Annual Report and Accounts 2013
Petra Diamonds Limited 129
Overview
Performance Review
Strategic Review
Sustainability
Corporate Governance
Group Accounts
30. Subsidiaries
At 30 June 2013 the Group held 20% or more of the allotted share capital of the following significant subsidiaries:
Country of
incorporation
Class
of share
capital held
Direct
percentage
held 2013
)
2
Direct
percentage
held 2012
Nature of business
Autumn Star Investments (Pty) Ltd
1
South Africa
Ordinary
40%
40% Mining and exploration
Blue Diamond Mines (Pty) Ltd
3
South Africa
Ordinary
100%
100% Mining and exploration
Crown Resources (Pty) Ltd
South Africa
Ordinary
100%
100% Mining and exploration
Cullinan Diamond Mine (Pty) Ltd
South Africa
Ordinary
74%
74% Mining and exploration
Cullinan Investment Holdings Ltd British Virgin Islands
Ordinary
100%
100% Investment holding
Dancarl Diamonds (Pty) Ltd
1
South Africa
Ordinary
40%
40% Mining and exploration
Ealing Management Services
(Pty) Ltd
South Africa
Ordinary
100%
100% Services provision
Finsch Diamond Mine (Pty) Ltd
South Africa
Ordinary
74%
74% Mining and exploration
Helam Mining (Pty) Ltd
South Africa
Ordinary
74%
74% Mining and exploration
Kalahari Diamonds Ltd
United Kingdom Ordinary
100%
100% Investment holding
Kimberley Underground Mines JV Unincorporated JV
74%
74% Mining and exploration
Koffiefontein Mine JV
Unincorporated JV
70%
70% Mining and exploration
Messina Diamonds (Pty) Ltd
South Africa
Ordinary
100%
100% Mining and exploration
Messina Investments Ltd
South Africa
Ordinary
100%
100% Investment holding
Petra Diamonds Botswana (Pty) Ltd
Botswana
Ordinary
100%
100%
Exploration
Petra Diamonds Jersey Treasury Ltd
4
Jersey
Ordinary
100%
Treasury
Petra Diamonds Netherlands
Treasury B.V.
4
Netherlands
Ordinary
100%
Treasury
Petra Diamonds Southern Africa
(Pty) Ltd
South Africa
Ordinary
100%
100% Services provision
Premier Rose Management
Services (Pty) Ltd
South Africa
Ordinary
100%
100% Services provision
Sedibeng Diamond Mine JV
5
Unincorporated JV
74.5%
74.5% Mining and exploration
Star Diamonds (Pty) Ltd
South Africa
Ordinary
74%
74% Mining and exploration
Wilcroft Company Ltd
Bermuda
Ordinary
100%
100% Investment holding
Williamson Diamonds Ltd
Tanzania
Ordinary
75%
75% Mining and exploration
1. Although the Company owns 40% of Autumn Star Investments (Pty) Ltd and Dancarl Diamonds (Pty) Ltd, the Company has consolidated its investments on the basis of control
and management of daily and strategic operational activities.
2. The Group increased its effective interest in Cullinan (77.03%), Finsch (82.38%), Helam (86.80%), Koffiefontein (81.39%), Kimberley Underground (86.80%), Sedibeng JV (87.06%)
and Star (86.80%) through its investment in Nelesco (refer to note 3).
3. The Company owns 13.33% of Re Teng Diamonds (Pty) Ltd, through Blue Diamond Mines (Pty) Ltd, which increases its effective interest in Koffiefontein Mine JV to 74%.
4. Petra Diamonds Jersey Treasury Ltd and Petra Diamonds Netherlands Treasury B.V. were incorporated during the current financial year.
5. The Company owns an effective 57.5% of Sedibeng JV through its investment in Messina Diamonds (Pty) Ltd and an effective 17% of Sedibeng JV through its investment
in Autumn Star Investments (Pty) Ltd.
31. Pension scheme
The Company operates a defined benefit scheme and defined contribution scheme. The defined benefit scheme was acquired as part
of the acquisition of Cullinan and Finsch and is closed to new members. All new employees are required to join the defined contribution
scheme. The assets of the pension schemes are held separately from those of the Group’s assets.
Defined benefit scheme
The defined benefit scheme, which is contributory for members, provides benefits based on final pensionable salary and contributions.
The pension charge or income for the defined benefit scheme is assessed in accordance with the advice of a qualified actuary using
the projected unit credit method. The most important assumptions made in connection with the charge or income were that the
return on the funds will be 9.19% (30 June 2012: 8.95%), based on the average yield of South African Government long dated bonds
of 8.46% (30 June 2012: 8.95%), and that salaries will be increased at 7.59% (30 June 2012: 7.77%), based on current South African
consumer price index of 6.59% (30 June 2012: 6.77%). The market value of the assets of the defined benefit scheme at 30 June 2013
is R160.4 million (US$16.2 million) (30 June 2012: R139.0 million (US$17.0 million)) and the actuarial valuation of the assets on an
ongoing basis represented 94.4% (30 June 2012: 109.0%) of the benefit of R169.9 million (US$17.2 million) (30 June 2012: R128.0 million
(US$15.7 million)) that had accrued to members allowing for expected future increases in earnings. The notional pension deficit is
R9.5 million (US$1.0 million) (30 June 2012: pension surplus R11.0 million (US$1.3 million)). The notional deficit, arising due to actuarial
losses, is not recognised given it is within the IAS 19 corridor. The pension fund values are converted using the year-end foreign
exchange rate of US$1:R9.88 (30 June 2012: US$1:R8.16).
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