2013 sustainable development report

Transcription

1 2013 sustainable development report

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3 Contents Introduction President s message Sustainable development Rio Tinto Dominion Diamond Corporation Rio Tinto Diamonds Diavik s northern commitments Diavik at a glance Operational update Diavik completes first year as all underground mine PKC dam raise a multi-year project A21 pipe feasibility study ongoing Reserves updated Exploration continues Winter road successful Proven and probable reserves Economic prosperity Socio-economic highlights Employment operations employment Employment by priority group Employment history by ethnicity (individuals) Employment history by residency (individuals) Training Apprenticeship training by priority group Funding to Mine Training Society surpasses $2 million Mining Industry Human Resources certifications Underground miner certifications Mineral processor certifications Spending operations spending Total cumulative spending Annual spending spending by category and priority group Social well-being National recognition a Canada s top 100 employer Donations Copper recycling program benefits Lights On program Yellowknife Community Foundation partnership Stanton Foundation partnership Lutsel K e youth attend Actua science camp Diavik receives Det on Cho Prosperity Award Support for local community groups Health, safety, and environment Diavik recertified to international standards Mine rescue team wins regional competition Diavik wind farm delivers renewable energy Energy management strategy Fuel consumption Fuel Environmental compliance Inspection and enforcement Environmental management system Water usage Water monitoring Environmental Monitoring Advisory Board Wildlife monitoring Caribou monitoring Lichen survey Closure planning Verification activities Key performance indicators Environmental monitoring programs Cover: Underground miner personal emergency devices charging in the Diavik Diamond Mine mine dry. To see the underground mine in action, visit the media/video library section of diavik.ca 01

4 Proud of our legacy to the North Introduction President s message At Diavik, our professional team operates our worldclass diamond mine in one of the most challenging environments in the world, the subarctic tundra of Canada s Northwest Territories. Safety is our most important value, and ensuring everyone returns home to their families and loved ones safely is our priority demonstrated again that we can operate safely while exceeding our production targets. This is important because no other metric matters if someone is seriously hurt while working for us. As guests on this land we recognize our responsibility to operate sustainably and ensure local communities benefit from our operations was a successful year for everyone at Diavik. By working together we safely exceeded our operational targets as a fully underground mine. Equally important are our efforts to social well-being and to ensuring we do all we can to protect the environment in which we operate and providing benefits to our local communities. Our health, safety, and environmental management systems and product quality are all certified to global standards. Our community partnerships continue to generate employment and business benefits for local communities, many of which are Aboriginal. We also continue to invest locally through our community contribution program and scholarships. We are proud of our ability to operate sustainably and to be a responsible operator, and we look forward to continuing to contribute positively to the North. I invite you to learn more about the Diavik Diamond Mine through the various pages of this report. Diavik has a bright future ahead, which will see us continue to deliver on our social, environmental, and economic commitments. Marc Cameron President Diavik Diamond Mines (2012) Inc. 02

5 Sustainable development At Rio Tinto, sustainable development is integrated into everything we do. Our operations give us the opportunity to share benefits with the communities, regions, and countries in which we work. We bring together our operational, technical, and sustainable development expertise at the global level, and work in collaboration with our stakeholders to deliver substantial and lasting benefits at the local level. Our responsible approach to mineral development ensures we gain and maintain our licence to operate. It means we provide confidence to our stakeholders and improve our access to the mineral resources, people, and capital we need. It also gives us the opportunity to plan, implement, and deliver sustainable contributions to social well-being, environmental stewardship, and economic prosperity, within our strong governance systems. By continually engaging with all our stakeholders, who include communities, governments, employees, customers, suppliers and investors, we turn opportunity into advantage. The relationships we build help us to solve business and technical challenges, and contribute to society s transition to sustainable development. Proud of our legacy to the North Introduction In 2013, Diavik s wind farm, Rio Tinto s first, reduced the mine s diesel use by 3.8 million litres. 03

6 Introduction Proud of our legacy to the North 2013 was the Diavik Diamond Mine s first full year as an all underground mine. Underground teams safely exceeded mining targets setting the stage for the next decade of production. Rio Tinto Rio Tinto is a leading global mining and metals company. Its focus is on finding, mining, and processing the Earth s mineral resources in order to maximize value for shareholders. It has the people, capabilities, and resources to supply a world hungry for the metals and minerals that are used in everyday life, in diverse products from mobile phones to cars. Rio Tinto s 66,000 people work in more than 40 countries across six continents, including in some of the most difficult terrains and climates. It is strongly represented in Australia and North America, and also has significant businesses in Asia, Europe, Africa, and South America. With headquarters in the UK, the Group comprises Rio Tinto plc, a London and New York Stock Exchange listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange. This global presence, and its expertise in technology and marketing, enables it to supply the right product, at the right quality, at the right time. Dominion Diamond Corporation Dominion Diamond Corporation is a Canadian diamond mining company with ownership interests in two major producing diamond mines. Both mines are located in the low political risk environment of the Northwest Territories in Canada. The Company operates the Ekati Diamond Mine through its 80 per cent ownership, as well as a 58.8 per cent ownership in the surrounding areas containing additional resources, and also owns 40 per cent of the Diavik Diamond Mine. It supplies rough diamonds to the global market through its sorting and selling operations in Canada, Belgium, and India, and is the world s fourth largest producer of rough diamonds by value. The Company maximizes the sales value of its rough stones from the Diavik and Ekati mines, and maintains a preferred position as a supplier of rough diamonds to the world s diamond manufacturers (cutters and polishers) by dealing directly with them and tailoring rough diamond parcels to the client s particular needs. Businesses include open-pit and underground mines, mills, refineries, smelters and power stations, including a significant hydropower portfolio, as well as a number of research and service facilities. It also owns and operates infrastructure that takes our products to our customers, including railways, ports, and ships. 04

