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Petra Diamonds Limited Sustainability Report 201239COMMUNITY" Positive relationships with local communities are vital to securing support for our activities."

Petra Diamonds Limited Sustainability Report 201240COMMUNITYCommunityEnhancing our communitiesOur approach Positive relationships with local communities around our operations are vital to securing support for our activities and maintaining our social licence to operate.We seek to engage openly and work in partnership with Governments, communities (through the local municipalities that are elected to represent them) and other identified stakeholders to ensure that our operations have the maximum, long-term positive impact on host communities and to minimise any negative impacts. Some of Petra's operations have a defined Stakeholder Engagement Plan ("SEP") in place and we are in the process of developing an overarching Stakeholder Engagement Policy in order to ensure consistent standards are applied across the Group. Our operations are predominantly located in remote areas which have a low level of socio-economic development and high unemployment, as characterised by the estimated unemployment rate in South Africa during 2012 of ~25%. Our community development efforts aim to contribute to these local communities through initiatives which focus on alleviating these issues, as well as the key areas identified through our community engagement programmes:$ sustainable job creation;$ poverty alleviation;$ skills transfer; and $ enterprise development in local communities.Where possible we establish partnerships with Government, communities, NGOs and educational institutions to ensure the impact of our initiatives is maximised. Our Group CSI spend in FY 2012 totalled ca. US$3.3 million, which represents approximately 1% of our revenues. We expect to maintain CSI spend at or around this level on an ongoing basis.We have committed over R5 billion in South Africa to extending the lives of our mines, and believe this will ensure long-term employment for our workers and contribute to the future sustainability of the communities surrounding our operations. Assessing and managing our impactsWe are cognisant that our operations do impact on their local communities and we have practices and programmes in place to evaluate and manage such impacts. These plans take into account the full lifecycle of an operation, so as to properly assess the impacts and measures required upon entering, operating and exiting a project, and are in accordance with the requirements of our mining rights.In South Africa, the SLPs in place for each mine define their obligations in terms of social, labour and community issues. All our SLPs have been approved by the DMR, with the exception of the Helam and Sedibeng SLPs, which are still going through the approval process.The SLPs form the basis for our activities and performance indicators over a five-year cycle, following which a new SLP needs to be consulted with stakeholders and approved by the DMR. Additionally, each operation is subject to the targets set out in the South African Mining Charter. The SLPs are generally drafted to incorporate some of the targets of the Mining Charter relating to Human Resources Development ("HRD"), procurement, local economic development ("LED") and housing.Our performance against these targets is subject to numerous checks, with each operation reporting annually to the DMR through the submission of a Mining Charter Report and through the annual submissions of their Social and Labour Reports. Additionally, legislation provides for an annual audit by the DMR. During these audits, various external stakeholders, including municipality and labour representatives, are present in addition to representatives from the DMR. The SLPs for our South African operations are at different stages within their respective five-year cycles and Petra remains committed to honouring all of the commitments made within them. Details of progress towards these targets is contained in detailed reports submitted to the DMR, as referred to above, and a summary can be found within the Group Social Spend Summary on page 41.CommunityOur operations are predominantly located in remote areas where the mine is the primary economic contributor to the area and our community development efforts aim to make a positive contribution to these local communities.SUMMARY$ Our plans take into account the full lifecycle of an operation, so as to properly assess the impacts and measures required upon entering, operating and exiting a project$ Effectively managing stakeholder expectations requires open and transparent communication$ Where possible we train the local community in the skills required to maximise the benefit of our CSI projects$ The multiplier effect of our mines means that whilst we directly employ 4,768 permanent employees and 807 contractors, a significantly larger number of people are dependent on our operations