2014 SNAP LAKE MINE SOCIO-ECONOMIC REPORT/media/Files/D/De-Beers-Canada/... · Together with our Joint Venture partners, the De Beers Group of Companies mines for diamonds across

2 0 1 4 S N A P L A K E M I N E S O C I O - EC O N O M I C

R E P O RTBuilding 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.

B U I L D I N G F O R E V E R

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 2004. It includes a section on 2014 employment, recruitment initiatives, training, procurement, health and wellness initiatives, social investment and support for cultural initiatives.

2014 Snap Lake Socio-Economic Report

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OV E RV I E W0 2 Our Company

0 5 Mine General Manager’s Welcome

0 6 Snap Lake Mine Operations Update

I SS U E A R E AS0 8 Economics

1 2 Employees

2 4 Communities

E M P LOY M E N T DATA2 8 Employment Data

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O U R

C O M PA N Y

O U R C O M PA N YReport to Society 2014

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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.

A G L O B A L

P R E S E N C E

S O U T H A F R I CADe Beers Consolidated Mines (DBCM) Established 1888. 74/26 Black Economic Empowerment (BEE)partnership with Ponahalo Holdings.

Carats recovered, 2014

4,634,0001

N A M I B I ANamdeb Holdings Established 2011. 50/50 joint venture with the Government of the Republic of Namibia (GRN). Comprising Namdeb Diamond Corporation (established 1994) and Debmarine Namibia (established 2002).


1,886,0001

CA N A DADe Beers Canada Established 1998. 100% owned.


1,848,0001

B OTSWA N A Debswana Established 1969. 50/50 joint venture with the Government of the Republic of Botswana (GRB).


24,237,0001

G R O U P F U N CT I O N SLuxembourg South Africa United Kingdom

E X P LO R AT I O NCanada Botswana South Africa Angola India Namibia

M I N I N GCA N A DASnap Lake Victor

N A M I B I AAtlantic 1 Beach and marine contractors Elizabeth Bay Mining Area 1 Orange River

B OTS WA N AJwaneng Orapa Letlhakane Damtshaa

S O U T H A F R I CAVenetia Voorspoed Kimberley

SA L ESBelgium Botswana Hong Kong Israel Namibia Singapore South Africa UAE

B R A N D S / R E TA I LG LO BA LForevermark De Beers Diamond Jewellers

1 Carats recovered on a 100 per cent basis.

W H E R E W E O P E R AT E

SOURCE: De Beers Group of Companies 2014 Report to Society.

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O V E R V I E W E M P L O Y M E N T D ATAI S S U E S A R E A S

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.

WHERE OUR NWT EMPLOYEES LIVE

Snap Lake Mine

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.

Yellowknife

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

Gahcho Kué

(includes Dettah and Ndilo)

Waste rock comes off conveyor on the surface.


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W E LC O M E TO T H E D E B E E RS S N A P L A K E M I N E 2 0 1 4 S O C I O - EC O N O M I C R E P O RTThis report documents how De Beers' Snap Lake Mine’s contributions to the social, economic and cultural well-being 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 2015.

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.

M A X W E L L M O R A P E L IMine General Manager

“CONTINUOUSLY IMPROVE SAFET Y AND PRODUCTION PERFORMANCE”

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

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 2005. 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

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.

S N A P L A K E M I N E

O P E R AT I O N S U P DAT E

O U R A P P R O A C H

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 2015.

OPERATIONSThe mining and process plant teams performed well through the first half

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. 66


H I G H L I G H TS 2014 CARATS

1 . 2 M2014 NWT SPEND

$ 1 2 6 M2014 NWT WORKFORCE

2 5 8 (PERSON YEARS)

2014 SOCIAL INVESTMENT

$ 1 . 8 M

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.

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 & PEOPLEDuring 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)

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 2014.

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 2014.

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E C O N O M I C SB U I L D I N G FO R E V E R

E C O N O M I C S

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 2014.

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 2013. This 9.6% increase in spending with NWT companies is significant as total operations spending at the mine was reduced by $5 million in 2014. Spending with Aboriginal companies was up by 11% in 2014 when compared to 2013.

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.

A tanker load of fuel on the ice road to Snap Lake Mine in March 2014.8

SNAP LAKE MINE SPEND

2014 2013

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.

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via www.canada.debeersgroup.com, 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.

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

SNAP LAKE MINECumulative Spend 2005-2014: $2.2 billion

ABORIGINAL SPEND

38% NWT SPEND

3 1 % NON-NWT SPEND

3 1 %

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:

• Email: [email protected]

• Telephone: 1-866-451-1590

• 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 www.speak-up-site.com

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.

S P E A K U P ! P R O G R A M

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 2014.

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CAS E ST U DYINVESTMENT SUPPORTS JOBS AND TRAINING FOR DENINU KUÉ FIRST NATION MEMBERSAn 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 2012. 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.

ECONOMICS$

“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 2014.

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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.

E M P L O Y E E SB U I L D I N G FO R E V E R

E M P L O Y E E S

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.

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H I G H L I G H TS NWT EMPLOYEES


NWT ABORIGINAL EMPLOYEES


TRAINEES

1 5

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 2014.

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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 e-mail to De Beers. “The students having a chance to speak with the presenters and dropping off their resumes was a big bonus.”

SUMMER EMPLOYMENT PROGRAMA 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 GNWTLed 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 2009.

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 2015.

EMPLOYMENT INCENTIVESIn 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.

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

D E B E E RS A LS O H O ST E D I TS OW N S E R I ES O F CA R E E R FA I RS , FO C U S E D O N C O M M U N I T I ES C LO S E TO S N A P L A K E M I N E .

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NWT POST-SECONDARY SCHOLARSHIP PROGRAMDe 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 2014. 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).

EMPLOYEES

Sean Alldridge Liam Coedy

Aimee Gauthier Lisa Giovanetto

Kathleen Glowach Madison Gray

Martha Hamre Julianne Neudorf

Verna Pope Alea Stockton

De Beers employees gather for a team photo after participating in the Herc Pull in September 2014 to raise money for NWT Special Olympics.

DE BEERS 2014 NWT POST SECONDARY SCHOLARSHIP RECIPIENTS


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ANDREW WEYALLONBEHCHOKÒ, NWTA 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, 2014.

