Socio-Economic Assessment Toolbox (SEAT) Report for the Period 1 January 2010 to 31 December 2013 VICTOR MINE

Victor Mine Socio-Economic Assessment Toolbox (SEAT) Report for the period 1 January 2010 to 31 December 2013 VICTOR MINE

b SEAT REPORT 2013 CONTENTS

Foreword ��1 3 SOCIAL MANAGEMENT AND INVESTMENT 19 Executive Summary...... 2 Introduction...... 4 Existing Social Management Activities - Stakeholder List. . 20 Background ...... 4 Existing Socio-Economic Benefit Delivery ...... 21 Report Structures ...... 4 Impact Identification and Assessment...... 24 Acknowledgements...... 4 Description of Issues and impacts ...... 24 Local Employment ...... 24 1 THE SEAT PROCESS 5 COI Employment...... 25 Local Procurement...... 27 SEAT Objectives...... 6 Corporate Social Investment...... 27 Approach...... 7 Detailed Issues and Impact Matrix ...... 28 Stakeholder Engagement and the SEAT Process. . . 7

4 SOCIAL MANAGEMENT PLAN 33 2 VICTOR MINE AND ITS COMMUNITIES OF INTEREST 9 Management Responses...... 34 Profile of the Operation...... 10 Location of the Operation...... 10 GLOSSARY 43 Future Capital Investments and Expansion Plans. . 10 Existing Closure Plans ...... 10 Surrounding Business Environment...... 11 APPENDICES 46 Workforce...... 11 Profile of the Region ...... 11 Geographic and Historical Context ...... 12 Demographics ...... 12 Socio-Political and Governance Context ...... 12 Stakeholder Needs, Issues and Concerns...... 13 Stakeholder Relations...... 13 Economy, Livelihoods and Labour Force...... 16 Health ...... 16 Education ...... 17 Utilities, Infrastructure and Services...... 17 VICTOR MINE SEAT REPORT 2013 FOREWORD

De Beers Canada is committed to • Achieving two millions hours being a partner of choice to the without a Lost Time Incident; communities in which we operate by • Receiving the Timmins Chamber ensuring that we enhance the social of Commerce NOVA Award for and economic opportunities as well as the Environment; building community capacity within • De Beers Canada receiving the local region. We are pleased to multiple Towards Sustainable include feedback from our Mining Awards from the Mining communities of interest to help Association of Canada for monitor how we are doing in meeting achieving Level A or higher in the expectations of the communities Tailings Management, Crisis where we operate, and outline our Management and External on-going commitments. Outreach. In July 2013 we were celebrated the fifth year of operations. In the mines The SEAT process has helped us in It is with great pleasure that we present critical first year of operations, we were understanding our level of the Victor mine’s first Socio-Economic able to pull together, make adjustments effectiveness in achieving our Report, prepared in accordance with and emerge as a stronger operation in commitments and has assisted us in the Socio-Economic Assessment response to the global economic crisis identifying more clearly some gaps. Toolkit (SEAT), for 2011-2013. This of 2008. In 2012, we faced additional SEAT report is a socio-economic We thank and acknowledge all challenges as one of our key assessment of progress at the Victor community members, business owners, stakeholders, Attawapiskat, raised mine. Our goal is to: local government, schools, provincial serious engagement and Impact government and employees for taking • Improve our engagement, Benefit Agreement concerns that part in our SEAT process. We value the • Manage our impacts, and required formal mediation at the end time and feedback you have given us. of 2013. While some issues continue to • Live up to our goal of be mitigated, progress has been made This report provides summaries of contributing to the sustainability in rebuilding and renewing the Victor’s involvement in the of the region. relationship with Attawapiskat. The communities, the current social and This is a tool designed by Anglo operation remains fully committed to economic impacts of the mine and our American plc for use at all of their resolving all of the remaining issues social management plan which operating mines to help provide and those presented in this SEAT outlines how we will address these information to interested parties on report that demonstrate the Victor issues. We hope our communities of progress in addressing socio-economic Mine’s contributions to the James Bay interest and stakeholders will find this issues and delivering benefits to region in Ontario. report to be a true reflection of the key communities of interest. The issues raised during the engagement requirement is for each operating External stakeholders have process. acknowledged the efforts of Victor mine to produce a SEAT report every We welcome feedback on this report three years. With Anglo American Mine in delivering the sustainable benefits to the James Bay region. In and we look forward to continuing increasing its shareholding in De Beers and growing our partnership and in 2012, the requirement target was to particular Victor Mine was recognized through: relationship with our local have Victor produce its first report communities. before the end of 2014. • Achieving OHSAS 18001 Victor mine is De Beers Canada’s Certification in occupational second mine in Canada and the first health and safety; diamond mine in Ontario. As one of • 14001 Certification in the largest employers and major Environment; stakeholder in the James Bay region, James Kirby General Manager, Victor Mine

1 VICTOR MINE

2 SEAT REPORT 2013 EXECUTIVE SUMMARY

This is the first report for the De Beers Victor Mine a number of areas where those most impacted by the mine prepared under the Socio-Economic Assessment Toolkit believe that the company could do better and outlined some (SEAT) process, which was developed by our De Beers high level expectations. We see this input as an opportunity Group parent company Anglo American plc. for continuous improvement, and in the months ahead will see how we can address the items raised. Some areas A report prepared under the SEAT process is designed to identified are beyond the capacity and ability of the provide a snap shot of the mine over a three year period. It company to resolve, while we do see other requests and allows for open and honest communications about some of recommendations where the company can assist and make the social aspects of Victor Mine with all our interested a difference. parties, including our communities of interest, government, employees and other key stakeholders. It also helps record It was very encouraging to see the majority of respondents progress towards creating more sustainable and successful to the survey note the high priority of safety at the mine. communities where we operate. We use the information Protection of our people, communities and the environment obtained from the report to assist us in developing actions is the number one priority of De Beers. It is this to address identified gaps or deficiencies in areas we may fundamental priority that is being recognized by our be able provide input or support. The information gathered communities that speaks highly of the work done by the from this open communication also helps identify future team at Victor Mine. expectations of everyone involved. In closing, the SEAT report process is undertaken every A short survey of our communities of interest showed that three years. This inaugural report has identified a number many people are unaware of what programs, activities and of opportunities for continued improvement that will contributions De Beers has made through the construction actively be considered in future management plans at our and operation of Victor Mine to date. This report may help Victor Mine. inform people about the various initiatives, partnerships and achievements. The survey also indicated

