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COMPLIANCE VERIFICATION REPORT

ANJIN INVESTMENTS (Pvt.) Ltd.

5 - 9 November 2011

KP MONITORING TEAM ON MARANGE Abbey Chikane Mark Van Bockstael

COMPLIANCE VERIFICATION OF ANJIN INVESTMENTS (PVT) Ltd - Nov. 2011

KP Monitoring Team 2

CONTENTS Executive Summary 3 Introduction 4 Acknowledgements 4 Programme of Visit 5 Anjin Investments (Pvt) Ltd. Diamond Mine 6

- Location 6 - Geology 7 - Production Footprint 7 - Mining 9 - Processing Plants 10 - Sort Plants 11 - Vault 11 - Security 12 - Conclusion 14

Anjin Investments (Pvt) Ltd. Sorthouse 15 - Workflow 15 - Security 16 - Conclusion 16 Anjin relocation programme 17 - Community profile and the relocation 17 - Corporate Social Responsibility Plan 17 Final Conclusion 23 ANNEX I – Kinshasa Agreement 24



Executive Summary The KP Monitoring Team on Marange appointed by the KP Plenary in Kinshasa on 1 November 2011, and consisting of Mr. Abbey Chikane and Mr. Mark Van Bockstael, has executed a compliance verification visit to the Anjin Investments (Pvt) Ltd diamond mine in Marange and its sorthouse in Harare from 5 through 9 November 2011. The visited company is fully compliant with all aspects of the national legislation concerning the mining of precious stones. The visit to the Anjin diamond mine in the Marange diamond field, has revealed a very high level of transparency and accountability in all its operations and procedures that were made available to the KP Monitoring Team in hard and soft copy. Furthermore, the KP Monitoring Team was impressed by the zeal of the mine management and staff to excel in all aspects of the mining operation. The KP Monitoring Team further noted with appreciation the willingness to immediately implement suggested improvements, and the great care for the environment and the remaining rural population. At the moment of the visit, 5 independent processing plants were in operation, but 2 further new processing plants are under construction. At full throttle, the monthly production capacity may reach approximately 2 million carats for which a comprehensive production footprint has been developed. Security at the mine is very performing and able to secure the concession area and the mined product. The visits to the Anjin sorthouse at the international airport in Harare, and the test run of all aspects of the workflow, allowed the KP Monitoring Team to assess first hand the high level of transparency and security, consistent with the operations at the mine site. The KP Monitoring Team also visited the Odzi relocation area and was most impressed with the accomplishments sofar. Already more than 300 families have been resettled, the remainder to be relocated before year’s end. More than 400 threeroom houses with separate kitchen and toilet facilities have been finished. More than 45kms tarred roads are being finished and a waterpumping and purification station has been built providing all families with clean tap water. Primary and secondary schools have been built and await their first pupils. A clinic is nearing finalisation and each family has obtained approximately 0.5ha of land from the government that has been leveled and irrigation systems have been put in place. Based on the documents obtained and the visits performed, the KP Monitoring Team on Marange concludes that the operations at the diamond mine in Marange, at the sorthouse in Harare and at the relocation area at the ADDA Transau Estate are fully KPCS compliant as of 17 November 2011.

__________



Introduction In view of the adoption by the KP Plenary on 1 November 2011 in Kinshasa, of the "KP Chair proposal for draft decision on Marange (Zimbabwe)" hereafter referred to as "Kinshasa Agreement" (see Annex I), including the appointment of the KP Monitoring Team on Marange, and the standing invitation from the Ministry of Mines and Mining Development of Zimbabwe of 17 October 2011 to the KP Monitoring Team, to verify compliance of the Anjin diamond mine in the Marange area, a compliance verification visit has been organised between 5 and 9 November 2011. This report covers the compliance verification by the KP Monitoring Team of the "Anjin Diamond Mine" in the Marange diamond area, the resettlement area at ADDA Transau and at the Anjin sorthouse at the International Airport in Harare. All aspects concerning operational processes and chain-of-custody have been thoroughly investigated and tested as required.