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,”

EMPLOYEES

SHAWN TUTCHO DELINE, NWTEvery 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 2004. 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.”

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LUKAS GIRODAYKELOWNA, BCFrom 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.

MANAGER PROFILE: PAUL PRIMEAUPaul 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.


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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.

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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 2014.

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-BEINGThe 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 2015.

T R A I N I N G

Training is important to investing in growing the skills and capacity of NWT residents.

T H E T R A I N I N G D E PA RT M E N T H AS A D D E D TO T H E S U I T E O F T R A I N I N G P R O G R A M S AVA I L A B L E AT T H E M I N E .

*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.

2014 SNAP LAKE MINE TRAINING

Training

Life of Mine Training Commitment

Current Trainees*

Cumulative Trainees to Date

Cumulative Program Graduates

Trades 10 4 27 16

Apprenticeship 10 7 28 6

Underground 20 4 43 23

Total 40 15 98 45* Includes trainees from 2013 who are continuing their training programs in 2014


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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;

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 2015.

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.

• 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.


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.

CULTURAL WELL-BEINGWhether 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

CAS E ST U DYCULTURAL EXPERIENCE FOR MINE PROFESSIONALSFor 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, Lutsel K’e, and Fort Resolution.

EMPLOYEES$

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 participate in a Christmas ornament making workshop hosted at Snap Lake Mine in December 2014. The event was held in the mine’s Cultural Centre.

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WO M E N I N M I N I N G

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 2014.

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 2014.

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 2014.


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P R O F I L ES O F WO M E N AT S N A P L A K E M I N E

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 2001.

“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.”

EMPLOYEES$

JENNA HORDAL – PROTECTIVE SERVICES OFFICIALBorn 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.

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.

22

TANNER RITIAS – UNDERGROUND HAUL TRUCK DRIVERCuriosity 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


C O M M U N I T I E SB U I L D I N G FO R E V E R

C O M M U N I T I E S

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:

• Yellowknives Dene First Nation Science Fair

• Long John Jamboree (De Beers Inspired Ice – NWT Ice Carving Championship) – Yellowknife

• 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

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S P E N D BY A R E A : TRAINING:

$ 1 . 2 3 MARTS CULTURE HERITAGE

$ 2 3 9 , 6 0 7EDUCATION

$ 1 4 0 , 1 9 1HEALTH

$ 8 6 , 4 6 0COMMUNITY DEVELOPMENT

$ 6 8 , 9 6 1ENVIRONMENT

$ 1 1 , 6 3 5SPORT

$ 9 , 9 1 8OTHER

$ 3 7, 3 1 0

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 2012. 25


COMMUNITIES

CAS E ST U DYEMPLOYEES MAKE A DIFFERENCE IN THE COMMUNITYSocial 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 2014.

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.

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If you gathered all of the books De Beers has given away to children in Canada over the last eleven years and stacked them up, the pile would be four times taller than the CN Tower, or the equivalent of 2.5 km.

De Beers has invested over $1.2 million to support literacy development in communities close to our operations. Books in Homes is held in both the NWT and in James Bay communities close to De Beers’ Victor Mine.

Originally launched by Snap Lake Mine in 2003, more than $700,000 has been spent on the program in the NWT.

Books in Homes is founded on the belief that literacy is the first step in empowering people to shape their own future and that it is key to ensuring individual opportunities, community development and economic success.

Each spring, about 1,100 students in Aboriginal communities close to Snap Lake Mine can select three books, free of charge, to build home libraries. Through 2014, an incredible 37,500 books were given out by De Beers. A child who started Kindergarten in 2003 and remained in school through 2014 would have received 36 books as a result of De Beers’ investment.

Dubbed the “flying bookstore” in the NWT, books are purchased by De Beers. Book fairs are held at schools in Edzo, Behchokò, Whati, Wekweèti, Gamèti, Dettah, Ndilo, Lutsel K’e and Fort Resolution, where students and teachers can each select three books.

In addition to Books in Homes, De Beers provided support to NorthWords NWT in 2014 to host its annual writer’s festival and support writing programs throughout the NWT, and sponsored the PGI Week Long Literacy Festival hosted by the NWT Literacy Council in Yellowknife in October.

At Snap Lake Mine, the dedicated learning centre is available to employees pursuing educational upgrading program or other online training.

L I T E R ACY D E V E LO P M E N TBOOKS STACK UP THANKS TO DE BEERS PROGRAM

Terry Kruger, Communications Manager with De Beers Canada, presents the NorthWords Prize to Sandra Dolan and Jeri Miltenberger, for their book One of the most busiest posts in the North: a History of Fort Fitzgerald, Alberta during the annual NorthWords Writers Festival in May 2014. De Beers provides annual funding to support NorthWords NWT, including the NorthWords Prize which goes to the authors of a book published in the NWT during the previous year, as well as the Great Northern Writing Contest.

Hani Qureshi, a Mine Engineer in De Beers' Mine Professional in Training program, helps a student check out their book during a Books in Homes fair held in Behchokò in April 2014.


27


There are two factors that have led to the smaller workforce this year. First, a contract with a company providing underground mining services at Snap Lake

Mine ended at the start of 2014. Secondly, a number of positions at the mine are currently unfilled.

E M P L O Y M E N T D ATAB U I L D I N G FO R E V E R

E M P L O Y M E N T D ATA

The Snap Lake Mine workforce equalled 747 in 2014 measured in person years of employment (see Figure 1). This number includes employees of De Beers and Mine contractors and is 29 fewer than the number recorded in 2013. Average employment for NWT residents was 258 person years, down 16 when compared to last year.

$

4 0 0

1 , 2 0 01 , 0 0 0

8 0 06 0 0

0

2 0 0

F i g u r e 1 : A n n u a l E m p l o y m e n t a t t h e S n a p L a k e M i n e ( c o n s t r u c t i o n p h a s e 2 0 0 5 t o 2 0 0 7 ; o p e r a t i o n s p h a s e 2 0 0 8 t o 2 0 1 4 )

Non-NWT Residents NWT Residents

2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4

Attracting and retaining NWT resident employees is a priority for De Beers, which held 73 competitions throughout 2014, attracting 4,517 applications

(see Figure 2). Approximately 20% of the applicants were NWT residents. De Beers made job offers to 19 of the NWT residents, equal to 36% of the total job offers.

