2014 SNAP LAKE MINE SOCIO-ECONOMIC REPORT. Building Forever

Transcription

1 2014 SNAP LAKE MINE SOCIO-ECONOMIC REPORT Building Forever

2 2014 Snap Lake Socio-Economic Report BUILDING FOREVER The Snap Lake Mine opened in 2008 and is located 220 km northeast of Yellowknife, NWT. It is De Beers first mine outside of Africa. A completely underground operation, diamonds are recovered from a kimberlite dyke, or sheet, that averages 2.5 metres 3 metres in thickness and slopes down beneath Snap Lake at approximately 12 degrees. De Beers is committed to sustainable development in local communities. Snap Lake Mine has signed four Impact Benefit Agreements (IBA) including: Yellowknives Dene First Nation (November 2005); Tłįcho Government (March 2006); North Slave Métis Alliance (August 2006); and, Lutsel K e and Kache Dene First Nation (April 2007). This report is designed to fulfill reporting requirements as outlined in the Socio-Economic Monitoring Agreement signed between De Beers and the Government of the Northwest Territories in It includes a section on 2014 employment, recruitment initiatives, training, procurement, health and wellness initiatives, social investment and support for cultural initiatives. 2

3 OVERVIEW 02 Our Company 05 Mine General Manager s Welcome 06 Snap Lake Mine Operations Update ISSUE AREAS 08 Economics 12 Employees 24 Communities EMPLOYMENT DATA 28 Employment Data 1

4 2014 Snap Lake Socio-Economic Report OUR COMPANY A OUR GLOBAL PRESENCE COMPANY De Beers was established in 1888 and is a member of the Anglo American plc group. We are the world s leading diamond company, with unrivalled expertise in the exploration, mining, sorting, valuing, selling and marketing of diamonds. CANADA De Beers Canada Established % owned. Carats recovered, ,848,000 1 NAMIBIA Namdeb Holdings Established /50 joint venture with the Government of the Republic of Namibia (GRN). Comprising Namdeb Diamond Corporation (established 1994) and Debmarine Namibia (established 2002). Carats recovered, ,886,000 1 BOTSWANA Debswana Established /50 joint venture with the Government of the Republic of Botswana (GRB). Carats recovered, ,237,000 1 SOUTH AFRICA De Beers Consolidated Mines (DBCM) Established /26 Black Economic Empowerment (BEE) partnership with Ponahalo Holdings. Carats recovered, ,634,000 1 WHERE WE OPERATE GROUP FUNCTIONS Luxembourg South Africa United Kingdom 2 EXPLORATION Canada Botswana South Africa Angola India Namibia MINING CANADA Snap Lake Victor NAMIBIA Atlantic 1 Beach and marine contractors Elizabeth Bay Mining Area 1 Orange River BOTSWANA Jwaneng Orapa Letlhakane Damtshaa SOUTH AFRICA Venetia Voorspoed Kimberley SALES Belgium Botswana Hong Kong Israel Namibia Singapore South Africa UAE BRANDS/RETAIL GLOBAL Forevermark De Beers Diamond Jewellers 1 Carats recovered on a 100 per cent basis. SOURCE: De Beers Group of Companies 2014 Report to Society.

5 OVERVIEW ISSUES AREAS EMPLOYMENT DATA Together with our Joint Venture partners, the De Beers Group of Companies mines for diamonds across Botswana, Canada, Namibia and South Africa. As part of our operating philosophy, we are committed to living up to diamonds by making a lasting contribution to the communities in which we live and work. This means carrying out profitable business, while at the same time helping governments achieve their aspirations of turning natural resources into shared national wealth. In Canada, De Beers operates Snap Lake Mine in the Northwest Territories, Victor Mine in northern Ontario, and is a 51% joint venture partner with Mountain Province Diamonds in the Gahcho Kué Project, 280 km northeast of Yellowknife. We have offices in Yellowknife, Toronto, Timmins and a bulk sample treatment facility in Sudbury that supports the Canadian Exploration department. Yellowknife Snap Lake Mine Gahcho Kué WHERE OUR NWT EMPLOYEES LIVE Behchokò Deline Enterprise Fort Good Hope Fort McPherson Fort Providence Fort Resolution Fort Smith Gamèti Hay River Inuvik Lutsel K e Tulita Wekweèti Wha Ti Yellowknife (includes Dettah and Ndilo) 3

6 2014 Snap Lake Socio-Economic Report Waste rock comes off conveyor on the surface. 4

7 OVERVIEW ISSUES AREAS EMPLOYMENT DATA WELCOME TO THE DE BEERS SNAP LAKE MINE 2014 SOCIO-ECONOMIC REPORT This report documents how De Beers' Snap Lake Mine s contributions to the social, economic and cultural wellbeing of the Northwest Territories are aligned with commitments made in the Socio-Economic Agreement between De Beers Canada Inc. and the Government of the Northwest Territories. Throughout 2014, efforts have been focused on building a sustainable operation that can stand on its own as part of the De Beers Group of Companies. An operation that is economically viable has the ability to consistently contribute to the communities in which it operates. Activities in 2014 included a considerable amount of work to optimize the day-to-day operations and develop a mine plan that addresses Snap Lake s unique geological complexity, while being protective of the environment. The Snap Lake team has been working hard to continuously improve safety and production performance, which is showing great progress. The year also required recruitment of key managers needed to lead our efforts to attract and develop employees, especially in nearby communities. By the end of 2014, a new Human Resources Manager for Snap Lake Mine and a new Aboriginal Affairs and Stakeholder Relations Manager for our NWT operations were identified and started work in early De Beers is proud of the work being done at Snap Lake and the positive impacts the mine has generated over the last ten years. Efforts underway during 2014 have put the operation on the path to sustainability that will result in long term benefits to the communities and residents of the Northwest Territories. We hope you find this report informative and interesting. CONTINUOUSLY IMPROVE SAFETY AND PRODUCTION PERFORMANCE MAXWELL MORAPELI Mine General Manager 5