3 VICTOR MINE INTRODUCTION

This report presents the findings of a study to assess the socio-economic impacts of the Victor mine. The study was REPORT STRUCTURE guided by the Socio-Economic Assessment Toolbox (SEAT) The first section of this report consists of an introduction to Version 3. the SEAT process used by Anglo American sites around the world, including De Beers’ mines. It sets out the objectives and the approach applied, as well as identifying the BACKGROUND communities of interest and stakeholders consulted Victor Mine is an open pit diamond mine situated during Victor’s SEAT process. in the James Bay Lowlands of Ontario, approximately Victor and its local communities of interest are then 90 kilometres west of the community of Attawapiskat, and profiled, followed by a section about the existing social about 516 kilometres north-west of the largest urban centre, management initiatives and key community investments Timmins. Operations commenced in 2008, and the mine made within our four primary communities over the period produces around 700,000 carats of diamonds from about 2.7 2011 to 2013. million tonnes of kimberlite ore annually. Finally, Victor’s current socio-economic impacts (both Victor Mine is De Beers Group of Companie's second mine positive and negative) on these primary communities of outside Africa. It is an open pit centred on one of 18 interest are presented and the key social management focus kimberlite bodies in the area. The Victor ore body consists areas for 2014 are outlined. to two cone shaped intrusions that have a combined area of 15 hectares. The cluster of kimberlites was discovered in 1988, and after ACKNOWLEDGEMENTS lengthy exploration, construction of the mine commenced Victor mine thanks our communities of interest, including in February 2006 after receiving all the necessary approvals the primary impacted Aboriginal communities of interest; from provincial and federal governments. Commissioning of Attawapiskat, Fort Albany, Kashechewan and Moose Factory, the process plant commenced at the very end of 2007 and for their input. In addition, we thank the town of Moosonee, the mine officially opened in July 2008. Because of Victor’s the City of Timmins and the provincial government of remote location, travel to site is only possible by airplane for Ontario for their on-going support and participation in the all but about six weeks of the year, when a seasonal ice road preparation of this report. is used to supply the mine with equipment, parts and other Our appreciation is also extended to the members of the materials need to operate the mine. Victor team who collaborated to prepare this report. Three Impact Benefit Agreements (IBAs) were negotiated with four communities of interest (COI) for the Victor Mine, namely Attawapiskat First Nation and Moose Cree First Nation while Fort Albany and Kashechewan First Nations share one IBA. A Working Relationships Agreement was signed with a lesser impacted community, Taykwa Tagamou Nation. The agreements formalize the items, methods and monitoring of social benefits a community will obtain from the operation.

4 SEAT REPORT 2013

1 THE SEAT PROCESS

5 VICTOR MINE SEAT OBJECTIVES

Objectives of the SEAT process are: • To identify key social and economic impacts and issues CHARACTERIZE THE DE BEERS that need to be managed and, thereby, to improve risk 1 OPERATION AT VICTOR MINE management. • To improve each operations understanding of the full range of local communities of interest and stakeholders. Their views and interests, and the dynamics between them and, thereby, to increase CHARACTERIZE AND ENGAGE WITH THE trust and goodwill. 2 COMMUNITIES OF INTEREST • To assess existing community initiatives and identify where improvements might be made. • To be a resource in developing and updating Community Engagement Plans. • To provide an analytical framework through which IDENTIFY AND ASSESS SOCIAL AND operations can assess their contribution to sustainable ECONOMIC IMPACTS AND KEY LOCAL development by, for example, balancing the extraction DEVELOPMENT ISSUES, AND ASSESS of natural resources through the enhancement of social 3 and human capital. EXISTING MANAGEMENT MEASURES • To facilitate the capture and sharing of “best practice”. AND SOCIAL INVESTMENTS • To provide a planning tool for managing an operation’s social and economic impacts, including social investment and mine closure. • To identify key performance indicators as a basis for IMPROVE THE MANAGEMENT tracking commitments for improving the management OF SOCIO-ECONOMIC IMPACTS of each operation’s socio-economic impacts as the basis 4 AND ISSUES DURING OPERATION AND, for local accountability. IN TIME, MINE CLOSURE There are seven steps in the SEAT process, as shown in the accompanying diagram. 5 SUPPORT COMMUNITY DEVELOPMENT

DEVELOP A MANAGEMENT 6 AND MONITORING PLAN

PREPARE SOCIO-ECONOMIC REPORT, FEEDBACK TO COMMUNITY AND ASSESS 7 SEAT PROCESS

6 SEAT REPORT 2013

APPROACH The primary communities of interest have been involved Those issues provided by the communities of interest have in community engagement since the commencement of the informed the company and allowed identification of: environmental assessment for Victor in 2003. Input from • The positive and negative impacts of the mine’s community meetings captured in 2011, 2012 and 2013 has operations on the four primary communities of interest; been utilized in this report. Engagement with Attawapiskat First Nation one of the primary communities of interest was • How the community priorities for key social significantly reduced from mid-2012 until the end of 2013 management matters have evolved in these primary while a re-alignment of the relationship took place. communities of interest over the period 2011-2013; and Community members were invited to participate in a survey • What social issues require management by the mine on to provide their opinions on how they perceive the an immediate and on-going basis. relationship with the mine. It was apparent that some of the issues raised relate to pre-existing social issues, including, Going forward, the General Manager, together with the for example, acute deficiencies in infrastructure, social Manager of Aboriginal Affairs and Sustainability, will be issues including substance abuse, sub-standard education, responsible for the on-going management, monitoring and sub-standard healthcare and very high levels of reporting of the outcomes of the SEAT process. unemployment coupled with a lack of opportunities The Victor Mine, through the Manager of Aboriginal Affairs related to the remoteness of these communities. and Sustainability, will periodically provide the feedback to its stakeholders on the SEAT findings and commitments made by the Victor Mine to address the findings.