7 Introduction Proud of our legacy to the North Since production began in 2003, Diavik has produced over 80 million carats of world-class rough diamonds. The natural gems are sold worldwide to customers known as select diamontaires. The Diavik Diamond Mine is a major contributor to the North, employing 485 northerners, including George Nitsiza, with Diavik contractor Tlicho Logistics. Rio Tinto Diamonds Through its 100 per cent control in the Argyle mine, 60 per cent of the Diavik mine and a 78 per cent interest in the Murowa mine, Rio Tinto Diamonds is one of the world s major diamond producers. Rio Tinto Diamonds share of the production from these mines are sorted and prepared for sale at its sales and marketing headquarters in Antwerp, Belgium. Rio Tinto Diamonds sales and marketing group aims to differentiate itself by: Providing the right customer with the right assortment of diamonds Tailoring its approach to serve each customer Creating long-term, mutually beneficial business relationships Retaining the flexibility to respond to market opportunities It maintains an extensive industry intelligence network and a high level of customer and product support, and also believes in supporting consumer confidence in its diamonds and plays an active role in addressing key industry issues around product integrity and sustainable development. Rio Tinto Diamonds is a founding member of the Responsible Jewellery Council. Established in 2005, the council is a notfor-profit industry organization with a mandate to promote responsible, ethical, social, and environmental practices throughout the diamond and gold jewellery supply chain from mine to retail. Rio Tinto Diamonds supports the initiatives of the World Jewellery Confederation, the umbrella organization of the world jewellery industry. Rio Tinto Diamonds values the role of the confederation as educator and communicator on matters of business responsibility and actively participates through debate and input on all initiatives associated with protecting consumer confidence in the diamond jewellery industry. Diavik s northern commitments Diavik Diamond Mines (2012) Inc., located in Yellowknife, Northwest Territories, Canada, has committed to ensuring local communities benefit from the sustainable development of its mine. Its commitments are formalized through individual Participation Agreements with the Tlicho Government, the Yellowknives Dene First Nation, the North Slave Metis Alliance, the Kitikmeot Inuit Association, and the Lutsel K e Dene First Nation. In 2013, Diavik and its community partners renewed four of the five agreements. The renewal of the fifth agreement will occur in early These long-term agreement renewals ensure local Aboriginal groups will continue to benefit from training, employment, and business opportunities at Diavik. Diavik also has a socio-economic monitoring agreement with the Government of the Northwest Territories, which was signed by Aboriginal groups. Regulatory requirements and an environmental agreement between Diavik, Aboriginal groups, and federal and territorial governments formalize Diavik s environmental protection commitment. The Environmental Monitoring Advisory Board, created under the environmental agreement and the socio-economic monitoring agreement, allows communities and governments to monitor Diavik s operation. 05

8 Proud of our legacy to the North Economic prosperity Wind Farm NORTH Waste Transfer Area Satellite image July 2013 Coronation Gulf Kugluktuk Umingmaktok Diavik at a glance Three ore bodies A154 South, A154 North, and A418 pipes Spending (2000 to 2013) $6.0 billion ($4.3 billion northern, of which $2.3 billion was Aboriginal) Operations workforce (31 December 2013) 997 (485 northern) Total mine life 16 to 22 years (currently in year 12) 2013 rough diamond production 7.2 million carats Reserves 16.4 million tonnes at 2.9 carats per tonne (December 2013) NORTHWEST TERRITORIES YELLOWKNIFE C A N A D A Diavik Diamond Mine Northwest Territories Wha Ti Fort Providence Gameti Hay River Coppermine River Winter Road Behchoko N dilo Arctic Circle Wekweeti Lac de Gras Yellowknife Dettah Great Slave Lake Mackay Lake Fort Resolution Bathurst Inlet Jericho Diamond Mine Tahera (closed) Contwoyto Lake Ekati Diamond Mine Dominion Diamond Corporation Snap Lake Diamond Mine De Beers Lutsel K e Nunavut Diavik Diamond Mine Rio Tinto/Dominion Diamond Corporation Gahcho Kue De Beers/Mountain Province 06

