SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to...

39
NWT Socio-Economic Report | 2015 1 SNAP LAKE MINE GAHCHO KUÉ PROJECT NWT SOCIO-ECONOMIC REPORT 2015

Transcript of SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to...

Page 1: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 1

SNAP LAKE MINEGAHCHO KUÉ PROJECTNWT SOCIO-ECONOMIC REPORT 2015

Page 2: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW2

We are humbled to play a role in connecting millions of people around the world to the diamond dream. Our operations and leadership position across the global diamond pipeline enables us to create development opportunities in the communities where we live and work, and ensure that people can be proud to wear a diamond from The De Beers Group of Companies.

We call this Building Forever – our commitment to create a lasting positive legacy, and to grow and protect the special role diamonds play in the lives of consumers.

Partnership is at the heart of this approach. We are proud to play a part in the development of partner countries and communities, working together to maximise enduring value from their finite natural resource. Our collaborations across industry and beyond set ever higher ethical standards, providing confidence to generations of consumers.

This is our annual NWT Socio-Economic Report, detailing De Beers’ work to meet commitments made to the Government of the Northwest Territories for Snap Lake Mine and the Gahcho Kué Project. Despite significant market challenges throughout the year which led to the difficult decision to place Snap Lake Mine on care and maintenance in December, this Report reflects the unwavering commitment of our people to continue Building Forever.

Front cover image: An aerial view of the Gahcho Kué Project taken in July 2015 with construction of the $1 billion mine in full swing.

Page 3: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 3

18

8

12

TABLE OF CONTENTS2 Who we are6 Chief Executive Officer

Introduction7 2015 by the numbers8 Economics12 Employees18 Communities2 2 Employment Data

EMPLOYEESOur people are our business and we invest in them to help them meet their full potential.

COMMUNITIESWith operations spanning decades, we look beyond the life of our mines with a view to building strong and resilient communities that thrive into the future.

ECONOMICSWe strive to build a positive legacy from diamonds in the communities in which we live and work.

Page 4: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW4

OUR BUSINESS AT A GLANCEPartnership sits at the heart of our business, and across Canada that means working closely with the communities, residents and businesses close to our operations to maximize the benefits that result. De Beers Canada owns 100% of Victor Mine in Northern Ontario, 100% of Snap Lake Mine in the Northwest Territories and 51% of the Gahcho Kué Project in the Northwest Territories. De Beers is the Operator of the Gahcho Kué Project, a joint venture with Mountain Province Diamonds (49%). De Beers was established in 1888 and is a member of the Anglo American plc group. It is the world’s leading diamond company, with unrivalled expertise in the exploration, mining, sorting, valuing, selling and marketing of diamonds. De Beers has 50/50 joint ventures with the Governments of Botswana and Namibia, and a 74/26 Black Economic Empowerment Partnership with Ponahalo Holdings in South Africa.

EXPLORATION PRODUCTION

GLOBAL EXPLORATION

CANADA (100%)

GLOBAL SIGHTHOLDER SALES (100%)

SIGHTHOLDER SALES SOUTH AFRICA (74%)

DE BEERS CONSOLIDATED MINES (74%)

FOREVERMARK (100%)

AUCTION SALES (100%)

DEBSWANA (50%)

DE BEERS DIAMOND JEWELLERS (50%)

NAMDEB HOLDINGS (50%)

NAMDEB DIAMOND CORPORATION (LAND-BASED)

DEBMARINE NAMIBIA (MARINE-BASED)

DTC BOTSWANA (50%)

NAMIBIA DTC (50%)

ELEMENT SIX:

TECHNOLOGIES (100%)

ABRASIVES (60%)

MINING SUPER- MATERIALS

ROUGH DIAMOND SALES BRANDS/RETAIL

ANGLO AMERICAN PLC 85% GOVERNMENT OF THE REPUBLIC OF BOTSWANA 15%

THE DE BEERS GROUP OF COMPANIES

1 Exploration is undertaken through a number or wholly-owned and joint venture entities.

Numbers indicate percentage of De Beers’ ownership

WHO WE ARE

Page 5: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 5

A GLOBAL VALUE CHAIN

De Beers has both underground and open-pit mines in Canada, Botswana, and South Africa.

We also commercially mine alluvial diamonds in Namibia using onshore extraction techniques and, in the sea, specialised ships.

Through Element Six, our synthetic industrial diamond supermaterials business, we supply tool and drilling application manufacturers across a diverse range of global markets.

De Beers sells its rough diamond production via contract sales to customers, known as Sightholders and Accredited Buyers, and via rough diamond auctions.

As part of our long-term contract sales, the majority of De Beers’ diamonds are aggregated and sold at 10 Sights (or selling events) each year, with the remainder being sold via online auction.

De Beers has sales operations in Belgium, Hong Kong, Israel, Singapore and the United Arab Emirates.

The cutting and polishing of diamonds and the manufacturing of diamond jewellery are concentrated in Belgium, Botswana, China, India, Israel, Namibia, South Africa and the United States. In Canada, De Beers offers up to 10% by value in economically cuttable diamonds to local manufacturers.

De Beers markets polished diamonds to consumers through Forevermark, which promises a consumer that their diamond is beautiful, rare and responsibly sourced, and retails diamond jewellery through De Beers Diamond Jewellers, our independently managed 50/50 joint venture with Moët Hennessy Louis Vuitton.

De Beers’ exploration activities are currently focused in Canada, Botswana, South Africa and Namibia, where we use highly sophisticated technologies to find and determine the economic viability of deposits. Approximately 30% of De Beers’ global exploration budget is committed to Canada.

EXPLORATION PRODUCTION ROUGH DIAMOND SALES CUTTING, POLISHING AND MANUFACTURING

BRANDS/RETAIL

WHERE WE OPERATE

BOTSWANA

20,368,000carats recovered, 2015

6,812employees

CANADA

1,887,000carats recovered, 2015

1,354employees

REST OF WORLD• 1,824 employees• Corporate centres in

Luxembourg, South Africa and the United Kingdom

• Additional sales operations in Belgium, Hong Kong, Israel, Singapore, and the United Arab Emirates

• Forevermark available in 35 markets

A GLOBAL VALUE CHAIN

De Beers has both underground and open-pit mines in Botswana, Canada and South Africa.

We also commercially mine alluvial diamonds in Namibia using onshore extraction techniques and, in the sea, specialised ships.

Through Element Six, our synthetic industrial diamond supermaterials business, we supply tool and application manufacturers across a diverse range of global markets.

De Beers sells its rough diamond production via contract sales to customers, known as Sightholders and Accredited Buyers, and via rough diamond auctions.

As part of our long-term contract sales, the majority of De Beers’ diamonds are aggregated and sold at 10 Sights (or selling events) each year, with the remainder being sold via online auction.

De Beers has sales operations in Belgium, Hong Kong, Israel, Singapore and the United Arab Emirates.

The cutting and polishing of diamonds and the manufacture of diamond jewellery are concentrated in Belgium, Botswana, China, India, Israel, Namibia, South Africa and the United States.

We aim to support downstream activities such as cutting and polishing in our countries of production through our benefi ciation strategy (see Economics chapter).

De Beers markets polished diamonds to consumers through Forevermark, which promises a consumer that their diamond is beautiful, rare and responsibly sourced; and retails diamond jewellery through De Beers Diamond Jewellers, our independently managed 50/50 joint venture with Moët Hennessy Louis Vuitton.

De Beers’ exploration activities are currently focused in Canada, Botswana, South Africa and Namibia, where we use highly sophisticated technologies to fi nd and determine the economic viability of deposits.

EXPLORATION PRODUCTION ROUGH DIAMOND SALES CUTTING, POLISHING AND MANUFACTURING

BRANDS/RETAIL

NAMIBIA

1,764,000carats recovered, 2015

2,646employees

SOUTH AFRICA

4,673,000carats recovered, 2015

4,188employees

Page 6: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW6

It is my pleasure to provide our NWT Socio-Economic Report for 2015, reporting De Beers’ contributions to the economy and communities of the Northwest Territories.

This document includes data from both Snap Lake Mine and the Gahcho Kué Project, reporting on progress toward commitments for both operations made by De Beers in socio-economic agreements with the Government of the Northwest Territories.

As in previous years, De Beers continued to focus on building sustainable, economically viable operations that could consistently contribute to the communities close by.

At Snap Lake Mine, considerable work continued to develop and implement a mine plan that addressed the mine’s unique and complex geology, while being protective of the environment. Efforts included the trial of a new mining method, and the appointment of a new General Manager to lead the way.

While these changes were starting to make a positive impact, the rapid and unexpected decline of the global diamond market in late 2015 forced De Beers Canada to make the difficult decision to place Snap Lake on care and maintenance, effective December 4, 2015. This decision resulted in the suspension of the Snap Lake Mine socio-economic agreement. However, in the spirit of cooperation, De Beers is providing this update.

Following receipt of the permits and licences required to commence construction, work to build the NWT’s next diamond mine, the Gahcho Kué

SUSTAINABLE LEADERSHIP

KIM TRUTERChief Executive Officer

“THE TEAM IS FOCUSED ON BUILDING A SUSTAINABLE BUSINESS THAT CAN CONTRIBUTE TO COMMUNITIES.”