8 2014 Snap Lake Socio-Economic Report OUR APPROACH SNAP LAKE MINE OPERATIONS UPDATE 2014 was a year in which the Snap Lake Mine team worked hard to progress toward long-term sustainability. It was also a year tempered by almost biblical water and fire challenges. Snap Lake Mine is unique, not only by Canadian mining standards but, to the world. The Snap Lake kimberlite is a dyke or sheet that averages 2.5 metres thick and slopes down beneath the lake at an angle of approximately 12 degrees. De Beers acquired the property in 2000 and began construction of the mine in When the mine opened in 2008, Snap Lake was the only completely underground diamond mine in Canada. The dyke structure is complex to mine and considerable work has gone into optimizing operations to enable Snap Lake to operate sustainably. This included the 2014 approval of a plan to invest about $80 million in capital in 2015 to add new equipment, additional power generation and test new mining methods. Adding to the challenge, the host rock surrounding the kimberlite is fractured, resulting in the inflow of water, including ancient, naturally occurring connate groundwater that has been trapped in the rock deep underground for thousands of years. This ground water is high in mineral salts and requires special attention so that the mine remains in compliance with water licence requirements. Going into 2014, the Snap Lake team looked to build on the success from 2013, when 1.3 million carats were recovered, despite the ongoing challenge associated with storing large volumes of mine water underground. The water is being stored for controlled release to allow the mine to continue to operate in compliance with its water licence while an amendment works its way through the regulatory system. A decision on the life of mine water licence amendment is expected sometime during the third quarter of OPERATIONS The mining and process plant teams performed well through the first half of the year. Mine development continued to be hampered throughout the year due to the storage of large volumes of water. Unfortunately, smoke from wildfires on the tundra and forests around Great Slave Lake, resulted in production slowdowns at Snap Lake Mine due to the implementation of the mine s fire protocol. When forest fire smoke is drawn into the underground mine through the fresh-air intake, operations are shut down because it is extremely difficult to distinguish between smoke from a fire underground or smoke drawn into the mine from the surface. During the 20 days of smoke impact at the mine, production was cut by about 40%. Production was also impacted by a safety stand down underground to reinforce ground control standards with the mining team and to work with geotechnical experts to review ground support practices following incidents of fall of ground underground. In spite of the impact of water, smoke and the safety stand down, the mine ended the year having recovered 1.2 million carats. Altogether 757 person years of employment were provided at Snap Lake during 2014, including 258 person years provided by NWT 6 Maxwell Morapeli, Snap Lake Mine General Manager, left, explains the mining face to a delegation from the Yellowknives Dene First Nation during a visit underground at Snap Lake in 2014.

9 OVERVIEW ISSUES AREAS EMPLOYMENT DATA residents. During the year, Aboriginal residents of the NWT provided 129 person years of employment at the mine. One of the challenges noted during 2014 was a significant decline in the number of NWT applicants for vacant jobs at Snap Lake Mine. (Employment Data, page 28) SUPPORT FOR COMMUNITIES & PEOPLE During 2014, there were a total of 15 trainees, all Aboriginal, at Snap Lake Mine, including four trades trainees, seven apprentices and four underground miner trainees. De Beers Millwright Apprentice Andrew Weyallon won a gold medal in the NWT Skills Canada Territorial Competition in May and competed at the National Skills Canada championship in Mississauga in June. (Training Report, page 18) During 2014, $1.8 million was invested by Snap Lake Mine in training and other Corporate Social Investment, including support for literacy development and education, cultural activities, health programs, community development and sports. (Support for Communities, page 24) HIGHLIGHTS 2014 CARATS 1.2M 2014 NWT SPEND $126M 2014 NWT WORKFORCE 258(PERSON YEARS) 2014 SOCIAL INVESTMENT $1.8M Late in the year, the first program funded under the new De Beers Canada Fund was approved. Altogether, $110,000 in financial and in-kind support was provided through the fund to support the Deninu Kué First Nation (DKFN) Development Corporation. Through the program, 20 housing units from the former Snap Lake Mine construction camp were donated to the DKFN to support a job training program joint venture between the Development Corporation and Arctic Canada Construction Ltd. (Case Study, page 11). The Fund was initiated in Snap Lake Mine spent $126 million during 2014 with NWT companies, including $50 million with Aboriginal companies and joint ventures. The NWT spend represents 69% of the $182 million spent by the mine during The core infrastructure at Snap Lake Mine includes an accommodations facility including 400 rooms for employees, a dining hall, recreation facilities and a learning centre. 7