9 Diavik completes first year as all underground mine With its first year as an all underground mine complete, the Diavik Diamond Mine team demonstrated it can safely mine approximately 2 million tonnes of ore. Adding to the success were the mine s 2013 ore processing achievements. Fixed plant teams completed the year with exceptional processing rates; nearly 200,000 dry tonnes were processed in December. The final month of 2013 was, in terms of processing, the mine s best December ever and the best single month of processing total in nearly two years. Proud of our legacy to the North Operational update For the year, Diavik safely surpassed its tonnage target, mining 1.95 million tonnes of kimberlite ore. This was well above plan and resulted from accelerating the ramp up of the underground mine. The 2013 success followed the conclusion of open-pit mining in September The 2013 results demonstrate that Diavik can safely achieve its 2014 plan. All Diavik teams put safety first, which is what matters most production targets mean nothing if someone is seriously hurt. Diavik underground mine 2013 safety highlights include: Underground production and development teams went 224 days with no reportable injuries Underground fixed maintenance team went 741 days with no reportable injuries Underground mobile maintenance went 635 days with no reportable injuries In 2013, compared to 2012, Diavik reduced its lost time injury frequency and all injury frequency rates by 55 per cent and 16 per cent respectively. In 2013, there were 10 reportable injuries; three lost time injuries and seven medical treatments (all injury frequency and lost time injury frequency rates were 0.82 and 0.24 respectively). In 2012, there were 14 reportable injuries; eight lost time injuries and six medical treatments (all injury frequency and lost time injury frequency rates were 0.97 and 0.56 respectively). Through sub-level retreat and blasthole stoping mining methods, Diavik produced 7.24 million carats of rough diamonds over the course of the year. Since production began in 2003, Diavik has produced over 80 million carats of high quality rough diamonds. The majority of Diavik s product is gem-quality white stones, which are sold to select diamontaires. Diavik, now a proven underground mine, currently has a mine plan which includes 10 more years of operations. Mine life A154 open-pit A418 open-pit A154/A418 underground Mine schedule subject to market conditions, further resource evaluation, A21 pipe evaluation, continued mine planning, etc. Through two different underground mining methods sub-level retreat and blasthole stoping Diavik produced 7.24 million carats of rough diamonds. Pictured left to right are Al Budgell, Richard Oxford, Justin Isaacs, and Donald MacDonnell. 07

10 Proud of our legacy to the North Operational update Employment opportunities PKC dam raise a multi-year project The Diavik Diamond Mine continues to generate local employment opportunities for northerners. For example, in 2013, for the processed kimberlite containment dam raise construction project, northern employment was 71 per cent. To ensure optimum northern employment, Diavik conducted a dedicated recruiting effort in local northern communities. When year one work concluded, the crew included 31 individuals; 22 northern residents, of which 16 are Aboriginal peoples. This $30 million project will continue to generate local employment benefits through The processed kimberlite containment dam is a engineered structure constructed for waste rock generated by ore processing. The process kimberlite containment dam raise team. At right is liner installation and aggregate placement on the 5.6 kilometre structure. A21 pipe feasibility study ongoing Located just south of the existing mining operations, the A21 kimberlite pipe continues to show potential. In 2013, Diavik continued to examine the feasibility of open-pit mining A21. Once the feasibility study is complete, Rio Tinto will complete a technical evaluation to determine if A21 development will proceed. To mine A21, a dike, similar to the two constructed to mine the A154 and A418 ore bodies, would be required. A21 s measured resources are 3.6 million tonnes of ore with 2.8 carats per tonne. Diavik has completed three sample programs of A21. The most recent being the on-ice large diameter drill sampling program in It followed the 2007 bulk sample program, which included constructing a 1.2 kilometre decline tunnel. Initial drill core sampling was done in the mid-1990s. In all, 9,635 carats of rough diamonds were recovered from these three sampling programs. This has allowed for accurate pricing predictions and assisted with planning. In 2013, Diavik s engineering team continued to study A21. This pipe, located just south of existing mining operations, has measured resources of 3.6 million tonnes of ore with 2.8 carats per tonne. 08

11 Operational update Proud of our legacy to the North In 2014, Diavik expected to transport nearly 90,000 tonnes, or about 2,700 loads, to its mine at Lac de Gras. Benjamin Hardisty, left, and Johnathan Mackenzie offload fuel which arrived via the winter road. Reserves updated Total reserves numbers, reflected in the accompanying table, include stockpiled ore which, as of 31 December 2013, had been mined but not processed. Diavik reserves include 16.4 million tonnes of ore containing 2.9 carats per tonne. This compares with 18.3 million tonnes at 2.9 carats per tonne a year earlier. Although no new reserves were identified in 2013, as a result of ongoing sampling during mining, 2.3 million tonnes of A154 North ore was upgraded to proven reserves from probable reserves, raising the robustness of the figures. Exploration continues In 2013, Diavik continued its exploration efforts on the joint venture property. Work was concentrated on processing and analysis of the till sampling information collected in 2012, in addition to re-analysis of historical geophysical data. Winter road successful Constructed annually for mine resupply, the Tibbitt to Contwoyto Winter Road is the world s longest heavy haul ice road, extending 600 kilometres when built into Nunavut. Eighty-seven per cent of the road is constructed over frozen lakes connected by 65 land portages. Open for approximately 10 weeks each winter, the ice road is a joint venture managed by Diavik Diamond Mines (2012) Inc., Dominion Diamond Corporation, and De Beers Canada Inc. The road opens to light loads and full weight capacity when ice thickness reaches 0.71 metres and 1.04 metres respectively. In 2013, Diavik trucked 3,149 loads (111,659 tonnes) of fuel, cement, explosives, equipment and other materials over the winter road. Proven and probable reserves 31 December 2013 Pipe Tonnes (millions) Carats/tonne Carats (millions) A154S A154N A Stockpile Total Some figures may not add due to rounding. 09