Kim TruterCEO

Project, ramped up through the year. Work hit full stride with a successful winter road season that included delivery of 2,400 loads of fuel, equipment and construction materials to the site at Kennady Lake, approximately 80 km from Snap Lake. At the same time, the Human Resources team worked to maximize NWT employment and De Beers worked closely with construction contractors to identify opportunities for NWT employment. This effort included the identification of a number of De Beers’ Snap Lake employees who had the skills and experience to fill positions at Gahcho Kué.

While the decision to suspend operations at Snap Lake Mine is unfortunate, De Beers is proud of the work being done in the NWT and the positive impacts the company has generated over the years. At Gahcho Kué, the team is focused on building a sustainable operation that can contribute to communities through stable employment, training opportunities, and social investments throughout the life of mine.

INTRODUCTION AND CHIEF OPERATING OFFICER’S STATEMENT

Kim TruterChief Executive Officer : De Beers Canada

Page 7: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 7

NWT IN NUMBERS - 20152015 SNAP LAKE MINE NWT WORKFORCE (PERSON YEARS)

2015 NWT RESIDENTS EMPLOYED AT GAHCHO KUÉ (PERSON YEARS)*

PERCENTAGE OF SNAP LAKE WORKFORCE WHO ARE WOMEN

PERCENTAGE OF GAHCHO KUÉ WORKFORCE WHO ARE WOMEN

244 142

47

$578k

TOTAL SPEND WITH NWT BUSINESSES1

$937,000

NWT CORPORATE SOCIAL INVESTMENT SPEND

GAHCHO KUÉ PROJECT ABORIGINAL WORKFORCE* (PERSON YEARS)

SNAP LAKE MINE ABORIGINAL WORKFORCE (PERSON YEARS)

AMOUNT INVESTED IN TRAINING AT SNAP LAKE MINE DURING 2015

13%

120

11%

(*Construction phase)

$394.7M

1. Includes NWT spending by Snap Lake Mine and the Gahcho Kué Project

(*Construction phase)

Page 8: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW8

MAXIMISING THE VALUE OF DIAMONDS

Since 2005, De Beers has invested over $2.6 billion to build and operate Snap Lake Mine. A further $1 billion is being spent by De Beers and joint venture partner Mountain Province Diamonds to build the Gahcho Kué Project. De Beers works closely with Aboriginal business development corporations and local businesses to maximize the NWT purchase of goods and services, multiplying the impact of our operations on the territorial economy. In 2015 alone, the combined spend with NWT businesses by Snap Lake and Gahcho Kué totalled $395 million.

ECONOMICS

Page 9: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 9

In 2015, De Beers spent $394.7 million with NWT companies to support operations at Snap Lake Mine and construction at the Gahcho Kué Project, a portion of which was funded by joint venture partner Mountain Province Diamonds.

This total includes $169.81 million spent by Snap Lake Mine, which represents 72%% of the $234 million 2015 total operational spend. The NWT spend for the year exceeds the commitment De Beers made to procure locally at least 70% of the total annual value of goods and services during operations.

At Gahcho Kué, $224.9 million was spent with NWT businesses to support construction during 2015. This represents 50% of the total $447.92 million spent during the year, well above the socio-economic commitment to procure at least 30% of the total annual value of goods and services purchased locally during construction. Aboriginal companies made up 32% of Gahcho Kué’s Northern spend at $89M.

De Beers values open, transparent communication with its business partners. In addition to regular contact with Aboriginal community development corporations and other businesses, De Beers held two events focused on engaging NWT businesses during 2015.

In late April at the Yellowknife office, De Beers held “Let’s Talk Business”, which saw more than 30 local businesses meet with members of the De Beers supply chain team over two days.

In November, the annual NWT Business Opportunities Breakfast in Yellowknife was attended by close to 70 businesses, who heard about De Beers’ plans for the coming year.

OUR PERFORMANCE IN 2015

TOTAL NWT SPEND BY SNAP LAKE MINE

$169.8M (2014: $126M)

NWT SPEND BY THE GAHCHO KUÉ PROJECT

$224.9M2(2014: n/a)

PERCENTAGE OF SNAP LAKE SPEND WITH NWT COMPANIES

72%(2014: 69%)

PERCENTAGE OF GAHCHO KUÉ SPEND WITH NWT COMPANIES

50%2(SEA Commitment 30%)

CASE STUDIES:

• Successful winter road• Supporting NWT Tourism

2015 KEY ACHIEVEMENTS

• Exceeded NWT procurement commitment at both Snap Lake Mine and the Gahcho Kué Project

• Let’s Talk Business event allowed local businesses to showcase their capabilities to supply chain team

• Snap Lake Mine’s NWT procurement increased for second straight year

Image on page 8: Rod Hobbs, an employee with Nahanni Construction uses a remote control to manoeuvre a concrete pump at the Gahcho Kué Project.

1 Total includes procurement of fuel from NWT company. 2 Includes share of capital spending by Gahcho Kué Project joint venture partner Mountain Province Diamonds

SEE STORIES ON PAGE 10

ECONOMICS

22

Page 10: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW10

JAPANESE MOVIE STAR VISITS SNAP LAKE MINEIn September, well-known Japanese movie star Kaho Minami visited Snap Lake Mine as part of a week-long promotional partnership with DBCI, Forevermark Japan, Crossworks Manufacturing and the NWT tourism industry.An actress and producer with over 70 film and production credits in her career, Kaho spent a week in Yellowknife for a feature in GOLD Magazine, a major luxury publication in Japan. Having never visited a mine before, Kaho was impressed with the focus on safety, the commitment to the environment and the hard work that goes into recovering each diamond. She was also impressed – like everyone else – with the soft ice cream machine!

2015 WINTER ROAD SUCCESSDetailed planning and a strong commitment to safety across all teams resulted in 4,000 truckloads of fuel, equipment and supplies successfully hauled to De Beers Canada’s NWT operations in 2015. The NWT ice roads opened to heavy traffic on January 30 and closed on March 31. All winter road programs were accomplished without harm to people or the environment.

Approximately 56% of the NWT loads were destined for the Gahcho Kué Project site

Gahcho Kué Project• 1,716 loads of cargo and heavy equipment• 482 trucks carrying 23.3 million litres of fuel• 35 backhauls Snap Lake Mine• 632 loads of cargo and equipment• 1,085 trucks carrying 51.4 million litres of fuel• 67 backhauls

ECONOMICS

Kaho Minami (fourth from right) at Snap Lake Mine.

Page 11: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 11

Above - Jonathan Squirrel, an underground miner at Snap Lake Mine, shows off a remote-controlled mini-dozer purchased for the trial of long-hole stoping, part of the capital investment into a new mining method at Snap Lake.

ALL WINTER ROAD PROGRAMS WERE ACCOMPLISHED WITHOUT HARM TO PEOPLE OR THE ENVIRONMENT.

GAHCHO KUÉ PROJECT SPEND - 20152

Aboriginal Companies $66,058,284 15%

Other NWT Companies $158,893,453 35%

Non-NWT Companies $223,000,231 50%

Total* $447,951,969

ECONOMICS

2 Includes share of capital spending by Gahcho Kué joint venture partner Mountain Province Diamonds

SNAP LAKE MINE SPEND - 2015Aboriginal Companies $45,988,495 20%

Other NWT Companies $123,877,482 53%

Non-NWT Companies $64,511,366 27%

Total $234,377,342

73%

50%

SNAP LAKE MINE SPEND - 2005-2015Aboriginal Companies $909,198,318 34%

Other NWT Companies $1,013,727,538 38%

Non-NWT Companies $764,790,219 28%

Total $2,687,716,075

72%

* The total capital investment in the Gahcho Kué Project was budgeted at $1 billion.

Page 12: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW12

INVESTING IN OUR EMPLOYEES

At De Beers, supporting our world-class team of employees is critical to the success of our operations.

EMPLOYEES

Page 13: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 13

OUR PERFORMANCE IN 2015

WOMEN AT SNAP LAKE MINE

13%(2014: 14%)

SNAP LAKE MINE NWT WORKFORCE*

244(2014: 258 )

WOMEN AT GAHCHO KUÉ PROJECT

11%

GAHCHO KUÉ NWT WORKFORCE*

142(*As of Dec. 31, 2015, 51% of De Beers’ Gahcho Kué employees lived in the NWT)

CASE STUDIES

• Recruitment efforts focused in the NWT• Working on Wellness collaboration• 21 scholarship recipients• 13 trainees at Snap Lake Mine

2015 KEY ACHIEVEMENTS

• Gahcho Kué Project recruitment drives held in Fort Resolution, Hay River, four Sahtu communities

• Implemented fully online application process following community engagement program

• Collaborated with GNWT to implement Working on Wellness strategy at Snap Lake Mine

• Collaboration with the GNWT to recruit employees in the NWT

FULL PERFORMANCE DATA PAGE 22

De Beers’ NWT Human Resources (HR) team focused on recruiting and retraining NWT employees with the skills and experience necessary for jobs at Snap Lake Mine and the Gahcho Kué Project.

In 2015, each operation had a dedicated HR team, based at the respective sites supported by team members working from the Yellowknife office.

For Snap Lake Mine, recruitment efforts were focused on replacing employees who left the operation and increasing the capability of the mining team.

The Gahcho Kué Project team’s task was to fill positions required for the ramp-up of production in the second half of 2016. Recruitment efforts were initially focused on filling the mining team, who supported construction activities at site.

The Gahcho Kué program was successful in building an operations team comprised of 51% NWT residents by the end of 2015, testament to the number of Northerners with heavy equipment skills required for an open pit operation.