Acknowledgements The KP Monitoring Team wishes to convey its gratitude to the Minister of Mines and Mining Development, Hon. Obert Mpofu, to Deputy Minister Hon. Gift Chimanikire and Permanent Secretary Mr. Prince Mupazviriho for their much appreciated hospitality and their willingness to allow the KP Monitoring Team unhindered access and full collaboration with the Administration of the Ministry of Mines and Mining Development. We are in particular grateful for the relentless assistance particularly from Mr. John Makandwa and the whole team of Mr. Charles Tawha. The KP Monitoring Team is also grateful for the great Chinese hospitality and welcome it experienced at the mine site and at the ADDA Transau relocation site by the management and staff of Anjin Investments (Pvt) Ltd. The KP Monitoring Team especially commends the preparatory work for this compliance verification visit by the team of Global Diamond Valuators Namibia (PTY) Ltd. that made the time spent more efficient and effective. More in particular, all procedures and processes have been documented and made available to the KP Monitoring Team in soft and hard copies. Further thanks is due to Mr. Denis Langlois of the Canadian Embassy and to the EU delegation in Harare for organising at very short notice a meeting with the diplomatic representatives of KP Participants. Finally, the KP Monitoring Team is especially grateful to the KP Chair, Mr. Mathieu Yamba Lapfa Lambang, for assisting with some important aspects of the logistical planning of this trip.



Programme of Visit Saturday, 5 November 2011:

The KP Monitoring Team arrived at Harare International Airport during the morning and was immediately taken by car to the Marange diamond area to visit the Anjin diamond mine at Chirasika, where the compliance verification visit started. 04:00PM: Powerpoint Presentation on the Anjin Diamond Mine by GDV and showing of introductory video footage 04:30PM: Security and Safety Induction 05:00PM: Visit to Processing plants, Sort plants and CCTV monitoring centre 07:30PM End of Visit

Sunday, 6 November 2011: In order to optimise the time available, the KP Monitoring Team decided to split up and run separate programmes. Mark Van Bockstael 05:30AM: Start visit to mine site A (conglomerate mining) 07:00AM: Visit to alluvial (sandy) deposits being mined 07:35AM: Visit to mine site B (conglomerate mining) 07:55AM: End of visit to mine site B 08:30AM: Revisit Sort plants and CCTV monitoring centre 09:30AM: End of visit to Anjin diamond mine 11:30AM: Start visit to ADDA Transau relocation area 12:30AM: End of visit Abbey Chikane 07:30AM: Visit to ADDA Transau relocation area 11:00AM: Visit to Anjin Sorthouse at International Airport Harare 12:00PM: End of visit Abbey Chikane returns to South Africa

Monday, 7 November 2011: 09:30AM: Meeting with Cabinet Task Force (Chair Hon. Minister O. Mpofu) 10:30AM: Working meeting with technical team Ministry of Mines and Mine Development

Tuesday, 8 November 2011: 10:00AM: Meeting with diplomatic representatitives of individual KP Participants 01:00PM: Working lunch with GDV (A. Esab) 04:00PM: Meeting with diplomatic representatitives of KP Participants at EU delegation in Harare (Chair HE Aldo dell'Ariccia) 05:00PM: Meeting with diplomatic representatitives of individual KP Participants (Cont'ed)

Wednesday, 9 November 2011: 08:00AM: Visit to Anjin Sorthouse at International Airport Harare and test run of sorting process and procedures 11:00AM: End of Compliance Verification Visit



Anjin Investments (Pvt) Ltd. Diamond Mine Anjin Investments (Private) Ltd is a joint venture company in Zimbabwe incorporated by a Chinese investor, Anhui Foreign Economic Construction (Group) Co. Ltd (AFECC), and a Zimbabwean company MATT BRONZE ENTERPRISES (Pvt) Ltd, which was founded on Dec 24, 2009. Each shareholder owns 50% of the total investments. The Zimbabwean partner contributed the Special Grant for mining as investment, and the Chinese partner injected capital. Up to August 2011, the Chinese investor, Anhui Foreign Economic Construction (Group) Co. Ltd, claims it has invested already 380 million US Dollars in developing the mine and in relocating the villagers to a new resettlement at the ADDA Transau estate. Location The Anjin diamond mine is located in Block C and comprises 4,846hectares. Two mining areas are identified: - the Jessie mine (B Area) measuring 1,115hectares; and - the Chirasika mine (A Area) measuring 3,731hectares.