(Num

ber o

f pers

on ye

ars of

emplo

ymen

t)

28

(based on 73 competitions held in 2014)

NWT Residents 904 20% 19 35%

Non-NWT Residents 3,551 78.6% 34 62%

Internal (Existing Employees) 62 1.4% 2 3%

Total 4,517 100% 55 100%

F i g u r e 2 : 2 0 1 4 D e B e e r s R e c r u i t m e n t b y P r i o r i t y ( C o m p e t i t i o n s a n d N e w H i r e s )

Note: These are competitions for De Beers’ positions and do not include competitions held by contractors. Not all competitions resulted in the hiring of new staff.

N u m b e r o f A p p l i c a n t s N u m b e r o f N e w H i r e s

7 9 % N O N - N W T

R E S I D E N T S

1 % C U R R E N T E M P L O Y E E S

2 0 % N W T

R E S I D E N T S

6 2 % N O N - N W T

R E S I D E N T S

3 4 % N W T

R E S I D E N T S

4 % C U R R E N T E M P L O Y E E S

The 2014 Survey of Mine Employees (described in more detail on page 31) highlights some of the challenges facing De Beers’ recruitment strategies. The most often cited factors preventing non-resident mine employees from relocating to the NWT include the high cost of living, cost of housing, and distance from family. Of the NWT resident employees, approximately 40% reported they are likely or highly likely to leave the territory in the next 12 months, even though 59.5% of these people believed their pay and benefits were competitive within the NWT job market and 92.4% of those working a 2 weeks in, 2 weeks out rotation prefer their work schedule. These employees cited the cost of living as the number one factor influencing their decision to move. This reveals the challenges in attracting and retaining a NWT workforce are largely beyond the influence of De Beers.

A challenge in recruitment is to identify NWT residents that are interested in working in the mining sector and who are qualified to do so. NWT residents are underrepresented in the semi-skilled, skilled, and

professional job categories, but there are far more jobs in these categories than there are in the entry-level or unskilled category. Finding new and qualified labour within the NWT is made more challenging by the fact that the NWT labour force suffered a significant decline in 2014; in excess of 1,000 active workers according to Statistics Canada(see Figure 3). When combined with the fact the NWT Bureau of Statistics reports that the high school graduation rate has averaged 54% over the past 10 years (see Figure 4), this drop in available workers represents a major impediment to De Beers’ recruitment efforts. To be able to expand Snap Lake’s resident workforce, the territory’s population and labour will have to grow and graduation rates will have to improve.

To this end, De Beers acknowledges that the GNWT made it a goal in its 2014 budget to increase the territory’s population by 2,000 in five years (see Figure 5), and that the graduation rate did reach 62% in 2013. Success in these areas should assist in increasing the available northern workforce.


Number of Applications Number of New Hires

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F i g u r e 3 : N W T L a b o u r Fo r c e ( a n n u a l , 2 0 0 4 t o 2 0 1 4 )

2004

2005

2006

2007

2008

2009

2010

2011

20121 9 , 0 0 0

2 2 , 0 0 0

2 5 , 0 0 02 4 , 0 0 02 3 , 0 0 0

2 0 , 0 0 0

2 1 , 0 0 0

1 8 , 0 0 0

2013

Source: Statistics Canada, Labour Force Survey.

2014

F i g u r e 4 : N W T G r a d u a t i o n R a t e ( a n n u a l , 2 0 0 4 t o 2 0 1 3 )

2004

2005

2006

2007

2008

2009

2010

2011

20121 0 %

4 0 %

7 0 %6 0 %5 0 %

2 0 %

3 0 %

0 %

2013

Source: NWT Bureau of Statistics. Note: graduation rate is calculated from the number of graduates divided by the average number of residents aged 17 and 18.

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

32,000

38,000

44,00042,000

40,000

34,000

36,000

30,000

Source: NWT Bureau of Statistics, Population Estimates. Note that 2019 shows the NWT population assuming the Government of the Northwest Territories is successful in attracting 2,000 new residents to the territory.

46,000

(Num

ber

of N

WT

resi

dent

s)

F i g u r e 5 : N W T P o p u l a t i o n ( a n n u a l , 1 9 9 9 t o 2 0 1 4 )

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NWT SURVEY OF MINE EMPLOYEESThe NWT Bureau of Statistics conducted a second comprehensive survey of diamond mine employees in the spring of 2014 on behalf of De Beers Canada Inc., Rio Tinto, Dominion Diamond Corporation and the GNWT. The results of this survey are similar to those from a survey conducted five years earlier, and remain very much in line with what De Beers has learned about its workforce through our efforts to attract and retain NWT resident employees. The survey results can be found on the GNWT Department of Industry, Tourism & Investment website.

As with the 2009 survey, the 2014 edition found a high percentage of NWT employees (40%) stating they were likely or very likely to leave the territory in the next year should the opportunity arise. This is slightly lower than the 2009 results, which showed 45% of NWT resident employees were looking to relocate, but is nevertheless representative of 467 individuals.

The cost of living in the NWT was the most cited reason for considering a move away from the territory at 44% of respondents. The second most cited reason, at 11.8%, was the desire to be closer to family. Other reasons included new job opportunities, career change, tired of weather,

and retirement. These response rates were in line with the 2009 results.

Similarly, the cost of housing, utilities, and food were all factors cited as major reasons why non-residents would not consider a move to the NWT. These employees stated a preference for their home community, the high cost of living in the NWT, and family responsibilities as factors that were keeping them where they were.

The most important factor for employees remaining in their position differed depending on their residency. For NWT residents, pay and benefits was the number one factor for 36.9% of employees. For non-residents, the work rotation was the most important factor (40.8%) with pay and benefits cited as the most important factor by 25.6% of these employees. Interestingly, 56.5% of current employees believe their pay and benefits are competitive within the NWT labour market, but 32.5% of NWT resident employees believe their pay and benefits are not competitive with similar jobs elsewhere in the country.

The most important conclusion from the survey results is what they reveal about our current workforce, their thoughts regarding residency, and factors that might make a difference in future recruitment and retention. De Beers is looking to incorporate what it has learned from these results into recruitment planning.

Environmental monitoring at Snap Lake Mine sometimes involves a trek across the snowy tundra.