Advertising for positions at both operations was focused on ads placed in NWT News/North, supported by an enhanced online presence thanks to development of a recruitment portal on the De Beers Group of Companies website.

Newspaper ads included job-specific recruitment posting and general interest ads published between September and December to enhance knowledge of opportunities at the Gahcho Kué Project.

Image on page 12: Andre Boulanger, Environmental Technician, knocks frost off of a weather tower at Snap Lake Mine.

EMPLOYEES

(* Person Years)

Page 14: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW14

During 2015, De Beers collaborated with the Government of the Northwest Territories, Dominion Diamond Corporation and Diavik Diamond Mine to improve workplace wellness through Working on Wellness (WoW).

A WoW committee comprised of volunteers coordinated three campaigns aimed at improved physical and mental well-being and nutrition at Snap Lake Mine. Combined, 800 participants took part in the various campaigns. In addition to scheduled activities, information blitzes and other work, a number of blood pressure clinics were held on site and at the Yellowknife office. These clinics resulted in a number of employees being referred to their family doctors and subsequently making lifestyle changes to manage their blood pressure.

The Gahcho Kué Project was not part of the WoW campaign in 2015.

BUILDING A WORKFORCE THAT REFLECTS AND SUSTAINS OUR COMMUNITIES

De Beers collaborated with the Government of the Northwest Territories in 2015 to recruit employees to our mines and to the NWT.

The Gahcho Kué Project team worked with GNWT and community career officers to hold a series of recruitment sessions in four Sahtu communities, Hay River and Fort Resolution.

De Beers’ HR team also supported efforts by construction contractors at the Gahcho Kué Project.

Contractors posted ads in local newspapers and developed partnerships with Aboriginal development corporations to identify a pool of qualified Northern tradespeople. While this resulted in some hiring, it was below expectation.

Throughout 2015, De Beers also participated in a number of career fairs, including stops in Yellowknife, Lutsel K’e, Fort Simpson and Dettah.

Six summer students from the NWT were hired at Snap Lake Mine in 2015, working in External & Corporate Affairs, Process Plant, Maintenance, Environment, Mine Engineering and Geology.

IMPROVING THE JOB APPLICATION PROCESSOne of the important steps taken during 2015 was moving the application process to a completely online system.

This improvement was the result of new Careers Section developed for the De Beers Group of Companies website.

It allowed interested parties to search for jobs by location, work type and

discipline. Applicants could also register their interest in jobs and receive alerts when positions were posted.

Before the new program was launched, information about how the process worked was shared with NWT community employment officers to ensure that people in isolated Aboriginal communities were not disadvantaged by the new system.

EMPLOYEE WELL-BEINGThe health and well-being of employees working at Snap Lake Mine and Gahcho Kué is important. All employees have access to an Employee Assistance Program (EAP) that offers access to a range of counselling and support services.

Each site features fitness facilities, including weight and cardio workout equipment.

Satellite television and wireless internet access was available at both operations for personal use. Telephones were available at each operation for employee personal calls.

At Snap Lake Mine, Bouwa Whee Catering, owned by the Det’on Cho Corporation, strives to produce 90% of products from scratch including making their own stocks for soups and sauces and a variety of baked goods.

In support of the Working on Wellness campaign in 2015, Bouwa Whee redesigned the mine menu to showcase healthy options, offered posters and infographics on healthy portion sizes and revamped their salad bar with extra seasonal and new fresh vegetables, fruit and mixed salads and reduced the use of salt in food preparation.

ESS Compass Catering had a joint

WORKING ON WELLNESS GETS EMPLOYEES MOVING

Pictured above, a blood pressure clinic held at Snap Lake Mine as part of the Working on Wellness Program.

EMPLOYEES

Page 15: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 15

venture agreement with Denesoline Corporation, business development corporation of the Lutsel K’e Dene First Nation, to provide catering services at the Gahcho Kué Project.

The company offers sugar-free baked goods, a wide variety of vegetable options during meals, and increased the options available in the salad bar.

As well, ESS regularly promotes nutrition information with employees.

Gahcho Kué Project Human Resources Administrator Natasha Robichaud interviews a candidate during a recruitment session in Norman Wells in April 2015.

Snap Lake Mine Human Resources Advisor Valerie Lai speaks to students in Fort Simpson about career opportunities with De Beers Canada.

NWT GRADUATES BREAK GROUND IN DE BEERS’ PROFESSIONAL DEVELOPMENT PROGRAM

Two NWT residents were hired into De Beers’ Mine Professionals in Training Program (MPiT). Through the program, graduates from a number of mining-related fields gain experience in surface and underground mining roles.

Wesley Lines and Aimee Gauthier, both from Yellowknife, were among the five MPiTs hired into the program in 2015. Wesley graduated from the University of Alberta with a Bachelor of Science degree in Electrical Engineering. He went to work at Snap Lake Mine. Aimee Gauthier, a Queen’s University graduate in engineering, worked in technical services at Victor Mine in Northern Ontario.

“This is the third year of the program and shows our continued commitment to recruiting and developing technical people capable of taking on the many different roles at our northern mines,” said Leo Fusciardi, Head of Technical for De Beers in Canada. “All of this year’s candidates were hired by De Beers because they are among the best graduates in their respective fields.”

Both Wesley and Aimee are past recipients of De Beers’ NWT Post-Secondary Scholarship Program.

De Beers provided $32,500 in scholar-ship and bursaries to NWT students in 2015.

De Beers NWT Post-Secondary Scholarship recipients: • Ashley Ens• Joshua Lee• Julianna Neudorf• Karina Mercredi• Kimberley Lennie• Roman Asmundson

Kimberlite Award ($500) to the top student at the Kimberlite Career and Technical Centre:• Torin Dowe

De Beers- Yellowknives Dene FirstNation Scholarship Program:• Erica Abel• Mary Adele Crapeau• Ian Crapeau-Ziemann• Natisha Drygeese• Pascal Erasmus• Jasmine Etsemba-Sangris• Laurie-Ann Lines• Jeffrey Rosnawski• David Staples

De Beers-North Slave Métis Alliance Scholarship Program:• Cailey Kirkham• Katrina Mercredi• Thomsen D’Hont• Tuchodi Nelson-Lennex• Nicole Enge

SCHOLARSHIP RECIPIENTS

Wesley Lines in the underground pumphouse at Snap Lake Mine.

Aimee Gauthier, left, at Victor Mine with another MPiT program participant.

EMPLOYEES

Page 16: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW16

TRAINING AND DEVELOPMENT SPEND

$578,000(2015 Snap Lake Mine)

NWT ABORIGINAL RESIDENTS FILL 13 TRAINING POSITIONS AT SNAP LAKE MINEDe Beers employed 13 trainees in 2015, all working at Snap Lake Mine.

A number of training positions are scheduled to be in place at the Gahcho Kué Project in 2017, however, four NWT residents received training that allowed them to advance to new positions.

All trainees were Aboriginal and Northern residents, including two in trades1, six apprentices and five underground trainees. Of these, two completed their training in 2015.

Two NWT residents hired as Blaster Helpers were trained to become certified Blasters, while two NWT residents hired into Unskilled General Labourer positions received training to become semi-skilled Heavy Equipment Operators.

De Beers continued support for the

NWT Mine Training Society (MTS) in 2015, donating an underground scoop-tram worth $110,000 for use in the Underground Miner Training program. De Beers also provided financial support to Skills Canada NWT.

In 2015, three Snap Lake employees completed Mining Industry Human Resources (MIHR) certifications.

The Mining Industry Human Resources Council’s national certification program for underground miners and mineral processors allows employees to be recognized across Canada for their skills in mining. De Beers began offering MIHR certification to process plant and underground miners in 2014.

Training is provided at both NWT operations, with a fully-equipped computerized training centre at Snap Lake Mine, a training centre at the

Gahcho Kué Project site, and a computerized training centre located in the company’s Yellowknife office.

During 2015, 262 courses were available to Snap Lake Mine employees through the Training department including mandatory training for site orientation.

Overall, 19,878 hours of training were provided in 2015 at Snap Lake Mine2 by a team of six on-site trainers led by a superintendent of training. At Gahcho Kué the training staff grew over the year, including a training foreman, and three trainers.

A key project for the Training Department was establishing an eLearning orientation training centre for De Beers’ Yellowknife office to support the large number of contractor employees rotating through the Gahcho Kué Project during construction. The centre included 20 workstations and a training room for group classes.

1 For the purposes of this report, De Beers defines trades as any position where a trainee is working toward achieving trades certification. This would include Mineral Process Operator Trainee, Protective Services Trainee, Heavy Equipment Operator and other occupations.

2 2015 training data is not available for the Gahcho Kué Project, but will be available in future years once the training department is fully established for operations.

2015 GAHCHO KUÉ PROJECT TRAINING

TrainingLife of Mine Commitment

Current TraineesCumulative

Trainees to Date

Cumulative Program

Graduates

Trades 16 4 4 4

Apprenticeships 10 0 0 0

Professional Development Sponsorships

4 0 0 0

Total 30 4 4 4

2015 SNAP LAKE MINE TRAINING

TrainingLife of Mine Commitment

Current Trainees*

Cumulative Trainees to Date

Cumulative Program

Graduates

Trades 10 2 26 16

Apprenticeships 10 6 33 8

Underground Mining

20 5 44 28

Total 40 13 103 52

Karel Pekelskey, of Yellowknife, completed his electrical apprenticeship at Snap Lake Mine in 2015. Pictured above, he receives congratulations from his supervisor Sheldon Flostrand.

