creating and managing the social license to operate a mining company in south africa

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1 30 January 2014 | JAMES CAMPBELL, CEO JANUARY 2014 CREATING AND MANAGING A SOCIAL LICENSE TO OPERATE A MINING COMPANY IN SOUTH AFRICA: PERSPECTIVES FROM ROCKWELL DIAMONDS

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1 30 January 2014 |

JAMES CAMPBELL, CEO JANUARY 2014

CREATING AND MANAGING A SOCIAL LICENSE TO

OPERATE A MINING COMPANY IN SOUTH AFRICA:

PERSPECTIVES FROM ROCKWELL DIAMONDS

2 30 January 2014 |

THE SOCIAL LICENSE TO OPERATE

“The aims of this group (De Beers) have been - and will remain - to earn profits, but to

earn them in such a way as to make a real and permanent contribution to the well-

being of the people and to the development of Southern Africa.”

Ernest Oppenheimer

“ A good head and good heart are always a formidable combination. But when you

add to that a literate tongue or pen , then you have something very special.”

Nelson Mandela

3 30 January 2014 |

THE SOCIAL LICENSE TO OPERATE

“To gain the social license to operate a mining company in South Africa, one needs to

go beyond what is required by law. Rockwell Diamonds’ has gone a long way down

this road by creating a culture which embraces transformation, not only in its

operations, but also as it relates to its people and all other stakeholders. ”

“Making a meaningful contribution to transformation in South Africa

requires a disciplined and long term approach. This cannot be

addressed through quick fixes and tokenism, but rather needs to be

measured and balanced.”

Mark Bristow, Chairman

4 30 January 2014 |

INTRODUCTION:

EARNING THE SOCIAL LICENSE TO OPERATE

Rockwell’s objective: Create a growth-oriented mid-tier diamond mining and

development company

♦ Delivering positive shareholder returns without harming stakeholders

♦ Symbiosis with environment, communities and regulators

♦ Importance of job creation and wellbeing of local communities

Holistic approach to sustainability

♦ Commitment to all stakeholders, including employees and people affected by operations

Despite historic and financial challenges, Rockwell did not compromise on its triple

bottom line commitments

♦ Never lost sight that people are at the core of the business

Having the right policies in place is not enough: Entrenching practices into daily

operations is imperative

5 30 January 2014 |

GOVERNMENT STANCE:

ENVIRONMENTAL, SAFETY AND SOCIAL ISSUES IN MINING

Critical high level requirements from an MPRDA & MHSA perspective?

♦ SA’s Minerals & Petroleum Resources Development Act (MPRDA) outlines requirements for black economic empowerment at shareholder,

management and procurement level

Impacts for mining companies

♦ Heightened vigilence required by companies to deal with Mining Charter, royalties, health and safety, environmental laws and the

controversial Expropriation Bill

♦ Prescribes company involvement in social and community development not core business for Mining companies

♦ Royalties (introduced in 2009) led to higher costs: Exacerbated soaring global input prices, volatile commodity markets and turmoil in

financial sector with resulting difficulties in raising capital

♦ Safety under increased scrutiny in SA: Government proposing amendments to Mine Health & Safety Act (MHSA), designed to force

behaviour change

Possible negative industry-wide implications

♦ Ineffective management of a permit system, due to inadequate administration and management, will lead to delays and major concomitant

losses to employers and the country

♦ Potential to negatively affect international competitiveness of South African mining industry due to more red tape and potential for

considerable delays

♦ Regulatory environment regarded with suspicion by offshore investors and affecting investment decisions

♦ Increased scrutiny on safety and higher penalties for non-compliance could impair viabilitiy of small-scale mining companies

SA has a democratically elected ANC government: Active engagement towards social license to operate must be within spirit and

rule of the law

6 30 January 2014 |

PRIVATE SECTOR REALITY

Strengths

• Significant progress in terms

of safety goals

• Global demand for the

resources produced by SA

mining sector

Weaknesses

• Impact of widespread

corruption

• Lack of meaningful / broad

based BEE

• Lack of risk capital available

for junior miners

Opportunities

• Uniting stakeholders to

improve productivity and

address rising costs

• MPRDA amendments

Threats

• Continued labour unrest

• Rigid labour legislation

• Remuneration differential INDUSTRY GAP:

Ease of launching new trade unions

vs. capital intensive nature of mining

industry

GOVERNMENT CHALLENGE:

Foster innovation and assist job

creation: adopt Canadian model of

flow through shares?