10 2014 Snap Lake Socio-Economic Report ECONOMICS $ BUILDING FOREVER ECONOMICS Since the start of construction in 2005, De Beers has invested more than $2.2 billion to build and operate Snap Lake Mine. By working closely with NWT businesses and joint ventures, De Beers was able to increase the amount of money spent in the territory by 9.6% in 2014 over the previous year. Since 2005, De Beers has invested over $1.5 billion with NWT businesses and joint ventures to build and operate Snap Lake Mine. That represents 69% of the $2.2 billion total spent through the end of In 2014 alone, Snap Lake s NWT spend was $126 million or 69% of the $182 million spent to operate the mine. The NWT portion includes $50 million spent with Aboriginal businesses and joint ventures. The NWT spend over the year was $11 million higher than the $115 million spent with NWT businesses in This 9.6% increase in spending with NWT companies is significant as total operations spending at the mine was reduced by $5 million in Spending with Aboriginal companies was up by 11% in 2014 when compared to This success is due to De Beers NWT Business Policy which guides decisions around spending, work by the Business Development Manager Tim Harris, and the mine-based Materials Management team with support from corporate leadership. The goal is to deliver value to the mine operation by working with companies that are capable of providing cost-competitive goods and services needed at Snap Lake. The continuing maturity of the NWT business community means local companies can successfully compete for contracts of all sizes. Tim works closely with NWT businesses, especially Aboriginal community development corporations from communities close to the mine, to ensure they are aware of upcoming opportunities. He is an important liaison between NWT businesses and De Beers Supply Chain team. Strong business relationships are built by being able to sit down and have a conversation over coffee so everyone is aware of upcoming opportunities and how we can best work together, said Tim. NWT businesses provide critical goods and services to Snap Lake, including personnel for site services support, transport of fuel and supplies on the winter road, logistics and passenger flights, catering, environmental monitoring, explosives, pipe valves and fittings, screening for underground ground support, shotcrete and other supplies. 8 A tanker load of fuel on the ice road to Snap Lake Mine in March 2014.

11 SNAP LAKE MINE SPEND Aboriginal Companies $50 million 27% $45 million 24% Other NWT Companies $76 million 42% $70 million 38% Non-NWT Companies $56 million 31% $72 million 39% Total $182 million $187 million Note: Figures may not add up due to rounding error. 9

12 2014 Snap Lake Socio-Economic Report Held in conjunction with the Yellowknife Geoscience Forum each November, the De Beers annual NWT business opportunity breakfast is another occasion where NWT businesses get a first-hand look at upcoming contracts for De Beers in the NWT. It is during this session that the business forecast for the upcoming year, including contract opportunities, are shared publicly. In 2014, the breakfast attracted more than 70 key local business people. Businesses are also encouraged to register with De Beers Canada's online business registry accessible via which allows De Beers to get a clearer picture of the capacity and capabilities of the NWT business community. In addition to working with companies interested in doing business with De Beers, support was also provided in 2014 to help foster business development, including financial support for a Small Business Workshop and Business Database Development by the Yellowknives Dene First Nation. De Beers is also a member of the NWT Chamber of Commerce and Yellowknife Chamber of Commerce. SNAP LAKE MINE Cumulative Spend : $2.2 billion ABORIGINAL SPEND 38% NWT SPEND 31% NON-NWT SPEND 31% Tim Harris, De Beers Business Development Manager, shared 2015 business opportunities with NWT businesses during the annual Business Opportunities Breakfast hosted by De Beers in Yellowknife in November SPEAK UP! PROGRAM Through our commitment to the highest standards of ethical behaviour, the De Beers Group of Companies provides a confidential and secure mechanism to enable employees, suppliers, business partners and other stakeholders to raise concerns about any potentially unsafe, unethical or unlawful conduct. Speak Up! is a confidential reporting service for all employees and stakeholders of business units and group functions of the Anglo American Group. It is independently managed by Deloitte Tip-offs Anonymous. Concerns can be raised about unlawful, unethical or unsafe conduct or practices, including but not limited to: Health and Safety: actions that could result in harm to individuals or the environment. Bribery and Corruption: illegally taking or offering financial incentives. Misuse of Assets: inappropriate use or theft of company property. Legal Obligation: failure to comply with or meet legal commitments. Conflict of Interest: concealment of interests which may influence decisions. Contact information from within Canada: anonymous@speak-up-site.com Telephone: In writing: Speak Up, P.O. Box 774, Umhlanga Rocks, 4320, South Africa (To which you can mail letters and other relevant documentation globally.) For more information visit In making a disclosure using one of the above means, the whistle-blower is encouraged to provide as much information as possible relating to the matter, bearing in mind that the greater the information available, the more thoroughly the matter is likely to be investigated and, in turn, resolved. All tips are confidential and can be filed anonymously. 10

13 OVERVIEW ISSUES AREAS EMPLOYMENT DATA $ ECONOMICS CASE STUDY INVESTMENT SUPPORTS JOBS AND TRAINING FOR DENINU KUÉ FIRST NATION MEMBERS An investment worth approximately $110,000 from De Beers was focused on creating jobs and providing new skills to residents in Fort Resolution, NWT. Twenty modules from the former Snap Lake Mine construction camp were provided to the Deninu Kué Development Corporation (DKDC), the business development arm of the Deninu Kué First Nation, along with a financial contribution. The financial contribution was used to prepare a site in Fort Resolution where the trailer project was scheduled to be undertaken. The modules had been in storage since being removed from Snap Lake in 2011 and In December, they were transported at De Beers expense to Fort Resolution where they were to be refurbished by nearly two dozen workers employed by a joint venture between the DKDC and Arcan Construction of Yellowknife. Following completion of the project, the modules became additional office space and lunchrooms needed during construction at the Gahcho Kué Project. De Beers is committed to providing opportunities through strategic investments that can have a positive impact in local communities beyond the life of the mine, said Glen Koropchuk, Chief Operating Officer for De Beers in Canada. This project will create employment and training opportunities, generate income for Deninu Kué residents and help develop skills that we believe will lead to long-term, stable employment. About 11 Fort Resolution residents were employed on the project, learning new skills alongside employees of Arcan Construction. This means jobs and training for community members, and the ability to learn how to go to work because there hasn t been any work for a very long time, said Chief Louie Balsillie of the Deninu Kué First Nation. To see 11 people working, that means 11 families are going to have an income, and that s really important and we really appreciate De Beers working with us on this. A module that used to form part of the construction camp at Snap Lake Mine awaits renovations in Fort Resolution, a business development program supported by De Beers in late