12 Proud of our legacy to the North Economic prosperity Socio-economic highlights Diavik is committed to providing significant training, employment, and business opportunities to the Northwest Territories and the West Kitikmeot region of Nunavut. These commitments have been formalized through the Diavik Socio-Economic Monitoring Agreement concluded in 1999, and in individual Participation Agreements concluded with five Aboriginal groups the Tlicho Government, the Yellowknives Dene First Nation, the North Slave Metis Alliance, the Kitikmeot Inuit Association, and the Lutsel K e Dene First Nation. Heavy equipment operator Glen Marion, with Tlicho Logistics, is among Diavik s workforce of 997 people. 10

13 Employment In 2013, Diavik s total northern employment and total Aboriginal employment percentages increased over the previous years percentages. At year-end, Diavik employed 485 northerners or 49 per cent, up from 47 per cent in Total Aboriginal employment, some 236 people, was 24 per cent, up from 22 per cent. Since 2000, Diavik has generated approximately 10,000 person years of northern employment Operations Employment Total % southern (512) 20% northern Aboriginal (202) Employment by priority group Aboriginal Tlicho First Nation % Yellowknives Dene First Nation % North Slave Metis Alliance % Lutsel K`e Dene First Nation 5 0.5% Kitikmeot Inuit Association 4 0.4% Participation Agreement group % Aboriginal Other northern Aboriginal % Total northern Aboriginal* % Other Aboriginal residing % in the North Other Aboriginal not residing % in the North Total Aboriginal % Proud of our legacy to the North Economic prosperity 28% other northern (283) Non-Aboriginal employment Other Canadian % Other nationality % Total non-aboriginal % Unknown** % Total employment % * Under the socio-economic monitoring agreement, northern Aboriginal is defined as First Nations peoples born in the Northwest Territories or West Kitikmeot region; or a descendant of an Aboriginal person born in the Northwest Territories or West Kitikmeot region. Diavik has Participation Agreements with the Tlicho First Nation, Yellowknives Dene First Nation, Lutsel K e Dene First Nation, North Slave Metis Alliance, and Kitikmeot Inuit Association. ** Declaration is voluntary. At year-end 2013, ethnicity of 116 people was not known. This includes 92 individuals who chose not to declare and 24 individuals declarations which had not been received. As a result, status of 116 individuals (12 per cent) is unknown. Employment history by ethnicity (individuals) Aboriginal 267 (31%) 313 (28%) 238 (22%) 236 (24%) Non-Aboriginal 605 (69%) 824 (72%) 649 (61%) 645 (64%) Unknown** (17%) 116 (12%) Total 872 1,137 1, Employment history by residency (individuals) Northern Aboriginal* 267 (31%) 313 (28%) 206 (19%) 202 (20%) Other northern 284 (33%) 329 (29%) 302 (28%) 283 (28%) Total northern 551 (63%) 642 (56%) 508 (47%) 485 (49%) Southern 321 (37%) 495 (44%) 563 (53%) 512 (51%) Total 872 1,137 1,

14 Proud of our legacy to the North Economic prosperity The Diavik team includes 27 apprentices training to achieve journeyperson designations. Pictured is Instrumentation Technician Heather Mackenzie. Training Diavik utilizes its apprenticeship program to increase skills and provide opportunities for northern and Aboriginal employees. Diavik has committed to train between eight and 18 apprentices annually. At year-end, Diavik supported 27 apprentices; all of whom were northern, with 14 being northern Aboriginal. Four Diavik apprentices are working towards dual journeyperson certifications. Since 2003, 35 apprentices have successfully completed their apprenticeships at Diavik and achieved journeyperson certifications from the Government of the Northwest Territories. Apprenticeship training by priority group Northern non-aboriginal 13 Northern Aboriginal 14 Total apprentices 27 Funding to Mine Training Society surpasses $2 million Diavik is a founding member of the Northwest Territories Mine Training Society and has supported the organization since 1997 when it helped create the North s mine training committee, which served as the model for the current society. Since its inception Diavik has provided over $2 million to the Society and its programs. Diavik also supports the Society by providing placements for graduates to complete their practical training and employment for graduates. The Mine Training Society offers training to northern residents to assist them with finding jobs in the resource sector. Courses include underground miner, mineral processor, apprenticeships, and summer students. Since 2004, the Society has assessed approximately 2,000 people for training suitability, provided training or other employment related assistance for over 1,300 people, and has facilitated employment for over 700 people. Mining Industry Human Resources Council (MiHR) certifications In 2013, Diavik continued its participation in the Mining Industry Human Resources Councils (MiHR) national certification programs for underground miners and mineral processors. Through this program, individuals who achieve certifications demonstrate they have the skills that meet national standards which have been developed by MiHR and the mining industry. Diavik has supported the MiHR certification, a national standardized certification program, since inception in Diavik underground miners were the first in Canada to be certified under this program. Through 2013, 46 members of Diavik s workforce have achieved MiHR underground miner certifications and 50 team members have achieved MiHR mineral processor certifications. Underground miner certifications Northern 7 Northern Aboriginal 15 Subtotal northern 22 Southern 13 Unknown* 11 Overall total 46 Mineral processor certifications Northern 9 Northern Aboriginal 19 Subtotal northern 28 Southern 12 Unknown* 10 Overall total 50 * Seven individuals chose not to declare and 14 individuals did not provide details. 12