7 30 January 2014 |

AN ENABLING CULTURE:

KEY TO BUILDING A SUSTAINABLE LEGACY

Rockwell’s values

ROCKWELL LEARNING: Creating an enabling culture underpins all we do: Provides platform for delivery

Integrating our corporate culture and strategic objectives

♦ Build a successful and profitable diamond mining company

♦ Also making a real contribution to the wellbeing of employees, local communities

and economic development in South Africa

Rockwell’s values guide the behaviors of all employees

♦ Represent Rockwell’s ideal work ethic and culture

Groupwide diversity training initiative rolled out

♦ Develop better understanding of differences among employees to develop better

relationships

Building the Rockwell Family

♦ Quarterly CEO breakfasts: Employees invited to discuss questions and issues

face-to-face

♦ Such as visits by HR personnel to families of employees when injured or

deceased

8 30 January 2014 |

ROCKWELL VALUES IN ACTION:

AFTER ATTENDING DIVERSITY TRAINING, OUR PEOPLE SAID…

“I learned the importance of not judging

and understand other people’s way of

thinking and personalities. That

everything bad/good works together for

good. That working together despite our

differences -white/black, we can achieve

more on our personal/work place. Always

keep an open mind, talk less and listen

more. That it does not matter where you

begin but what matters is how you finish.

That we need to materialize our thoughts

and learn as we go from mistakes.”

9 30 January 2014 |

287 carats Saxendrift Extension November 2013

EARNING OUR SOCIAL LICENSE TO OPERATE:

REVIEW OF ROCKWELL’S SOCIAL, ENVIRONMENTAL AND COMMUNITY INITIATIVES

10 30 January 2014 |

MANAGING OUR ENVIRONMENTAL IMPACTS

ROCKWELL LEARNING: Economic benefits of proactive environmental initiatives

Good understanding of top environmental risks and impacts

♦ Geology and Topography, Land capability and land use, Fauna and flora, Soil and water, Air

quality and Noise, Visual impact and Archeological and cultural sites

Measurement through EIA’s with bi-annual performance assessments in terms of MPRDA

Continuous rehabilitation: Concurrent with mining where possible

♦ Re-vegetation of rehabilitated areas: Two to three growth seasons to reach initial

predetermined land use

♦ 155ha of land rehabilitated across Rockwell’s properties in fiscal 2013

♦ Additional benefit: lower financial provision requirements while ensuring legal compliance

Rockwell commitment: Establishing at least two indigenous trees for removal of one protected tree

♦ Protected species: Boscia albitrunca (Shepherd’s tree) grows on many MOR mining blocks

♦ DoAFF approval required for removal while mining blocks of diamond bearing gravels

♦ Rockwell decision to mine around trees >2m rather instead of removal Mining around a Shepherd’s

Tree

11 30 January 2014 |

MONITORING OUR SOCIAL IMPACTS:

JOB CREATION

Mines located in regions affected by high unemployment and poverty

♦ Jobs created by Rockwell provide economic stability to employees and their

families

Focus on job creation

♦ >100 new jobs created at new Saxendrift Hill Complex mine

Support of Women in Mining

♦ 13% of total workforce vs 22% senior and 30% middle management

Improving Middle Management employment equity

♦ Attracting young HDSA geologists and metallurgists in plant supervisory roles

♦ Up from four in 2012 to 19 HDSAs in 2013

Focus on job retention

♦ 220 employees relocated to Niewejaarskraal after Klipdam disposal

African male 51%

African female

5%

Coloured male 26%

Coloured female

4%

Caucasian male 11%

Caucasian female

3%

DSA employment

INDUSTRY CHALLENGE: Job creation in poverty nodes + real transformation not tokenism

