Benefits from Northern Mining 2018 Summary
Agreements in effect The owners of these 12 operations entered into two agreements with the province for each site for the life of the operation. These are the mineral surface lease agreement and the human resource development agreement.
The Ministries of Environment and Government Relations each administer sections of the mineral surface lease agreements. The main purpose of these agreements is long-term rental of Crown land for mining in Northern Saskatchewan.
The surface lease agreements also contain commitments for environmental protection, occupational health and safety, and socio-economic Northern Saskatchewan Environmental Quality Committee members touring mine site reclamation near Uranium City. benefits for residents of Saskatchewan’s North. Each lease also requires the mining operator to have Mining in Northern a human resource development agreement, administered by the Ministry of Immigration and Saskatchewan Career Training. These focus on opportunities for The northern half of Saskatchewan is a land of lakes, northern training, employment, and job forests, mineral resources, and natural beauty. It is advancement. home to about 40,000 people. The predominant cultures in the region are Cree, Dené, and Métis.
The mining workforce in the north totaled about Saskatchewan uses the mineral 1,600 jobs in 2018, compared to about 3,900 at its surface lease agreement to help peak in 2012. Despite layoffs over the past two residents of Saskatchewan’s North years, mining continues to be the largest private- benefit from mining operations in sector employer in the north. Three facilities are in their region. After 30 years, the full production: Cigar Lake uranium mine with milling at McClean Lake mill, and Seabee gold outcomes are: an increase in local mine/mill. Uranium operations in care and skilled workers; competitive local maintenance include: McArthur River mine/Key Lake suppliers; and better-informed mill and Rabbit Lake mine/mill. communities. Six more operations no longer have employees: Midwest Project, La Ronge Gold Project, Cluff Lake, Beaverlodge, Konuto, and Parks Lake. Each year, the mining operations report to the province on their efforts in meeting their socio- economic commitments under these agreements. This is a summary of their reports for 2018.
saskatchewan.ca Partners’ commitments employees, and considered transfers to other sites as opportunities arose. The parties to each mineral surface lease agreement • Gave preferential consideration in all job make commitments for socio-economic benefits for openings to northerners, particularly those Saskatchewan’s North. The province commits to a from 17 priority recruitment communities spirit of cooperation with industry and to use best located nearest to the mine/mill sites. efforts in providing literacy and basic education. • Focused on contracting with service The mining companies commit to their best efforts suppliers who employed northerners. in maximizing opportunities in four areas: • Maintained four offices and satellite offices employment, training, business, and compensation in the northern communities of La Ronge, to previous permit or leaseholders. Black Lake, Hatchet Lake, and Fond du Lac. • Employed three liaison staff in the Uranium mining companies make four additional Athabasca Basin to assist the seven commitments for employee services, education Athabasca communities in recruitment, promotion, community vitality monitoring, and training, community investment, and public involvement. engagement. • Provided air transportation for workers to Northern Saskatchewan Administration District mine sites from 10 northern communities Camsell Portage Uranium City as well as Prince Albert and Saskatoon. Beaverlodge Lorado Fond-du-Lac Gunnar Stony Rapids N • Advertised jobs broadly on company Black Lake websites, social media, radio stations,
Cluff Lake Mine Midwest Deposit provincial papers, northern publications, McClean Lake Mine Points North Landing Rabbit Lake Mine and community channel television scrolls. Cigar Lake Mine Wollaston Lake Parks McArthur River Mine Lake Mine • Assisted northern employees and other site workers with applications and interviews Descharme Key Lake Mine Kinoosao Lake for internal career opportunities to help La Loche Turnor Lake them advance their careers. Southend Garson Lake Bear Creek Brabant Lake Michel Patuanak La Ronge • Maintained union agreements that give Dillon Gold Mine Village Buffalo Seabee St. George's Narrows Sandy Missinipe Mine Hill Grand- Bay preference to northern and Indigenous Pinehouse Contact Lake mother's Bay Ile a la Crosse Nemeiben River Stanley Mission Pelican workers in jobs, apprenticeships, recalls, Canoe Narrows Hall Lake Narrows Cole Bay Beauval La Ronge Jans Air Ronge Creighton Bay Deschambault and retention during workforce reductions. Dore Lake Lake Konuto Flin Flon Denare Beach Sled Lake Weyakwin Green Lake Sturgeon Landing