15 Spending In 2013, 72 per cent of spending was with local business, up from 67 per cent in 2012, equalling $261 million. Of the northern spend, $116 million, one-third of the total, was with Aboriginal business. In 2013, total northern spend percentage increased by four per cent. Since 2000, Diavik has spent $4.3 billion with local businesses, or 72 per cent of the total businesses spend of $6.0 billion. Of the $4.3 billion in northern spend, $2.3 billion has been spent with northern Aboriginal businesses and their joint venture companies. MILLIONS OF DOLLARS $6,000 $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 0 Northern Aboriginal Total Cumulative Spending $2,306 $2,036 Total northern spend $4.3 B MILLIONS OF DOLLARS $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $604 $ Operations Spending $101 million southern Annual Spending $146 million other northern $116 million northern Aboriginal $1,702 $300 $310 $178 $180 $143 $200 $66 $71 $155 $147 $146 $112 $206 $215 $120 $84 $144 $100 $135 $143 $101 $108 $105 $76 $58 0 $ (Capital) Other Northern Other Canadian (Operations) $197 $224 $276 $245 $254 $256 $145 $113 $125 $115 $116 Proud of our legacy to the North Economic prosperity 2013 spending by category and priority group ($ millions) Category Northern Aboriginal Other northern Subtotal northern Subtotal other Overall total Outsourced labour Freight, cargo, transport YEAR YEAR Construction Human resources services Consumables Accommodations services Drilling, blasting Professional services Telecommunications Passenger transport Environmental services Fuels, lubricants Other Total spend

16 Social well-being Proud of our legacy to the North National recognition a Canada s top 100 employer For the third year in a row, Diavik was selected as a Canada s Top 100 Employer. Donations During the year, Diavik supported numerous local community initiatives and events. The Canada s top 100 employers competition is the largest editorial project of its kind in Canada, with thousands of employers taking part in each year s application process. Diavik was the only Northwest Territories company to have been recognized as a Canada s Top 100 Employer for Each employer is graded by Mediacorp Canada Inc. editors on eight key areas, including: Physical workplace Work atmosphere and social Health, financial, and family benefits Vacation and time off Employee communications Performance management Training and skills development Community involvement In total, Diavik donated $485,257 to community cultural, educational, health, and recreational activities, and to northerners through scholarships. Of the total, $274,347 was for scholarships through participation agreements and Diavik employee scholarship programs. In partnership with Crossworks Manufacturing, polished Diavik diamonds were donated to the Yellowknife Community Foundation, the Yellowknife Seniors Society, and the NWT SPCA. These organizations significantly increased the value of the diamonds through auctions and raffles, with proceeds supporting these organizations community initiatives. As part of its diamond donation program, Diavik, in partnership with local manufacturer Crossworks, donated a 1.17 carat polished diamond to the Yellowknife Seniors Society. Through its annual raffle, the Society generated $33,000 for its programs. Diavik s Winter Haley and Byron Dolan presented presented the diamond, worth $16,000, to Society representatives Sandra Taylor and Linda Basillie. 14

17 Copper recycling program benefits Lights On program The Lights On program in Hay River will keep the lights on for another year because of a copper donation made by Diavik. The total value of the donation was $50,000. The copper was collected at the minesite and shipped to Hay River, with Tli Cho Landtran donating the transportation. Community volunteers and program participants spent hundreds of hours over the summer removing insulation and plastic from the copper wiring. Russell Chase, a Hay River resident and Diavik employee, coordinated the recycling effort. Lights On offers grade four through to high school students a safe and healthy option for their weekends. Students are welcome to socialize, play sports, and utilize school facilities after hours. In addition to providing a barrierfree environment at no cost, the youth receive snacks and full meals they help prepare. The Lights On program has a team of coordinators and volunteers who plan activities like beading with an Elder, shopping for groceries, and mentoring youth. In 2012, Health Canada s anti-drug grant funding concluded, leaving the program with a 2013 funding shortfall. Diavik s donation will support the operational costs, including food and needed equipment, until June Community businesses, the Hay River District Education Authority, and government grants also assist with programming costs and in-kind services. Proud of our legacy to the North Social well-being Yellowknife Community Foundation partnership Through a multi-year sponsorship agreement, Diavik and the Yellowknife Community Foundation strengthened their partnership. The three-year agreement supports the Foundation s annual Forever in Our Heart s fundraising gala and includes donation of a Diavik 1.13 carat diamond, worth $16,000, and $5,000 cash annually. Each year, Diavik, in cooperation with Crossworks Manufacturing, has donated a diamond for the gala s diamond draw. Diavik s total funding and in-kind support for the gala, which includes diamonds and other auction item donations, and staff volunteers, now exceeds $125,000. Additionally, at the 2013 gala, the company announced the creation of the Diavik Community Scholarship, a $25,000 endowment fund administered by the Foundation. Diavik s goal is to continue to add to this scholarship fund and grow its value well beyond the initial $25,000. In existence since 1993, the Yellowknife Community Foundation is one of the community s leading philanthropic organizations. Diavik continues to support the Yellowknife Community Foundation. Pictured are Sandra Nielsen, Charles Dent, and Tom Hall of the Yellowknife Community Foundation, and Diavik President Marc Cameron, second from right. 15