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EMPLOYMENT BY HIRING PRIORITYTable 1 presents the overall employment history in person years1 by hiring priority for the Snap Lake Mine from 2005 to 2014. These data combine the employment results of our contractors with those from De Beers. The first three years of data represent the employment record during the mine’s construction phase. The mine began operations in 2008. By 2012, the mine had fully recovered from the effects of the 2008-09 worldwide recession and was operating with a workforce close to 750 in person years (PY)1 terms. Employment levels have remained relatively stable ever since. In 2014, Snap Lake Mine’s workforce was 747.

NWT residents contributed 258 person years of employment to the mine in 2014. This is a little lower than previous years when resident workers filled 274 jobs. There has been no year-over-year change on a percentage basis, and NWT residents continue to represent 35% of the overall workforce.

Increasing the participation rate of NWT Aboriginal and non-Aboriginal residents is a priority for De Beers and our contractors and De Beers continues to work toward maximizing the number of NWT residents working at Snap Lake.2

Ta b l e 1 : E m p l o y m e n t b y H i r i n g P r i o r i t y, t o t h e e n d o f 2 0 1 4

2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 2 0 1 4 4 T O TA L AV E R A G E( p e r s o n y e ar s )

N W T A B O R I G I N A L 3 9 9 3 1 2 6 1 3 9 9 2 1 2 3 1 4 5 1 4 9 1 3 9 1 2 9 1 , 1 74 1 1 7

O T H E R N W T R E S I D E N T S 5 6 1 3 0 1 4 3 1 3 5 7 1 1 0 6 1 0 4 1 2 6 1 3 5 1 2 9 1 , 1 3 4 1 1 3

S U B T O TA L N W T R E S I D E N T S 9 5 2 2 3 2 6 9 2 74 1 6 3 2 2 9 2 4 9 2 7 5 2 74 2 5 8 2 , 3 0 8 2 3 1

N O N - N W T 1 3 7 6 1 4 8 7 5 4 5 4 2 6 9 4 0 6 4 2 9 4 8 2 5 0 2 4 8 9 4 , 6 5 7 4 6 6G R A N D T O TA L 2 3 1 8 3 8 1 , 1 4 4 7 2 8 4 3 1 6 3 5 6 7 8 7 5 7 7 7 6 74 7 6 , 9 6 5 6 9 7

( p e r c e n t o f t o t al )

N W T A B O R I G I N A L 1 7 % 1 1 % 1 1 % 1 9 % 2 1 % 1 9 % 2 1 % 2 0 % 1 8 % 1 7 % 1 7 % 1 7 %

O T H E R N W T R E S I D E N T S 2 4 % 1 6 % 1 3 % 1 9 % 1 6 % 1 7 % 1 5 % 1 7 % 1 7 % 1 7 % 1 6 % 1 6 %

S U B T O TA L N W T R E S I D E N T S 4 1 % 2 7 % 2 4 % 3 8 % 3 8 % 3 6 % 3 7 % 3 6 % 3 5 % 3 5 % 3 3 % 3 3 %

N O N - N W T 5 9 % 7 3 % 7 6 % 6 2 % 6 2 % 6 4 % 6 3 % 6 4 % 6 5 % 6 5 % 6 7 % 6 7 %G R A N D T O TA L 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 %

Note: Those that did not self identify in the survey are recorded as non-Aboriginal. NWT Aboriginal employees who were identified as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table. Figures may not add up due to rounding error.

1 In 2013, it was expected that over a full year, an employee would work 13 cycles of 14 days with a day equalling a 12 hour shift. This represents 2,184 hours per year or an average of 182 hours per month. Therefore, estimating number of jobs in terms of person years requires summing the total number of hours worked by all employees and dividing that number by 2,184. For the purposes of this analysis, each person-year of employment can also be considered a Full-Time Equivalent employee or FTE.2 An employment target of 300 person years for NWT residents was established for the Snap Lake Mine during its environmental assessment.

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Table 2 provides information on the Snap Lake Mine employment record separated between De Beers and our contractors. The majority of personnel (70%) working at the Mine are De Beers’ employees, who provided 521 PY of employment. Within this labour pool, 168.7 or 32% resided in the NWT, 85.2 of whom were NWT Aboriginal residents. De Beers also employed 45.8 non-resident Aboriginal people.3

The percentage of NWT residents working for Snap Lake Mine’s contractor workforce grew during 2014. Of the 226 PY of employment reported by contractors, 39% of this labour came from NWT residents, two percentage points higher than last year.

Ta b l e 2 : E m p l o y m e n t b y H i r i n g P r i o r i t y, 2 0 1 4

D E B E E R S C O N T R A C T O R T O TA L ( p e r s o n y e ar s )

N W T A B O R I G I N A L 8 5 . 2 4 4 . 0 1 2 9 . 1

O T H E R N W T R E S I D E N T S 8 3 . 5 4 5 . 2 1 2 8 . 8

S U B T O TA L N W T R E S I D E N T S 1 6 8 . 7 8 9 . 2 2 5 7. 9N O N - N W T A B O R I G I N A L 4 5 . 8 7. 5 5 3 . 3O T H E R N O N - N W T R E S I D E N T S 3 0 6 . 8 1 2 9 . 3 4 3 6 . 1

S U B T O TA L N O N - N W T R E S I D E N T S 3 5 2 . 6 1 3 6 . 8 4 8 9 . 4

G R A N D T O TA L 5 2 1 . 3 2 2 6 . 0 74 7. 3

( p e r c e n t o f t o t al )

N W T A B O R I G I N A L 1 6 % 1 9 % 1 7 %

O T H E R N W T R E S I D E N T S 1 6 % 2 0 % 1 7 %

S U B T O TA L N W T R E S I D E N T S 3 2 % 3 9 % 3 5 %N O N - N W T A B O R I G I N A L 9 % 3 % 7 %O T H E R N O N - N W T R E S I D E N T S 5 9 % 5 7 % 5 8 %

S U B T O TA L N O N - N W T R E S I D E N T S 6 8 % 6 1 % 6 5 %

G R A N D T O TA L 1 0 0 % 1 0 0 % 1 0 0 %Note: Those that did not self identify in the survey are recorded as non-Aboriginal. NWT Aboriginal employees who were identified as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table. Figures may not add up due to rounding error.