12 30 January 2014 |

ROCKWELL VALUES IN ACTION:

OPPORTUNITIES FOR OUR EMERGING LEADERS TO SHARE THEIR KNOWLEDGE

SAIMM’s Fifth Diamond Conference: March 2013

♦ Rockwell demonstrated leadership in alluvial diamond mining: The only company to deliver three high quality research papers

♦ Presented by three ladies showing real commitment to Women in Mining

INDUSTRY CHALLENGE: Provide opportunities for emerging technical professionals to present their knowledge

Forthcoming attraction: SAIMM’s Young Professionals Conference: March 2014

The role of subsidence in diamond preservation in the karst diamond

deposit of the Tirisano mine

Petronella Mohale

Mine Geologist

The impact of bottom cut-off on diamond mine recovery efficiencies Carole Ringane

Data Analyst

A study of the variation in the Rooikoppie gravels in the Lower Vaal

area

Mulalo Ndwammbi

Mining Manager

Bulk X-ray sorting technology vs. Conventional diamond processing

plants

Christophe Briers

Junior Engineer

Efficiency testing of Diamond processing plants Malthus Nenzhelele

Metallurgist

Impact of Geological mapping on alluvial diamond deposits Petronella Mohale

Mine Geologist

The use of Geological definition and controls in the development of a

sustainable Mine plan

Gary Dorkin

Mine Geologist

Legal Implications Versus The Social Imperatives to be Considered

Under the Transfer of Employees To NJK – A Unique Rockwell Story

Naledia Kau

HR Officer

Opportunities for our emerging leaders

to share their knowledge

13 30 January 2014 |

ROCKWELL VALUES IN ACTION:

RELOCATION OF KLIPDAM WORKFORCE POST DISPOSAL

Opportunistic offer to sell Klipdam accepted in March 2013

♦ Short remaining life of mine and poor financial performance

High level study at Niewejaarskraal

♦ Rapid board approval to reinvest proceeds to build new mine

Innovative approach to retain skills:

♦ 220 employees relocated to Niewejaarskraal: Eight accepted retrenchment

♦ Rockwell retained knowledge and experience

♦ Minimal retrenchment costs incurred

♦ Eliminated need for significant training costs for new workforce

Challenge

♦ Rapid development of new mine by technical team

ROCKWELL LEARNING: Key skills retained and retrenchment costs avoided

New Niewejaarskraal processing plant

14 30 January 2014 |

MONITORING OUR SOCIAL IMPACTS:

SKILLS DEVELOPMENT

Dedicated training and development capability

♦ Training and transformation committee oversight with Union

representation

Work skills plan including:

♦ Learnerships: Eight employees (boilermaking, fitting, electrical and

mechanical)

♦ Accredited internal training programmes aligned with NQF

♦ Statutory ABET programmes

♦ Young Professionals Mentorship and CEO Development

programmes

♦ Specific focus on Women in Mining

HCVW Training Budget

36%

Mentorship plan 1% ABET

Training Centre 11%

Portable skills:

welding, bricklaying,

driver's license

5%

Internal Learnerships

42%

Other Technical Support

Programmes 2%

Women in Mining

3%

Current training budget allocation

INDUSTRY CHALLENGE: Focus on training and providing career progression

15 30 January 2014 |

MONITORING OUR SOCIAL IMPACTS:

WOMEN IN MINING

Objective to increase particiation of Women in Mining: Current 6% with 5yr target of 10%

Demonstrate range of jobs available in non-traditional disciplines: Environmental science,