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a Meadow Uranium k Nipawin s Lake Operating/Care and Maintenance For recruitment purposes, a “Resident of a Prince Former mine S Albert Precious & Base Metals Saskatchewan’s North” (RSN) is defined as: Regina Operating/Care & Maintenance Former Mine • A person who has resided in Twelve mineral surface lease agreements are in effect for Saskatchewan's North for a period of 10 mine/mill operations in Northern Saskatchewan years or one-half his or her age, whichever Administration District. is less. A person retains “northern status” if he or she: 1) Employment commitment o needed to relocate outside of All mining operations commit to work with the Saskatchewan’s North for education; province, other mining operators, and other o resided outside of Saskatchewan’s agencies to use their best efforts to maximize North for less than five years; or northern employment. Uranium companies make an o moved back to the North. additional commitment to work towards a long-term Or goal of 67 per cent northern participation in their • A northerner who is transferred to another northern labour force. In 2018, the mining industry northern mine, or re-employed by a mine in Northern Saskatchewan: within the year and met the above criteria • Supplemented Employment Insurance up to at the time of recruitment. 75 per cent of regular pay for laid-off direct
2018 Summary 2 Benefits from Northern Mining Employment statistics higher skill categories like supervisory, The chart below shows the “boom and bust” nature technical, trades, and professional jobs. of the mining sector. The northern mining sector • Reported 68 per cent of northern workers peaked in 2012 and has since declined by about continue to reside in the northern region. 2,300 total jobs. The decline is the result of See the chart below for where they live. completion of construction projects and, since 2016, layoffs in response to weak demand and prices for Where were the 747 northern mine uranium worldwide. Market demand and prices are employees and contract workers hired from? largely outside the control of any company.
North Sites in care and maintenance include Key Lake and Central, McArthur River. These sites initially laid off workers 271, 36% Other Areas for 10 months in 2018. During this time, the 31, 4% Athabasca operator supplemented Employment Insurance up 190, 26% Northwest to 75 per cent of regular pay for its direct 193, 26% employees. In late 2018, the layoffs were made indefinite and about 850 workers were let go. About 250 workers remain to provide care and Northeast, 62, 8% maintenance. Rabbit Lake mine, closed since 2016, continues in care and maintenance with a small And where do they live now as of Dec. 31, workforce. 2018? North What is the long-term employment trend Central, at mines in Northern Saskatchewan? 206, 28% Other Athabasca Areas, Other Contract Employees 120, 16% 241, 32% 4000 Other Mine Employees 3500 Northern Contractors Northwest Northern Mine Employees 3000 Northeast 143, 19% 2500 37, 5% 2000 1500 1000 Job forecast for 2019 500 Cigar Lake, McClean Lake, and Seabee operations 0 plan to maintain their production and employment levels during 2019. 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
As of December 31, 2018, the industry: There are no plans yet to restart the sites that are in • Employed 1,583 people at mine sites in care and maintenance. As a result, employment direct and contract jobs. This is a reduction opportunities will be limited. Companies anticipate of 840 positions from a year ago. hiring about 110 workers, mostly to replace turnover. In addition, about 40 summer/student jobs • Maintained a high rate of northern will be available. employment – 47 per cent. Of the 747 northerners, 565 were employed by the Job Recruitment Forecast for 2019 mining operators and 182 by long-term contractors (in catering, janitorial, security, Operations Technical/Professional construction, and underground mining). Miner, equipment Environmental and • Achieved an Indigenous participation rate operator, mill operator geological technician, of 39 per cent - one of the highest rates of engineer, geologist, nurse Indigenous employment in Canada in the Entry Level Trades industrial sector. Mill utility person, Power engineer, welder, labourer, kitchen and plumber, carpenter, • Employed 256 females – they made up 16 housekeeping worker industrial mechanic, heavy per cent of the workforce. Half worked in duty mechanic
