Balancing responsible mining with operational efficiency is a defining theme across Africa’s resource sector, and for diamond miner Petra Diamonds, that balance is central to long-term strategy, says Petra Diamonds safety and environmental, social and governance (ESG) lead Nobu Ncube.

“Sustainability is at the heart of everything we do. Our purpose is to create abundant outcomes for people, communities, investors, customers and all our stakeholders through responsible mining.”

Petra’s sustainability framework has four pillars: valuing people, respecting the planet, driving shared value partnerships and delivering reliable production.

“We look to improve our performance against these pillars every year,” says Ncube, adding that health and safety are the top operational priorities, with the company having reached eight fatality-free years of operations this year.

The people pillar also covers diversity, inclusion, health and hygiene, and training.

Ncube says shared value partnerships are central to how Petra engages host communities: “Our Culture Code invites employees to share how their work makes every day extraordinary”.

The company’s Because of You campaign acknowledges community projects and the effort behind them, such as its Cullinan mine’s support for Bongi Bees Honey.

“We helped a female-owned beekeeping enterprise set up a beekeeping container on-site. The container quadrupled honey production capacity and improved livelihoods,” she says.

Efforts towards an energy transition is also a major focus. In May 2024, the company signed long-term power purchase agreements (PPAs) with green energy supplier Etana Energy for the Cullinan and Finsch mines.

“Once implemented, the PPAs will supply between 36% and 72% of each mine’s expected load,” says Ncube, elaborating that Etana will wheel solar PV and wind energy across the national grid to its operations.

“Etana’s wind-heavy portfolio gives a consistent renewable supply, which supports cost savings and environmental benefits.”

Petra expects these PPAs to help decrease its Scope 1 and 2 greenhouse-gas (GHG) emissions by between 35% to 40% by 2030 against a 2019 baseline; however, Petra’s GHG emissions are relatively small in comparison to other mined commodities, adds Ncube.

“We have set a long-term net-zero target for Scope 1 and 2 emissions by 2050, and aspire to reach that by 2040 or earlier, for which we are on track. We are implementing renewable solutions, engaging suppliers to assess Scope 3 emissions, and disclosing climate data in line with Task Force on Climate-related Financial Disclosures [TCFD].”

Petra uses representative concentration pathways to model risks and opportunities to 2040, helping the company to analyse temperature, drought, water stress and precipitation indicators to identify physical and transitional risks. This analysis informs capital allocation and operational planning.

As for its water management, the company is focused on strengthening its water stewardship and transparency.

“Most of our operations are in water-stressed regions, so water stewardship is imperative,” she adds, noting that Petra aims to secure access, optimise storage and recycling, prevent pollution and support host communities’ water needs.

The Cullinan and Finsch mines use treated municipal effluent, while Finsch is also exploring a quarry water source to reduce potable water demand – a process in which permitting work is under way.

Further, Petra has strengthened governance to embed ESG at board level with the merging of the health and safety, and sustainability committees into one safety, health and sustainability committee in January 2024.

Petra chairpersonship has been designated to the nonexecutive director responsible for ESG, and climate risk is tracked monthly by the executive committee and quarterly by the audit and risk committee.

The company’s reporting also follows global frameworks, such as those of Global Reporting Initiative-aligned disclosures and TCFD reporting.

These frameworks have not only bolstered in-house governance but also improved risk identification and understanding of the provenance of our product, says Ncube.

Petra uses enterprise risk management to allocate capital expenditure for resiliency efforts, from water security to tailings stability.

However, Ncube notes that community engagement remains a continuous priority, and the company launched a multi-stakeholder engagement forum in 2023 to strengthen dialogue with host communities.

“Petra’s stakeholder policy is guided by the Organisation for Economic Cooperation and Development Guidelines for Multinational Enterprises, which promote responsible business practices, and by [the] AccountAbility AA1000 Stakeholder Engagement Standard, which helps companies [to] engage and respond to stakeholders in a structured, transparent and responsible manner.”

She adds that the main and common discussion points includes local procurement, job creation, support to community development programmes, artisanal mining and environmental concerns, noting that they collaborate with municipalities and other government departments to align projects with integrated development plans.

The company’s near-term focus is to deliver on its updated business plan, commitments against its social licence to operate and provide a sense of stability to its employees and local communities after a cost-cutting and refinancing initiative, whilst also maintaining its other sustainability pillars.

“We have become a leaner business and now aim for stability whilst delivering on our strategic objectives. Our priority is to drive the sustainability framework within our new company profile. We are really just working to remain the responsible mining company that we are,” concludes Ncube.