* Includes trainees who continued their programs in 2015

EMPLOYEES

Page 17: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 17

CEO AWARDS RECOGNIZE EMPLOYEE EXCELLENCESince 2009, De Beers in Canada has recognized excellence through the CEO Award of Excellence. There are two award categories: Safety Health and Environment (SHE) and Loss Prevention. The award is available to an individual or team at Victor Mine, Snap Lake Mine, Gahcho Kué Project, Exploration and De Beers Canada’s Corporate office. The NWT was well represented in 2015.

LOSS PREVENTION

DONALD ST. CYR (Snap Lake Mine)Through his own initiative, Donald was instrumental in the reduction of dust inside the diamond defalsifying glove box by suggesting to his Supervisor to install an ionizer which has become a global De Beers Group Best Practice, leading to a signifi-cant reduction of opening the glove box to clean the dust and reducing the risk to product.

GAHCHO KUÉ PROJECT WINTER ROAD TEAMDe Beers faced a number of challenges during the 2014 Winter Road Season that included moving over 560 loads of equipment and supplies on a 120 km spur road. In addition, for the first time in many years there was a herd of over 1,500 caribou occupying large sections of the road. The winter road and environment team working closely with communication and Aboriginal Affairs staff clearly communicated the information to representatives from six Aboriginal parties and GNWT regulators. This provided the opportunity for De

Beers to not only demonstrate the effectiveness of winter road mitigations (speed limits etc.) but communicate this clearly and transparently to Aboriginal parties and regulators. This resulted in a successful winter road season, all loads delivered without further incidents without reputational risk.

SAFETY, HEALTH & ENVIRONMENT

GAHCHO KUÉ PROJECT FISH-OUT TEAMBefore mining can safely commence at the Gahcho Kué Project, the water level in some sections of Kennady Lake needs to be lowered and fish needed to be removed from the lake. The Gahcho Kué Project team worked closely with communities to plan the fish-out, which also allowed De Beers to collect scientific information about fish, hire Northern and Aboriginal people, including Elders, and provide harvested fish to communities for use. Approximately 3,000 kg of fish were filleted on site, frozen and distributed to community events and celebrations, to stock community freezers and for use in an elders’ residence. Smaller fish were provided to local mushers to feed their dog teams. The program was conceived based on feedback received during multiple years of community engagement. The fish-out commenced in July 2014 and wrapped up in the summer of 2015.

A Bouwa Whee Catering chef carves prime rib, on the popular Wednesday “Steak Night”.

Nikki Laird, Senior Survey Technologist for De Beers, staking out drill blast holes at the Gahcho Kué Project.

EMPLOYEES

Page 18: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW18

SHAPING A LASTING, POSITIVE LEGACYSocial investments are important to improving the quality of life in communities close to our NWT Operations.

COMMUNITIES

Page 19: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 19

OUR PERFORMANCE IN 2015SOCIAL INVESTMENT PRIORITIES:

2015 KEY ACHIEVEMENTS

• Donation of $110,000 scoop-tram to NWT Mine Training Society

• Investment in NWT literacy development grows to nearly $1 million

• Ice road marathon raises funds for school nutrition program

Supporting communities close to our operations through a variety of social investments is one of the ways De Beers is working to create a lasting legacy in the NWT.

Altogether in 2015, De Beers provided $937,0001 to support a variety of corporate social investment programs in the Northwest Territories.

This included donations of diamonds to support fund raising for health care, financial support for the development of community infrastructure, in-kind contributions of staff time and goods or equipment, sponsorship of cultural activities, continuation of the Books in Homes program, and donations to charities.

The largest single contribution during 2015 was the donation of a surplus scoop-tram from Snap Lake Mine to the NWT Mine Training Society. Valued at approximately $110,000, the scoop-tram was used by the society to train participants in its underground miner training program.

“Without the donation of this equipment Aurora College would not have been able to continue the delivery of our underground miner program,” said College President Jane Arychuk during a recognition event held in November. “This group of students and our future students would not have been able to get the real life, hands-on training that we’ve been able to offer and has become a trademark

Image on page 20: Elders from the Snap Lake Environmental Monitoring Agency take part in a workshop on the mine site.

• Education & Health• Small Business Enterprise

Development• Traditional Knowledge and Culture

• Green Initiatives• Infrastructure

Arts, Culture &Heritage

Education

HealthInitiatives

Sports/Other

COMMUNITIES

1 Includes share of spending by Gahcho Kué Project joint venture partner Mountain Province Diamonds

57%

25%

16%

2%

Page 20: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW20

of the program.”

De Beers’ July 10-11, 2015 Hay River Charity Classic Golf Tournament was once again a success, raising a total of $57,422 for the Health and Wellness Foundation of Hay River and Hay River Junior Golf, through donations and on-site fund raising activities. De Beers also donated a diamond and $10,000 to support the Dialysis Campaign launched by the Stanton Territorial Hospital Foundation.

Programs and organizations to receive support during 2015 included:

• Long John Jamboree (Inspired Ice)

• Tree of Peace Talent Show

• Stanton Territorial Hospital Foundation

• Health & Wellness Foundation of Hay River

• Fort Resolution Dog Mushers Club

• North Slave Métis Alliance Fish Fry

• Canoes for Tlicho Trails of Our Ancestors program

• Aboriginal Day celebrations in five communities

• Restoration of the Willideh Cultural centre site by the Yellowknives Dene First Nation

• Construction of a gazebo, smokehouse and boardwalk in Fort Resolution

• Restoration of historic trails by the Lutsel K’e Dene First Nation

• NWT Food First Foundation

• NorthWords NWT

Glen Koropchuk, Chief Operating Officer of De Beers in Canada chats with underground miner program students during a graduation ceremony held by the NWT Mine Training Society in 2015. De Beers donated a scoop-tram valued at approximately $110,000 (similar to the one pictured below) to the MTS earlier in the year.

ICE MARATHON SUPPORTS FOOD FOR SCHOOLSTwice in less than a month during the spring of 2015, the Chief Financial Officer of De Beers in Canada ran a 42 kilometre marathon on one of the company’s winter roads.

On March 30th CFO Steve Thomas ran the marathon distance on the ice road to the Gahcho Kué Project, about 280 km northeast of Yellowknife. He was joined by De Beers Snap Lake colleagues Megan Rodel, Superintendent of Business

Improvement, and Marc Lincoln, Sr. Project Manager. Rodel also ran the distance and Lincoln rode a bike designed for winter conditions. On March 11, Thomas ran a marathon on the winter road to De Beers’ Victor Mine in Northern Ontario, raising money for youth suicide prevention.

In the NWT, De Beers donated $5,000 and raised an additional $9,700 from business partners, all going to the Food First Foundation (FFF), which runs nutrition programs in communities close to De Beers’ NWT operations.

“Food First Foundation is pleased with De Beers’ commitment to supporting food programs in the NWT. Their commitment will enable the Food First Foundation to provide even more support to NWT schools to offer

nutritious food options for school-aged children. Food First Foundation believes that access to healthy food options at an early age helps to develop positive eating habits and supports healthy communities, and we are thankful to De Beers for their financial assistance in achieving that goal,” said Katie Randall, Director FFF.

COMMUNITIES

Page 21: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 21

SUPPORTING LITERACY, ONE CHILD AT A TIMESince 2003, De Beers has invested close to $1 million to support literacy development in the Northwest Territories.

The bulk of that amount, $861,000, has gone to support Books in Homes, De Beers’ flagship NWT social investment program.

Established in 2003, the program visited nine schools in eight Aboriginal communities close to our NWT operations over an eight week span in April and May 2015 – Behchoko, Wha Ti, Wekweeti, Gameti, Dettah, Ndilo, Lutsel K’e and Fort Resolution.

Through the program, each student selects three books free of charge, the total books distributed last year alone was 3,471. That brings the total number of books distributed through Books in Homes over the years to 44,000.

De Beers was also proud to sponsor NorthWords in 2015, and joined in the celebration of the organization’s 10th anniversary festival in June. In addition, a $2,500 donation was provided to the NWT Literacy Council in November to support the Council’s “Bison Bus” bookmobile project.

INVESTING IN OUR COMMUNITIESDe Beers supported a range of community initiatives during 2015. Pictured above are just a few:1. Boardwalk installed along the Great Slave Lake waterfront by the Deninu Kué First Nation in Fort Resolution; 2. Young dancers perform at the North Slave Métis Alliance Fish Fry held to celebrate National Aboriginal Day in Yellowknife; 3. A cultural camp held for Tlicho youth in Wekweeti; 4. Youth play volleyball using equipment purchased through a contribution from De Beers; 5. Celebrating a $10,000 donation to support the launch of a fund raising initiative for a kidney dialysis machine during the Stanton Territorial Hospital Foundation Festival of Giving.

1

2

3 4

5

COMMUNITIES

Page 22: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

2015 SNAP LAKE MINE EMPLOYMENT DATAThe 2015 Snap Lake Mine workforce equalled 762 measured in person-years of employment (see Figure 1).1 This number includes employees of De Beers and Mine contractors and is 15 above the number recorded in 2014. Average employment for NWT residents was 244 person-years, down 14 when compared to the previous year.