2018 Summary 3 Benefits from Northern Mining 2)Employee education and • Provided supervisory skills and leadership training and instructor skills development. training commitment • Supported 252 northerners in higher skill All mining operations commit to use their best jobs in management/supervision, efforts to maximize training and job advancement professional, technical, and trades opportunities for northerners. categories - see the chart below for details. External partnerships As partners in multi-party initiatives, mining What types of jobs are at mining companies help build a trained labour force in the operations and how many people work North from which the mining companies and other in them? As of Dec 31, 2018 businesses can recruit skilled workers. In 2018, Operations 360 152 mining operations: Trades 117 257 • Provided 29 people (12 were RSNs) with Support Services 113 25 Workers from work placements or summer jobs in Technical 64 116 the North warehousing, administration, site services, Management/ Supervisory 52 139 and environmental monitoring. Administration Support 22 11 Workers from Other Areas • Partnered with Northern Career Quest Professional 19 136 (NCQ) - a joint federal, provincial and local 200 400 600 northern initiative - for a ninth Mill Operator Training Program at McClean Lake Training forecast for 2019 mill. All seven students concluded their • Collaborate with NCQ to offer training for training successfully in April and most were employees as environmental trainees; hired within the year. power engineers, mill operators, • Partnered with NCQ to implement an information technologists, and supervisors. Environmental Trainee program for an Athabasca resident and partnered with a contractor for trades apprenticeship at site. Provincial commitments In-house employee development The government undertook the following education and training initiatives in 2018: • Delivered thousands of hours of on-the-job • skill advancement training for employees Awarded $29,000 to 87 northern school and contract workers in underground students through the Lieutenant Governor's mining, process operations, mobile Award of Excellence and the Northern equipment, trades, and training required Saskatchewan Student Achievement Award. under legislation or licensing conditions. • Co-funded with trades employers the • Ensured safe workplaces by delivering Saskatchewan Youth Apprenticeship Industry training for a respectful workplace, WHMIS, Scholarships of $1,000 each to 100 fall protection, first aid, radiation basics, graduating high school students in 72 control of hazardous materials, mine communities. rescue, ventilation, and fire suppression. • Co-funded the International Minerals • Spent over $500,000 in on-the-job training Innovation Institute with industry. In 2017-18, positions for northern apprentices and $1 million was awarded to eight programs summer students. focused on increasing the number of women and Indigenous people in mining, including Up-skilling employees mentorship for women in mining and a first • Apprenticed 11 workers (10 were RSNs) as responders career “boot camp” for teens. industrial mechanics, electricians, heavy • Funded $1.6 million for Following Their duty mechanics, steamfitter/pipefitters, Voices initiative to raise educational parts persons, and scaffolders. Three achievement and participation of became interprovincial journeypersons. Saskatchewan's First Nations, Métis, and Inuit • Provided training to seven northern students. Nine northern provincial and First employees to advance as power engineers. Nations schools participated.
2018 Summary 4 Benefits from Northern Mining 3) Northern business participation • Maintained the long-term trend of high levels of northern purchases, although the commitment amount has decreased since 2012. The All northern mining operations commit to use their decline in supplier purchases is due to the best efforts to encourage northern businesses and completion of mine construction projects joint ventures to supply goods and services. and the slow-down in the uranium industry. • Maximized purchases from northern Uranium operations make an additional suppliers in catering, janitorial, flights, commitment – to use their best efforts to achieve a freighting, environmental and construction goal of northern businesses annually supplying 35 services, and exploration. per cent of the total goods and services to support their operations in Northern Saskatchewan. Northern mining operations paid $72 million in wages to their northern employees. Northern wages As of December 31, 2018, the northern mining made up 38 per cent of the total $187.8 million in industry: wages. Although total and northern wages have • Achieved 45 per cent northern declined, the values are double the wages paid in procurement, exceeding the target of 35 2003. These amounts exclude contract payroll, per cent for the twenty-third year in a row. which is included in business supply expenditures. • Maintained preferred supplier programs to maximize procurement from northern suppliers. What did northern employees earn at Northern Saskatchewan mines? • Shared information about current and future business opportunities at meetings $125 $71.99 with communities, leadership, and partners $100 in collaboration agreements. $75 • Employed staff to liaise with northern Millions $50 businesses. $25 $0 Expenditure statistics 91 94 97 00 03 06 09 12 15 18 Over the years, the number of northern suppliers has grown and the variety of their goods and Since 1991, northern mining operations have paid services has expanded. Many of the main suppliers $7.7 billion to northern employees and northern are businesses owned by Indigenous persons or goods and services suppliers. northern communities. In 2018, the northern mining industry: • Reported total expenditures of $392 