STAKEHOLDER ENGAGEMENT AND THE SEAT PROCESS Attawapiskat One of the fundamental components of the SEAT process is Surveys obtained from the following communities. the community consultation process. Communities of interest and stakeholders at various levels were consulted in Fort Albany order to identify concerns relating to the mining operation. For this SEAT report Victor Mine embarked on both in AttawapiskatAttawapiskat person and online survey collection to determine what Kashechewan members of the local communities thought about some of Fort FoAlbanyrt Albany the socio-economic benefits of Victor Mine. While the survey was aimed at members of the Attawapiskat First KashechewanKashechewan Moose Factory Nation, Fort Albany First Nation, Kashechewan First Nation and the Moose Cree First Nation, it was open to all MooseMo oFactoryse Factory communities of interest and employees complete and a total Moosonee of 651 replies were received. MooseneeMoosonee

OtherOther (please Other (please specify) specify)

0% 10%20% 30%40% 50%60% 70% 80% 90% 100% 0% 10%20% 30%40% 50%60% 70% 80% 90% 100%

Answer ChoicesResponses

Attawapiska t 5.12% 33

Fort Albany Answ10.40%er ChoicesR67 esponses

21.43% 138 Kash echewan Attawapiska t 5.12% 33 Moose Factory 22.05% 142 Fort Albany 10.40% 67 Moosonee 26.86% 173

Other (please sp ecify) 14.Ka13%sh echewan91 21.43% 138 Total 644 Moose Factory 22.05% 142

Moosonee 26.86% 173

Other (please sp ecify) 14.13% 91

Total 644 THE VICTOR MINE EMERGENCY RESPONSE TEAM PRESENT 10 SETS OF BRAND NEW BUNKER-GEAR TO THE ATTAWAPISKAT FIRST NATION FIRE DEPARTMENT. *Note: Attawapiskat First Nation did not allow its community members to participate.

7 VICTOR MINE

It was apparent that some of the issues raised relate to These results suggest that there is room for improvement in pre-existing social issues, including, for example, acute the effectiveness of communications about Victor and the deficiencies in infrastructure, social issues including various IBAs and programs. Deeper analysis of the results is substance abuse, sub-standard education, sub-standard in progress to look at the results by age group and by gender. healthcare and very high levels of unemployment coupled The survey questions are attached as Appendix 1 and the with a lack of opportunities related the remoteness of these summary results are attached as Appendix 2. Going forward communities. the General Manger, together with the Manager for There continues to be a lack of awareness and participation Aboriginal Affairs and Sustainability, they will be in consultation, as 52% of respondents did not know whether responsible for on-going management, monitoring and their First Nation had an Impact Benefit Agreement with reporting of the outcomes of the SEAT process. DeBeers. For those that indicated they knew of benefits, they The Victor Mine, through the Manager of Aboriginal Affairs were asked “how effective do you think this help has been?”, and Sustainability, will periodically provide the feedback to 48.9% consider the benefits from the IBA to have been its stakeholders on the SEAT finding and commitments average, good or very good. made by Victor Mine to address the findings.

LOCAL COMMUNITY ELDERS TOUR THE VICTOR MINE.

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2 VICTOR MINE AND ITS COMMUNITIES OF INTEREST

9 VICTOR MINE VICTOR MINE PROFILE OF THE OPERATION FUTURE CAPITAL INVESTMENTS AND EXPANSION PLANS Victor Mine is an open pit diamond mining operation. Kimberlite ore, after blasting to break the rock, is excavated There are no immediate plans for future capital investment and loaded into trucks and transported to a processing plant other than annual operating capital. Exploration and where the diamonds are extracted by crushing the ore and evaluation work is continuing on an adjacent kimberlite, utilizing a number of gravity separation techniques. Final Tango Extension, about seven kilometres from Victor to separation of the diamonds from other minerals is carried determine whether this could be an extension to the mine out in an x-ray machine. The final diamond product is then life once mining of the Victor kimberlite is complete. valued and exported to De Beers Group Sightholder Sales. The economics for Tango Extension have not been finalized The Victor kimberlite consists of two adjacent intrusions, and it is uncertain whether this will be a future mine. If the referred to as “Victor Main” and “Victor Southwest.” These body is proved to be economic, it would still require an two intrusions have a combined surface area of 15 hectares. environmental assessment and full permitting to be completed by early 2018, together with negotiation of new Operations commenced in 2008, and the mine produces agreements with our communities of interest before around 700,000 carats of diamonds from about development could proceed. The overburden covering the 2.7 million tonnes of kimberlite ore annually. Tango Extension kimberlite is much thicker than at Victor, The mine draws power from the electricity grid via a and pre-stripping to remove this would likely take a transmission line from Attawapiskat that connects to the minimum of two winters and more likely three winters to national grid line from Otter Rapids to Attawapiskat. This complete because stripping during the summer months is significantly reduces the volume of diesel fuel required to not practical. support the mine. EXISTING CLOSURE PLANS LOCATION OF THE OPERATION A formal closure plan is a requirement from the Ontario Victor Mine is located at latitude 52° 49’ 15” West, longitude Ministry of Northern Development and Mines. The Closure 83° 53’ 00” North and is about 90 kilometres west of Plan for Victor mine has been in place since the Attawapiskat. The Attawapiskat River lies a few kilometres to commencement of the Advanced Exploration program. the north of the mine site. The site is within the James Bay The Closure Plan has been periodically updated since 2002. lowlands, which are typical wetlands with extensive muskeg, The Closure Plan includes details for the removal of all and thin ribbons of trees along the banks of the main rivers equipment and demolition of all buildings and process and creeks. There are no permanent roads: access is by air facilities, the landscaping of the various rock piles and using an airstrip at the mine. In the winter, there is a tailings facilities, removal of all wells, pipelines, hydro poles seasonal ice road that is open for about six weeks from early and cables and the reclamation of all disturbed areas February to mid-March, and this is used to move bulk stores including the roads and the airstrip. and large equipment to the mine site. Perishable goods and personnel are transported by air. Buildings, machinery, vehicles and oil tanks will be disposed of utilizing approved disposal methods. Where practical, assets will be sold and/or recycled. All hazardous wastes will be removed from site and sent to government approved disposal sites. All reclaimed areas will be re-vegetated using plants native to the area so that the site returns to a natural and productive state that is as reasonably similar to the original state as practical.