S n a p L a k e E m p l o y m e n t b y P r i o r i t y H i r i n g G r o u p

( D e B e e r s a n d c o n t r a c t o r s )

6 5 %

3 5 %

N O N - N W T R E S I D E N T S

N W T R E S I D E N T S

3 The Employment Statistical Information (ESI) Form collected from employees working at Snap Lake Mine results in data that require some explanation and interpretation. Aboriginal employees can record their status in one of three categories within the survey: Impact Benefit Agreement (IBA) Group, NWT Aboriginal, or Other Aboriginal. De Beers assumes that an Aboriginal person who is a member of the North Slave Métis Alliance, Yellowknives Dene First Nation, Lutsel K’e and Kache Dene First Nation or Tłįcho would identify themselves as representatives of their IBA Group, regardless of where they live. “NWT Aboriginal” is defined in the survey as Any Indian, Inuit or Métis individual who originated in the NWT or is a descendant of an Aboriginal person originating in the NWT. De Beers assumes that this will capture every employee who represents any other Aboriginal group in the NWT regardless of their residency. Finally, De Beers assumes that “Other Aboriginal” captures all other Aboriginal people.

It is important to note that someone who identifies himself or herself as part of an IBA group or another NWT Aboriginal Group might not reside in the NWT. Also, a number of individuals choose not to self-identify themselves by their heritage or location. These individuals are recorded as non-Aboriginal, non-NWT residents.


33


EMPLOYMENT BY HIRING PRIORITY AND JOB CLASSIFICATIONTables 3a and 3b contain employment results by hiring priority and job classification. There are some important changes from last year’s employment record that can be seen in these tables. It was previously stated that the number of FTE jobs fell by 29 over the course of 2014. But this decline was not distributed evenly across all job categories. The Mine’s labour requirements are moving gradually toward a more skilled workforce and as a result, the number of unskilled and semi-skilled FTE jobs declined by five and 52, respectively while the number of skilled jobs actually grew by 28.

This change can explain, in part, some of the changes in NWT resident employment for the year. The majority of NWT resident employees work in jobs classified as skilled, semi-skilled, or unskilled, 89.6, 72.7, and 78.3 person years respectively, which are the categories with the largest year-over-year changes. Accordingly, NWT resident employment in skilled positions grew by 2.6 and fell by 15 in semi-skilled and unskilled jobs.

The results in Table 3a also highlight the skills gap that exists in the NWT workforce. The largest percentage of resident labour is employed in unskilled jobs, filling 86% of the 90.9 positions available. A far greater number of jobs at the mine are classified as semi-skilled and skilled, 231 and 369.6 respectively, representing 80% of all jobs. These positions require additional education and skills and/or work experience. NWT residents fill 31% of the semi-skilled jobs and 24% of the skilled jobs.

De Beers recognizes there is a small number of unskilled positions being filled by non-NWT residents and is looking at ways to address this issue.

NWT residents filled 9.8 of the 34.5 professional positions available at the mine. The professional job category includes mining engineers and geologists. Meanwhile, there was little change in the number of management positions this year. There were 21.2 FTE management jobs in 2014, including De Beers and contractors, 7.5 of which were filled by NWT residents. Seven members of De Beers’ Snap Lake Mine senior management team were residents of the NWT in 2014 – living in either Yellowknife or Hay River.

N W T A B O R I G IN A L O T HE R N W T R E S ID E N T S

S UB T O TA L N W T R E S ID E N T S

N O N - N W T R E S ID E N T S G R A ND T O TA L

( p e r s o n y e ar s )M A N A G E ME N T 1 . 0 6 . 5 7. 5 1 3 . 8 2 1 . 2P R O F E S S I O N A L 1 . 2 8 . 7 9 . 8 2 4 . 7 3 4 . 5S K IL L E D 3 6 . 2 5 3 . 4 8 9 . 6 2 8 0 . 0 3 6 9 . 6S UB T O TA L 3 8 . 3 6 8 . 6 1 0 6 . 9 3 1 8 . 5 4 2 5 . 4S E MI - S K IL L E D 4 3 . 5 2 9 . 2 7 2 . 7 1 5 8 . 3 2 3 1 . 0UN S K IL L E D 4 7. 3 3 1 . 0 7 8 . 3 1 2 . 6 9 0 . 9S UB T O TA L 9 0 . 8 6 0 . 2 1 5 1 . 0 1 7 0 . 9 3 2 1 . 9G R A ND T O TA L 1 2 9 . 2 1 2 8 . 8 2 5 7. 9 4 8 9 . 4 74 7. 3

( P e r c e n t o f t o t al b y job c l a s s i f ic a t ion )M A N A G E ME N T 5 % 3 1 % 3 5 % 6 5 % 1 0 0 %P R O F E S S I O N A L 3 % 2 5 % 2 8 % 7 2 % 1 0 0 %S K IL L E D 1 0 % 1 4 % 2 4 % 7 6 % 1 0 0 %S UB T O TA L 9 % 1 6 % 2 5 % 7 5 % 1 0 0 %S E MI - S K IL L E D 1 9 % 1 3 % 3 1 % 6 9 % 1 0 0 %UN S K IL L E D 5 2 % 3 4 % 8 6 % 1 4 % 1 0 0 %S UB T O TA L 2 8 % 1 9 % 4 7 % 5 3 % 1 0 0 %G R A ND T O TA L 1 7 % 1 7 % 3 5 % 6 5 % 1 0 0 %

Ta b l e 3 ( a ) : E m p l o y m e n t b y H i r i n g P r i o r i t y a n d J o b C l a s s i f i c a t i o n , 2 0 1 4

34


( P e r c e n t o f t o t al b y hir in g p r io r i t y )M A N A G E ME N T 1 % 5 % 3 % 3 % 3 %P R O F E S S I O N A L 1 % 7 % 4 % 5 % 5 %S K IL L E D 2 8 % 4 1 % 3 5 % 5 7 % 4 9 %S UB T O TA L 3 0 % 5 3 % 4 1 % 6 5 % 5 7 %S E MI - S K IL L E D 3 4 % 2 3 % 2 8 % 3 2 % 3 1 %UN S K IL L E D 3 7 % 2 4 % 3 0 % 3 % 1 2 %S UB T O TA L 7 0 % 4 7 % 5 9 % 3 5 % 4 3 %G R A ND T O TA L 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 %