18 Social well-being Proud of our legacy to the North Stanton Foundation partnership With a new three-year funding partnership, Diavik will provide $45,000 in support to the Stanton Territorial Hospital Foundation. The Stanton Foundation s objective of improving healthcare across the North for present and future generations aligns with Diavik s desire to operate sustainably and contribute to the North. Since 2001, Diavik and its contractors have contributed approximately $200,000 to the Stanton Territorial Hospital Foundation. These donations have assisted the Foundation in the purchase of lab equipment and a new mammography machine for the Stanton Territorial Hospital. Diavik diamond donations have also assisted the Foundation in its fundraising initiatives. Lutsel K e youth attend Actua science camp Youth in Lutsel K e rolled up their sleeves and discovered firsthand what it s like to think like an engineer, design and build like and engineer, and to be an engineer, through a week-long science and engineering camp designed to expose participants to a wide variety of science, engineering, and technology careers, and future work opportunities. Diavik s Winter Haley, left, and Jon Brennan, fourth from left, present the Stanton Territorial Hospital Foundation with a $45,000 Diavik grant. Representing the Stanton Territorial Foundation: Joe Handley, Kay Lewis, Louise Matthews, Rebecca Alty, Alayna Ward, and Deborah Ross. The camp, which was delivered by DiscoverE, an Actua member located at the University of Alberta, was supported by Diavik. Youth learned about the significance of the mining industry and the myriad of related career opportunities through activities, ranging from simulating the formation of igneous, metamorphic, and sedimentary rocks to designing circuits and exploring the conductivity of various materials and designing structures. Actua is Canada s leading science, engineering and technology youth outreach network. Over 3 million young Canadians have been inspired through their participation in Actua s positive, hands-on educational workshops, camps, and community outreach initiatives. Physics Engineer/Instructor Mohamed Harit and a DiscoverE science camp participant in Lutsel K e. Diavik receives Det on Cho Prosperity Award After 25 prosperous years, Det on Cho Corporation recognized those who have helped along the way by presenting its first Prosperity Awards. The awards were an opportunity to recognize partners who have contributed to the company s success. Through Bouwa Whee, the Yellowknives Dene successfully transitioned to full ownership from a partnership. Bouwa Whee, which means I am hungry in the Dene language, provides Diavik catering and housekeeping services. It also operates a training facility at its Smokehouse Cafe in the community of N dilo. Recipients included Diavik Diamond Mines (2012) Inc., Stanton Territorial Health Authority, De Beers, and the GNWT Department of Transportation. Diavik Diamond Mines (2012) Inc. was recognized for building a partnership with Det on Cho that led to the formation of Bouwa Whee Catering. Bouwa Whee is an example of a partnership that will provide a lasting legacy. Initially, Diavik s food services and housekeeping was delivered by Ek ati Services, a Yellowknives Dene joint venture company. 16

19 Support for local community groups In 2013, Diavik supported the following groups and organizations: Hay River Play School Yellowknives Dene First Nation Career Fair Habitat for Humanity Aboriginal Sport Circle Annual Charity Golf Tournament Yellowknife Community Foundation Community Government of Gameti Avens Seniors Behchoko Presence Office Hamlet of Cambridge Bay Kugluktuk Recreation Tree of Peace Wekweeti Presence Office Community of Wha Ti RCMP Charity Golf Yellowknife Family Centre Yellowknives Dene First Nation Yellowknives Dene First Nation truck donation CNIB Golf Tournament Lutsel K e Dene First Nation spring carnival Open Sky Festival Bosco Homes Hay River Health and Social Services Supportive Services Actua science camp in Lutsel K e Hamlet of Cambridge Bay Omingak Frolics Behchoko Youth Handgames NWT Track and Field Championships Hay River Women s Hockey Yellowknives Dene First Nation summer program Kugluktuk Recreation canoe safety Snowking winter festival NWT SPCA raffle Hamlet of Kugluktuk 2012 summer student Stanton Territorial Hospital Foundation Yellowknives Dene First Nation Diavik Week North Slave Metis Alliance Annual Fish Fry Deninu School Lutsel K e Dene First Nation annual spiritual gathering Tlicho Annual Gathering Yellowknife Seniors Society Financial Literacy Training Program Kimberlite Career and Technical Institute Northern Student Education Initiative Lutsel K e Dene First Nation traditional knowledge archive project Yellowknife Marine Rescue Society Weledeh Catholic School Kugluktuk Recreation Playground Project Actua science camp Diavik 150 Mine Training Society Hay River Lights On program Proud of our legacy to the North Social well-being Left are Diavik s Hans de Haas and Jon Brennan volunteering at the annual North Slave Metis Alliance fish fry at the Somba K e Civic Plaza in Yellowknife. Right, families are presented the keys to their new Habitat for Humanity homes in Yellowknife. 17