million on goods and services. • Purchased 45 per cent of their total goods Provincial commitments and services - $178.3 million - from In business initiatives, the government: northern businesses and joint ventures. • Co-hosted the 49th annual Saskatchewan Geological Open House in Saskatoon. The How much did northern businesses and event showcased results from this year’s joint ventures supply? In millions work of the Saskatchewan Geological Survey, which celebrated its 70th $700 $624.16 $600 anniversary. $500 • Sponsored the tenth annual Saskatchewan $400 Mining Supply Chain Forum with partners. $178.25 $300 Forum topics included information on $200 opportunities to supply equipment and $100 services to the mining industry; project $0 overviews; and a trade show. 91 94 97 00 03 06 09 12 15 18
2018 Summary 5 Benefits from Northern Mining Business Opportunities Forecast for 2019 Due to the continued weak uranium market, it is Provincial commitments likely that three uranium operations will remain in In environmental and engagement initiatives, the care and maintenance shutdowns in 2019 - government: McArthur River, Key Lake, and Rabbit Lake. Cigar • Provided $750,000 for a new Targeted Lake mine, McClean Lake mill, and Seabee operation Mineral Exploration Incentive to encourage will be the only uranium and gold producers in the exploration of base metals, precious metals, province. Gold production will be slightly up in 2019 and diamonds in an area from La Ronge to while total uranium production will be considerably Creighton. lower than previous years. • Approved the Seabee gold mine to expand the Tailings Management Facility to provide Uranium operations will likely continue their efforts capacity for about 10 more years of to find savings during these difficult times. Northern operation. businesses, therefore, will see significant reductions • Approved the proposed Star-Orion South in both the number of opportunities and the volume Diamond mine project near Prince Albert. of goods and services they supply. The approval incorporates conditions aimed at mitigating environmental and community Some suppliers have laid off workers while others impacts. have diversified into other sectors and other regions. • Introduced the Prairie Resilience strategy to Northern contractors and businesses supplied large reduce industry emissions of greenhouse proportions of the total catering, janitorial, flights, gases. These performance standards are freighting, construction, and exploration last year. expected to reduce emissions intensity by The chart below shows where northern participation 5% by 2030 in potash, coal, and uranium is low and offers opportunities. These include mining. supplying medical, laboratory, and safety supplies; • Funded the Northern Saskatchewan electrical supplies; and professional services. Environmental Quality Committee with 30 northern community representatives. The committee met to share information with What goods and services do northern mines and mine regulators in February, July, businesses supply to the mines? and November and toured former mine sites Percentage by category in 2018 of Cluff Lake and Beaverlodge to view Shop & Maintenance Equip… 67% environmental reclamation outcomes. Aggregate & Raw Material 22% • Spent more than $125 million to date on the Office Supplies, Computers,… 20% clean-up of old uranium mine and satellite Mining Equipment,… 15% Fuels 15% sites in the Athabasca basin, the remnants of Plumbing, Heating, Processing 12% mining activities that predate modern Goods Building Maintenance &… 7% environmental regulations. Led by Reagrents & Chemicals 4% Mobile Equipment & Parts 1% Saskatchewan Research Council, Medical, Lab & Safety… 0% environmental remediation at the sites in Electrical Equip & supplies 0% 2018 included: Fond du Lac Nuna Joint Lubricants & Filters 0% Utilities & Powerhouses 0% Venture hauling waste rock to cover the Northern Goods subtotal 14% Gunnar Main Tailings area; and sampling, Flights & Air charters 90% cleanup, and monitoring at several satellite Catering, Janitorial &… 78% Environmental Services 77% sites. Industrial contractors 73% • Maintained competitive tax regimes, Other Services 69% Freighting & Expediting 55% efficient permitting procedures, and Contractors/Consultants 50% certainty surrounding environmental Exploration, Drilling,… 36% regulations and land-claims. Because of Professional Services 7% Services Business Meals & Travel 0% these actions, the Fraser Institute named Northern Services subtotal 63% Saskatchewan as the third most attractive Total Northern Percentage 45% jurisdiction in the world for mining investment in 2018.
2018 Summary 6 Benefits from Northern Mining 4)Compensation commitment – Loss of income Each mining operation agrees to provide compensation for the loss of commercial income that resulted from their lease of the land. Payments are made to individuals who 1) held a lease or permit to use the lands immediately prior to the establishment of the mine’s surface lease; and 2) used the land to generate commercial income, such as from trapping.