UNSK

ILLE

D

5 0

2 0 0

3 5 03 0 02 5 0

1 0 0

1 5 0

0

NUM

BER

OF F

TE J

OBS

SEM

I-SK

ILLE

D

SKIL

LED

PROF

ESSI

ONAL

MAN

AGEM

ENT

N O N - N W T R E S I D E N T S

N W T R E S I D E N T S

S n a p L a k e E m p l o y m e n t b y J o b C l a s s i f i c a t i o n a n d H i r i n g P r i o r i t y ( R e s i d e n c y )

Table 3b (on the next page) reorganises the data to highlight the number of Aboriginal employees working at the Snap Lake Mine. There were 10 fewer NWT Aboriginal employees working at the mine in 2014 than one year earlier. The decline was entirely in unskilled and

semi-skilled job categories. For skilled jobs, the number of Aboriginal employees actually grew by seven throughout the year. The vast majority (91%) of non-resident Aboriginal employees work in semi-skilled or skilled positions.


35


N W T A B O R I G IN A L

N O N - N W T A B O R I G IN A L

T O TA L A B O R I G IN A L

O T HE R N W T R E S ID E N T S

O T HE R N O N - N W T

R E S ID E N T SG R A ND T O TA L

( p e r s o n y e ar s )M A N A G E ME N T 1 . 0 2 . 5 3 . 5 6 . 5 1 1 . 3 2 1 . 2P R O F E S S I O N A L 1 . 2 0 . 0 1 . 2 8 . 7 2 4 . 7 3 4 . 5S K IL L E D 3 6 . 2 2 0 . 9 5 7. 1 5 3 . 4 2 5 9 . 1 3 6 9 . 6S UB T O TA L 3 8 . 3 2 3 . 3 6 1 . 7 6 8 . 6 2 9 5 . 1 4 2 5 . 4S E MI - S K IL L E D 4 3 . 5 1 8 . 0 6 1 . 6 2 9 . 2 1 4 0 . 3 2 3 1 . 0UN S K IL L E D 4 7. 3 1 . 5 4 8 . 8 3 1 . 0 1 1 . 2 9 0 . 9S UB T O TA L 9 0 . 8 1 9 . 5 1 1 0 . 3 6 0 . 2 1 5 1 . 4 3 2 1 . 9G R A ND T O TA L 1 2 9 . 2 4 2 . 9 1 7 2 . 0 1 2 8 . 8 4 4 6 . 5 74 7. 3

( P e r c e n t o f t o t al b y job c l a s s i f ic a t ion )M A N A G E ME N T 5 % 1 2 % 1 6 % 3 1 % 5 3 % 1 0 0 %P R O F E S S I O N A L 3 % 0 % 3 % 2 5 % 7 2 % 1 0 0 %S K IL L E D 1 0 % 6 % 1 5 % 1 4 % 7 0 % 1 0 0 %S UB T O TA L 9 % 5 % 1 4 % 1 6 % 6 9 % 1 0 0 %S E MI - S K IL L E D 1 9 % 8 % 2 7 % 1 3 % 6 1 % 1 0 0 %UN S K IL L E D 5 2 % 2 % 5 4 % 3 4 % 1 2 % 1 0 0 %S UB T O TA L 2 8 % 6 % 3 4 % 1 9 % 4 7 % 1 0 0 %G R A ND T O TA L 1 7 % 6 % 2 3 % 1 7 % 6 0 % 1 0 0 %

( P e r c e n t o f t o t al b y hir in g p r io r i t y )M A N A G E ME N T 1 % 6 % 2 % 5 % 3 % 3 %P R O F E S S I O N A L 1 % 0 % 1 % 7 % 6 % 5 %S K IL L E D 2 8 % 4 9 % 3 3 % 4 1 % 5 8 % 4 9 %S UB T O TA L 3 0 % 5 4 % 3 6 % 5 3 % 6 6 % 5 7 %S E MI - S K IL L E D 3 4 % 4 2 % 3 6 % 2 3 % 3 1 % 3 1 %UN S K IL L E D 3 7 % 3 % 2 8 % 2 4 % 2 % 1 2 %S UB T O TA L 7 0 % 4 6 % 6 4 % 4 7 % 3 4 % 4 3 %G R A ND T O TA L 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 %

Ta b l e 3 ( b ) : E m p l o y m e n t b y H i r i n g P r i o r i t y a n d J o b C l a s s i f i c a t i o n , 2 0 1 4


36

EMPLOYMENT BY COMMUNITYThe employment data by NWT community is presented in Table 4. This table illustrates the many different communities represented at the Snap Lake Mine. These statistics are recorded as the number of person years of employment and combine De Beers’ employees with the employees working for our contractors.

Snap Lake Socio-Economic Agreement establishes priority groups within the NWT, which dictates our hiring practices.4 The order of hiring priority is as follows:

1. Members of Aboriginal Authorities, including

a. Lutsel K’e and Kache Dene First Nation;

b. North Slave Métis Alliance;

c. Tłįcho; and,

d. Yellowknives Dene First Nation.

2. Aboriginal people residing in the NWT;

3. NWT residents who have been continuously resident in the NWT for at least six months;

4. All others residing in or relocating to the NWT; and,

5. Others (non-NWT residents).

Overall, 14 communities were represented in the workforce in 2014. Most of these employees reside in Yellowknife, accounting for 70% of NWT workforce with 181.3 person years of employment. The Town of Hay River contributed 32.8 person years (13%), while Behchokò added another 13.5 person years (5%) of employment to the mine.

Travel to the Mine from any NWT community should not represent a barrier to employment for any NWT resident as De Beers has 10 NWT pickup points (Yellowknife, Whati, Wekweèti, Gamèti, Lutsel K’e, Fort Smith, Hay River, Fort Simpson, Norman Wells and Inuvik) throughout the Territories, and offers travel allowances to help NWT residents travel to a pickup point. The number of NWT pickup points offered by De Beers exceeds the commitment made by the company in its socio-economic agreement with the GNWT.

