Petra Diamonds Limited
Annual Report and Accounts 2013
Strategic Review
The Group is exposed to a number of risks and uncertainties which could have a material
impact on its long-term development and performance and management of these risks is
an integral part of the management of the Group. The Board has identified the risks below
as being the principal strategic, operational and external risks (in no order of priority).
Retention of Key Personnel
The successful achievement of the Group’s strategy, business
plans and objectives depends upon its ability to attract and
retain certain key personnel.
Board responsibility
The Executive Directors, the Remuneration Committee
and the Nomination Committee.
Petra believes that employees who are empowered and
accountable for their actions work to the best of their ability
and are able to fulfil their true potential. The Group’s
employment policies and terms are designed to attract,
incentivise and retain individuals of the right calibre.
FY 2013 risk management
The Company has further developed its remuneration
strategy with the formalisation of performance based bonuses
for key management, a deferred bonus system based on
continued employment with the Company, the 2011 LTSP and
the 2012 PSP (see pages 75 to 77 of the Directors’ Remuneration
Report for more information) which is designed to reward
management for delivery against the Company’s long-term key
objectives, as well as retain key management for the longer term.
Strategic risk
Mining and Production Risks
The mining of diamonds from underground kimberlite deposits
involves an intrinsic degree of risk from various factors, including
geological, geotechnical and seismic factors, industrial and
mechanical accidents, unscheduled plant shutdowns, technical
failures, ground or water conditions and inclement or hazardous
weather conditions.
Board responsibility
The Executive Directors.
All of Petra’s existing kimberlite operations have long histories
of production and therefore the geology and economics of each
mine are well understood. Petra’s work to expand the lives of
its assets is classed as ‘brownfield’ expansion, and therefore the
existing knowledge of the deposits eliminates much of the risk
associated with developing a new diamond mine.
FY 2013 risk management
The Group’s management team is comprised of key personnel
with a substantial and specialised knowledge of mechanised and
underground mining and diamond recovery, and this skills base
enables the Company to manage mining and production risks.
Operational risk
Risk management
Risk management is the overall responsibility of the Board. The Audit Committee also plays an important role.
Board of Directors
Seven members
Three Executive Directors
Three independent Non-Executive
Directors including the Senior Independent
Non-Executive Director
Executive Directors
Three Executive Directors
Corporate Risk Management
Operations Risk Management
Board Committees
Audit Committee
Nomination Committee
Remuneration Committee
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