As of December 31, 2018, the northern mining industry: • Honoured five compensation agreements The McArthur River mine site is compact, occupying an area of with trappers around five operations; approximately one square kilometer of leased Crown land. • Contributed over $40,000 in cash payments; • Provided fuel valued at over $6,000; and • Provided $346,000 in total cash and in-kind 6)Education Promotion (Stay in compensation since 2011. School) commitment Uranium mining operations commit to work with 5) Employee services commitment other companies, government, and northern schools Uranium mining operations commit to provide their to plan and implement programs that encourage employees with on-site services and counseling northern students to complete high school, pursue programs and to consider employee suggestions to higher levels of education, and consider professional enhance these services. careers related to the mining industry. In 2018, the mining industry: Employee Services and Programs in 2018 • Awarded or funded scholarships totaling New programs and initiatives in 2018 included $135,000 to northern students in technical “know your neighbour” program and support for and university programs. Funds are International Women’s Day celebrations and awarded from company scholarship mentorships programs as well as their contributions to Employment equity, Health, dental, and collaboration agreement scholarships. diversity, and wellness plans, • Awarded over $35,000 to 97 students in respectful workplace disability management, policies and training and retirement Grades 7 to 12 to promote achievement sessions programs and academic success among students in Employee share Employee involvement the Athabasca region. ownership plans and in process • Since 2010, awarded over 1,190 total rewards programs improvements and awards and scholarships, worth $1.7 innovation million, to northern students. Elder advisors at sites Recreation clubs and • Made visits to northern schools, career and community activities like fitness fairs, and science camps to increase career relations staff in centres, bicycles, fishing awareness and promote future communities to equipment, libraries, opportunities in mining. translate, share movies, high speed • Contributed $25,000 towards the 12th year information, and internet, television, and of the Science Ambassador program in 11 provide support cell service northern communities. Student Employee and family Healthy living initiatives “ambassadors” from the University of counseling and to contribute to healthy Saskatchewan bring their expertise in their resources for legal, lifestyle choices and field of study to promote post-secondary financial, and work- work environment math and science careers while living for six related advice weeks in the communities.
2018 Summary 7 Benefits from Northern Mining 7) Community vitality commitment Uranium mining operations commit to study the 2018 by the numbers: influence of operations on the vitality of • 747 northerners worked at sites communities in northern Saskatchewan. To do so, • 39 per cent of the total workforce the uranium industry funds the Community Vitality were Indigenous northerners Monitoring Partnership (CVMP) of government • $178.3 million in northern ministries, regional health units, and uranium mining purchases producers. CVMP works to identify and track • $72 million in northern wages indicators that provide insight into community • vitality. People can use that knowledge to maintain $170,000 in northern school awards and improve their quality of life. and scholarships • 85 northern community visits In 2018, the CVMP: • Began a new research project about building sustainable northern communities • Surveyed public opinion in autumn and beyond the economic benefits of mining. found that 80 per cent of Saskatchewan • Identified best practices for the project and residents and 82 per cent of northerners surveyed over 200 northern residents and support uranium mining in the province. business owners to seek suggestions for The level of support has been consistent diversifying the northern economy. since 1990. • Provided over $500,000 for northern Plans for 2019 cultural camps, breakfast programs, youth The CVMP plans to: educational trips, elders’ gatherings, • Share the project’s findings with community science programs and fairs, career fairs, fish leaders, businesses, and health and derbies, and hoop dancing. education organizations. The report will • Hosted meetings of collaboration outline recommendations and strategies in partnership committees to discuss building robust communities in the north environmental stewardship, business that are sustainable and independent of development, and community investment. mining revenues once mining activities • Shared information on projects, jobs, cease. scholarships, health, safety, and environment by websites, YouTube, 8) Public involvement Facebook, Twitter, and Instagram, as well as email, magazines, Opportunity North, MBC commitment radio, newspapers, brochures, newsletters, Uranium mining operations commit to work with and “town hall” meetings at mine sites. governments, regulatory agencies, and community leaders to consult with and inform northerners Outside of the expectations under mines’ surface about their operations in Northern Saskatchewan. In lease agreements, uranium operations have five 2018, companies: collaboration agreements in effect. These • Made 85 visits to northern communities, agreements benefit 17 of their key northern leaders, schools, cultural events, career communities in employment, business, fairs, and open houses regarding environmental stewardship, and communications. collaboration agreements, projects, employment, and career opportunities. For more information, contact: • Hosted nine visits to mines and reclaimed mine sites for community members and Ministry of Government Relations, local land users. Northern Engagement Unit - 306-425-4200 • Participated in three meetings of the Email - [email protected] Northern Saskatchewan Environmental Ministry of Immigration and Career Training, Quality Committee to help bridge the Labour Market Services - 306-236-7648 information gap between northern The summary is available at www.saskatchewan.ca communities, industry, and government. by using the search box.
2018 Summary 8 Benefits from Northern Mining