20 Proud of our legacy to the North Health, safety, and environment Diavik recertified to international standards Diavik s health, safety, environment, and quality systems have been recertified to the highest international standards. Diavik completed the International Organization for Standardization (ISO) and Occupational Health and Safety Advisory Services (OHSAS) recertifications in The recertifications, conducted every three years after two annual surveillance audits, involved a comprehensive assessment of Diavik s key business systems, procedures, and processes, and a compliance evaluation. The ISO auditing recertification process is one way in which Diavik demonstrates its focus and ongoing commitment to health and safety, to meeting environmental commitments, and to ensuring exceptional product quality. The recertifications include: ISO 14001:2004 for environmental management system ISO 9001:2008 for product splitting facility quality OHSAS 18001:2007 for occupational health and safety Conducted by four auditors over five days, the audit included pre-audit planning sessions, area visits and inspections, interviews with staff in their work areas, documentation reviews, and daily follow-up meetings with the management team. For numerous aspects of its operations, Diavik was given strong recognition for its best practices. For example, Diavik was commended for the safe and effective processes and policies associated with the operation of its minesite explosives emulsion facility and for its energy management. ISO auditors gave Diavik several commendations, including recognition for its powerhouse energy management plan. Pictured is Diavik Power Distribution and Electrical Supervisor Michael Hjelmeland. 18

21 Mine rescue team wins regional competition Diavik s mine rescue team won the National Western Region Mine Rescue Competition s underground event held in Fernie, British Columbia. The event, held every two years, is North America s largest mine rescue competition and Diavik has now won it three times in a row. The competition included provincial, territorial, and state mine rescue teams from the Northwest Territories, Nunavut, Alberta, British Columbia, Manitoba, Saskatchewan, the Yukon, and northwestern United States. The Diavik team, drawn from the mine s emergency response team (ERT), competed against eight other mines in the underground competition, which includes firefighting, bench (a technical equipment problem), obstacle and recovery, smoke/ search, first aid tasks, practical skills, and written tests. Diavik qualified for the regional competition after its performance at the Workers Safety and Compensation Commission s NWT Mine rescue competition held in June in Yellowknife. Proud of our legacy to the North Health, safety, and environment 19

22 Proud of our legacy to the North Health, safety, and environment In 2013, the wind farm generated 15.9 gigawatts enough energy to power 29, watt light bulbs for a year. Diavik wind farm delivers renewable energy Over its first full year of operations, Diavik s award-winning wind farm reduced diesel fuel usage by 3.8 million litres. Until the wind farm came online in September 2012, Diavik s only source of power was from diesel powered generators. main power source. During its first winter, the turbines were barely operational in December 2012 and January 2013 due to the extreme climate challenges. The blade heating systems were adjusted to address frost build-up, lubrication was changed out, and the nacelles and bases were retrofitted with heaters. These adjustments were successful. Each year Diavik uses over 50 million litres of fuel to generate electricity, all of which must be transported up the winter road during its eight weeks of operation. In the coldest winter months, diesel powered boilers are also required. Power is needed for building heat, for processing ore, and for pumping approximately 30,000 cubic metres of water per day to surface from the underground mine. The 3.8 million litre reduction represents over $5 million in savings. Through the wind farm, Diavik is reducing its carbon footprint by just over five per cent. At this rate, the $31 million renewable energy investment will pay for itself in about six years. Diavik s mine life is currently 10 more years. The wind farm is Rio Tinto s first, and the first large-scale facility of its kind in Canada s Northwest Territories. It is also the largest wind diesel hybrid system in the world. During feasibility studies, which included a three year wind study, Diavik determined that wind power would be economic, but it also recognized the volatility of the resource. Diesel generators would need to remain the site s For 2013, the wind farm produced an average power penetration of 8.5 per cent. The 3.8 million litres fuel reduction equates to 10,726 tonnes of C0 2. On occasion, the winds were strong enough for the turbines to provide over 50 per cent of the site s electrical energy needs enough to power Diavik s underground mine. Key to the project s success was sourcing a product designed to best fit Diavik s needs and its remote location, and ensuring site teams built and now operate the wind farm. In 2013, the wind farm was awarded the Canadian Wind Energy Association s group leadership award, and the Northwest Territories and Nunavut Association of Professional Engineers and Geoscientists environmental award. Over the first two months of 2014, the four turbine 9.2 megawatt facility has reduced the mine s diesel fuel usage by 891,046 litres and delivered 11 per cent of its power needs. To learn more about Diavik s wind farm, visit the Media/ video library section of diavik.ca. 20

