further to the acquisition of the Finsch mine during the Year and the effective doubling of production.All our operations monitor energy usage and have implemented initiatives to reduce energy consumption and increase energy efficiency wherever possible. Petra utilises accurate real time energy measurement and equipment control. In South Africa, operations focus on continuous improvement through energy saving initiatives including the use of fluorescent light bulbs and the introduction of more efficient machinery, such as smaller compressor units at Cullinan. In Tanzania, operations focus on the continuous quality improvement and increasing the efficiency of machinery. In Botswana, operations are exploring the use of solar energy where possible.Initiatives undertaken at all our operations during the Year include:$ the standardisation of Premium Efficiency Motors, which led to an average 2.1% energy saving on installed motors;$ load control during peak times, saving 8 MVA in FY 2012; $ energy efficient lighting for plants and the underground mines;$ Power Factor Correction Optimisation (i.e. improved monitoring conditions to enable the more efficient use of power and to minimise wastage), which reduced power consumption by 46 GVAr during the Year; and$ usage of energy saving devices and power sources. Climate change Our operations are significant users of energy and our mines produce direct and indirect carbon emissions. We recognise the growing importance of climate change to our stakeholders and the risks and uncertainties climate change represents to our business in particular with regard to the availability of water. We are currently developing strategies to help deal with these challenges and monitoring, to establish a baseline for future strategies, is currently underway.Carbon emissionsWhilst we monitored emissions data for three of our operations in FY 2011, in FY 2012 we have put in place monitoring criteria for all of our operations so that we can now determine the Group's total direct and indirect emissions. This is in advance of the mandatory reporting of greenhouse gas emissions that will come into place for London listed companies from April 2013.We are also raising awareness of climate change and carbon emissions amongst our employees through environmental awareness training carried out at our mines. Notes:1. Diesel used for transportation.2. Unleaded petrol for transportation.