2015 NWT Socio-Economic Report

OVERVIEW NWT Socio-Economic Report | 2015 1 SNAP LAKE MINE GAHCHO KUÉ PROJECT NWT SOCIO-ECONOMIC REPORT 2015 2 OVERVIEW NWT Socio-Economic Report | 2015 Front cover image: An We are humbled to play a role in connecting aerial view of the Gahcho Kué Project taken in July millions of people around the world to the 2015 with construction of the $1 billion mine in full diamond dream. Our operations and leadership swing. 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. OVERVIEW NWT Socio-Economic Report | 2015 3 TABLE OF CONTENTS 2 Who we are 6 Chief Executive Officer Introduction 7 2015 by the numbers 8 Economics 12 Employees 18 Communities 22 Employment Data 8 ECONOMICS We strive to build a positive legacy from diamonds in the communities in which we live and work. 12 EMPLOYEES COMMUNITIES Our people are our business and With operations spanning we invest in them to help them decades, we look beyond the meet their full potential. life of our mines with a view to building strong and resilient communities that thrive into the future. 18 4 OVERVIEW NWT Socio-Economic Report | 2015 WHO WE ARE OUR BUSINESS AT A GLANCE Partnership 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. ANGLO AMERICAN PLC 85% GOVERNMENT OF THE REPUBLIC OF BOTSWANA 15% THE DE BEERS GROUP OF COMPANIES EXPLORATION PRODUCTION ROUGH DIAMOND SALES BRANDS/RETAIL MINING SUPER- MATERIALS GLOBAL CANADA DE BEERS DEBSWANA NAMDEB ELEMENT SIX: GLOBAL AUCTION FOREVERMARK DE BEERS EXPLORATION (100%) CONSOLIDATED (50%) HOLDINGS TECHNOLOGIES SIGHTHOLDER SALES (100%) DIAMOND MINES (74%) (50%) (100%) SALES (100%) JEWELLERS (100%) (50%) ABRASIVES (60%) NAMDEB SIGHTHOLDER DIAMOND SALES SOUTH CORPORATION AFRICA (LAND-BASED) (74%) DTC BOTSWANA DEBMARINE (50%) NAMIBIA (MARINE-BASED) NAMIBIA DTC (50%) Numbers indicate percentage of De Beers’ ownership 1 Exploration is undertaken through a number or wholly-owned and joint venture entities. OVERVIEW NWT Socio-Economic Report | 2015 5 A GLOBAL VALUE CHAIN A GLOBAL VALUE CHAIN EXPLORATION PRODUCTION ROUGH DIAMOND SALES CUTTING, POLISHING BRANDS/RETAIL EXPLORATION PRODUCTION ROUGH DIAMOND SALES CUTTING,AND MANUFACTURING POLISHING BRANDS/RETAIL AND MANUFACTURING De Beers’ exploration De Beers has both De Beers sells its rough The cutting and polishing De Beers markets activitiesDe are Beers’ currently exploration undergroundDe Beers hasand both diamondDe Beers production sells its rough via Theof diamonds cutting and and polishing the De Beerspolished markets diamonds to focusedactivities in Canada, are currently open-pitunderground mines in andCanada, contractdiamond sales production to customers, via ofmanufacturing diamonds and theof polishedconsumers diamonds through to Botswana,focused South in AfricaCanada, Botswana,open-pit and mines South in knowncontract as Sightholderssales to customers, and manufacturediamond jewellery of diamond are consumers through Botswana, South Africa Botswana, Canada known as Sightholders and jewellery are concentrated Forevermark, which and Namibia, where we Africa. Accredited Buyers, and via concentrated in Belgium, Forevermark, which and Namibia, where we and South Africa. Accredited Buyers, and via in Belgium, Botswana, promisespromises a consumer a consumer use highlyuse sophisticatedhighly sophisticated roughrough diamond diamond auctions. auctions. China,Botswana, India, China, Israel, India, that their diamond is technologies to find and We alsoWe commerciallyalso commercially Israel, Namibia, South that their diamond is technologies to ﬁ nd and Namibia, South Africa beautiful,beautiful, rare andrare and determine the economic minemine alluvial alluvial diamonds diamonds AsAs part part of of our our long-term long-term Africa and the United determine the economic and the United States. responsiblyresponsibly sourced; sourced, and and