Skip to content skip to secondary navigation

Letter from the CEO

Review

"I am proud to present Petra Diamonds' 2011 Sustainable Development Report, which outlines the Company's social, economic and environmental performance in the financial year to 30 June 2011, referred to throughout this report as "FY 2011". This performance is monitored according to international standards, and in compliance with all applicable laws and regulations."

Johan Dippenaar, Chief Executive Officer

Out of an implicit respect for the environment, this report is available as an online version only. It is compiled in accordance with the Global Reporting Initiative's (GRI) G3 guidelines and, since the majority of the Company's operations are in South Africa; the report also documents the progress that Petra has made against the objectives set by the South African Mining Charter.

Corporate social responsibility is very important to Petra and is integral to the way we structure and operate our mining, development and exploration projects. The Petra Group now encompasses over 4,600 people in South Africa, Tanzania and Botswana and as such is a significant employer in Africa. Petra is pleased to have taken over various operations and to have put in place long mining lives, which will ensure continuous stable employment for the Company's workforce - more information on this can be found in the case study, Extending the lives of our assets.

The year under review saw a number of significant successes in the area of sustainability, including the momentous achievements of reaching one million fatality free shifts at both the Cullinan and Williamson mines, the award of a Presidential certificate on forest management and water sources conservation to Williamson (as a district winner in the Shinyanga region of Tanzania), the submission of Integrated Water Use Licence Applications for both Cullinan and Kimberley Underground; and the approval of Kimberley Underground's Environmental Management Programme by South Africa's Department of Mineral Resources ("DMR").

Petra's Leadership Development Programme reached new heights during FY 2011, with the first group of participants, who started the programme in 2008, graduating at a function in Johannesburg.

The health and safety of our employees is the Company's most important priority. It was therefore with deep regret that we reported a fatality at the Koffiefontein mine in January 2011. The Company is focusing on implementing additional measures to prevent such occurrences and to ensure a zero-harm working environment. We are pleased to report, however, that our lost time injury frequency rate ("LTIFR") decreased from 0.99 in FY 2010 to 0.80 in FY 2011 and management will remain highly focused on this area.

Petra's social licence to operate is dependent on the Company establishing itself as a socially and environmentally responsible corporate citizen. Petra maintains excellent relationships with the communities surrounding its operations and we strive to implement sustainable initiatives that will endure long after mining has ceased. Corporate social investment ("CSI") and local economic development ("LED") programmes are the means by which Petra aims to enhance the lives of its employees, their families and the local communities surrounding its various operations. These programmes are decided upon and undertaken further to frequent and thorough stakeholder engagement. For more information on how Petra manages its relationships with local communities, please see the section on community development.

Petra is stringent in the management of its environmental impacts. The Company monitors its environmental performance based on its use of both water and energy; its management of the land upon which its operations are held, biodiversity, dust and waste; and its rehabilitation and closure procedures - striving to mitigate negative impacts in every possible area. For more information on how the Company manages the environmental stewardship of its operations, please see the section on environmental performance.

Petra believes in the integrity of its product and its distribution channels, and will only ever operate in countries which are members of the Kimberley Process, which imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as conflict-free.

Post year-end, the Company continued its corporate development by stepping-up from AIM to the Main Market of the London Stock Exchange in December 2011, further enhancing the company's profile as a leading independent diamond producer. As a public company, we are committed to the highest levels of transparency and are proud to demonstrate the positive socio-economic contribution that the diamond industry can make to the development of Africa. Petra will continue to prioritise sustainability and I look forward to reporting on our continued progress in future years.

GRI

The following GRI indicators are covered in this section:

Strategy and analysis
1.1
Statement by the CEO about the relevance of sustainability to the organisation and its strategy