Ta b l e 4 : E m p l o y m e n t b y N W T C o m m u n i t y

C O M M U N I T Y P E R S O N Y E A R S

% O F T O TA L E M P L O Y M E N T

% O F N W T E M P L O Y M E N T

B e h c h o k ò 1 3 . 5 2 % 5 %

D e l i n e 4 . 8 1 % 2 %

E n t e r p r i s e 0 . 3 0 % 0 %

Fo r t G o o d H o p e 1 . 0 7 % % 0 %

Fo r t P r o v i d e n c e 4 . 2 1 % 2 %

Fo r t R e s o l u t i o n 1 . 7 0 % 1 %

Fo r t S m i t h 8 . 1 1 % 3 %

G a m è t i 2 . 6 0 % 1 %

H a y R i v e r 3 2 . 8 4 % 1 3 %

I n u v i k 0 . 5 0 % 0 %

L u t s e l K ’ e 0 . 8 0 % 0 %

Tu l i t a 1 . 3 0 % 1 %

W e k w e è t ì 2 . 7 0 % 1 %

W h a t ì 3 . 4 0 % 1 %

Ye l l o w k n i f e 1 8 1 . 3 2 4 % 7 0 %

O t h e r 4 8 9 . 4 6 5 % -

T O TA L 74 7. 3 1 0 0 % 1 0 0 %

Note: Figures may not add up due to rounding error. Only communities which are home to Snap Lake Mine employees are listed in this table.

4 See Section 3.2 in the Snap Lake Socio-Economic Agreement.


37


NEW HIRES BY RESIDENCY, COMMUNITY, AND JOB CLASSIFICATIONTable 5 presents the number of new hires by residency separated between employees of De Beers and our contractors. The data in this table is not in person years, but rather number of individuals hired.5 In total, 173 new people were hired over the course of 2014, 40 more than in 2013 of which 56 were NWT residents.

Contractors are typically more active in hiring new employees, largely because of the seasonal or temporary nature of some of their responsibilities. The total number of new hires by contractors was 240. The majority (55%) of these new hires reside outside the NWT.

Table 6 highlights the different communities represented by new employees. This distribution is representative of

the overall workforce at Snap Lake, with the majority residing in Yellowknife (which includes the Yellowknives Dene First Nation communities of Ndilo and Dettah).

Table 7 further delineates the new hires data according to hiring priority and job classification. This data reaffirms the established division of labour between the different priority groups. New NWT Aboriginal employees were hired primarily to fill vacant positions in unskilled and semi-skilled job categories, 61% and 34% respectively, non-Aboriginal NWT residents were hired for positions across all categories, while non-Aboriginal, non-resident new hires filled the vast majority of skilled, professional, and management positions, 74%, 75%, and 71% respectively.

Ta b l e 5 : N e w H i r e s b y R e s i d e n c y

> 6 M O N T H S < 6 M O N T H S N W T N O N - N W T T O TA LN UMB E R O F NE W E MP L O Y E E SD E B E E R S C A N A D A IN C . 1 5 4 1 5 6 1 1 7 1 7 3C O N T R A C T O R S 1 9 8 8 1 0 7 1 3 3 2 4 0G R A ND T O TA L 3 4 1 2 9 1 6 3 2 5 0 4 1 3

P E R C E N T O F T O TA LD E B E E R S C A N A D A IN C . 9 % 2 4 % 3 2 % 6 8 % 1 0 0 %C O N T R A C T O R S 8 % 3 7 % 4 5 % 5 5 % 1 0 0 %G R A ND T O TA L 8 % 3 1 % 3 9 % 6 1 % 1 0 0 %

5 The figures representing contractor hiring will appear inflated or would otherwise suggest excessive turn-over. This is not the case, however. It is not uncommon for someone to accept several short-term positions with different contractors throughout the year. Depending on the duration of their work term, which could be as short as two weeks (a single work rotation), it is possible for the same person to be entered into the system as a new hire multiple times each year. This issue does not exist with De Beers’ employees. If the Company hires back an employee twice in one year, they are entered into the system only once. Figures may not add up due to rounding error.

38

Ta b l e 6 : N e w H i r e s b y C o m m u n i t y – P e r s o n Ye a r s

C O M M U N I T Y# O F E M P L O Y E E S

H I R E D B Y D E B E E R S

# O F E M P L O Y E E S H I R E D B Y

C O N T R A C T O R ST O TA L N E W

H I R E S% O F T O TA L E M P L O Y E E S

H I R E D

B e h c h o k ò 1 3 4 1 . 0 %D e l i n e 3 0 3 0 . 7 %E n t e r p r i s e 0 2 2 0 . 5 %Fo r t G o o d H o p e 0 1 1 0 . 2 %Fo r t P r o v i d e n c e 1 2 3 0 . 7 %Fo r t R e s o l u t i o n 0 1 1 0 . 2 %Fo r t S m i t h 3 1 4 1 . 0 %G a m è t i 1 0 1 0 . 2 %H a y R i v e r 4 8 1 2 2 . 9 %N o r m a n W e l l s 0 1 1 0 . 2 %W h a t ì 0 1 1 0 . 2 %Ye l l o w k n i f e 4 5 8 7 1 3 2 3 2 . 0 %O t h e r 1 1 5 1 3 3 2 4 8 6 0 . 1 %T O TA L 1 7 3 2 4 0 4 1 3 1 0 0 %


Going underground.


39


Ta b l e 7 : N e w H i r e s b y H i r i n g P r i o r i t y a n d J o b C a t e g o r y

U N S K I L L E D S E M I - S K I L L E D S K I L L E D P R O F E S S I O N A L M A N A G E M E N T T O TA L N E W H I R E S

M E M B E R S O F T H E I B A G R O U P S W H O L I V E I N N W T 3 6 7 6 0 0 4 9

O T H E R A B O R I G I N A L P E O P L E L I V I N G I N N W T 1 8 9 1 3 0 0 4 0

N O N - A B O R I G I N A L N W T R E S I D E N T S 2 7 1 0 3 1 6 0 74T O TA L N W T R E S I D E N T N E W H I R E S 8 1 2 6 5 0 6 0 1 6 3M E M B E R S O F T H E I B A G R O U P S W H O D O N O T L I V E I N N W T 1 0 0 0 0 1