FIGURE 1: ANNUAL EMPLOYMENT AT THE SNAP LAKE MINE(construction phase 2005 to 2007; operations phase 2008 to 2015)

0

200

20062005 2007 2008 2009 2010 2011 2012 2013 2014 2015

400

600

800

1,000

1200

Non-NWT Residents NWT Residents

1Employment data only covers the period of operations at Snap Lake Mine, from January 1, 2015-December 4, 2015, and does not include hours worked after the mine was on care and maintenance. All employees who were laid off as of December 4 received 16 weeks lay-off notice and were therefore technically employed until the end of March 2016. However, because they were nor required to report for work, they were not recorded as part of the Snap Lake workforce survey. The result is an under- reporting of total employment in person years for the 2015 calendar year.

EMPLOYEES

A1 NWT Socio-Economic Report | 2015

Page 23: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

2 In 2015, 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.

The first three years of data, from 2005 to 2007, represent the employment record during the mine’s construction phase. The mine began operations in 2008. By 2012, the mine had recovered from the effects of the 2008-09 global recession and has been operating with a relatively stable workforce since then, averaging 760 person years (PY) annually. In 2015, Snap Lake Mine’s workforce was 762.

NWT residents contributed 244 person-years of employment to the mine in 2015. This is a little below its peak year in 2012 when NWT residents filled 275 positions at the mine. The resident workforce represents 32% of the total employment for the year.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 TOTAL AVERAGE

(person-years)

NWT ABORIGINAL

39 93 126 139 92 123 145 149 139 129 120 1,294 118

OTHER NWT RESIDENTS 56 130 143 135 71 106 104 126 135 129 124 1,258 114

SUBTOTAL NWT RESIDENTS 95 223 269 274 163 229 249 275 274 258 244 2,552 232

NON-NWT 137 614 875 454 269 406 429 482 502 489 518 5,175 470

GRAND TOTAL 231 838 1,144 728 431 635 678 757 776 747 762 7,727 702(percent of total)

NWT ABORIGINAL 17% 11% 11% 19% 21% 19% 21% 20% 18% 17% 16% 17% 17%

OTHER NWT RESIDENTS 24% 16% 13% 19% 16% 17% 15% 17% 17% 17% 16% 16% 16%

SUBTOTAL NWT RESIDENTS 41% 27% 24% 38% 38% 36% 37% 36% 35% 35% 32% 33% 33%

NON-NWT 59% 73% 76% 62% 62% 64% 63% 64% 65% 65% 68% 67% 67%

GRAND TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

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.

EMPLOYMENT BY HIRING PRIORITY

Table 1 presents the employment history in person-years2 by hiring priority for the Snap Lake Mine from 2005 to 2015. These data combine the employment results of De Beers with that of our contractors.

Table 1: Employment by Hiring Priority, to the end of 2015

EMPLOYEES

A2NWT Socio-Economic Report | 2015

Page 24: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

DE BEERS CONTRACTOR TOTAL

(person-years)

NWT ABORIGINAL 71.9 47.7 119.6

OTHER NWT RESIDENTS 82.7 41.4 124.1

SUBTOTAL NWT RESIDENTS 154.6 89.1 243.7

NON-NWT ABORIGINAL 46.4 14.1 60.4

OTHER NON-NWT RESIDENTS 331.7 125.8 457.5

SUBTOTAL NON-NWT RESIDENTS

378.1 139.9 517.9

TOTAL 532.7 229.0 761.6

(percent of total)

NWT ABORIGINAL 14% 21% 16%

OTHER NWT RESIDENTS 16% 18% 16%

SUBTOTAL NWT RESIDENTS 29% 39% 32%

NON-NWT ABORIGINAL 9% 6% 8%

OTHER NON-NWT RESIDENTS 62% 55% 60%

SUBTOTAL NWT RESIDENTS 71% 61% 68%

TOTAL 100% 100% 100%

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.

Snap Lake Employment by Priorit y Hiring Group

(De Beers and contractors)

2015

Non-NWT Residents NWT Residents

EMPLOYEES

A3

Within this labour pool, 154.6 or 29% reside in the NWT, 71.9 of who are NWT Aboriginal residents. De Beers also employed 46.4 non-resident Aboriginal people.3 The Mine’s contractors reported 229 PY of employment in 2015. 39% of this workforce are residents of the NWT, with 54% of them being Aboriginal. These numbers are virtually unchanged from 2014.

3The Employment Statistical Information (ESI) Form conducted for the Snap Lake Mine results in data that requires 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 Metis Alliance, Yellowknives Dene First Nation, Lutsel K’e and Kache Dene First Nation or Tlicho 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 Metis 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.

Table 2 provides employment information for De Beers and our contractors separately. The majority of people (70%) working at the Mine are De Beers’ employees, who provided 533 PY of employment.

INCREASINGTHE DIVERSITY OF OUR WORKFORCE

Table 2: Employment by Hiring Priority, 2015 In person years (PY)

NWT Socio-Economic Report | 2015

68%

32%

Page 25: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

Tables 3a and 3b contain employment results by hiring priority and job classification. These tables reveal the continuation of a trend in labour needs of the Mine that has been underway for the past three to four years.

EMPLOYMENT BY HIRING PRIORITY AND JOB CLASSIFICATION

68%

In 2015, management, professional, and skilled positions grew to 472 PY from 425 one year ago. The majority (95%) of this growth came in skilled positions. Offsetting the increased demand was a decline in semi-skilled and unskilled positions, falling from 322PY in 2014 to 289PY in 2015. In this case, the majority (89%) of losses came in semi-skilled positions.

The results in Table 3a highlight the skills gap that exists in the NWT workforce. The largest percentage of resident labour is employed in unskilled jobs, filling 88% of the 87.4 positions available. A far greater number of jobs at the mine are classified as semi-skilled and skilled, 202 and 414 respectively, representing 81% of all jobs. These positions require additional education and skills and/or work experience. NWT residents fill 33% of the semi-skilled jobs and 20% of the skilled jobs.

NWT residents filled 10.8 of the 37.3 professional positions available at the mine, which is an increase of one over last year. The professional job category includes mine engineers and geologists. Opposite to this, NWT resident employment in senior management positions fell by one in 2015.

0

50

Semi-SkilledUnskilled Skilled Professional Management

100

150

200

250

300

350

Non-NWT Residents NWT Residents

NWT Aboriginal Other NWT Residents

Subtotal NWT Residents

Non-NWT Residents

Grand Total

(person-years)

MANAGEMENT 0.1 5.0 5.2 15.6 20.7

PROFESSIONAL 0.9 9.9 10.8 26.5 37.3

SKILLED 32.0 51.7 83.7 330.6 414.3

SUBTOTAL 33.1 66.6 99.7 372.6 472.3

SEMI-SKILLED 35.8 31.6 67.4 134.6 202.0

UNSKILLED 50.8 26.0 76.7 10.7 87.4

SUBTOTAL 86.5 57.6 144.1 145.3 289.3

TOTAL 119.6 124.1 243.7 517.9 761.6

(percent of total by job classification)

MANAGEMENT 1% 24% 25% 75% 100%

PROFESSIONAL 2% 26% 29% 71% 100%

SKILLED 8% 12% 20% 80% 100%

SUBTOTAL 7% 14% 21% 79% 100%

SEMI-SKILLED 18% 16% 33% 67% 100%

UNSKILLED 58% 30% 88% 12% 100%

SUBTOTAL 30% 20% 50% 50% 100%

TOTAL 16% 16% 32% 68% 100%

(percent of total by hiring priority)

MANAGEMENT 0% 4% 2% 3% 3%

PROFESSIONAL 1% 8% 4% 5% 5%

SKILLED 27% 42% 34% 64% 54%

SUBTOTAL 28% 54% 41% 72% 62%

SEMI-SKILLED 30% 25% 28% 26% 27%

UNSKILLED 42% 21% 31% 2% 11%

SUBTOTAL 72% 46% 59% 28% 38%

TOTAL 100% 100% 100% 100% 100%

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.

EMPLOYEES

A4

Snap Lake Employment by Job Classification and Hiring Priority (Residency)

Table 3(a): Employment by Hiring Priority and Job Classification, 2015 In person years (PY)

NWT Socio-Economic Report | 2015

Page 26: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Aboriginal

Non-NWT Aboriginal

Total Aboriginal

Other NWT Residents

Other Non-NWT Residents

Grand Total

(person-years)

MANAGEMENT 0.1 1.9 2.0 5.0 13.7 20.7

PROFESSIONAL 0.9 0.0 0.9 9.9 26.5 37.3

SKILLED 32.0 23.6 55.6 51.7 307.0 414.3

SUBTOTAL 33.1 25.5 58.6 66.6 347.1 472.3

SEMI-SKILLED 35.8 18.1 53.9 31.6 116.5 202.0

UNSKILLED 50.8 1.4 52.2 26.0 9.2 87.4

SUBTOTAL 86.5 19.5 106.0 57.6 125.8 289.3

TOTAL 119.6 45.0 164.6 124.1 472.9 761.6

(percent of total by job classification)

MANAGEMENT 1% 9% 10% 24% 66% 100%

PROFESSIONAL 2% 0% 2% 26% 71% 100%

SKILLED 8% 6% 13% 12% 74% 100%

SUBTOTAL 7% 5% 12% 14% 74% 100%

SEMI-SKILLED 18% 9% 27% 16% 58% 100%

UNSKILLED 58% 2% 60% 30% 11% 100%

SUBTOTAL 30% 7% 37% 20% 43% 100%

TOTAL 16% 6% 22% 16% 62% 100%

(percent of total by hiring priority)

MANAGEMENT 0% 4% 1% 4% 3% 3%

PROFESSIONAL 1% 0% 1% 8% 6% 5%

SKILLED 27% 52% 34% 42% 65% 54%

SUBTOTAL 28% 57% 36% 54% 73% 62%

SEMI-SKILLED 30% 40% 33% 25% 25% 27%

UNSKILLED 42% 3% 32% 21% 2% 11%

SUBTOTAL 72% 43% 64% 46% 27% 38%

TOTAL 100% 100% 100% 100% 100% 100%

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.

