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									                                                                                                                 Marsh Vikela (Pty) Ltd
                                                                                                                 The Marsh Centre
                                                                                                                 88 Grayston Drive, Sandton
                                                                                                                 Private Bag X14, Benmore, 2010
                                                                                                                 South Africa
                                                                                                                 Tel: 2711 506 5326 Fax 2711 506 5242
                                                                                                                 anneli.botha@marsh.com
                                                                                                                 www.marsh.com

        3 January 2008




                                                                NOTE FOR THE RECORD:

                                        Local Authorities Consultation: Kweneng District

                                                                         Full Council

Date:                                        11 December 2007
Venue:                                       Council Chambers
                                                            MEETING ATTENDEES
    REPRESENTATIVE                                    DEPARTMENT                                               E-MAIL ADDRESS / FAX NO.
Mr. Mpedi                                   Council Secretary - Kweneng
Mr. Patrick Manthe                          Council Chairman
Mr. Silver Moeng                            Deputy Council Chairman
Mr. Haile Mphusu                            Gope Exploration Company                                       hmphusu@gemdiamonds.com
Mrs. Wilhemina Makwinja                     Gope Exploration Company                                       wmakwinja@gemdiamonds.com
Mr. Batlhalefi Leagajang                    Hotwire                                                        batlhalefi@hotwireprc.com
Mr. Pedro Kgobe                             Marsh Environmental Services – BW                              pedro.kgobe@marsh.com




        Authorised Financial Services Provider
        FSB Licence no.: 8414
        Registration no.:1999/000348/07
        Directors: BR Blake (Chairman and Managing Director)*, DR Buchanan, AJ Dick**, MG Matlhape, S Montsi, HN Ndude, MW Skosana
        *British **New Zealand
1     ISSUES AND RESPONSE REGISTER



No         Aspect                         Comment                                                                     I&AP Name        Response
1          Exploration                    What were relationships between Gem                                         Mr. Ramaeba –    There is no relationship. Gem Diamonds is not an exploration company
                                          Diamonds and Sekaka Diamonds? Sekaka                                        Councilor for    but a mining company.
                                          Diamonds was said to be exploring for                                       Kaudwane
                                          diamonds near Kaudwane.
2          CKGR Issues                    Was there an experience of mining in game                                   Mr. Tumedi -     The answer was that MES was investigating all best practices and
                                          reserve elsewhere in the world that we could                                Councilor        incorporating lessons learned as far as possible into the EIA and EMP.
                                          learn from?
3          General                        Are MES and Gem Diamonds citizen - owned                                    Mr. Moipolai -   The response was no, but investors with roots from outside the country.
                                          companies?                                                                  Councilor
4          Production                     Will there be any processing of the Gem                                     Member of        DTC Botswana was going to be used as much as possible to handle the
                                          Diamonds products in Botswana?                                              Council          processing of the diamonds produced.
5          Mining Operation               How about underground mining? Won't that be                                 Mr. Motlokwa -   The response was that as long as assessment will continue anything is
                                          possible?                                                                   Councilor        possible, but at the moment underground mining was not the option.
6          General                        There was an issue raised that EIA should be                                Mr. Pule -       EIAs are meant to ensure sustainable developments, and that both
                                          speeded up so that the project should not be                                Councilor        positive and negative impacts of projects should be addressed for the
                                          delayed, as EIAs are known to delay the                                                      long term benefit of the projects.
                                          projects.
7          Employment                     Will first preference be given to local                                     Mr. Moipolai -   No, as the Botswana laws will be followed to provide employment to
           (General)                      communities when Gem Diamonds starts                                        Councilor        every Motswana who was eligible for the job opportunities available.
                                          employing?                                                                                   Once more, bad precedents were to be avoided as the other mines in
                                                                                                                                       the country do not give first preference to local communities where they
                                                                                                                                       operate.
8          Employment                     The issue of employment of expatriates at the                               Mr. Phage -      The mine operation will require skilled labour and hence some the skills
           (Expatriates)                  mine was raised.                                                            Councilor        will have to be obtained from outside the country.
9          Social                         If mining is done at Gope, won't resettled                                  Member of        Not at all as the mine will be in an enclosed area, and no township was
                                          people be encouraged to go back to the                                      Council          going to be developed in or next to the mine area.
                                          CKGR?
10                                        How will non-employee be prevented from                                     Mr. Ramaeba –    A permit system will be used to allow only employees in the mine area,
Authorised Financial Services Provider
FSB Licence no.: 8414
Registration no.:1999/000348/07
Directors: BR Blake (Chairman and Managing Director)*, DR Buchanan, AJ Dick**, MG Matlhape, S Montsi, HN Ndude, MW Skosana
*British **New Zealand
Page 3
7 January 2008