14 2014 Snap Lake Socio-Economic Report EMPLOYEES BUILDING FOREVER EMPLOYEES The Human Resources team focused on raising the profile of De Beers during 2014 by attending career fairs in every region of the Northwest Territories. Snap Lake Mine entered its seventh year of operation in January of 2014, which saw the mine achieve new production milestones and position itself to continue working towards a sustainable future. With a mature operation, large recruitment efforts of the past are now more focused on replacing employees who leave the operation due to retirement or to pursue other opportunities. During 2014, 19 of the 55 people hired at Snap Lake Mine were NWT residents. Of the remaining openings, the positions were still vacant at the end of the year or the competitions were cancelled. To fill available jobs, De Beers undertakes a number of steps to identify suitable candidates, including internal advertising on the company s intranet site, and external advertising on our website, in local newspapers and magazines. The goal of De Beers recruitment is to hire the best possible candidate who is qualified to perform the job. Qualified local candidates are a priority. In order to attract qualified NWT resident applicants, most recruitment efforts are initially focused in the NWT. This includes posting ads for available jobs in the NWT News/North, online and print editions, and distributing jobs to an extensive list of NWT career development contacts, including those in each of Snap Lake Mine s IBA communities. Human Resources (HR) team members are based at Snap Lake Mine and De Beers Yellowknife office. The HR team is supported by the Aboriginal Affairs team, who help distribute job ads to IBA communities, liaise with Community Employment Coordinators and even support individual applicants through the application process as necessary. During the year, De Beers received a total of 4,517 applications for job competitions, of which 904, or 20%, were submitted by NWT residents. This marked a significant decline in the number of submissions by NWT residents for jobs at Snap Lake Mine during the past two years. In 2013, 25% of the applications for nearly the same number of positions were received from NWT residents. This is a concerning trend. 12

15 HIGHLIGHTS NWT EMPLOYEES 258(PERSON YEARS) NWT ABORIGINAL EMPLOYEES 129(PERSON YEARS) TRAINEES 15 Alestine Ferdinand, Human Resources Coordinator, and Bruce Spencer, Training Foreman, both from Snap Lake Mine, staff a table at a career fair in Hay River. De Beers participated in a number of career fairs throughout the NWT during

16 2014 Snap Lake Socio-Economic Report DE BEERS ALSO HOSTED ITS OWN SERIES OF CAREER FAIRS, FOCUSED ON COMMUNITIES CLOSE TO SNAP LAKE MINE. In order to identify candidates they are first sorted by their self-identified priority status, including residents of Aboriginal Authorities, other NWT Aboriginal residents, non-aboriginal NWT residents and then residents outside the NWT. Once a candidate s status has been determined, an applicant s qualifications are the next consideration. In addition to direct recruitment for available positions, De Beers participated in a number of career fairs throughout the NWT, including in Inuvik, Fort Simpson, Gamèti, Hay River, and Yellowknife in 2014 to help encourage more NWT residents and students to build a career in mining. As well, representatives from Snap Lake s Human Resources department took part in information update sessions hosted by De Beers in a number of communities, including Dettah, Behchokò, Whati, Gamèti, Wekweèti, Fort Resolution and Hay 14 River for the NWT Métis Nation, and Yellowknife for the North Slave Métis Alliance. During these sessions, current information on employment at Snap Lake was presented and postings for open jobs at the mine were available for attendees. HR team members were on hand to answer questions on the application process. De Beers also hosted its own series of career fairs, focused on communities close to Snap Lake Mine. In May, Snap Lake Mine role models visited Behchokò, Whati, Lutsel K e, Hay River and Fort Simpson. These employees included an Underground Miner, Process Plant Control Room Operator, HR Coordinator, Heavy Duty Mechanic, Millwright Apprentice and Surveyor. A representative from the government s Student Financial Assistance (SFA) program accompanied De Beers to each community, ready to meet with high school students to discuss available financial support to attend post-secondary education. The Snap Lake Mine northern role models hosted groups of high school students at career stations, sharing information about their career path and how the students could pursue similar careers. De Beers role model career fair program was well received. The students enjoyed themselves and some of the students are applying for a trades program ie. welding, millwright and carpentry, wrote a representative from one community organization, in an to De Beers. The students having a chance to speak with the presenters and dropping off their resumes was a big bonus. SUMMER EMPLOYMENT PROGRAM A total of 13 summer employment positions for students were available at Snap Lake Mine in 2014 in: External & Corporate Affairs, Maintenance, Geology, Environment, Mine Engineering, Process Plant and Geology. Once again, the number of applications from non-nwt residents was significantly higher (865) than applications received from NWT residents (118, or 14%). Even so, six of the 13 available positions (46%) were awarded to NWT students. COLLABORATION WITH GNWT Led by the Government of the Northwest Territories De Beers, Dominion Diamond and Rio Tinto collaborated on a survey of diamond mine employees for their opinion on NWT residency, barriers to NWT residency, health and wellness, among other issues. A similar survey was done in The survey was conducted by the NWT Bureau of Statistics and a representative of the Bureau travelled to Snap Lake Mine to support distribution of the survey. Approximately 84% of Snap Lake Mine employees completed the survey. Results of the industry-wide survey were released in early EMPLOYMENT INCENTIVES In order to minimize barriers for NWT residents employed at the Snap Lake Mine, De Beers offers a number of incentives. In the mine s Socio-Economic Agreement (SEA) with the GNWT, De Beers agreed to provide direct air transportation to Snap Lake from six NWT communities: Lutsel K e, Gamèti, Whati, Wekweèti, Hay River and Yellowknife (for residents of Behchokò, Dettah, Ndilo and Yellowknife). De Beers expanded the pick-up points in 2010 to include Fort Simpson, Fort Smith, Norman Wells and Inuvik. Other incentives include: Annual vacation travel allowance; NWT salary enhancement; and, Monthly travel assistance to help employees travel to one of the NWT s pickup points.