TABLE 3B REORGANISES THE HIRING PRIORITY AND JOB CLASSIFICATION DATA TO HIGHLIGHT THE NUMBER OF ABORIGINAL EMPLOYEES WORKING AT THE SNAP LAKE MINE. THE TOTAL NUMBER FELL BY 7.4 PERSON YEARS FOR THE YEAR, FROM 172.0 TO 164.6.

ABORIGINAL RESIDENTSNWT Aboriginal resident employment fell in all job categories with the one exception being unskilled jobs where there was a small increase equal to 3.5 PY. Aboriginal employees residing outside the territory saw virtually no change in employment throughout the year. The vast majority (91%) of non-resident Aboriginal employees work in semi-skilled or skilled positions.

EMPLOYEES

A5

Table 3(b): Employment by Hiring Priority and Job Classification, 2015 in Person Years (PY)

NWT Socio-Economic Report | 2015

Page 27: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

EMPLOYMENT BY COMMUNITY

EMPLOYEES

A6

Person Years

% of Total Employment

% of NWT Employment

AKLAVIK 0.7 0% 0%

COLVILLE LAKE 0.0 0% 0%

DELINE 4.7 1% 2%

ENTERPRISE 0.2 0% 0%

FORT GOOD HOPE 0.0 0% 0%

FORT LIARD 0.0 0% 0%

FORT MCPHERSON 0.0 0% 0%

FORT PROVIDENCE 4.1 1% 2%

FORT RESOLUTION 1.2 0% 0%

FORT SIMPSON 0.0 0% 0%

FORT SMITH 7.0 1% 3%

HAY RIVER 31.2 4% 13%

HOLMAN 0.0 0% 0%

INUVIK 1.2 0% 0%

JEAN MARIE RIVER 1.0 0% 0%

KAKISA 1.1 0% 0%

LUTSEL K’E 1.2 0% 0%

NAHANNI BUTTE 0.0 0% 0%

NORMAN WELLS 0.0 0% 0%

PAULATUK 0.2 0% 0%

BEHCHOKO 11.9 2% 5%

GAMETI 2.0 0% 1%

SACHS HARBOUR 0.0 0% 0%

TROUT LAKE 0.0 0% 0%

TSIIGEHTCHIC 0.5 0% 0%

TUKTOYAKTUK 0.0 0% 0%

TULITA 1.0 0% 0%

WEKWEETI 1.7 0% 1%

WHA TI 2.1 0% 1%

WRIGLEY 0.0 0% 0%

YELLOWKNIFE 170.7 22% 70%

OTHER 517.9 68% -

TOTAL NWT 761.6 100% 100%

Note: figures may not add up due to rounding error.

The 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.

The 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 Metis Alliance;

c. Tlicho; and,

d. Yellowknives Dene First Nation.

1. Aboriginal people residing in the NWT;

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

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

4. Others (non-NWT residents).

Overall, 19 communities were represented in the workforce in 2015, which is a most since operations began. Most of these employees reside in Yellowknife, accounting for 70% of the NWT workforce with 170.7 person-years of employment. The Town of Hay River contributed 31.2 person-years (13%), while Behchoko added another 11.9 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, Wekweeti, Gameti, Lutsel K’e, Fort Smith, Hay River, Fort Simpson, Norman Wells and Inuvik) throughout the Territory, 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.

Table 4: Employment by NWT Community

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

NWT Socio-Economic Report | 2015

Page 28: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

EMPLOYEES

A7

> 6 MONTHS < 6 MONTHS NWT NON-NWT TOTAL

NUMBER OF NEW EMPLOYEES

DE BEERS CANADA INC. 11 6 17 131 148

CONTRACTORS 25 70 95 124 219

TOTAL 36 76 112 255 367

PERCENT OF TOTAL

DE BEERS CANADA INC. 7% 4% 11% 89% 100%

CONTRACTORS 11% 32% 43% 57% 100%

TOTAL 10% 21% 31% 69% 100%

5The 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.

Table 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

NEW HIRES BY RESIDENCY, COMMUNITY, AND JOB CLASSIFICATION

OVER THE COURSE OF 2015, 367 NEW PEOPLE WERE HIRED, 112 OF WHOM 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 219. The majority (57%) of these new hires reside outside the NWT. De Beers’ hiring reached 148 for the year.

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. These data reaffirm the established division of labour between the different priority groups. New NWT Aboriginal employees were hired primarily to fill vacant positions in the unskilled job category—58% of all unskilled new hires

were Aboriginal residents from the NWT—while non-Aboriginal, non-resident new hires filled the vast majority of new skilled, professional, and management positions, 78%, 100%, and 83% respectively. With that said, De Beers is pleased that 27 of the 37 new hires for skilled jobs that reside in the NWT are Aboriginal.

Table 5: New Hires by Residency

NWT Socio-Economic Report | 2015

Page 29: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NEW HIRES BY COMMUNITY

EMPLOYEES

A8

COMMUNITY # OF EMPLOYEES HIRED BY DE BEERS # OF EMPLOYEES HIRED BY CONTRACTORS

TOTAL # OF EMPLOYEES HIRED

EMPLOYMENT BY COMMUNITY

AKLAVIK 0 1 1 0.3%

COLVILLE LAKE 0 0 0 0.0%

DELINE 0 1 1 0.3%

ENTERPRISE 0 0 0 0.0%

FORT GOOD HOPE 0 0 0 0.0%

FORT LIARD 0 0 0 0.0%

FORT MCPHERSON 0 0 0 0.0%

FORT PROVIDENCE 0 1 1 0.3%

FORT RESOLUTION 0 2 2 0.5%

FORT SIMPSON 0 0 0 0.0%

FORT SMITH 1 1 2 0.5%

HAY RIVER 0 8 8 2.2%

HOLMAN 0 0 0 0.0%

INUVIK 2 1 3 0.8%

JEAN MARIE RIVER 0 1 1 0.3%

KAKISA 0 1 1 0.3%

LUTSEL K’E 0 1 1 0.3%

NAHANNI BUTTE 0 0 0 0.0%

NORMAN WELLS 0 0 0 0.0%

PAULATUK 1 0 1 0.3%

GAMETI 0 0 0 0.0%

BEHCHOKO 2 2 4 1.1%

SACHS HARBOUR 0 0 0 0.0%

TROUT LAKE 0 0 0 0.0%

TSIIGEHTCHIC 0 2 2 0.5%

TUKTOYAKTUK 0 0 0 0.0%

TULITA 0 0 0 0.0%

WEKWETI 0 0 0 0.0%

WHA TI 0 3 3 0.8%

WRIGLEY 0 0 0 0.0%

YELLOWKNIFE 14 73 87 23.7%

OTHER 128 121 249 67.9%

TOTAL NWT 148 219 367 100%

Note: figures may not add up due to rounding error.

Table 6: New Hires by Community

NWT Socio-Economic Report | 2015

Page 30: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

EMPLOYEES

A9

UNSKILLED SEMI-SKILLED SKILLED PROFESSIONAL MANAGEMENT TOTAL NEW HIRES

MEMBERS OF THE 4 IBA GROUPS WHO LIVE IN NWT 21 5 18 0 0 44

OTHER ABORIGINAL PEOPLE LIVING IN NWT 21 4 9 0 0 34

NON-ABORIGINAL NWT RESIDENTS 16 7 10 0 1 34

TOTAL NWT RESIDENT NEW HIRES 58 16 37 0 1 112

MEMBERS OF 4 IBA GROUPS WHO DO NOT LIVE IN NWT 0 2 1 0 0 3

OTHER ABORIGINAL PEOPLE WHO DO NOT LIVE IN NWT 5 6 11 0 0 22

OTHER NON-NWT RESIDENTS 9 33 169 14 5 230

TOTAL NEW HIRES 72 57 218 14 6 367

(percent of total by hiring priority)

MEMBERS OF THE 4 IBA GROUPS WHO LIVE IN NWT 48% 11% 41% 0% 0% 100%

OTHER ABORIGINAL PEOPLE LIVING IN NWT 62% 12% 26% 0% 0% 100%

NON-ABORIGINAL NWT RESIDENTS 47% 21% 29% 0% 3% 100%

TOTAL NWT RESIDENT NEW HIRES 52% 14% 33% 0% 1% 100%

MEMBERS OF 4 IBA GROUPS WHO DO NOT LIVE IN NWT - - - - - -

OTHER ABORIGINAL PEOPLE WHO DO NOT LIVE IN NWT 23% 27% 50% 0% 0% 100%

OTHER NON-NWT RESIDENTS 4% 14% 73% 6% 2% 100%

TOTAL 20% 16% 59% 4% 2% 100%

(percent of total by job classification)

MEMBERS OF THE 4 IBA GROUPS WHO LIVE IN NWT 29% 9% 8% 0% 0% 12%

OTHER ABORIGINAL PEOPLE LIVING IN NWT 29% 7% 4% 0% 0% 9%

NON-ABORIGINAL NWT RESIDENTS 22% 12% 5% 0% 17% 9%

TOTAL NWT RESIDENT NEW HIRES 81% 28% 17% 0% 17% 31%

MEMBERS OF 4 IBA GROUPS WHO DO NOT LIVE IN NWT 0% 4% 0% 0% 0% 1%

OTHER ABORIGINAL PEOPLE WHO DO NOT LIVE IN NWT 7% 11% 5% 0% 0% 6%

OTHER NON-NWT RESIDENTS 13% 58% 78% 100% 83% 63%

TOTAL 100% 100% 100% 100% 100% 100%

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.