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SURROUNDING BUSINESS ENVIRONMENT WORKFORCE All four primary communities of interest have limited local Victor Mine currently employs a production workforce of businesses. The three northern communities, Attawapiskat, 494, including 464 directly and 30 supplementary Kashechewan and Fort Albany, have less business (i.e. seasonal and temporary) labourers. development because of the remoteness and seasonal access by winter road. Moose Factory has a larger proportion of businesses due the fact that within the region it was seen along with Moosonee as more of the hub due in part to the railway terminating in the community and the regional tuberculosis hospital was placed there.

COMMUNITIES OF INTEREST

Victor Mine Attawapiskat Kashechewan Fort Albany

Ontario Moose Cree

Taykwa Tagamou Quebec

Missanabie Cree Chapleau Cree

COMMUNITIES NEAR VICTOR MINE

De Beers currently has four agreements in place; 3 Impact Benefit Agreements with Attawapiskat, Kashechewan/Fort Albany and Moose Cree First Nations, along with one Working Relationship Agreement with the Taykwa Tagamou Nation summarized in the table below. The full listing of Communities of Interest is found in Table 3.

TABLE 1 – AGREEMENTS WITH COMMUNITIES OF INTEREST

AGREEMENT TYPE COMMUNITY DATE SIGNED Impact Benefit Agreement Attawapiskat First Nation November 25, 2005 Impact Benefit Agreement Kashechewan /Fort Albany First Nation July 10, 2009 Impact Benefit Agreement Moose Cree First Nation September 17, 2007 Working Relationship Agreement Taykwa Tagamou Nation May 10, 2005 (amended May 28, 2009)

11 VICTOR MINE

PROFILE OF THE REGION Victor Mine is located within the Mushkegowuk Territory, in the district of James Bay / Cochrane in northern Ontario. The local area is determined by defining the zone of influence, specifically communities, towns and cities that are impacted in some way by the mine operations. There are six First Nation communities and one township in the primary physical impact area. Development of power infrastructure and transportation networks, along with logistics facilities make up the physical impact area. The local area extends further south to the city of Timmins, as this is the primary labour sending and money spending district. All communities were established long before the mine operations started. The closest community to the mine is Attawapiskat, home of the Attawapiskat First Nation, located 90 km east of the FANCY DANCERS KRISTY CORBIERE (SYSTEM TECHNICIAN TRAINER) AND SABRINA TIPPENESKUM operation. The communities of Kashechewan, Fort Albany (CATERING SERVICE ATTENDANT) TAKE PART IN THE NATIONAL ABORIGINAL DAY CELEBRATIONS AT SITE. Moose Factory and Moosonee are located further southeast, number of households in the area is estimated at 1,600 with situated along the transportation route, which starts from an average of 6.25 people. The Cree language is the first Moosonee. Taykwa Tagomou Nation can be found where the language spoken in the communities of Attawapiskat, rail line connects to the national rail network near Kashechewan and Fort Albany. Moosonee and Moose Cochrane, Ontario. Factory experience less Cree speakers. Unemployment in these communities is high, some reaching up to 80 per cent. GEOGRAPHIC AND HISTORICAL CONTEXT The closest city and people transportation hub of Timmins Community engagement activities are undertaken with all has a population of approximately 44,000. Timmins’ COIs in the region; however dialogue is concentrated with population experienced a slight growth of 0.04 per cent the community of Attawapiskat. This is due to the mine from 2006 to the 2011 census, with only 29% of their operations being located within the traditional lands used population being under the age of 25 according to the 2011 by the Attawapiskat First Nation. census. English and French are the primary languages The Omushkego Cree, the inhabitants of the Attawapiskat, spoken in the city, estimated at 55% for English and 37% for Kashechewan Fort Albany and the Moose Cree First Nation French. There is a growing First Nation population in communities, were a nomadic people up until the mid- Timmins with people originating from surrounding First 1900s, when they began to remain at their summer Nations, however many of whom originate from the James gathering places year round. Partly influenced by the Bay coastal communities. Catholic and Anglican churches and the residential schools that had been erected in the area, people started to focus on SOCIO-POLITICAL AND GOVERNANCE employment activities and income generation that required them to remain in their communities. CONTEXT The governance structure on most First Nation communities These communities are all located at least 90 km or more consists of an elected Chief, Deputy Chief and Council away from the mine site, with Timmins being the furthest members. This body of people governs the community away at 535 km. programs such as education, social services, community public works, policing and health. All of the First Nations DEMOGRAPHICS De Beers deals with through the operations adhere to this format. The population in the James Bay region is approximately 10,000 and is characterised as growing and very young. The First Nations in the James Bay region belong to the Between 50 and 60% of the population are under the age Mushkegowuk Tribal Council, a regional political of 25, with average age in the region being 25. Most of the organization representing eight Cree First Nations. These inhabitents are Omushkegowuk Cree, with a small transient First Nations are further represented by the Political population mostly made up of education and health Territorial Organization, Nishnawbe Aski Nation (NAN), professionals. The secondary source data for the population which represents 52 First Nations in Northern Ontario who statistics are dated and come from various sources; census belong to Treaty number 9. Nationally, the Assembly of First Canada, Aboriginal Affairs and Northern Development Nations (AFN) is the organized political body representing Canada, First Nation and other organizational websites. The the 630 First Nation's communities in Canada.