17 OVERVIEW ISSUES AREAS EMPLOYMENT DATA EMPLOYEES De Beers employees gather for a team photo after participating in the Herc Pull in September 2014 to raise money for NWT Special Olympics. NWT POST-SECONDARY SCHOLARSHIP PROGRAM De Beers launched its annual NWT Post-Secondary Scholarship Program in May and by the application deadline at the end of June, 47 applications had been received from across the NWT. Entry was open to all students from the NWT, attending post-secondary anywhere in Canada. Ten scholarships were awarded in 2014, with recipients from Yellowknife, Norman Wells and Inuvik. Eight of these recipients were women. To promote the program, Glen Koropchuk, Chief Operating Officer for De Beers in Canada, travelled to Chief Jimmy Bruneau School in Edzo on June 4 where he met with close to 40 students to explain the program and answer questions. The program was publicized online and through social media, print ads in NWT newspapers, and with help from the GNWT s Student Financial Assistance program and Tłįcho Community Services Association. De Beers has provided $80,000 in scholarships to NWT students through the program between 2012 and As well, annual funding was provided by Snap Lake Mine to scholarship programs run by the Yellowknives Dene First Nation ($15,000) and North Slave Métis Alliance ($5,000). DE BEERS 2014 NWT POST SECONDARY SCHOLARSHIP RECIPIENTS Sean Alldridge Liam Coedy Aimee Gauthier Lisa Giovanetto Kathleen Glowach Madison Gray Martha Hamre Julianne Neudorf Verna Pope Alea Stockton 15

18 2014 Snap Lake Socio-Economic Report EMPLOYEES ANDREW WEYALLON BEHCHOKÒ, NWT A personal desire for excellence and the support of experienced mentors were instrumental to Andrew Weyallon s gold medal success in his first-ever appearance at the Skills Canada NWT Territorial Skills Competition in Yellowknife on May 6, From the Tłįcho community of Behchokò, the first year millwright apprentice has worked for De Beers for close to four years, first as a member of the mine s logistics team and since October 2013 as an apprentice. Behchokò is located about 110 km west of Yellowknife in the NWT and is a priority community for the mine. Andrew jumped at the chance to begin training to become a millwright because it offered an opportunity to learn a variety of skills. I like the fact you get to do a little bit of everything, it s a very hands-on trade, SHAWN TUTCHO DELINE, NWT Every day is a challenge when you work underground as a miner, but that s exactly why Shawn Tutcho loves working at Snap Lake Mine. After training with the Mine Training Society in Yellowknife, Shawn got his first mining job in He started at Snap Lake Mine in 2010 and says he most enjoys the team atmosphere. Every miner has each other s backs, and when work is complete at his own level Shawn often goes to the upper levels to help and vice versa. The dark and damp underground doesn t bother him either, in fact Shawn says it is where he s most comfortable. It feels good to be down there, Shawn says. It feels like you re part of something that s making a difference. 16

19 OVERVIEW ISSUES AREAS EMPLOYMENT DATA MANAGER PROFILE: PAUL PRIMEAU Paul started with De Beers in October 2006 as a Protective Services Official at the Victor Mine in northern Ontario, and for seven years worked his way up through the ranks of the department. In December 2013 he moved to Hay River, NWT and became the acting Protective Services Manager at Snap Lake Mine. By the end of 2013, he was promoted to the full-time manager position. As Protective Services Manager, Paul is responsible, with the help of his team, for the safety and security of those who work for De Beers in the NWT, a job which Paul says he takes great pride in. LUKAS GIRODAY KELOWNA, BC From residential construction, to pipe-fitting, to underground mining; Lukas Giroday has a wealth of experience in hard work. From Kelowna, BC, Lukas has studied business at Concordia University and started up his own contracting company. In March 2013, he began working with De Beers as an underground miner, fitting pipes below the surface and ventilating the footwall development in order to open access routes to the kimberlite ore. He works hundreds of meters below the surface with a tight-knit team of miners working at one of the deepest levels of the mine. His favorite part about working at Snap Lake Mine is the family-like atmosphere among the miners with positive attitudes, strong work ethic and dedication to working safely together. Not having to worry about the elements while underground helps too. 17