Fig. 1: Location of the different mining sections at the Anjin diamond mine in the Marange diamond field. A Area (Chirasika mine) comprises different mining sections including conglomerate ore (red) and alluvial deposits (green). Perimeter fence(s) in red (hashed line). Processing plant and residential area in yellow. Coordinates: TR (X 0443000;Y 7832000) BR (X 0443000;Y 7826550) BL (X 0438300:Y 7823000) TL (X 0437500;Y 7832000) B Area (Jessie mine) comprises conglomerate ore (red) and some alluvial deposits (green). Perimeter fence in black (hashed line). Coordinates: TR (X 0438300; Y 7823000) BR (X 0436000; Y 7820000) BL (X 0433450; Y 7821000) TL (X 0433500; Y 7823450) Exploration on both areas is ongoing and is expected to confirm mineable ore in most of the property. (Source: Anjin Investments (Pvt) Ltd., 2011)



Geology Diamonds are encountered in the base conglomerate of the very old Umkondo Series (>1 billion years old), that can be found throughout the Marange diamond field. However, some regional differences exist, probably related to the geographical situation at the time of the sedimentation. At the Anjin diamond mine, the diamondiferous conglomerate varies in thickness between 0.10-0.9m and is generally encountered at a depth of around 9 to 10m. As demonstrated elsewhere, the conglomerate dips gently to the East (3-8°E). Grades of up to 20ct/T are fairly in line with concentrations elsewhere encountered.

Fig. 2: Base conglomerate at area A. Conglomerate is generally well sorted with medium sized rounded pebbles supported by a sandy matrix. However, also "fresh" angular quartzite clasts appear in the picture, suggesting mixed energetic sedimentation conditions. According to the Anjin geologists, an abundance of medium sized rounded pebbles is a good indicator for diamond content. (Source: KP MT visit 06/11/2011)

Diamonds are also present in alluvial deposits that consists mostly of sandy material and loose gravel resulting from the erosion of the diamondiferous conglomerate. Thicknesses vary over the property but average approximately 1.2m. The diamond concentrations are, however, fairly low. Production Footprint Upon special request from the KP Monitoring Team, the GDV diamond experts obtained a derogation from the standard procedure that does not allow diamonds to be manipulated at the mine site. To establish the footprint, very detailed sorting is necessary, hence the derogation request. Total carats for the foot print activity amounted to 3801.5 carats. Of this amount 280. 5 carats(7.37%) are Gem Quality Diamonds. A total of 1,758.50 carats(46.25%) fall in the Near Gem Diamonds category. Boart represented 1,762.50 carats(46.35%), while False (i.e. non diamond minerals) found in the parcel amounted to 20.00 carats(0.52%). The Marange diamond footprint as developed and updated by the WGDE remains valid as the diamonds produced at the Anjin diamond mine are generally well within these parameters. However, detailed granulometric analysis reveals interesting characteristics of the different size groups.



Table I: Production Footprint of the Anjin diamond mine. Gem: Sawables- 13.84%; Makeable - 86.15%

Near Gem:

Boart:

Crystal Morphology: mostly Octa and Dodec. Some maccles and some rounded. Cuboids rare. Surface Features: Lightly frosted to heavy coated. Green and brown spots abundant. Small amount of Octa show trigons. Others show pitted surface. Many heavy roundeds show abrasion halfmoon cracks. Colour: mostly yellowish green Fluorescence: Gem: Str (Blue): 0.9% - Med : 7.5% - Faint : 11% - Nil : 80.5% Near Gem: Faint (Green) : 1.2% - Nil: 98.2% (Source: Anjin Investments (Pvt) Ltd.- based on footprint examination of test sample weighing 3801.5ct, Oct. 2011)



Mining Mining, i.e. the extraction of diamondiferous ore, is a 24/7 operation at the Anjin diamond mine. This requires a workforce of just under 1500 workers, consisting of mostly locally recruted commuters from the Nyanyadze area, assisted by some 210 Chinese and other international experts who live at the "Chinese" compound at the mine site. Approximately 175 mining vehicles (mostly Volvo) are in operation. Currently, mining is taking place in different sections of Area A and of Area B. In Area A, both conglomerate and alluvial deposits are extracted. To reach the conglomerate, drilling and blasting is performed. Once the conglomerate is exposed, the latter is excavated and loaded on dump trucks and trucked to the allocated processing plant. Reclamation of mined out areas is already ongoing and uprooted protected baobab trees are planted on the reclaimed grounds.

The alluvial deposits are mostly loose sandy and gravel deposits that may be covered by silcrete/calcrete at places and may need ripping. The sandy ore is than excavated and concentrated by dry screening and trucked for processing.