12 SEAT REPORT 2013

ABORIGINAL DAY IN TIMMINS 2013

STAKEHOLDER NEEDS, ISSUES AND CONCERNS STAKEHOLDER RELATIONS Concerns that are regularly voiced at community engagement events pertain to As the first diamond mine in Northern employment, IBA benefits, discrimination, recruitment, environment, training Ontario, Victor Mine is continuously and opportunities for contracts. As well, De Beers has been dealing with local on the radar of local and regional harvesters, in which they claim the operations are impacting their harvesting stakeholders. Note that the term activities in around the area of the mine operations and infrastructure. ‘Community of Interest’ is the preferred term for Aboriginal Other internal community issues and concerns are listed below: communities in Canada. The mine’s community of interest landscape covers local municipalities and four TABLE 2 – INTERNAL COMMUNITY ISSUES First Nations communities. Table 3 summarizes the operation’s key Poverty alleviation Health and wellness Addictions community of interest groups and other stakeholders. Single parent families Sexually Transmitted Housing Disease Employment Diabetes Potable water Education Tuberculosis Sanitation Training Obesity Need for counselling Business Nutrition Residential School Opportunities effects

13 VICTOR MINE

TABLE 3 – VICTOR MINE KEY STAKEHOLDERS

STAKEHOLDER STAKEHOLDER HEALTH CATEGORIES GOVERNMENT Dept. of Aboriginal Affairs and Northern Development Annual National Ruling Party Annual authority Opposition Parties Annual Regulators Annual Ministry of Northern Development and Mines Quarterly Ministry of Aboriginal Affairs Annual Ministry of Natural Resources Annual Provincial Ministry of Labour Quarterly authority Ministry of Environment Quarterly Office of the Premier Annual Official Opposition Annual Timmins Police Services Annual Royal Canadian Mounted Police Annual Other Ontario Provincial Police Annual Nishnabe Aski Police Services Annual COMMUNITY & ORGANIZATIONS Mining Watch Annual Canadian Boreal Initiative Annual World Wildlife Fund Annual NGOs Wildlife Conservation Society Annual Canadian Business and Biodiversity Council Annual Canadian Parks and Wilderness Society (CPAWS) Annual Attawapiskat First Nation Kashechewan First Nation Weekly Fort Albany First Nation Weekly Communities Moose Cree First Nation Weekly Taykwa Tagamou Annual City of Timmins Semi-annual Town of Moosonee Semi-annual Mushkegowuk Tribal Council Semi Annual Other Nishnabe Aski Nation Tribal Council Annual MEDIA Timmins Media Annual Canadian Broadcast Centre (CBC) Annual Regional based CBC Radio Annual media Toronto Media Annual National Media Annual Community Wawatay News Annual based media National Aboriginal News Annual

14 SEAT REPORT 2013

STAKEHOLDER HEALTH/ STAKEHOLDER CATEGORIES INTERVAL INDUSTRY Federation of Northern Ontario Municipalities (FONOM) Annual Timmins Economic Development Corporation Annual Chamber of Commerce Annual Organized Porcupine Prospectors and Developers Association Annual business Northeastern Ontario Mine Safety Group Annual CIM Timmins Chapter Annual Ontario Mining Association Annual Detour Gold Quarterly GoldCorp Quarterly Neighbouring Noront Resources Quarterly mining Cliffs Resources Quarterly companies Lakeshore Gold Annual IamGold Annual Xtrata Annual Nishnabe Aski Development Fund Quarterly Other local Wakenagun Development Corporation Quarterly businesses/ Universities Quarterly institutions Colleges Quarterly Jr and High Schools Annual INTERNAL STAKEHOLDERS De Beers Group of Companies DBCI Corporate Office Anglo American Corporate Crossworks DTC –Rough Diamond Division DBCI /DBsa Exploration DBCI Exploration Victor Leadership Team Victor Broader Management Operational Victor First Line Supervisors Victor Employees Contractors

HEALTH LEGEND Strong Relationship Neutral Effort Required Unknown

15 VICTOR MINE

As one of DBCIs two operating mine’s, Victor Mine’s actions are scrutinised by communities of interest and stakeholders from a local, national and international level. The way in which the mine engages communities of interest and stakeholders, and responds to their issues will therefore have an immediate impact on De Beers’ reputation. A considerable proportion of Victor Mine’s community of interest and stakeholder engagement in 2013 was geared towards the ‘Renewing the Relationship’ with Attawapiskat First Nation leadership as engagement with the general community was halted for the last half of 2012. In February of 2013 community members from Attawapiskat blockaded the seasonal winter road, which eventually required DBCI to obtain a temporary court injunction to open the winter road as a final step to prevent the temporary shutdown of the mine. This court action further extended the engagement standstill to the summer of 2013. VOLLEYBALL AT VICTOR MINE