O T H E R A B O R I G I N A L P E O P L E W H O D O N O T L I V E I N N W T 6 1 1 2 0 2 2 1

O T H E R N O N - N W T R E S I D E N T S 1 2 2 2 1 7 3 1 5 6 2 2 8T O TA L N E W H I R E S 1 0 0 4 9 2 3 5 2 1 8 4 1 3

P e r c e n t o f t o t a l b y h i r i n g p r i o r i t yM E M B E R S O F T H E I B A G R O U P S W H O L I V E I N N W T 7 3 % 1 4 % 1 2 % 0 % 0 % 1 0 0 %

O T H E R A B O R I G I N A L P E O P L E L I V I N G I N N W T 4 5 % 2 3 % 3 3 % 0 % 0 % 1 0 0 %

N O N - A B O R I G I N A L N W T R E S I D E N T S 3 6 % 1 4 % 4 2 % 8 % 0 % 1 0 0 %T O TA L N W T R E S I D E N T N E W H I R E S 5 0 % 1 6 % 3 1 % 4 % 0 % 1 0 0 %M E M B E R S O F T H E I B A G R O U P S W H O D O N O T L I V E I N N W T - - - - - -

O T H E R A B O R I G I N A L P E O P L E W H O D O N O T L I V E I N N W T 2 9 % 5 % 5 7 % 0 % 1 0 % 1 0 0 %

O T H E R N O N - N W T R E S I D E N T S 5 % 1 0 % 7 6 % 7 % 3 % 1 0 0 %T O TA L N E W H I R E S 2 4 % 1 2 % 5 7 % 5 % 2 % 1 0 0 %

P e r c e n t o f t o t a l b y j o b c l a s s i f i c a t i o nM E M B E R S O F T H E I B A G R O U P S W H O L I V E I N N W T 3 6 % 1 4 % 3 % 0 % 0 % 1 2 %

O T H E R A B O R I G I N A L P E O P L E L I V I N G I N N W T 1 8 % 1 8 % 6 % 0 % 0 % 1 0 %

N O N - A B O R I G I N A L N W T R E S I D E N T S 2 7 % 2 0 % 1 3 % 2 9 % 0 % 1 8 %T O TA L N W T R E S I D E N T N E W H I R E S 8 1 % 5 3 % 2 1 % 2 9 % 0 % 3 9 %M E M B E R S O F T H E I B A G R O U P S W H O D O N O T L I V E I N N W T 1 % 0 % 0 % 0 % 0 % 0 %

O T H E R A B O R I G I N A L P E O P L E W H O D O N O T L I V E I N N W T 6 % 2 % 5 % 0 % 2 5 % 5 %

O T H E R N O N - N W T R E S I D E N T S 1 2 % 4 5 % 74 % 7 1 % 7 5 % 5 5 %T O TA L N E W H I R E S 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 %


40

EMPLOYMENT BY GENDER AND JOB CLASSIFICATIONDe Beers supports and encourages the participation of women in all aspects of work related to the Snap Lake Mine and encourages similar commitments from Mine contractors.6 Table 8 and Table 9 provide evidence of the company’s record in this area. There were 106 women

employed at the Snap Lake Mine in 2014, representing 14% of the overall workforce. Women provided the mine with 39.7 person years of employment in jobs classified as management, professional, or skilled, which is three more than from one year ago. Women hold 30.4, 32.3, and 34 FTE positions classified as skilled, semi-skilled, and unskilled jobs, respectively.

Ta b l e 8 : E m p l o y m e n t b y J o b C l a s s i f i c a t i o n a n d G e n d e r

ME N W O ME N T O TA L

( P E R S O N Y E A R S ) ( P E R C E N T ) ( P E R S O N Y E A R S ) ( P E R C E N T ) ( P E R S O N Y E A R S ) ( P E R C E N T )

M A N A G E ME N T 1 8 . 0 8 4 % 3 . 3 1 6 % 2 1 . 3 1 0 0 %P R O F E S S I O N A L 2 8 . 6 8 3 % 5 . 9 1 7 % 3 4 . 5 1 0 0 %S K IL L E D 3 3 7. 9 9 2 % 3 0 . 5 8 % 3 6 8 . 4 1 0 0 %S UB T O TA L 3 8 4 . 4 9 1 % 3 9 . 7 9 % 4 2 4 . 1 1 0 0 %S E MI - S K IL L E D 1 9 8 . 7 8 6 % 3 2 . 3 1 4 % 2 3 1 . 0 1 0 0 %UN S K IL L E D 5 6 . 9 6 3 % 3 4 . 0 3 7 % 9 0 . 9 1 0 0 %S UB T O TA L 2 5 5 . 6 7 9 % 6 6 . 3 2 1 % 3 2 1 . 9 1 0 0 %G R A ND T O TA L 6 4 0 . 1 8 6 % 1 0 6 . 0 1 4 % 74 6 . 1 1 0 0 %


D i s t r i b u t i o n o f W o m e n b y J o b C l a s s i f i c a t i o n

U N S K I L L E D

S E M I - S K I L L E D

S K I L L E D

P R O F E S S I O N A L

M A N A G E M E N T

3 2 %

3 0 %

2 9 %

6 % 3 %

Ta b l e 9 : E m p l o y m e n t b y J o b C l a s s i f i c a t i o n f o r W o m e n

( P E R S O N Y E A R S ) ( P E R C E N T )

M A N A G E ME N T 3 . 3 3 %P R O F E S S I O N A L 5 . 9 6 %S K IL L E D 3 0 . 5 2 9 %S UB T O TA L 3 9 . 7 3 7 %S E MI - S K IL L E D 3 2 . 3 3 0 %UN S K IL L E D 3 4 . 0 3 2 %S UB T O TA L 6 6 . 3 6 3 %G R A ND T O TA L 1 0 6 . 0 1 0 0 %


6 See Section 4.10 in the Snap Lake Socio-Economic Agreement.


41

De Beers Canada Inc.NWT Operations

Suite 300 – 5120 49th StreetYellowknife, NT X1A 1P8

T: 1.867.766.7300 F: 1.867.766.7347W: www.canada.debeersgroup.comE: [email protected]

Copyright © De Beers Canada Inc. All Rights Reserved.

Documents

2014 SNAP LAKE MINE SOCIO-ECONOMIC REPORT/media/Files/D/De-Beers-Canada/... · Together with our Joint Venture partners, the De Beers Group of Companies mines for diamonds across