Flowchart of Conglomerate Mining

Flowchart of Alluvial Mining



Dump trucks that are carrying ore to storage yards or to the processing plants, are carefully monitored and accompanied by security agents and logged. Delivery receipts of each truckload of ore are distributed to mining, processing and security supervisors. In accordance with the security measures applicable at the mine, workers may not pick up fallen objects or pick up identified diamonds at the mine site. Security agents need to intervene and report on these incidents. The only exception to this rule is granted to the geologists and their assistants from the Exploration Team. Processing Plants There are currently five operating diamond processing plants with two additional processing plants under construction. The diamond processing technology and complete equipment are from South Africa’s Bateman and Bond Companies. These boast state-of-the-art DMS cyclones combined with tower-mounted X-ray separators.

Fig. 3: Picture showing DMS section of one processing unit (double feed).

Production lines No. 1, 2, 4 and 5 are used to process conglomerate and alluvial ore; daily ore processing capacity is about 6000 tons. Production line No.3 is a sample plant and its daily ore processing capacity is about 600 tons. Production line No.6 and 7 shall process loose alluvial ore and the daily ore processing capacity will be 8000 tons. The production capacity, at full throttle, can be estimated at approximately 2 million carats monthly.

Fig. 4: Overview of different processing plants in operation.



The day to day runnings of the plants are guided by the company operational procedures and the security and health and safety policies. Used water from the processing plants is being reused for plant area dust elimination, watering the ores. After processing, the highly diamondiferous concentrate is tubed into the bin feed of the sort plant associated with each processing unit. Sort Plants Currently, 5 sort plants are operational, each associated with its dedicated processing plant. The sort plant consists of a secure building with tight security and procedures that are reminiscent of any Namdeb operation (clearly the visible positive impact of the Namibian GDV that is consulting Anjin). The tubed in concentrate from the processing plant is fed onto a slowly moving conveyer belt in a secure glove box with CCTV monitoring, where 5 sorters pick the diamonds from the belt with tweezers and collect them in a tray to be transferred to a locked dock box that is fixed to it. The non diamonds, mostly rock fragments, are collected as 'tailings' and will be fed into the processing plant all over again. At the end of the shift, or when necessary, removing the dock box requires different keys and only when the dock box is sealed thight can it be removed from the glove box. This is done in the presence of a dedicated Anjin security agent, an agent of MMCZ and an agent of the (Police) CID - Mineral Unit that are present in each sort plant. The sealed dock box containing the diamonds are then weighted and the approximate weight of the sealed in diamonds is recorded in a ledger. The sealed dock box is then transferred to the vault for safe keeping until being transported ("exported" according to the mine's procedures) by helicopter to the Anjin Sort House at the Harare International Airport. Comments: - The KP Monitoring Team requested to witness two procedures that are specifically described in the sort plants'manual: the "hands clean" procedure where all sorters must immediately stop all activity and show their hand in the glove that should not be deteriorated or damaged; and the "transfer dock box" procedure that has been described higher. Both procedures seemed very well known and routinely practiced. - Although the weight of the empty dock boxes is well known, the weights of the diamonds contained in the dock boxes obtained by subtraction of the empty weight from the full, can only be approximate. Accurate production figures can only be obtained after defalsing and cleaning at the Sort House in Harare. However, discrepancies are to be expected not to be more than a few percents of the total weight obtained at the mine. Vault The vault containing the sealed full dock boxes is located within the red zone (highest security level) close to the sort plants. For -obvious- security reasons, no further details of its precise location are security features are mentioned in this report. However, the KP Monitoring Team is convinced of the evident quality of the vault and of its adequate security features and procedures. As the Sort House in Harare was still awaiting approval by the KP Monitoring Team, no shipments had been "exported" from the Anjin diamond mine. Hence, all the diamonds mentioned in its production manifests were still at the mine site. The KP Monitoring Team was able to verify and vouch for the presence of the sealed dock boxes containing the total production from the very start of the mining operation. It also noted the presence, separately sealed, of the test sample of 3801.5ct that served to



obtain the production footprint. An overview of the diamond production from the start up to 31 October 2011 is reproduced in Table II. Table II: Diamond Production of Anjin since the start of the mining operations

Date

Diamond

Recovered

（Carat)

