As part of the post apartheid reforms, the South African government is seeking to balance investment across racial groups (the focus is on historically disadvantaged South Africans (HDSA), so that primarily black empowerment is achieved.

The move into increasing black holdings in a range of sectors is progressing, with the mining sector now subject to a range of initiatives under the mining charter from May 1 2004.

The changes to advance HDSA relate to the uptake by the black sector of increased equity/ownership in operations.

KimCor Diamonds plc has entered into a BEE agreement with Earotin (Pty) Ltd through its three Executive Directors. A legally compliant and socially responsible BEE contract and programme of education, training and community related initiatives has been agreed with Mr.E.Sekele acting on behalf of Earotin. Mr Edward Sekele, a lawyer by profession, has had previous relevant experience in the South African Mining Sector with junior mining companies.

The Company has also entered into a BEE agreement with Mr.M.Ralekletho to form a new BEE group to be represented in Koffiefontein Diamonds (Pty) Limited. Mr.Ralekletho is currently Deputy Vice-Chancellor of Tshwane University of Technology and a former executive director of The National Institute of Economic Policy.