Namakwa Diamonds

Environmental commitments of the Namakwa Group

In common with other mineral resource companies, Namakwa's operations produce waste material and emissions into the atmosphere, water and soil, although the nature of alluvial mining is less intrusive on the environment than kimberlite mining and the mining of other natural resources such as copper, oil and gas. Nonetheless, there are environmental laws in South Africa, Angola, the DRC and Namibia that apply to Namakwa's mining projects and Namakwa is currently in material compliance with such legislation. In addition, each of the jurisdictions in which Namakwa has mining assets is a signatory to the Kyoto Protocol which is intended to limit or capture emissions of greenhouse gases such as carbon dioxide. Notwithstanding the likely increase in the precise nature of any revised environmental legislation and regulation in these jurisdictions, given the environmental legislation that is already in place in each of the jurisdictions, the Directors do not believe that the implementation of the Kyoto Protocol will materially increase Namakwa's environmental obligations.

Namakwa has implemented a standard process of environmental performance and compliance at each of its operational mining sites, with environmental liability assessed by independent professionals. Namakwa's current environmental liabilities in South Africa are estimated by the Directors to be less than US$2 million and the South African Department of Minerals and Energy has demonstrated that they are satisfied with Namakwa's rehabilitation plans and financial provisions.

Health and safety

Namakwa is required to comply with a range of health and safety legislation in the jurisdictions in which it has operations and it recognises that the health and safety of its employees is a major priority. As such, Namakwa implements periodic independent safety audits to ensure ongoing compliance with its legislative requirements.