07/ 2010 3036,78

08/ 2010 949,91

09/ 2010 17556,5

10/ 2010 3945,95

11/ 2010 6060,97

12/ 2010 9663,1

01/ 2011 89379,69

02/ 2011 105850,47

03/ 2011 109093,55

04/ 2011 96299,19

05/ 2011 267679,49

06/ 2011 224047,74

07/,2011 298556,53

08/ 2011 680938,84

09/ 2011 746364,97

10/2011 747012.15

Total 3406435.80

Security The 24/7 security system that has been put in place to secure the mining area and the produced diamonds, consists of a multilayer "redundancy" approach with numerous "checks and balances". Four area types are identified based on risk assessment: Green is for areas outside the perimeter fence (outside the concession); Blue is for areas within the perimeter fence without particular importance or risk involved. Until the relocation programme is completed, a very small group of villagers are permitted to dwell in this area; Pink is for high risk areas such as actual mining sites that have their own fences; and finally Red is for the highest risk zones such as processing plant, sort plant and vault area. "Passive" security features include the large perimeter fence that encloses the whole property, further "fences within fences", and the highest risk zones (Red zones) fences are electrified. Furthermore, all fences and all vital components of the mining and processing operation are CCTV



monitored from the CCTV monitoring centre and the images are stored on banks of "time machines". Hence, digital video footage can be retrieved in case of incidents. Included in the "active" security are approximately 210 (private) uniformed Anjin security guards. They are on 'static' duty such as manning watchtowers with powerfull searchlights, watching over all Pink and Red areas, registering entries and exits and performing body searches (including ev. X-ray) on all persons (staff and other) entering and leaving Pink and Red areas. Armed security guards on 'active' duty are on escort duty or run patrols along all the fences, on foot (with dogs) and on quads and cars. No security breaches of fences have been reported to date. To improve on the general security of the whole Marange diamond fields, weekly meetings with counterparts from sister mining companies and the Police are organised in order to exchange security related information. Duties performed by Anjin's security guards as described in the Security Manual:

Static armed guards are deployed on all key points that are classified red zones such as

the vault, sort plants, processing plants and the mining dump sites. The other static guards are deployed at all sites, observation towers and search lights to

protect company assets and equipment. Armed guards deployed at the main gate of processing plant and mining areas control

vehicle movement, register and search all persons and motor traffic. Armed guards with metal detectors ensure that prohibited material or substances

entering the processing areas and the mining areas are not allowed. Armed guards deployed in the access control of and within the sort plant strictly control

and register all activities. Search procedures are implemented when the sorter intends to leave the sort plant area, which will be checked by X-body scanner, if necessary. Armed guards will strictly enforce the procedures governing the sealing and removal of dock boxes in assistance to MMCZ and CID agents present.

Armed security guards escort dump trucks carrying diamond ore and enforce the strict registration procedures of all ore deliveries to the processing areas or storage yards.

A patrol vehicle with two armed guards and a member of the CID and MMCZ will escort all weighed and duly registered dock boxes from the sort plants to the vault. Upon arrival the diamond weight will be verified and registered.

The whole process is closely supervised by the security shift monitors and CCTV monitoring centre crew.

Comments: - During the visit to the CCTV monitoring centre, the KP Monitoring Team remarked that the TV screens did not display livestream information (camera ID; time;...) about the actual CCTV cameras in use at the sort plants, and this in contrast to the cameras elsewhere. This could be a potential security problem as the security at the CCTV monitoring centre could be fooled by viewing pre-recorded video footage covering up an incident at the sort plant. Furthermore, although the CCTV cameras of processing and sorting plants are arranged per number (1 through 5), no indication on the TV screens permits to verify which sort plant is actually on screen, hence permitting a potential security breach. - The Anjin management immediately decided to work through the night to fix these potential security problems and invited the KP Monitoring Team to revisit the next morning and verify whether the problems had been solved satisfactorily.



Fig. 5: Fixes to potential security issues produced overnight. 5.a shows livestream information from CCTV camera feed onscreen at CCTV monitoring centre (picture taken on 6 November 2011 at 08:31:02!). 5.b and 5.c show numbers of sort plants painted in glove box room and on all inside and outside structures respectively.

5.a

5.b 5.c - As is shown in Fig. 5, on revisiting the CCTV monitoring centre and the sort plants only 13 hours later, the recommended changes had already been implemented to satisfaction. The KP Monitoring Team would particularly like to express its appreciation for the remarkable speed and diligence to implement these recommendations on the spot.