23 Diavik s energy management strategy includes an initiative to optimize the backfill plant operating times. Left to right are Backfill Plant team members Martial Papineau, Rocney Budgell, Jody Smith, Doloris Nitisza, Rolf Berg, Kelly Malcolm, and Jeff Fraser. Energy management strategy In an effort to reduce is diesel fuel usage, Diavik launched an energy management strategy in The strategy identified several projects, including: Process plant improvements in throughput rates Optimizing heat recovery from diesel generators and heat exchangers in the power plant, which equals significant reduction in running boilers to heating buildings Reducing the number of hours that the backfill plant is running, yet still meeting underground cemented rockfill requirements and allowing more time for planned maintenance General energy reduction, including shutting down lights, diesel plants, and heating loads in satellite buildings and areas that do not require heating during winter For underground mine air heating, reduce the temperature set point, yet maintain safe and comfortable operating environment Managed ventilation switching off underground auxiliary fans when not required to run Install a waste oil burner for used site oil for space heating instead of using conventional diesel type boilers The vehicle idling project, which ensures vehicles are only idling during very cold days and are switched off during less cold days These initiatives, which are in various stages of implementation, represent potential savings of approximately 3 million litres of diesel fuel. Proud of our legacy to the North Health, safety, and environment 21

24 Proud of our legacy to the North Health, safety, and environment Optimizing backfill plant operating times (backfill, which includes cement, is used to fill mined out voids in the A154 North pipe underground) and fresh air raise ventilation systems monitoring are among projects aimed at reducing energy use. Right is the underground mine s fresh air raise surface infrastructure. Fuel consumption Mining 8,405,605* 13,023,945 17,568,558 24,035,288 21,480,972 23,702,128 Boiler 16,338,517** 9,853,483 12,574,541 10,158,733 4,953,313 3,346,260 Electricity*** 41,813,068 41,401,957 38,416,210 33,314,930 22,439,133 22,877,880 Capital expenditures**** 441, , ,250 1,489,797 12,841,125 23,522,738 Total 66,999,171 64,612,821 69,431,559 68,998,748 61,714,542 73,449,006 * With the conclusion of open-pit mining in 2012, and related reduction in haul truck usage, fuel usage for heavy equipment declined. ** Increased volumes of underground ventilation were required for the advancement of the mine and during winter months this air required heating. *** Does not include fuel consumed for capital expenditures (construction) projects electricity. **** Construction and underground mine development. Fuel Diesel fuel and the wind farm generate electrical power required to operate the Diavik Diamond Mine. Diesel is also required for mobile equipment. In 2013, total diesel fuel usage increased by four per cent over 2012, largely due to the commissioning of the underground mine s third fresh air raise ventilation system. This system, which heats and pumps air into the mine, ensures the mine s underground workings are supplied with fresh air. As the mine depth increased, the planned third fresh air raise was required. Each requires several million litres of diesel fuel and, as noted earlier, the fresh air raise system is one of Diavik s several energy management strategy projects. The goal of this, and other projects, is to reduce diesel fuel usage, which makes Diavik as efficient as possible and lowers its carbon footprint. Environmental compliance As part of its commitment to the environment, Diavik is a signatory to an environmental agreement with local Aboriginal groups, and the federal and territorial governments. Finalized in March 2000, the agreement formalizes Diavik s environmental protection commitments, establishes reclamation security requirements, and provides transparency and oversight to local communities. Regulatory requirements are governed by a variety of environmental acts and regulations that set specific conditions through various permits, licences, and authorizations as well as the environmental agreement. For example, the water licence establishes effluent criteria for waste water discharge to protect the water. Fish and fish habitat are protected, monitored, and managed in accordance with the requirements of fisheries authorizations. Land leases outline the requirements for responsible land management practices, including provisions for infrastructure, and waste and hazardous materials management. The public can view these various documents at a public library in the Environmental Monitoring Advisory Board s office in Yellowknife and/or through the Wek eezhii Land and Water Board (WLWB) public registry (online and library). 22

25 Diavik Environment Technician Darcy Bourassa conducts air quality monitoring at a dust collection point near the mine. Inspection and enforcement Government inspections provide assurances that Diavik remains in environmental compliance. In 2013, regular inspections were conducted by the federal Department of Aboriginal Affairs and Northern Development Canada (AANDC), which holds primary responsibility for enforcement and inspection of the legal provisions of permits and licences related to land and water use and waste management. Diavik s EMS includes protection for wildlife, water, and fish habitat issues of particular concern raised by local communities. In 2010, Diavik was certified to a new integrated Rio Tinto management system for health, safety, environment, and quality (HSEQ). HSEQ is aligned with ISO (certification will be maintained) and Rio Tinto standards, procedures, and work practices that are applied at Rio Tinto operations globally. Proud of our legacy to the North Health, safety, and environment Inspection reports are included in the Wek eezhii Land and Water Board online registry that can be sourced from its web site ( Environmental management system To manage its environmental protection commitments, Diavik has implemented an internationally certified Environmental Management System (EMS) that: Identifies and priorities environmental risks Identifies activities to protect the environment Ensures employees are properly trained Anticipates and avoids environmental problems Ensures regulatory compliance and due diligence Ensures consistency with corporate environmental policy Under its comprehensive monitoring program, thousands of water samples are collected and analyzed every year to ensure Lac de Gras is being protected. Pictured is Diavik Environment Technician Justin Grandjambe. Certified under the internationally acknowledged ISO14001 standard, Diavik s EMS is designed to be simple, understandable, easy to implement, and adaptable. 23