Social science and Occupational Health and Safety

Establish comprehensive tertiary based program to promote vacation opportunities in the

sector and establish a cooperative arrangement for extended work experience

Provide a gender-inclusive work environment: Professional and operational roles

Provide structured mentoring and training

Collaborate MQA and DMR

INDUSTRY CHALLENGE: Women in Mining to bolster specialist technical skills

Supporting Women in Mining

16 30 January 2014 |

MONITORING OUR SOCIAL IMPACTS:

CORPORATE SOCIAL INVESTMENT Rockwell has consistently supported various CSI initiatives, even while in a lossmaking position

Focus on supporting education of future generations of South Africans

Initiatives include:

♦ Financial support at Jannie Roux Home in Barkly West (place of safety for 75 children)

› Fixed monthly stipend towards overhead and catering costs + Ad hoc assistance + Annual Children’s Christmas

party

♦ Refurbished Vaal River School (+ hostel facilities) in partnership with Department of Education

› Sponsors three meals a day for 70 students

♦ Provided computer centers to three schools in Barkly West + covers cost of internet access

♦ Sponsors several sport development projects at three local schools + Annual rugby and soccer tournament

♦ Provides three meals a week to 140 senior citizens and people living with HIV/Aids in Gong-Gong near Barkly West

♦ Refurbished and extended Prieska School hostel

INDUSTRY CHALLENGE: Continual community investment: not just in the good times

Annual Christmas Party for children from Jannie Roux Home in Barkley West

17 30 January 2014 |

ROCKWELL VALUES IN ACTION:

CSI SYNERGIES WITH LOCAL COMMUNITIES

Support of local municipal IDP projects with non-financial

assistance

Objective to exceed regulated SLP compliance

♦ Seeking synergies with local municipalities to provide “in

kind”

assistance

♦ Direct engagement with local communities

♦ Partnership on specific opportunities allied with their IDPs

♦ Maintain cognisance of Rockwell’s cash constraints

♦ Donated 1x loader and a 30t ADT to Douglas municipality

to fulfill need regarding waste removal in IDP

INDUSTRY CHALLENGE: Relevant local community support to solve real challenges

18 30 January 2014 |

MONITORING OUR SAFETY IMPACTS

Multilateral approach to safety

♦ Collaboration with DMR, relevant trade unions and mine management to ensure safety

♦ Corporate Health and Safety Policy adapted to the specific needs of each operation

Objective per operation: Achieving 1,000,000 hours without any lost-time injury (LTIFH)

Building a proactive safety culture among employees

♦ Encouraged to take control of their own health and safety and that of their colleagues

♦ Trained to conduct mini risk assessments within job functions to manage operational

safety risks

Engaged with specialist consultancy to ensure world-class safety standards

♦ Streamlining and standardizing health and safety standards across operations

♦ Reviewing codes of practices, operating practices and policies

♦ Implemented recommended safety improvements

♦ Rolling out health and safety risk assessments and procedures

♦ Baseline risk assessments carried out at Saxendrift and Niewejaarskraal

♦ Issue based risk assessments conducted after any safety incident or introduction of new

equipment

ROCKWELL LEARNINGS: Safer work environment led by collaboration with all stakeholders

19 30 January 2014 |

ROCKWELL VALUES IN ACTION:

GOING BEYOND NORMAL MINE SAFETY

November 2013:

♦ Saxendrift and Saxendrift Hill Complex (SHC) exceeded

1,000,000 LTIFH milestone

♦ Tirisano reached a 500,000 LTIFH

♦ Saxendrift previously achieved 1,000,000 LTIFH in October 2012

before SHC start up

Safety milestones achieved as Rockwell was exceeding its carat

production targets

♦ Achieved despite aging yellow fleet

♦ Working not only harder but smarter and safer

♦ Good safety practices integrated into daily work practices

♦ Achieved despite aging yellow fleet

Two new mines built with minimal lost time injuries

Privately owned royalty mining contractors operating to Rockwell’s listed

entity standards

♦ Five royalty mining contractors at Tirisano

20 30 January 2014 |

MONITORING OUR HEALTH IMPACTS

Company sponsored HIV/Aids initiatives

♦ Voluntary HIV/Aids + TB testing offered quarterly at each operation

♦ Training provided to HIV/Aids peer educators

♦ Increasing uptake for HIV/Aids testing among employees

Primary health care from a mobile clinic in Barkly West

Annual employees medical screening

Illumination, dust, noise and bacterial levels tested on site by external occupational