ECONOMY, LIVELIHOODS AND HEALTH LABOUR FORCE All communities experience high rates of diabetes, suffer The local economy is focused on providing services within from higher rates of addictions and deal with trauma the individual Aboriginal communities, which are largely associated with their residential school experiences. The administered by their respective leadership (i.e. Chief and communities have moved from a diet that consisted of mostly Council). These services include public works, fire harvested foods to a more processed selection. Each of the protection, medical services, education, and social and COIs have a health centre in their community that provide recreational services. Unemployment rates tend to be high health services that promote physical and mental health for (mostly over 80%). community members and: A number of community members participate in the • Provides health awareness, education and prevention traditional pursuits of hunting, fishing, and trapping. workshops and seminars Traditional lands used by the communities are normally • Coordinates clinics in areas including Blood Pressure, within traveling distance to their communities via boat, snow Immunization, Sexual Health and Communicable mobile and some by air. People travel along the James Bay Diseases coast and inland usually via the river systems. • Coordinates basic foot care sessions in individual's The James Bay west coast communities of Attawapiskat, home or at clinic Fort Albany, and Kashechewan have economies and social • Offers a diabetic clinic structures similar to each other. Moosonee and Moose • Offers periodic services by a visiting dental hygienist Factory, because of their links to the railhead, location of the regional hospital and other regional organizations enjoy • Offers periodic services by an ophthalmologist, and many more employment opportunities; hence these two • Provides mental health counseling communities have enhanced and diversified their The following programs are also offered: economies, compared with those of the more northern communities. • Aboriginal Healthy Babies Healthy Children Timmins’ economy is based on mining and those small and • Medical Transportation Program medium size businesses that support mine operations, • National Native Alcohol & Drug Abuse Program together with some forestry. Many of the mines suppliers are situated in Timmins, with some having negotiated joint Fort Albany and Attawapiskat each have a provincially ventures with First Nation businesses. operated hospital which provides Nurses on staff. Kashechewan has a clinic offering more limited services. Moose Cree First Nation has a full service hospital originally built as the regional Tuberculosis center, and serves the Ontario portion of the James Bay region.

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ENVIRONMENTAL MONITORING AND SAMPLING

EDUCATION UTILITIES, INFRASTRUCTURE Attawapiskat has a kindergarten school, an elementary AND SERVICES school currently housed in portables, although a new These four Aboriginal communities all obtained running elementary school is under construction and is due to be water and sewage prior to 1996 when Fort Albany was completed by the end of the summer of 2014. There is a connected. Each community operates its own water secondary school which is temporarily closed for repairs treatment facility that replaced simple chlorination. Other until the spring 2014 after a flood. Attendance at school amenities include, a medical facility, general store, electrical is sometimes an issue. distribution centre, and primary and secondary schools. Fort Albany has a relatively new combined elementary Each community has different types of businesses providing and secondary school that opened in 2002. Kashechewan additional services, yet they are similar in that each elementary school burned down in 2007. The school community employs a majority of their membership in their now consists of portables. St Andrew's Elementary School is band office (local government), health centre and an on-reserve school for students from K to Grade 7 and educational authority (including schools). Francine J Wesley Secondary School provides a full-curriculum on-reserve high school for students from Grade 8-12. Moose Cree First Nation has an elementary school and secondary school.

17 VICTOR MINE SEAT REPORT 2013

3 SOCIAL MANAGEMENT AND INVESTMENT

19 VICTOR MINE

EXISTING SOCIAL MANAGEMENT ACTIVITIES - STAKEHOLDER LIST Victor Mine strives to be a socially responsible operation that leaves a positive legacy in the communities we impact, by increasing capacity and business. A plan is developed annually for engagement with our communities of interest and with stakeholders. This plan is summarized below for engagement and communications with non-Aboriginal stakeholders.

TABLE 4 – STAKEHOLDER ENGAGEMENT STRATEGY

2014 Jan Feb Mar April May June July Aug Sept Oct Nov Dec COMMUNITY MEETINGS Trade Show Elders Tea - COI Youth Sessions -COI IMPLEMENTATION (IBA) COMMITTEE MEETINGS COI SIMCs AEAC EMC WREMMC CELC SPECIAL PROJECT ENGAGEMENT Books in Homes Video - Mine Walk, Employees, Mgrs Mining Minute Career Fairs - Moose Factory COI Portraits PUBLICATION – COMMUNICATION Attawapiskat Newsletters Calendars DBCI Community Channel Annual Reports IBA committees portal SITE VISITS - ENGAGEMENT Students Visit COIs Elder Visit Family COI Chiefs/Leadership Other COI Visitors

In addition, a list of business opportunities that are likely to arise in the next year is produced annually and shared with the COIs in the last quarter of the year for the following year’s planning.

20 SEAT REPORT 2013

EXISTING SOCIO-ECONOMIC BENEFIT DELIVERY Victor Mine has had an active role in supporting the local communities of interest by responding to infrastructure issues, corporate social investment and remaining in compliance with the Impact Benefit Agreement (IBAs). There are over 500 commitments covering five communities of interest. From 2011 to 2013 the following activities were supported by the mine:

TABLE 5 – SOCIO- ECONOMIC DELIVERY MATRIX

PROJECT NUMBER OF PROJECT OVERVIEW STATUS 2011-13 SPENT PHASE BENEFICIARIES Attawapiskat The community required assistance Complete 2012 – 30,000 90 Housing: to renovate on an immediate basis Trailer Project their emergency housing facility. DBCI Management retained a project manager to ensure materials were mapped, obtained and construction was complete. Attawapiskat DBCI handed over a trailer, sea can Complete 2011 – 30,000 1800 Provision of and items from the exploration camp. Surplus Assets Attawapiskat The Community experienced an Complete 2011 – 10,000 1800 Electrician emergency blackout which was Assessment of a result of a failed transformer. Transformer DBCI utilized an electrician at site to provide immediate community support. Community Water The Community has been under a boil Ongoing 2013 – 1800 Treatment and water advisory and special filtration Sewage program for many years. In 2013 during discussions regarding our relationship, the community asked for DBCI’s assistance to assess their water issues. Scholarships Annual scholarship support provided Completed 2011 – 30,000 9 to the communities of Moose Cree, 2012 – 30,000 Fort Albany, Kashechewan, and 2013 – 45,000 Attawapiskat. As well as a new Northern College bursary provided by the local college to a COI member. Books in Homes Annual literacy program provided Continuous 2011 – 48,500 1500 Literacy Program books to each student within the 2012 – 58,055 Communities of Interest. Each 2013 – 60,000 community ordered individually or allowed a book fair format to allow children to select. Financial DBCI retained a consultant to provide Complete 2011 – 7000 20 Statement and capacity development in the areas Governance of financial statement analysis and Training board governance. Business DBCI partnered with regional Complete 2011 – 2200 30 Development financial institutions that specialize Workshop in business development to provide business skills training in Attawapiskat.

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PROJECT NUMBER OF PROJECT OVERVIEW STATUS 2011-13 SPENT PHASE BENEFICIARIES Training Facility Classrooms required due to flooding Continuous 2013 – 16,000 60 in high school. DBCI Victor provided two training rooms to school as an interim solution. Mining Matters– Prospectors Development Association Continuous 2011 – 25,000 900 Geo Science of Canada established the educational 2012 – 25,000 education program to hold sessions in 2013 – 25,000 program Kashechewan, Fort Albany and Moose Cree. Window into Annual mini tradeshow in Fort Albany Continuous 2011 – 25,000 800 Victor and Kashechewan that allows a 2012 – 15,000 visual representation of the mine 2013 – 15,000 progress, planning and future. Allows community members to career plan, increase procurement opportunities and obtain information on environment, business, employment and exploration. Mining Ready Local businesses and communities Annual 2011 – 5,000 500 Mining Forum building capacity to increase 2012 – 3,500 procurement access. 2013 – 4,500 Attawapiskat 2011 The community of Attawapiskat Complete 2012 – 25,000 500 Mining Forum undertook a local capacity development initiative that brought industry experts together to increase understanding of the mining industry. Fort Albany The community of Fort Albany will be Continuous 2013 – 15,000 900 Wellness Study undertaking their wellness reporting which includes updating local statistics of local socio-economic measurements. Kashechewan The community of Kashechewan Continuous 2013 – 15,000 1,800 Wellness Study will be undertaking their wellness reporting which includes updating local statistics of local socio- economic measurements. Moose Cree Drug Annual program to promote drug and Continuous 2013 – 5,000 1,500 and Alcohol alcohol Awareness Project George Within the community of Moose Complete 2013 – 5,000 40 Youth Cultural Factory, a local camp provides Camp capacity development in traditional practices to empower youth to strive for a brighter future. The focus of the camp is to stem suicides in the community.

22 SEAT REPORT 2013

PROJECT NUMBER OF PROJECT OVERVIEW STATUS 2011-13 SPENT PHASE BENEFICIARIES 7 Grandfather DBCI retained the services of cultural Complete 2011 – 2,500 22 Teachings professionals to facilitate cultural education program in Attawapiskat. Community Program to transport community Continuous 2011 - 5,000 900 Recycling recycling to recycling distribution centres will expand from Kashechewan to Attawapiskat First Nation. Empowerment A local business corporation Continuous 2013 – 7,000 400 Speaker organized a celebration in the community to instil positive energy into the community, the company brought in a motivational speaker to speak to the power of organizing and working on future projects. Student Food The Victor Mine provides 300 pounds Continuous 24,000 600 Freight Program of food freight on the weekly flight for each community to support the community breakfast program for the grade schools.

23 VICTOR MINE

IMPACT IDENTIFICATION AND ASSESSMENT DESCRIPTION OF ISSUES AND IMPACTS This section discusses the positive and negative socio-economic impacts of Victor Mine, raised by stakeholders during the SEAT and other engagement activities. Table 12 lists the details of the positive and negative impacts respectively. The Impacts from the project were analysed extensively during the Environmental Assessment process for the project. Throughout the last three years, engagement with the COIs has identified both positive and negatives impacts. Positive impacts of the project include employment and business opportunities for local COIs, which extend beyond to the entire region. Adverse impacts include the out migration of community members from the COIs, job retention challenges due in part to people’s transition to the new ‘industry’ and perceived environmental and harvesting effects.

LOCAL EMPLOYMENT

TABLE 6 – EMPLOYMENT BY FIRST NATIONS COMMUNITIES Other First Attawapiskat Fort Albany Kashechewan Moose Cree Other Total Nation 2011 248 65 30 62 454 63 922 2012 210 77 47 84 431 62 911 2013 198 75 50 103 441 95 932

*Total employed includes all those individuals employed in the full year, including De Beers and long-term and seasonal service providers (contractors).

In 2012, Victor Mine employed 102 individuals who self-identified as Attawapiskat First Nation members. The earnings of these 102 employees exceeded $3.4 million. Those employed worked directly for De Beers or their long-term service providers.

TABLE 7 – 2013: TYPE OF EMPLOYMENT

Full-Time Long Term Temporary/ Seasonal Total Employee Count Temporary Employees Employee Count De Beers 417 1 22 440 Employees

Those employees working directly for De Beers were mostly employed in full-time positions, with a small number in either temporary or seasonal term positions. One person was employed in a temporary position that was at least one year in duration.

24 SEAT REPORT 2013

Seasonal contractors providing services such as winter road construction or trucking of goods and fuel to Victor Mine further employ over 200 workers during the winter months each year. In 2013, 238 seasonal employees from the communities of Attawapiskat (77), Fort Albany (37), Kashechewan (28) and Moose Cree First Nation (47) were hired by short term service contractors. The breakdown for the Aboriginal employees by individual community who work for either De Beers or long- term service providers is summarized in the following table.