Conclusion The processes and procedures witnessed at the Anjin Investment (Pvt) Ltd. Diamond mine allow for full traceability, unbroken chain-of-custody and transparency of the rough diamond flows. The security measures observed are far above minimum expectations. Consequently, the KP Monitoring Team considers the Anjin Investments (Pvt) Ltd. Diamond mine and the processes and procedures to be fully KPCS compliant.



Anjin Investments (Pvt) Ltd. Sorthouse The sorthouse verification consisted of two separate visits. On Sunday 6 November, KP Monitor Abbey Chikane visited the premises where - at that time- no sorting activities took place. The visit concentrated more on processes, procedures and premises. On Wednesday 9 November, KP Monitor Mark Van Bockstael visited the sorthouse where normal operations would be simulated using the footprinting test sample of 3801.5ct. However, unlike normal imports, it was decided that the small sample would be trucked in by armored vehicle instead of by helicopter. Anjin's sorthouse is located at the Harare International Airport, not very far away from Mbada's sorthouse. However, whereas Mbada's sorting facility is located inside the airport's security zone, Anjin's sorthouse is on the outside of the airport's security perimeter fence. The building hosts the sorting floor, client viewing rooms, a separate administration block, and the "import zone" where trunks with dock boxes transferred from the mine will be "imported". Adjacent to the building is the helipad that will receive the helicopter transferring the diamonds from the mine and a parking bay. The building is fenced off with high security fencing with electric wiring on the upper part of the fence. A second perimeter fence is in place securing the building and adjacent helipad and parking bay. Workflow The work at the sorthouse consists mainly of importing the shipments from the mine, take out the non-diamond minerals, clean the diamonds and start sieving. After sieving, the diamonds will be sorted and valued. Finally, depending on the marketing conditions, parcels will be made ready for viewing by clients. At the end of the buying (tender) process, the parcels will be made ready for export and certification by MMCZ. Up to 20 expert sorters and trainee sorters can be accomadated. Operations will be one 8hr shift only. IMPORTING > DEFALSING > CLEANING > SIEVING > SORTING > VALUING > EXPORTING Importing In order to show the processes, the trunk containing the dock box with the footprint test sample, was imported in the same way future shipments will be delivered at the sorthouse. Registration, verification of the double seal numbers (1 Anjin seal+ 1 MMCZ seal) and weighing preceded the cutting of the one-time seals. Approximately 1000 ct were weighted for pre-clean sorting, and aprroximately the same amount was prepared for cleaning. Defalsing After weighing and preparing a dedicated worksheet, non diamond minerals were identified and removed from the batch. These were separately weighed and recorded and will be transmitted back to the mine for further crushing and reprocessing. Cleaning



Cleaning is done with a mild ultrasonic wash ("limesolv" or equivalent) in a sealed metal box. After drying the weight is recorded and the weight loss is calculated. The weight loss witnessed on a sample of 1089.5ct was only 0.1ct. Sieving After cleaning, the diamonds are transferred to sieveshaker(s) for sieving. Although the Anjin sorthouse only holds mesh sieves (square apertures) for the moment, the GDV experts that will perform the sorting operations, indicated that these will be replaced as soon as possible with normal commercial sieves with round holes, as is the standard in the industry. Sorting The main job of the sorters is to distinguish between gem - near gem - boart. The standard tools are used with the addition of fiber optic lighting to be able to correctly assess dark coated diamonds. The GDV team will start to train Zimbabweans to become sorters as soon as the operations are normalised. Valuing After sorting, parcels are made ready for sales, and "fair market values" are asigned to each individual parcel. Exporting After sales, goods will be made ready for export from the sorthouse. However, first the shipment will be duly sealed and a KP Certificate will be issued by MMCZ. Security The same security protocols and procedures apply as at the mine site. All duties have been properly described in the Sorthouse Security Manual. Sorthouse security will be on a 24/7 regime comparable to that at the mines site. All areas are under constant CCTV monitoring, and all data are captured on "Time Machines", that can be retrieved upon request and viewed at the CCTV monitoring centre. No blind spots have been encountered. Conclusion The processes and procedures witnessed at the Anjin Sorthouse allow for full traceability, unbroken chain-of-custody and transparency of the rough diamond flows. The security measures observed are far above minimum expectations. Consequently, the KP Monitoring Team considers the Anjin Investments (Pvt) Ltd. Sorthouse and the processes and procedures to be fully KPCS compliant.