hygienist

Remote location of mines necessitates on site accommodation for most staff

♦ Hostel accommodation recently upgraded: Two employees per room but effectively

single due to CONTOPS

♦ Continual review of menus to maintain a balanced nutritional quality with nutritional

supplements for overtime staff

Employee wellness programme launched

♦ Access to a qualified psychologist

♦ Legal and financial telephonic guidance

♦ Electronic e-Care service providing health and wellness-related information

Coping with stressStress is a normal part of life and one that is hard to avoid in our

ever-busy lives. Added to everyday stressors are the negative and

positive occurrences that can throw our lives into chaos, such as

moving house or extra tasks at work. It’s impossible to completely

avoid stress but you can learn to recognise stress triggers, evaluate

your reactio

n

s t o stress, and learn to better manage it.

Responses to stress include overeatin

g

, crying,

anger, pessimism (worst-case-scenario thinking),

depression, anxiety, insomnia, smoking, and

often unexplained pain – this from unconsciously

tensing the muscles in the shoulders and neck

which can lead to headaches, spasms, migraines,

back pain, and lack of sleep. Often people are not

aware that these responses are due to stress as

this can be an everyday part of life.

Tips for stressful daysManaging stress is about changing the stressful

situation if you can, changing your reactio

n

if you

can’t, taking care of yourself, and making time

for

rest and relaxation. There are many simple things

you can do to help alleviate the impact of stress.

• Buildyourdefences. Living a healthy lifestyle

can help you reduce background stress levels

which will make you more resilient, and

means that you can cope with major stressors

more effectively. So make sure you eat well,

get enough sleep, and exercise regularly.

• Changeyourenvironment.Work out what

causes you to feel stressed and if possible,

avoid those situations , or at least limit the

amount of exposure to those situation

s .

• Changeyourattitu

de. Ask yourself: “Will this

matter in 2 weeks, 1 month, 1 year?” Remind

yourself: “I am in charge. I’m not going to let

this get to me.” Focus on your strengths and

the things you feel confide

n t about.

• Socialise.Isolation has been linked to not

coping adequately with stress, heightened

vulnerability to illness, and even premature

death. So, get social.• Getridofanger.It is the single most damaging

stress-related personality trait that precedes

a heart attack. Seek help if necessary.

• Setyourprioritie

s

. Allocate time

to your

loved ones and to your job. Be realistic about

how much you can achieve in a day. And plan

your time at the end of the day so you can

start the next day on a good footing.

• Bedecisive. Indecision prevents you from

taking action

, causing a loss of sense of

control and thus intensifying stress.

• Getsomesleep.Lack of adequate sleep can

make you moody, angry, and more vulnerable

to illness and the daily stressors that stalk

you.

• Encourage yourself. Those who accept

mishaps as normal parts of life have higher

self-esteem and much lower stress levels.

• Rewardyourself.Doing something you enjoy

boosts your immune system for days.

Life skills

Copyright HealthInSite - www.healthinsite.net

Don’t look away, act against abuseEstablished in 1991, 16 Days of Activ

i

sm against Gender Violence

is a United Nation

s campaign. The event takes place annually

between 25 November (International Day of No Violence against

Women) and 10 December (Internation al Human Rights Day). The

South African Government upholds the campaign and includes

issues relating t o violence against children.

This campaign focuses primarily on generating

an increased awareness of the negative impact

of violence on women and children and aims

to encourage individuals, organisations , and

businesses to take practical steps to help stop

violence against women and children.

What is the purpose of the campaign?