20 2014 Snap Lake Socio-Economic Report TRAINING Training is important to investing in growing the skills and capacity of NWT residents. Darryl Hovdestad, Process Superintendent (left) presents a Mining in Human Resources (MiHR) certification to Stan Amundson, Senior Plant Supervisor. De Beers began offering MiHR certification to process plant and underground miners in 2014; it is a national program that enables their skills to be recognized across Canada. THE TRAINING DEPARTMENT HAS ADDED TO THE SUITE OF TRAINING PROGRAMS AVAILABLE AT THE MINE. De Beers exceeded its life-of-mine training commitment for Snap Lake Mine in 2010, within the first three years of operation. Since mining operations began in 2008, a total of 98 people have received training at Snap Lake in three priority areas: underground mining, apprenticeships and trades*. In 2014, all trainees at Snap Lake Mine were Aboriginal residents of the NWT. Six new trainees were hired, including one process plant operator trainee, four underground miner trainees and one heavy duty mechanic apprentice. One electrician apprentice and five underground miner trainees completed their programs during Four new underground trainees were hired into training positions following graduation from the NWT Mine Training Society s Underground Miner program. Of the four, three were offered full-time positions at the conclusion of a three-month training program at Snap Lake Mine. In 2014, De Beers invested $1.2 million to support training programs at Snap Lake. In addition, support was provided to Skills Canada NWT, a Tutoring for the Trades program run by the Yellowknives Dene First Nation, and the NWT Mine Training Society Snap Lake Mine also features a training centre equipped with 16 computers for online courses and a training room for classroom work. The department is headed by a Superintendent of Training, staffed by two Training Foremen, and supported by four Underground Trainers and one Surface Trainer. Two Training Communications Administrators working on cross-shifts provide administrative support. During 2014, 162 courses were available to employees through the Training department. This includes mandatory site safety orientation and courses that range from fire extinguisher training, to working at heights, electrical safety, forklift operation, snowmobile safety, spills management, and a wide range of job-specific training. New courses offered during the year include: Bow Tie Assessment (risk management); Cross Cultural e-learning; Scaling, Ground Control and Geotech; Protective Services Induction e-learning; and, SAP Training. In all, employees completed 8,732 total courses during 2014, totalling 21,908 hours of training. SOCIAL WELL-BEING The well-being of all employees is important to the safe, sustainable operation of Snap Lake Mine. A number of fitness and healthy-living initiatives have been developed in collaboration with communities near our operations. At Snap Lake Mine, this starts with a focus on ensuring all employees are fit for work. The Fit for Work Program, offered through the department of Safety, Health and Risk runs in conjunction with Personal Demands Assessments that identify the physical needs of a job. These assessments are important to ensure workers are physically capable of performing these tasks. The Fit for Work tests had been completed for 50% of employees by year-end, with the remainder to be completed in *For the purposes of this report, De Beers defines trades as any position at Snap Lake Mine where a trainee is working toward achieving trades certification. This would include Mineral Process Operator Trainee, Protective Services Trainee and other occupations. 18

21 OVERVIEW ISSUES AREAS EMPLOYMENT DATA Also in 2014, De Beers joined the Working on Wellness program spearheaded by the GNWT. The initiative, which includes programs to promote physical activity and nutrition, was scheduled to kick off in early In support of the health and wellness programs, professional medical care is provided at Snap Lake Mine by a physician s assistant, supported by an occupational health nurse and an on-call doctor based in Yellowknife. Mine-based Human Resources Manager, Superintendent and Coordinators are also on-hand to support employees. In addition, a comprehensive Employee Assistance Program (EAP) offering a wide range of counselling and support services, including crisis counselling, is available to employees through a 24/7 toll-free line and internet-based online platforms. Programs available to employees include professional counselling, family support, financial planning support, health coaching, smoking cessation, relationship support, stress management and many others. The service includes an online library of information on a variety of topics. De Beers also provides alcohol and drug awareness training to employees at the mine site, with programs specifically tailored for supervisors, managers and general employees. In 2014, 301 employees and 55 supervisors participated in drug and alcohol awareness training. In support of similar programs in local communities, financial contributions were provided for National Addictions Awareness Week activities in Behchokò, a Substance Abuse Awareness program hosted by the Yellowknives Dene First Nation, funding for dry graduation programs at Sir John Franklin and St. Patrick High Schools in Yellowknife, and to support a wellness conference at St. Patrick High School. Other 2014 Wellness Initiatives included: De Beers offered an online money management program between 2011 and 2013 (Your Money Matters); Working with the GNWT s Department of Education, Culture and Employment and Dominion Diamond Corporation and Diavik Diamond Mines in the development of a Financial Literacy Program that was launched to five participants in Behchokò in August 2014; Healthy options offered during each meal, and a colour-coded menu alerting employees to potential allergy issues, healthy choices and those foods that are high in fat, sodium or trans fats; A well-equipped cardio exercise room at Snap Lake Mine, including stationary and recumbent bicycles, treadmills, elliptical trainers, a weight room as well as a pilates/ yoga room; A recreation room with pool and table tennis tables, shuffleboard, darts, card tables, television lounges and other amenities; Periodic events are scheduled at the mine, including floor hockey in one of the site s warehouses and baseball at the mine site airport. A walking trail is available to employees during the summer; Wireless internet is accessible to employees throughout the accommodations facility and each room has its own telephone, allowing local calling to Yellowknife, or for family members to call in; A De Beers employee indoor soccer team in the Yellowknife indoor soccer league; Company policies governing Workplace Harassment and Discrimination, Human Rights, Workplace Management of Drugs and Alcohol (Zero Tolerance), Issue Resolution, Smoking in the Workplace, Gambling, Grievance, Sick Leave, Standards of Conduct, and a wide range of others is available to all employees via an internal e-library called Pavilion; and, Group RRSP program SNAP LAKE MINE TRAINING Training Life of Mine Training Commitment Current Trainees* Cumulative Trainees to Date Cumulative Program Graduates Trades Apprenticeship Underground Total * Includes trainees from 2013 who are continuing their training programs in