Anjin relocation programme In order to determine to extent to which the granting of mineral rights to Anjin Investments (Pvt) Ltd. has impacted on the livelihood of the local community, the KP monitoring team visited the Odzi relocation site at the ADDA Transau Farm.

Fig. 6: Odzi relocation area site view - Buildings houses, schools, Clinic and shops for the relocatees. The team met with the Anjin Investments (Pvt) Ltd. management team and the local community. Based on this interaction and documents provided, as well as on a visit to all local centres, the team compiled a brief report on this subject. Community profile and the relocation Anjin Investments has designed a relocation programme which is aimed at addressing the relocation of communities that reside in and around the mining area. The relocation programme was discussed with all key stakeholders and it was accepted by a large portion of the community and its representatives. The affected community or communities are found in Manicaland province in the rural district of Mutare. These communities largely reside in Nechirasika, Gamunorwa, Dzoma, Muedzengwa, Kusena and Tonhorai. A total of 474 households in the area have been targeted for relocation. The area is generally inhabited by the Bocha and Ndau tribes of Zimbabwe with an estimated population of seven thousand. Prior to the diamond rush, the livelihood of these households depended largely on agricultural projects in Chakohwa, Nyanyadzi, and Nenohwe. Apart from formal agricultural projects there was subsistence farming of millet crops as a result of favourable climatic conditions in the area. Small scale animal farming was also a major economic source of income. Corporate Social Responsibility Plan Anjin Investments (Pvt) Ltd. has formulated a corporate social responsibility plan which guides the implementation of the relocation programme. The company has committed an estimated investment of US$100 million exclusively for the relocation. Anjin Investments (Pvt) Ltd. has shown its commitment to corporate social responsibility by investing this money in the following areas: Residential homestead

Tarred roads

Water and sanitation

Primary and Secondary schools

Clinic



Free medical service

Water tank

Agriculture

Employment creation

Food donation, and

Portable water

The following are examples of projects that are either underway or completed:

Fig.7: Residential homestead – The electrification of houses in the relocation area is underway.

Fig.8: Tarred roads – The tarring 45kms of roads in the relocation area is at an advanced stage.

Fig. 9: Water purification station near the Odzi river. This facility has just been turned over to the Zimbabwe Water Authority



Water and sanitation Water is pumped directly from the Odzi river and purified and pumped to holding tanks that feed all housing with fresh running water. The Zimbabwe Water Authority is controlling the water quality twice a day Education

Fig. 10 a: Primary and Secondary schools – Two new schools have been completed.

Fig. 10 b: School class rooms

Clinic - During construction The company has completed the construction of a clinic which is designed to serve the local community. The Clinic will be commissioned soon. Free medical services On the 1st of October 2011 the company hosted Chinese Doctors who rendered free medical services to the relocated area and the surrounding area. The doctors also distributed food to the local families to boost their nutritional needs.



Fig. 11 a: Anjin free medical treatment service

In Harare the company has rendered free medical services to the people at Chitungwiza Hospital through the “Brightness Campaign” in 2010 and 2011. Total about 600 “cataract” patients had accessed the service.

Anjin Investments (PVT) LTD

2011 China-Zimbabwe “Brightness Campaign”

Fig. 11 b: Anjin Brightness Campaign 2011

Fig. 11 c: Chinese Doctors performing free cataract surgery.

Agriculture The government of Zimbabwe has provided arable land to each household (approx. 0.5ha per family) and Anjin Investments (Pvt) Ltd. has leveled the field and erected an irrigation system in the area. In order to realise this, Anjin Investments (Pvt) Ltd. has worked very closely with all other relevant stakeholders, including traditional authority, the government branches and all legislatives.



Fig. 12: Agriculture site leveled and made ready for crops.