• To generate an increased level of awareness

amongst South Africans relating to the

incidence of violence against women and

children, how it manifests itself within South

African society, and the negative impact on

these vulnerable groups.• To challenge perpetrators of these offences

to change their behaviour.• To enhance and increase partnerships

between government, the private sector,

civil society, organised labour, sectoral

groups, faith-based organisations , the media

(electronic and print), and the diplomatic

community in an effort to spread the message.

• To raise funds for NGOs that work within the

sector, providing invaluable support to the

victim

s

and sur vivors of violence.

• To communicate through the most effective

and appropriate channels aiming to reach

the maximum number of people across the

country, partic

u

l ar l y women and children

residing in rural areas.• To engage actively with men and boys in

the discourse about combating violence in

our homes, our communities , and in the

workplace.• To highlight the stories of survivors of gender-

based violence and child abuse, and the

impact that the campaign has had on their

lives.

Why is this an important campaign?

The rights of women and children are fundamental

human rights entrenched in and protected by the

Constitu t ion. Gender-based and child violence,

in all its different forms, devalues human dignity

and the self-worth of the person and must be

stopped in our society.How can you support this campaign?

South Africans are called to support the campaign

by wearing a white ribbon to show their solidarity.

By wearing these ribbons for the duration of

the 16-day period, you will be stating that you

support the campaign and will encourage others

to do the same, and in so doing, create greater

awareness.

Awareness

Copyright HealthInSite - www.healthinsite.net

Movember:changing the face of men’s healthDuring November each year, ‘Movember’ (derived from the slang word for

moustache ‘Mo’ and the month of ‘November’) is responsible for the sproutin

g

of moustaches on thousands of men’s faces around the world. The aim is to raise

funds and awareness for men’s health.

How does Movember work?On ‘Movember’ 1st, men are encouraged to

register at Movember.com with a clean-shaven

face and then for the rest of the month, groom,

trim, and wax their way into the archives of fine

moustachery. Women who register to support

the men in their lives, raise funds by seeking

sponsorship for these Mo-growing efforts.

Men embracing the Movember initiative

effectively become billboards during November

and will raise awareness by prompting private

and public conversation around the often ignored

issue of men’s health.Movember: a global movementSince its humble beginnings in Melbourne,

Australia, Movember has grown to become a truly

global movement inspiring more than 1.1 million

people to participate, with formal campaigns in

Australia, New Zealand, the US, Canada, the UK,

Finland, the Netherlands, South Africa, Ireland,

Denmark, Norway, Belgium, and the Czech

Republic.

No matter the country or city, Movember

continues to work to change established habits and

attitudes men have about their health, to educate

men about the health risks they face, getting them

to act on that knowledge thereby increasing the

chances of early detection, diagnosis, and effective

treatment. As a result, big steps have been taken

towards changing attitudes and habits relating to

men’s health around the world.The Movember effectThe funds raised in South Africa support the

number one and two male-specific cancers –

prostate and testicular cancer. The funds raised

are directed to programmes run by Movember and

the Cancer Association of South Africa (CANSA).

Together, these channels work together to ensure

that Movember funds are supporting a broad

range of innovative, world-class programmes in

line with the areas of awareness and education,

survivorship, and research. In South Africa, almost R2 000 000 has been

raised by this initiative to date. Via the moustache,

Movember aims to fulfil its vision of having an

everlasting impact on the face of men’s health,

by continuing to spark conversation and spread

awareness of men’s health each year.

For more information on the programmes that are

funded through this campaign, visit the Cancer

Association of South Africa (CANSA).