22 2014 Snap Lake Socio-Economic Report CULTURAL WELL-BEING Whether it's hand games in communities, National Aboriginal Day, mushing, community feasts, performances at the Northern Arts and Cultural Centre, and carnivals or mine-based activities, supporting arts, cultural and heritage projects are important to De Beers. Approximately $240,000 was spent during 2014 to support events, programs and activities in 11 NWT communities. At Snap Lake Mine, revising the company s cross-cultural orientation program was a success. Originally designed as a classroom-based program, the number of employees who could take the program each year was limited. In 2014, the course materials were put into an online e-learning program, and, as a result, 684 employees took the mandatory program during the year. For supervisors and managers, cross-cultural orientation remained a classroom program. Three sessions were held, attracting 42 total participants. Snap Lake Mine also supports a dedicated cultural centre, a place where all employees can socialize, browse the book and video library, or complete arts and crafts. The cultural centre hosted a number of workshops during the year, including duffle mitt and Christmas ornament workshops. A craft sale was also hosted at the mine, during which an NWT artist was brought to site to sell his art and to make locally-produced crafts available to employees. This was held in November, to allow employees to source unique made-in-the-nwt arts and crafts for Christmas gifts. A fire pit for feed-the-fire ceremonies was established at the main entrance to the accommodations facility. $ EMPLOYEES CASE STUDY CULTURAL EXPERIENCE FOR MINE PROFESSIONALS For many employees, especially those who don t live in the NWT, working at the mine can begin to create an awareness of life in NWT communities. For the next generation of mine leaders, it is very important they understand the communities in which De Beers operates. In 2014, five De Beers Mine Professional in Training (MPiT) program participants were able to join the Snap Lake Mine Books in Homes initiative that visited four NWT communities near the mine. While the MPiT program is focused on providing university graduates in mining-related fields a unique opportunity to gain advanced technical experience in the industry, the opportunity to broaden their understanding of the NWT and the relationship with community partners is equally important. The five MPiT participants helped distribute books to students in Behchokò, 20 Lutsel K e, and Fort Resolution. Employees participate in a Christmas ornament making workshop hosted at Snap Lake Mine in December The event was held in the mine s Cultural Centre.

23 OVERVIEW ISSUES AREAS EMPLOYMENT DATA WOMEN IN MINING Creating opportunities through the construction and operation of our mines can have individual, community, regional and national impacts. Advances in mining technology and training programs have expanded interest in careers in mining, with women entering the industry in growing numbers. At the Snap Lake Mine, women are a key part of the workforce across the operation, working as members of the mine operations team, in the process plant, maintenance, environmental monitoring and at the management table. In 2014, 14% of the mine s workforce were female, including senior managers leading the human resources and environment teams. In mine operations, 26 women, including 18 underground, worked in a range of roles, from underground construction, operating haul trucks, the crusher, and support services. All but two members of Snap Lake s environment team were women in 2014, including the department manager. Showcasing opportunities available to women at Snap Lake Mine was undertaken in different ways during In order to develop the next generation of mining professionals, De Beers NWT Post Secondary Scholarship Program is mandated to provide at least half of available scholarships to female students. Throughout the first three years of the program s existence, De Beers has been successful in meeting and exceeding that commitment. In 2014, eight of the 10 scholarships awarded went to female students studying in mining related fields. One of the most successful programs was a role model career fair program delivered in five communities in May This career fair featured six role model NWT employees from Snap Lake Mine who met with over 200 high school students at schools in Behchokò, Dettah, Lutsel K e, Hay River, and Fort Smith. Designed to help female students understand what training is required for a variety of positions at Snap Lake, the role models included a Heavy Equipment Mechanic, Surveyor, Millwright Apprentice, Process Plant Control Room Operator, Underground Miner and Human Resources Coordinator. Three of the six, a Process Plant Control Room Operator, Underground Miner and Human Resources Coordinator, were women. Other initiatives targeted in support of women in mining included: De Beers hosted a group of Grade 8 girls at the company s Yellowknife office as part of Skills Canada NWT s Power Up Conference for Girls. Led by Erica Bonhomme, Snap Lake Mine Environment Manager, who holds a Master s degree in Earth Sciences, the girls took part in a mineral treasure hunt to identify the minerals associated with kimberlite deposits; During the annual NWT business opportunities breakfast in November, De Beers collected donations from attendees to support the Lutsel K e Women s Group which organizes a variety of programs for women in the community, including craft sessions. About $3,000 was raised; De Beers donated approximately $5,000 worth of mattresses from Snap Lake Mine to the YWCA in Yellowknife for Lynn s Place transitional housing for women; and, Sponsorship of the Indigenous Circumpolar Women s Gathering in Yellowknife in November

24 2014 Snap Lake Socio-Economic Report $ EMPLOYEES PROFILES OF WOMEN AT SNAP LAKE MINE ERICA BONHOMME ENVIRONMENT MANAGER A 20-year career in the sciences has led Erica Bonhomme to the management table at Snap Lake Mine. Backed by a Masters degree in Earth Sciences from Carlton University and designation as a professional geologist, Erica joined De Beers in December 2013 as Snap Lake s Environment Manager. Six of the eight members of Snap Lake s environment department are women. Erica s job is to oversee all environmental aspects of compliance, reporting and stakeholder engagement at the mine. She has worked in the NWT since 1994 and lived in the territory from Years ago it was difficult for women to get into a leadership position in the mining industry, said Erica. Now, having experience, knowledge and personal drive transcends the gender barrier. The workplace at De Beers is very respectful and supportive of women in management. Her career has ranged from working as an exploration geologist, to research, to training people for research jobs and consulting work. I have a strong commitment to education and leadership development and the development of young scientists. Snap Lake Mine Environment Manager Erica Bonhomme leads a Power Up Conference workshop for girls in November 2014, a program run by Skills Canada NWT. JENNA HORDAL PROTECTIVE SERVICES OFFICIAL Born and raised in the north, Jenna Hordal, of Hay River, joined the Snap Lake Mine team in 2009 as a Protective Services Official. She initially worked with a contracting company doing work at Snap Lake, and then was successful in moving to a position with De Beers as a Protective Services Trainee. Jenna said the purpose of her job is to protect her colleagues at the mine, ensuring they have a safe work environment that also provides security for the environment, product and property. On a typical day she has a wide range of activities including screening baggage, vehicle patrol, writing reports and creating ID cards. Jenna said she hopes her job takes her to a team lead or supervisory level in the future. 22