viabilityviability of deposits. of deposits. in Namibiain Namibia using using onshore onshore contractcontract sales, sales, the the majority majority States. In Canada, retailsretails diamond diamond jewellery jewellery Approximately 30% of extractionextraction techniques techniques of ofDe De Beers’ Beers’ diamonds diamonds WeDe Beers aim to supportoffers up to 10% and, in the sea, are aggregated and sold downstream activities throughthrough De Beers De Beers De Beers’ global and, in the sea, are aggregated and sold by value in economically specialised ships. at 10 Sights (or selling such as cutting and DiamondDiamond Jewellers, Jewellers, our our exploration budget is specialised ships. at 10 Sights (or selling cuttable diamonds to events)events) each each year, year, with with thethe polishing in our countries independentlyindependently managed managed committed to Canada. ThroughThrough Element Element Six, Six, remainder being sold via oflocal production manufacturers. through 50/50 joint venture our synthetic industrial remainder being sold via 50/50 joint venture our synthetic industrial online auction. our beneﬁ ciation strategy with Moët Hennessy diamond supermaterials online auction. with Moët Hennessy diamond supermaterials (see Economics chapter). Louis Vuitton. business, we supply De Beers has sales Louis Vuitton. business,tool andwe supplyapplication Deoperations Beers has in sales Belgium, tool andmanufacturers drilling across operationsHong Kong, in Israel,Belgium, applicationa diverse manufacturers range of HongSingapore Kong, and Israel, the acrossglobal a diverse markets. range of SingaporeUnited Arab and Emirates. the global markets. United Arab Emirates. WHERE WE OPERATE CANADA 1,887,000 carats recovered, 2015 1,354 employees REST OF WORLD • 1,824 employees NAMIBIA SOUTH AFRICA BOTSWANA • Corporate centres in Luxembourg, South Africa and the United Kingdom • Additional sales operations 1,764,000 4,673,000 20,368,000 in Belgium, Hong Kong, carats recovered, 2015 carats recovered, 2015 carats recovered, 2015 Israel, Singapore, and the United Arab Emirates 2,646 4,188 6,812 • Forevermark available employees employees employees in 35 markets 6 OVERVIEW NWT Socio-Economic Report | 2015 INTRODUCTION AND CHIEF OPERATING OFFICER’S STATEMENT SUSTAINABLE LEADERSHIP KIM TRUTER “THE TEAM IS Chief Executive Officer FOCUSED ON It is my pleasure to provide our NWT Socio- Project, ramped up through the year. Work hit full BUILDING A Economic Report for 2015, reporting De Beers’ stride with a successful winter road season that SUSTAINABLE contributions to the economy and communities of included delivery of 2,400 loads of fuel, equipment BUSINESS THAT the Northwest Territories. and construction materials to the site at Kennady CAN CONTRIBUTE Lake, approximately 80 km from Snap Lake. At the This document includes data from both Snap Lake TO COMMUNITIES.” same time, the Human Resources team worked to Mine and the Gahcho Kué Project, reporting on maximize NWT employment and De Beers worked progress toward commitments for both operations Kim Truter closely with construction contractors to identify CEO made by De Beers in socio-economic agreements opportunities for NWT employment. This effort with the Government of the Northwest Territories. included the identification of a number of De Beers’ As in previous years, De Beers continued to focus on Snap Lake employees who had the skills and building sustainable, economically viable operations experience to fill positions at Gahcho Kué. that could consistently contribute to the communities While the decision to suspend operations at Snap close by. Lake Mine is unfortunate, De Beers is proud of the At Snap Lake Mine, considerable work continued to work being done in the NWT and the positive develop and implement

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