Awareness

Copyright HealthInSite - www.healthinsite.net

21 30 January 2014 |

LOCAL ECONOMIC DEVELOPMENT

Rockwell invested R2m to start Bokamoso, a small business managed and

operated by women

♦ Manufactures and supplies bricks in Northern Cape

♦ Subsequent expansion into civil construction in mining

♦ Low cost renovations in local communities

Carried out civil construction on Rockwell’s Northern Cape mines

♦ >R1.5m goods and services procured from Bokamoso in fiscal 2013

Brickmaking facility being handed back to community:

♦ Mentorship to ensure successful handover

Civil construction divisions continues as enterprise development initiative

Primary channel for Rockwell’s enterprise development initiatives

INDUSTRY CHALLENGE: Mentorship with ED creates long term opportunities at grass roots level

22 30 January 2014 |

LOCAL ECONOMIC BENEFICIATION

Local diamond beneficiation impacted by dwindling diamond cutting skills

base

♦ Number of diamond cutters in South Africa down to ±500: from some

5,000 to 10,000 15 years ago

Commitment to job creation extends from mines into diamond value chain in

South Africa

♦ Up to 10% of run of mine production sold to State Diamond Trader in

support of its commitment to sell these to local diamond cutters

♦ Sale of rough diamonds to Steinmetz Diamonds’ black economic

empowerment cutting and polishing facility

♦ Direct supply to 100% black-owned manufacturing facilities in South

Africa

More than 85% of Rockwell’s diamond production is beneficiated within

South Africa’s borders

♦ Led to creation of more than 20 jobs for specialized diamond cutters in

South Africa

INDUSTRY CHALLENGE: Enabling regulatory environment to support job creation

23 30 January 2014 |

BLACK ECONOMIC EMPOWERMENT Three tier strategy:

♦ Build a truly South African company

♦ Ensure BEE equity Participation and ownership as prescribed

♦ Proactive Workplace Empowerment incorporating employees, women, and

community development through cultural diversity

Middle Orange River Operations

♦ Unwinding of previous BEE partnership completed (final conditions precedent being

fulfilled)

♦ New partnership announced: Long established black investment company acquired

30%

♦ New partner’s approach is to strategically engage investee companies to unlock

value

♦ Expanding footprint in the MOR and perhaps in Northern Cape

Tirisano

♦ Bakwena Ba Mogopa Trust holds a 26% effective shareholding in Tirisano mine in

compliance with South African Mining Charter

♦ Partner unable to contribute their share of funding and liabilities: Tirisano mine fully

funded by Rockwell to date

♦ Unstable environment requires serious management time

24 30 January 2014 |

CONCLUDING THOUGHTS

Social license to operate: The key to unlocking sustainable and broad based value creation in Mining sector

Crucial role by government: Ensuring an enabling legislative environment to attract private sector investment in mining

Rockwell’s continues to strengthen its social license to operate:

• Embracing a culture of inclusivity and accountability throughout operations

• True transformation of the workforce supported by mentorship based on merit

• Demonstrable commitment to limiting our environmental impacts

• Job creation in poverty stricken regions of South Africa

• 85% local beneficiation of rough diamond production

• Significant progress on safety practices: 1,000,000 LTIFH achieved group wide in January 2014

• Training and development initiatives across all job grades

Call to action: All mining houses “walking the talk” could unlock significant triple bottom line value

Long term success cannot be counted purely on economic profits: Equally important is contributing to broader economic and social

development

25 30 January 2014 |

…ENCAPSULATED BY A JOURNALIST AFTER A VISIT TO OUR OPERATIONS

“…I spent two days visiting Rockwell Diamonds’ alluvial properties along the Middle

Orange River…’

“Not only did I discover the wonderful gems this company is recovering, but the real

gems that are making it happen – Rockwell’s employees. It didn’t take me long to

realise how devoted they are to their diamonds and doing what needs to be

done…”

“ … alluvial diamond mining … largely comprises juniors with limited cash …. They

need to find innovative solutions to problems. This makes determination,

dedication, and commitment essential prerequisites … and Rockwell has those in

abundance …”

“…the true beauty of a diamond lies in the hearts and souls of those who persevere

and pledge allegiance to their mine, giving it their all to make it work.”

Laura Cornish, Editor, Mining Review Africa, October 2013

26 30 January 2014 |

THANK YOU!

116 carats SHC August 2013