25 OVERVIEW ISSUES AREAS EMPLOYMENT DATA TANNER RITIAS UNDERGROUND HAUL TRUCK DRIVER Curiosity provoked by seeing a picture of an underground mine led Tanner Ritias to the NWT Mine Training Society and a job at Snap Lake Mine. The 22-year-old resident of Inuvik, NWT is one of 26 female members of the Mine Operations team and one of 18 women working underground. I never thought I would be working in a mine operating heavy equipment, said Tanner. She grew up in Inuvik and enrolled in the MTS Underground Miner Training program in her hometown. After three months there, she continued her training in Yellowknife, using a simulator to drive underground haul trucks, a scoop tram and other vehicles. Tanner then trained on the real thing in a nearby gravel pit. The course led to a three-month training position at Snap Lake Mine, which developed into an offer of a full-time job. Hired in October 2014, Tanner has risen quickly through the ranks, progressing from driving the fuel truck, operating a scissor lift, and now a haul truck operator. It was intimidating at first, she said. I am really pushing to run the scoop now. 23

26 2014 Snap Lake Socio-Economic Report COMMUNITIES BUILDING FOREVER COMMUNITIES In the Northwest Territories, De Beers Corporate Social Investment (CSI) program has focused on supporting training for northern residents, literacy development, cultural activities and health. De Beers updated its Corporate Social Investment (CSI) policy in 2014 to align with priorities of De Beers Group of Companies and our majority shareholder, Anglo American plc group. This policy guides CSI to five main areas: Education and Health; Small Business Enterprise Development; Traditional Knowledge and Culture; Green Initiatives; and Infrastructure. Of the $1.8 million spend though cash and in-kind CSI during 2014, $1.23 million supported trainees at Snap Lake Mine, including apprentices, trades trainees and underground miner trainees. The next largest portion of Snap Lake s social investment spend, $240,000 went to arts, culture and heritage programs, primarily in communities close to Snap Lake Mine. De Beers recognizes the importance of supporting community-based initiatives, even though Snap Lake Mine has yet to turn a profit in six years of operations. Some of the programs and projects that received support from Snap Lake Mine in 2014 were: Polar Pond Hockey Hay River Winter Carnival Whati NWT Heritage Fair Society Folk on the Rocks Yellowknife Fall Fish Camp Gamèti Lutsel K'e Dene First Nation Women s Group Festival of Traditional Knowledge Yellowknife/Behchokò Mother & Daughter Sewing Program Wekweèti NWT SPCA Yellowknife Men s and Youth Hand Games Tournaments Behchokò Northern Arts & Cultural Centre Yellowknife Aboriginal Day activities in several communities Dene Games Lutsel K e Senior Citizens Week Event Jimmy Erasmus Senior Citizens Centre, Behchokò Elders Centre Gamèti North Slave Métis Alliance Aboriginal Day Fish Fry Yellowknife Graduation ceremonies and activities multiple communities Yellowknives Dene First Nation Science Fair Long John Jamboree (De Beers Inspired Ice NWT Ice Carving Championship) Yellowknife 24

27 SPEND BY AREA: TRAINING: $1.23M ARTS CULTURE HERITAGE $239,607 EDUCATION $140,191 HEALTH $86,460 COMMUNITY DEVELOPMENT $68,961 ENVIRONMENT $11,635 SPORT $9,918 OTHER $37,310 Dean Murray, left, and Chris Foltz, from the United States, won the 2014 De Beers Inspired NWT Ice Carving Championship held as part of the Long John Jamboree in Yellowknife. De Beers has provided annual funding to the Jamboree to host Inspired Ice since it began in

28 2014 Snap Lake Socio-Economic Report COMMUNITIES CASE STUDY EMPLOYEES MAKE A DIFFERENCE IN THE COMMUNITY Social investment goes above and beyond contributions directly from the company. Snap Lake Mine employees are also extremely generous, rallying behind two important fundraising initiatives at the mine. In April, employees donated $5,800 to the United Way - NWT. This generous contribution was the result of employees declining a gift for achieving an important safety milestone, in favour of using the funds for the donation. In May, employees pulled together once again, this time to support a fund-raising campaign spearheaded by the Mine Rescue team. In preparing to take part in the annual NWT/NU Mine Rescue Competition, team members wanted to do something special. With support from De Beers which provided t-shirts to each employee who provided a donation, Snap Lake employees contributed $12,000 to the Canadian Breast Cancer Foundation. In recognition of their support and the cause, the Snap Lake Mine Rescue Team wore pink hard hats, pink gloves and pink ribbon patches during the June 14 event. To further support the employee-driven fundraiser, De Beers donated an additional $3,000 to push the final total raised to $15,000. The money was presented during the mine rescue awards banquet to a representative from the NWT Breast Health/Breast Cancer Action Group, which receives support from the Canadian Breast Cancer Foundation. Rosanna Strong, from the NWT Breast Health /Breast Cancer Action Group, dons a pink hard hat as she accepts a cheque for nearly $12,000 from the Snap Lake Mine Rescue team in June Darren Raymond, Manager of Safety, Health and Risk for Snap Lake Mine, presents a cheque for $5,800 to Julie Green from the United Way of the NWT. The funds represented a donation from employees who declined a safety milestone award in favour of a donation to the United Way. 26