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.
Petra Diamonds Limited Sustainability Report 201234ENVIRONMENTAL PERFORMANCEEnvironmental PerformanceProtecting our environment continuedClimate change continued Carbon emissions continuedCarbon emissions in FY 2012OperationDirect (tonnes) Indirect (tonnes) Other (tonnes)Finsch 4,928137,36164Cullinan4,520160,89814Koffiefontein2,42149,1205Kimberley Underground1,07444,16780Helam20811,5815Sedibeng37715,5270Star1036,55750Williamson35,8991,5930Group total49,529426,804218The Petra Group emitted a total of 476,551 tonnes CO2 equivalent of carbon in FY 2012. Going forward, we will be able to provide comparable figures to demonstrate year-on-year performance in this area and ensure that we are managing our emissions responsibly.Land management and biodiversityWe recognise that our activities have an effect on biodiversity in the regions where we operate and we aim to monitor these impacts and protect and conserve habitats and vegetation wherever possible. We are currently developing rehabilitation and closure plans to assist in returning land to its previous state on completion of our activities. Each operation's EMS sets out its commitment to biodiversity management and protection, including the requirements of South Africa's National Environmental Management: Biodiversity Act and additional initiatives applicable to our operations. Additionally, our South African operations require and are in the process of implementing more detailed Biodiversity Management Plans ("BMPs") to manage the ongoing issues of protection and rehabilitation. Finsch, Cullinan and Kimberley Underground have BMPs in place and Koffiefontein will develop a BMP within the next 18 months. None of our South African or Tanzanian operations are located in or adjacent to protected areas or areas of high biodiversity value. Approximately 12,726km² of land under exploration licence by Petra in central Botswana is in a biodiversity-rich area and we have a BMP in place there to ensure the land is managed responsibly. A Group-wide Biodiversity Action Plan setting out our principles and policies at a Group level is envisaged for the future, but is complicated by the vastly diverse biomes in which the respective operations are located.As part of our environmental management strategy, studies are undertaken to identify indigenous fauna and flora before the development of greenfield areas and measures taken to protect endangered species. These measures include the relocation of the species to 'no-go' alternatives, as in the case of the 'Cullinan Ant', the new species of ant identified in 2001 near the Cullinan mine site. The mine now ensures that no tailings are deposited in the habitat of the Cullinan Ant. Other examples include the relocation of Shepherd's trees (Bosciaalbitrunca) which would be affected by the expansion of the Brits Fine Residue Deposit and Koffiefontein financially supporting a BirdLife research project on the endangered Secretarybird which nests in the trees on the mine's game farm (see case study on page 37 for further information).We have also established protected habitats for local vegetation and wildlife. Operations at Finsch, Cullinan, Koffiefontein and Helam have established game farms totalling over 5,400 hectares. These game reserves are fenced to ensure a demarcation from the general mining area and are managed by independent committees, normally chaired by a Company-appointed representative. Williamson maintains a large forest reserve of some 9,060,000m² which protects different species of trees (mainly indigenous), animals and birds. In FY 2012 the mine won the Presidential Award on Water Management and Forestry Conservation (see case study on page 38 for further information).