Employment creation It is estimated that mine has created over 1500 jobs for the local community. As the mining operation continues to gain momentum, it is expected that more jobs will be created. Anjin food donation campaign To support the relocated communities before they can harvest their first crops, food is distributed to all families. Poverty alleviation and sustainable development. Anjin Investments (Pvt) Ltd. notes that the Chiadzwa area is generally dry; projects like resuscitation of most redundancy irrigation schemes in Chakohwa, Nyanyadzi can be a blessing for the locals. Moreover, self- sustaining projects like chicken rearing and selling the broilers to the Mine and the community at large. Portable water Anjin Investments (Pvt) Ltd. notes that the boreholes in the area are constantly on breakdown and the water is hard and salty which is not desirable for human consumption. The local communities need assistance to maintain these boreholes.A water purification plant is also needed for locals to have portable water. Stakeholders Management All key stakeholders and Anjin Investments (Pvt) Ltd. were involved in consultative meetings with a view to aligning expectations. These were conducted in a manner that ensured absolute consensus on the implementation of their collective plan. Methods of engagement used to communicate with the local communities were mass based and they were coordinated by the company’s Public Relations Officer who maintains a constant contact with Village Heads, Chief and local government authorities. Table III: Overview of CSR Plan of Anjin Investments (Pvt) Ltd. OBJECTIVE PLANNED ACTIVITY IMPLEMENTATION STATUS TIMELINES 1.0 To improve the quality of life for relocated villagers through investment in critical social infrastructures

1.1 Housing Construction of 474 three bed roomed houses complete with kitchen, bathroom and toilet

Construction of the 474 houses now complete

To date >340 relocated

Jun 2010- Jul 2011



facilities families have taken occupation of the new houses.

To complete relocation of the remaining villagers in the last quarter of 2011

1.2 Schools, and other social amnesties

Construction of a primary, secondary school, a clinic and a shop

Construction of the schools, the clinic and shop completed.

Formalities to commission and hand-over the school and other social ameneties to the relevant authorities in progress.

100 computers have been pledged to the school.

Jun 2010- Jul 2011

1.3 Water Treatment Plant

Construction of water treatment plant to purify water from Odzi river and supply clean tap water to the new houses.

The Water treatment plant was recently commissioned.

Relocated villagers now have access to clean tap water in their homes.

Completed Sept. 2011

1.4 Road Network and Electricity infrastructure

Construction of a 47 kilometre road network and electricity infrastructure for the water treatment plant.

Tarring of the road network is currently in progress.

Construction of electricity infrastructure for the water treatment plant completed in Sept. 2011

To be completed Dec.2012

2.0 To improve household food security for the relocated villagers.

2.1 Irrigation Infrastructure

Construction of irrigation infrastructure for water supply to the 5 acre farming plots allocated to the resettled villagers.

Clearing of the land that has been earmarked for the farming plots by the company is currently in progress.

Design of the irrigation infrastructure still pending from the Government’s Department of Irrigation

2012

2.2 Food hampers and a cash allowance

Provision of food hampers and a once off cash disturbance allowance for relocated households

Food hampers are given to relocated households upon relocation and thereafter on a three month cycle until the beginning of the next harvest season

$1000 cash once off disturbance allowance paid out to each household upon relocation

2010- March 2012

3.0 Promote access to health care facilities in the communities that we operate.

3.1 Bright Campain events.

Sponsorship of “Bright Eye” events in support of the less privileged, but visually impaired in order to have access to corrective medical attention

To date 800 beneficiaries have had their eye sight restored at the “Bright Eye” events that were held at Chitungwiza General Hospital and Victoria Falls

On-going 2010-2011

3.2 Community health outreach events

Sponsorship of a visit to the relocation area by a team of Chinese medical experts and their local counterparts to deliver medical services for free to the

346 from the relocated area benefitted from free medical care services

Oct 1, 2011



relocated villagers and their families.

4.0 Improve the quality of life through giving employment opportunities to people from local communities.

Prioritise employment of people from local communities provided they have the required attributes for the job positions to be filled.

Out of a total work force 946 employees, 337 employees representing 36% of the total work force were drawn from the local communities.

On-going

Final Conclusion Based on the documents provided and on the findings during the compliance verification visit to the Anjin Investments (Pvt) Ltd Mine at Marange, the Odzi relocation area and the Anjin Sorthouse in Harare from 5 through 9 November 2011, the KP Monitoring Team on Marange concludes that all operations and procedures are fully KPCS compliant on 17 November 2011. The KP Monitoring Team on Marange, (signed) (signed) Abbey Chikane Mark Van Bockstael

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ANNEX I – KINSHASA AGREEMENT

compliance verification - kimberley process€¦ · - workflow 15 ... the zeal of the mine...

Documents