Table 7: New Hires by Hiring Priority and Job Category

NEW HIRES BY HIRING PRIORITY AND JOB CATEGORY

NWT Socio-Economic Report | 2015

Page 31: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

De Beers supports and encourages the participation of women in all aspects of work related to Snap Lake Mine and encourages similar commitments from its contractors.6 Table 8 and Table 9 provide evidence of the company’s record in this area.

EMPLOYMENT BY GENDER AND JOB CLASSIFICATION

There were 98.8 women employed at the Snap Lake Mine in 2015, representing 13% of the overall workforce. Women provided the mine with 36.5 person-years of employment in jobs classified as management, professional, or skilled. Women hold 26.1, 31.3, and 31 full-time equivalent positions classified as skilled, semi-skilled, and unskilled jobs, respectively.

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

EMPLOYEES

3%

A10

Table 8: Employment by Job Classification and Gender

Table 9: Employment by Job Classification for Women

(person-years) (percent)

MANAGEMENT 2.8 3%

PROFESSIONAL 7.6 8%

SKILLED 26.1 26%

SUBTOTAL 36.5 37%

SEMI-SKILLED 31.3 32%

UNSKILLED 31.0 31%

SUBTOTAL 62.3 63%

GRAND TOTAL 98.8 100%

Note: figures may not add up due to rounding error.

DISTRIBUTION OF WOMEN BY JOB CLASSIFICATION

Skilled Semi-Skilled Unskilled Professional

Management

2015

Men Women

(person-years) (percent) (person-years) (percent)

MANAGEMENT 17.9 86% 2.8 14%

PROFESSIONAL 29.7 80% 7.6 20%

SKILLED 374.2 93% 26.1 7%

SUBTOTAL 421.8 92% 36.5 8%

SEMI-SKILLED 169.8 84% 31.3 16%

UNSKILLED 56.1 64% 31.0 36%

SUBTOTAL 225.9 78% 62.3 22%

GRAND TOTAL 647.6 87% 98.8 13%

Note: The summation of person-years of employment by gender does not equal the year’s total employment. De Beers believes the employment by job classification and gender shown in this table are representative of the total; that is, the percentages for men (87%) and women (13%) are an accurate reflection of the overall workforce.

NWT Socio-Economic Report | 2015

26%

32%

31%8%

Page 32: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

2015 GAHCHO KUÉ PROJECT EMPLOYMENT Employment during the Gahcho Kué Project’s first year of construction (2015) equalled 903 measured in full-time equivalency or person-years of employment (see Figure 1)1. This number includes employees of De Beers and our contractors. NWT residents’ participation in the workforce was 16%, equal to 142 person-years.

1A full time job is defined as 2,184 hours worked in a single year. The total hours is calculated from the assumption that an employee will work 13 cycles of 14 days with a day equalling a 12-hour shift. 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.

MAXIMIZING THE EMPLOYMENT BENEFITS OF THE GAHCHO KUÉ PROJECT IS AN IMPORTANT GOAL FOR DE BEERS. The construction phase poses particular challenges, however. The majority (54% in 2015) of jobs during construction require skilled tradespeople such as electricians, ironworkers, pipe fitters, millwrights, welders, and carpenters. The NWT labour force does not have an abundance of these skilled workers who are not already fully employed elsewhere. As a result, NWT residents filled just 5% of these skilled jobs.

For semi-skilled jobs that typically require some trades training and/or past experience, NWT labour was better represented. NWT residents filled 67 of the 282 semi-skilled jobs available, equal to 24%. But even in this category, there were many jobs that required training or experience that NWT resident labour does not have. For example, there were 60 crane operators registered for work on the construction site. Only one of these operators was from the NWT. It is simply not a skill that would otherwise be in high demand in the territory.

Another challenge is with the temporary nature of these construction jobs, especially those in the skilled category. There were more than 2,000 non-resident employees registered for work on the Gahcho Kué Project construction site in 2015, but when summed in full-time equivalency terms, the number drops to 762, meaning the average job lasted just four months. Skilled workers

are often employed for a short period of time to complete a very specific task, after which they are no longer required. This reduces the attractiveness of these jobs for qualified NWT residents that are already employed elsewhere.

The 142 Person Years of employment created by the project and filled by NWT residents represent an important contribution to the 2015 NWT labour market (see Table 1). Statistics Canada reports that the NWT economy lost 200 jobs during the year and, because there was no change in the number of people in the labour market, the end result was a rise in the unemployment rate that averaged 8.3% for the year.

Table 1: Changes in NWT Labour Market, from 2014 to 2015

2014 2015 CHANGE

LABOUR FORCE 24,000 24,000 0

EMPLOYMENT 22,100 21,900 -200

UNEMPLOYMENT RATE 7.9% 8.3% 0.4%

Source : Statistics Canada, Labour Force Survey, CANSIM Table #282-0100.

As a part of its Gahcho Kué Project Socio Economic Agreement, De Beers has established an NWT resident employment target of 35% for the overall construction workforce, understanding that the achievement of this target is subject to the availability of NWT residents with the required skills, training, and experience, and the ability to pass training program entrance requirements. Developing a qualified workforce for the Project is a shared responsibility of De Beers, the Government of the Northwest Territories, educational institutions, the NWT Mine Training Society and other training partners, the Aboriginal Authorities, and communities.

Moving forward, De Beers will continue to promote the employment opportunities at the Gahcho Kué construction site throughout the territory and will make all efforts to achieve employment targets during operations.

Figure 1: Employment at the Gahcho Kué Project

Construction, 2015

2015

Non-NWT Residents NWT Residents

85%

15%

EMPLOYEES

A11 NWT Socio-Economic Report | 2015

Page 33: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

THERE WERE 903 PERSON YEARS (PY) OF EMPLOYMENT WERE CREATED DURING THE FIRST FULL YEAR OF CONSTRUCTION ACTIVITIES. NWT residents contributed 142 person-years of employment to the construction project. This represents 16% of the overall workforce. Aboriginal residents of the NWT contributed 47 person-years, while other NWT residents contributed the remaining 94 person-years.

Table 2 provides employment information for De Beers and contractors separately.

Much of the project’s construction has been contracted to businesses specializing in this work. As such, contractors employ the

majority of the construction workforce, exceeding 85% of the total. This amounts to 772 person-years of employment, of which 91% are non-residents. The high percentage of imported labour stems from the need for specialized skills that unemployed workers within NWT labour force do not have.

De Beers’ employees represent approximately 15% of the overall workforce, equal to 132 person-years of employment. However, within that workforce are 75 residents of the NWT, 28 of whom are Aboriginal. De Beers’ employees are responsible for earthworks, initial drilling and blasting, site support services, environmental programming, and project management and administration.

Table 1: Employment by Hiring Priority, 2015

Table 2: Employment by Hiring Priority, De Beers and Contractors, 2015

(PERSON-YEARS)

NWT ABORIGINAL 47

OTHER NWT RESIDENTS 94

SUBTOTAL NWT RESIDENTS 142

NON-NWT 762

GRAND TOTAL 903

(PERCENT OF TOTAL)

NWT ABORIGINAL 5%

OTHER NWT RESIDENTS 10%

SUBTOTAL NWT RESIDENTS 16%

NON-NWT 84%

GRAND TOTAL 100%

Note: NWT Aboriginal employees who were identified as residing outside the NWT are recorded as Non-NWT Residents in this table. Any employee whose Aboriginal status could not be established was identified as non-Aboriginal in this table. Figures may not add up due to rounding error.

DE BEERS CONTRACTOR TOTAL

(PERSON-YEARS)

NWT ABORIGINAL 28 19 47

OTHER NWT RESIDENTS 47 47 94

SUBTOTAL NWT RESIDENTS 75 67 142

NON-NWT ABORIGINAL 2 2 5

OTHER NON-NWT RESIDENTS 55 703 757

SUBTOTAL NON-NWT RESIDENTS 57 705 762

TOTAL 132 772 903

(PERCENT OF TOTAL)

NWT ABORIGINAL 21% 3% 5%

OTHER NWT RESIDENTS 36% 6% 10%

SUBTOTAL NWT RESIDENTS 57% 9% 16%

NON-NWT ABORIGINAL 2% 0% 1%

OTHER NON-NWT RESIDENTS 41% 91% 84%

SUBTOTAL NWT RESIDENTS 43% 91% 84%

TOTAL 100% 100% 100%

Note: NWT Aboriginal employees who were identified as residing outside the NWT are recorded as Non-NWT Residents in this table. Any employee whose Aboriginal status could not be established was identified as non-Aboriginal in this table. Figures may not add up due to rounding error.

Table 1 presents the employment history in person-years by hiring priority for the Gahcho Kué Project construction for 2015. These data combine the employment results of De Beers and our contractors.