No     Aspect         Comment                                             I&AP Name        Response
                      crowding the mine area?                             Councilor for    and the mine area was going to be fenced off as a security measure.
                                                                          Kaudwane
11                    Will there be shares to local communities by        Mr. Tumedi -     It is not possible for Gem to issue shares to the local community, but
                      Gem Diamonds?                                       Councilor        those interested could buy shares in Gem Diamonds only through the
                                                                                           London Stock Exchange.
12                    Will there be consultations on possible royalties   Mr. Kopi -       Issues around royalties is not an easy one and care should be taken that
                      to local communities by Gem Diamonds?               Councilor        setting bad precedents should be avoided, as the people around Orapa,
                                                                                           Letlhakane, and Jwaneng might start to demand the same, and it will not
                                                                                           be good for nation building.
13                    There was a suggestion that electricity and         Mr. Moipolai -   As for electricity everything will revert back to Botswana Power
                      water was not to be cut after the closure of the    Councilor        Corporation, and Gem Diamonds cannot say what they will do with it.
                      mine to allow people to benefit from the                             The issue of water was for the Government to handle and for them to
                      services.
                                                                                           decide whether or not Gem Diamonds will be able to provided water to
                                                                                           the people.
14     Social         Were there people at Gope?                          Mr. Legole -     The information MES and Gem Diamonds had was that there were no
                                                                          Councilor        people in Gope at this time. A site visit confirmed this.
15     Public         There was a question as to whether or not           Mr. Tumedi -     The response was that there was a wish to do that, however, the
       Consultation   MES will provide feedback after the completion      Councilor        Department of Environmental Affairs was going to allow public
                      of the EIA process, so that more suggestions                         comments on the EIA report before approval.
                      could be incorporated into the report.
16                    There was a suggestion to consult First People      Mr. Moipolai -   FPK and Survival had been identified as stakeholders in the EIA
                      of the Kalahari, Roy Sesana, and Survival           Councilor        process, and would be contacted.
                      International.
17     CKGR Issues    How about Roy Sesana and the court case?            Mr. Moipolair    The issue of the Court case was between Government and the people
Page 4
7 January 2008



No     Aspect       Comment                                               I&AP Name         Response
                    How will this project address that?                   and Mr. Phage -   involved not for Gem Diamonds to get involved in.
                                                                          Councilors
18     Road         There was a suggestion to have the road               Mr. Ramaeba –     Since assessments were ongoing, the road siting had not been decided
                    through Kaudwane instead Lephephe so that a           Councilor for     upon yet but just plans to have it pass at Lephephe.
                    lot of villages could benefit from it, and that the   Kaudwane
                    DWNP Camp was already next to Kaudwane
                    whereby the road could enter the CKGR.
                    The other views were that the road should pass        Mr. Keitirile -
                    through Lephephe, and not Kaudwane, as it             Councilor
                    will be expensive for the investor to build a
                    road through Kaudwane involving a longer
                    distance. The same was said about the power
                    line; the cost - benefits of which route to take
                    was to be considered.
20     Power Line   It was suggested to have the power line run           Mr. Tumedi -      The suggestions would be taken into consideration during the
                    through Kaudwane so that a lot of villages            Councilor         assessments. However, only two possibilities of having the power line
                    could benefit.                                                          pass through Molepolole to Lephephe, or having it from Orapa to the
                                                                                            CKGR gate on the Central District, were being considered.
21     Camp         As a shift system will be used at the mine, how       Member of         Accommodation will comprise temporary structures for individual
                    will accommodation be provided?                       Council           employees. Other facilities such as a clinic and common recreation
                                                                                            would be provided.
22                  Looking all the diamond mines in Botswana, a          Mr. Phage -       It will not be possible to build a township due to fact that CKGR is game
                    township is a must for Gope mine                      Councilor         reserve. Further, townships are expensive to run and may make the
                                                                                            project un-viable to Gem Diamonds. Gope is only a marginal mine and
                                                                                            not nearly as big as Orapa or Jwaneng.
Page 5
7 January 2008



No     Aspect           Comment                                         I&AP Name        Response
23     Air Quality      Since there will be mine developments at        Mr. Motoroko -   Dust will be reduced using similar methods used at Jwaneng and Orapa,
                        Gope, how will the dust be reduced to prevent   Councilor        and hence mitigation measures will be employed so that it does not
                        its impacts on the vegetation and people's                       harm people's health.
                        health? Won't the dust impact on the
                        vegetation such that desertification could
                        result?
24     Rehabilitation   Clarification on the management of the open     Member of        The response was that there would be rehabilitation, remediation and
                        pit, post mining was requested and how it       Council          closure after the life of the mine, and respective authorities will have to
                        would be managed to prevent impacts on the                       approve that proper closure had been done.
                        wildlife.
25     Mine Name        The common name for Gope was said to be         Mr. Ramaeba –
                        Gagoo, which meant "Sekha sa lemao".            Councilor for
                                                                        Kaudwane
Authorised Financial Services Provider
FSB Licence no.: 8414
Registration no.:1999/000348/07
Directors: BR Blake (Chairman and Managing Director)*, DR Buchanan, AJ Dick**, MG Matlhape, S Montsi, HN Ndude, MW Skosana
*British **New Zealand

								
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