EMPLOYMENT BY HIRING PRIORITY

Gahcho Kué Project Construction Employment, De Beers and Contractors

2015

Contractors De Beers

85%

15%

EMPLOYEES

A12NWT Socio-Economic Report | 2015

Page 34: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

Table 3: Employment by Hiring Priority and Job Classification, 2015

Table 3 contains employment results by hiring priority and job classification. Of the 903 person years of employment created by this project, 490 (or 54%) require skills typically acquired through a combination of a college diploma or trades certification and work experience.

EMPLOYMENT BY HIRING PRIORITY AND JOB CLASSIFICATION

NWT ABORIGINAL OTHER NWT RESIDENTS SUBTOTAL NWT RESIDENTS NON-NWT RESIDENTS GRAND TOTAL

(PERSON-YEARS)

MANAGEMENT 1 8 9 30 38

PROFESSIONAL 0 1 1 9 11

SKILLED 5 20 25 465 490

SUBTOTAL 5 29 34 504 539

SEMI-SKILLED 24 43 67 215 282

UNSKILLED 18 22 40 42 83

SUBTOTAL 42 66 107 257 365

TOTAL 47 94 142 762 903

PERCENT OF TOTAL BY JOB CLASSIFICATION

MANAGEMENT 2% 20% 22% 78% 100%

PROFESSIONAL 0% 10% 10% 90% 100%

SKILLED 1% 4% 5% 95% 100%

SUBTOTAL 1% 5% 6% 94% 100%

SEMI-SKILLED 8% 15% 24% 76% 100%

UNSKILLED 22% 27% 49% 51% 100%

SUBTOTAL 11% 18% 29% 71% 100%

TOTAL 5% 10% 16% 84% 100%

PERCENT OF TOTAL BY HIRING PRIORITY

MANAGEMENT 2% 8% 6% 4% 4%

PROFESSIONAL 0% 1% 1% 1% 1%

SKILLED 10% 21% 17% 61% 54%

SUBTOTAL 12% 30% 24% 66% 60%

SEMI-SKILLED 50% 46% 47% 28% 31%

UNSKILLED 38% 24% 29% 6% 9%

SUBTOTAL 88% 70% 76% 34% 40%

TOTAL 100% 100% 100% 100% 100%

Note: NWT Aboriginal employees who were identified as residing outside the NWT are recorded as Non-NWT Residents in this table. Any employee whose Aboriginal status could not be established was identified as non-Aboriginal in this table. Figures may not add up due to rounding error.

EMPLOYEES

A13 NWT Socio-Economic Report | 2015

Page 35: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

Almost half (47%) of the Aboriginal and non-Aboriginal residents of the NWT worked in semi-skilled positions at the construction site, providing 67 person-years of employment. Half of these employees were equipment operators. NWT residents were underrepresented in skilled and professional jobs, contributing 5% and 10% of the total labour, respectively. NWT residents made up 22% of the Gahcho Kué Project’s management team, equal to nine person-years of employment.

The results in Table 3 highlight the skills gap that exists in the NWT workforce and the tight market for labour with specialised training. There are major capital projects underway at the Ekati and Diavik mines,

creating excess demand for skilled and semi-skilled workers in the territory. The majority of NWT residents who are qualified for these jobs are already fully employed elsewhere. For example, over the course of 2015, there were more than 200 electricians registered for work at the Gahcho Kué construction site, contributing a total of 67 person-years of employment to the project. The NWT labour pool does not include that many electricians, especially ones in search of employment. In other cases, jobs require a skill set that is not present in the NWT labour force, such as crane operators and ironworkers. As a result, contractors have had to source this labour from other parts of the country.

0

100

Professional

Numb

er of

FTE j

obs

Managment Skilled Semi-Skilled Unskilled

200

300

400

500

600

Non-NWT Residents NWT Residents

SKILLED WORKERS INCLUDE ELECTRICIANS, IRONWORKERS, PIPE FITTERS, MILLWRIGHTS, WELDERS, AND CARPENTERS. THE CONSTRUCTION PROJECT ALSO CREATED 282 FTE JOBS IN SEMI-SKILLED CATEGORIES, INCLUDING 125 FTE EQUIPMENT OPERATORS.

SKILLED WORKERSSkilled workers include electricians, ironworkers, pipe fitters, millwrights, welders, and carpenters. The construction project also created 282 PY of employment in semi-skilled categories, including 125 FTE equipment operators. There were 83 jobs for general labour, classified as unskilled work, 11 FTE jobs for professionals including engineers and consultants, and 38 FTE jobs for managers that includes the management team from De Beers and from contractors.

Gahcho Kué Project Construction Employment by Job Classification and Hiring Priority (Residency)

EMPLOYEES

A14NWT Socio-Economic Report | 2015

Page 36: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

THESE STATISTICS ARE RECORDED AS THE NUMBER OF PERSON-YEARS OF EMPLOYMENT AND COMBINE DE BEERS’ EMPLOYEES WITH THE EMPLOYEES WORKING FOR OUR CONTRACTORS. The Gahcho Kué Project Socio-Economic Agreement establishes priority groups within the NWT, which dictates hiring practices.2 The order of hiring priority is as follows:

1. Members of Aboriginal Authorities, including

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

b. Yellowknives Dene First Nation;

c. Tlicho;

d. Deninu Kué First Nation;

e. North Slave Métis Alliance; and,

f. NWT Métis 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.All others (non-NWT residents).

There were 11 communities represented in the 2015 construction workforce. The majority reside in Yellowknife, accounting for 80% of NWT workforce with 113 person-years of employment. Hay River contributed eight person-years (6%), while Fort Smith added another nine person-years of employment to the construction workforce.

Travel to the Mine from any NWT community should not represent a barrier to employment for any NWT resident. As a part of its Gahcho Kué Project Socio Economic Agreement, De Beers provides return air transportation, at its expense, to employees travelling from Lutsel K’e, Gameti, Whati, Wekweeti, Yellowknife (for communities of Behchoko, Dettah, and Ndilo), Hay River, Fort Smith, Fort Simpson, Norman Wells and Inuvik. In addition, De Beers provides a travel allowance to employees who do not reside in one of these communities in order to facilitate their travel to and from the nearest designated pick-up point.

PERSON YEARS

% OF TOTAL EMPLOYMENT

% OF NWT EMPLOYMENT

YELLOWKNIFE 113 13% 80%

HAY RIVER 8 1% 6%

BEHCHOKO 2 0% 1%

LUTSEL K’E 3 0% 2%

FORT RESOLUTION 1 0% 1%

FORT SIMPSON 1 0% 1%

FORT SMITH 9 1% 6%

FORT GOOD HOPE 1 0% 1%

FORT MCPHERSON 1 0% 1%

FORT PROVIDENCE 1 0% 1%

GAMETI 1 0% 1%

NON-NWT 762 84% N/A

SUBTOTAL NWT RESIDENTS

149 15% N/A

TOTAL 904 100% 100%

NOTE: FIGURES MAY NOT ADD UP DUE TO ROUNDING ERROR. COMMUNITIES NOT SHOWN DID NOT HAVE A MEMBER WORKING FOR THE PROJECT IN 2015.

EMPLOYMENT BY COMMUNITY

The employment data by NWT community is presented in Table 4. This table illustrates the many different communities represented at the Gahcho Kué Project.

Table 4: Employment by NWT Community

2See Section 3.2 in the Gahcho Kué Socio-Economic Agreement.

EMPLOYEES

A15 NWT Socio-Economic Report | 2015

Page 37: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

Table 4: Employment by NWT Community Table 5: Employment by GenderTABLES 5 AND 6 PROVIDE EVIDENCE OF OUR COMBINED RECORD IN THIS AREA. There were 98 women employed at the Gahcho Kué Project in 2015, representing 11% of the overall workforce. Women provided 35 person-years of employment in jobs classified as management, professional, or skilled, and another 38 and 25 person-years of employment in jobs classified as semi-skilled and unskilled, respectively.

(PERSON-YEARS) (PERCENT)

MEN 806 89%

WOMEN 98 11%

TOTAL 903 100%

De Beers supports and encourages the participation of women in all aspects of work related to the Gahcho Kué Project and encourages similar commitments from contractors.

EMPLOYMENT BY GENDER AND JOB CLASSIFICATION

Distribution of Women by Job Classification

Skilled Semi-Skilled Unskilled Management

Professional

(PERSON-YEARS) (PERCENT)

MANAGEMENT 3 3%

PROFESSIONAL 1 1%

SKILLED 31 31%

SUBTOTAL 35 35%

SEMI-SKILLED 38 39%

UNSKILLED 25 26%

SUBTOTAL 63 65%

GRAND TOTAL 98 100%

Note: figures may not add up due to rounding error

Table 6: Employment by Job Classification for Women

1%3%

2015

39%

31%

26%

EMPLOYEES

A16NWT Socio-Economic Report | 2015

Page 38: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW22

SPEAK UP! PROGRAMThrough 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 to 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 great the information available, the more thoroughly the mater is likely to be investigated and, in turn, resolved. All tips are confidential and can be filed anonymously.

CONTACT US:The De Beers Group of Companies

NWT Operational Support Centre

Suite 300, 5120-49th Street

Yellowknife NT X1A 1P8

T. 1.867.766.7300

F. 1. 867.766.7347

E. [email protected]

W. www.canada.debeersgroup.com

Page 39: SNAP LAKE MINE GAHCHO KUÉ PROJECT/media/Files/...2 OVERVIEW NWT Si-Eni Rep | 2015 We are humbled to play a role in connecting millions of people around the world to the diamond dream.

NWT Socio-Economic Report | 2015OVERVIEW 23