TABLE 8 – ABORIGINAL EMPLOYEES BY COMMUNITY

2011 2012 2013 Percentage First Nation based on Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 total Attawapiskat 100 106 106 102 97 99 99 97 92 94 94 91 17% Fort Albany/Kashechewan 59 61 61 54 50 49 46 46 47 50 47 48 8% Moose Cree 46 49 49 39 40 39 40 38 37 45 40 40 7% Aboriginal Other 41 42 42 49 46 43 45 46 49 56 55 56 9% Sub-total 246 258 258 244 233 230 230 227 225 245 236 266 41% Non-Aboriginal 348 378 379 348 351 358 361 353 355 352 352 356 59% Total 594 636 637 592 593 588 591 580 580 597 588 622 100%

*Figures in Table 8 do not include seasonal contractors.

Annual Emplo yment at the Victor Mine 600 104 - 17% 98 - 17% 92.7 - 17% ABORIGINAL 500 59 - 10% 48 - 8% 48 - 8% ATTAWAPISKAT 400 46 - 7% 39 - 7% 40.5 - 7% 44 - 7% 45 - 8% 54 - 9% FORT ALBANY/KASHECHEWAN F EMPLOYEES

O 300 MOOSE CREE 200 363 - 59% 356 - 60% 354 - 59% OTHER NUMBER 100 NON ABORIGINAL 0 2011 2012 2013 616 TOTAL 586 TOTAL 597 TOTAL EMPLOYEES EMPLOYEES EMPLOYEES

COI EMPLOYMENT The previous chart and table show how the number of and to connect them to employment. From the years 2011 to employees varies throughout the year. Contract labour also 2013 the mine has consistently averaged an Aboriginal fluctuates, generally with more people employed in the employment rate of over 40%. De Beers is very proud of its winter months to construct and maintain the seasonal leadership position in the area of training and employment winter roads. The change in permanent employees also of Aboriginal people. reflects a turnover of between 5% and 10% annually. This is To ensure Victor Mine continues to maximize the a focus of attention and consideration is being given on how employment of people from the nearby communities, to reduce this number. De Beers has formalized their training and development The IBAs signed with each of the COI communities include programs into the Victor Employee Training Pipeline provisions for the training and employment of people from (next page). The pipeline links skills development with on the neighbouring communities. De Beers has responded by the job employment training and experience to create an the developing training programs to build people’s skills employment acceleration program.

25 VICTOR MINE

TABLE 9 – VICTOR EMPLOYEE TRAINING PIPELINE

COMMUNITY OF INTEREST (COI) ACCELERATION PROGRAMS

Community Victor Trainee Management Management Training Program Trainee Program Trainee Readiness Identify 20 Program Programs Trainees Per Year & MPiT

Supervisor/ Full Time Employee Technical Management Compliment Victor Mine Employee Employee Progression Planning Compliment PIPELINE Compliment VICTOR EMPLOYEE EMPLOYEE VICTOR

2 years 4 years 6 years 8 years

The Victor Training Pipeline offers two intakes of 10 trainee positions twice per year.

CFO STEVE THOMAS AND FORT ALBANY YOUTH MEMBER DURING THE ANNUAL CEO VISIT TO THE COMMUNITIES.

26 SEAT REPORT 2013

LOCAL PROCUREMENT CORPORATE SOCIAL Victor Mine expenditures on goods and services during operations (i.e. excluding INVESTMENT construction) to the end of 2013 totalled over $243 million. Of the long term De Beers Canada Sustainable service contractors, a total of 414 people were employed. Of this number, 75% or Development Strategy includes a 313 were Aboriginal. corporate social investment (CSI) component, along with priorities that The following table summarizes the value of annual expenditures of goods and include Impact Benefit Agreement services from our Aboriginal communities of interest. The bulk of the commitments and maintaining expenditures have been with Attawapiskat. Winter road construction and logistics meaningful relationships with our contracts make up a majority of the Aboriginal spend and employment. community and government partners. Any activities supported must TABLE 10 – VICTOR MINE SPEND OPERATIONS contribute “positively to the livelihoods of both present and future generations VICTOR MINE 2011 2012 2013 through the maximization of benefits SPEND OPERATIONS from our operations”. First Nation $57 million $59 million $56 million Furthermore, the De Beers CSI strategy aims to fund initiatives that: All Other $69 million $47 million $101 million • Contribute to capacity building Total $126 million $106 million $157 million and the development of transferable skills Additional details on procurement for the individual IBA communities are • Reflect priorities of local people available in the annual IBA reports provided to these communities. and communities • Make a lasting contribution

Up until this past year, the focus of CSI investments were on education, literacy, skills development, the environment and cultural practices and enhancement in the communities. These priorities changed slightly in the last year and now include, education and training, small business, traditions and culture, green initiatives, and infrastructure. Community Social Investment programs initiated by Victor Mine have been put into place through commitments made during ANNUAL CEO VISIT TO THE COMMUNITIES. construction and in response to community input. The recent roll out of SEAT will allow the operation to TABLE 11 – DE BEERS CSI OUTFLOWS- VICTOR review our processes and assess new opportunities to improve our VICTOR CSI CASH GIFT IN KIND STAFF TIME TOTAL Community Social Investment programs in the future. 2013 $326,714 $66,100 $229,500 $622,314 2012 $135,699 $120,900 $459,000 $715,599 2011 $49,400 $251,161 $179,500 $480,061

*The figures above DO NOT include any IBA payments/commitments

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DETAILED ISSUES AND IMPACT MATRIX

TABLE 12 – DETAILED LIST OF IMPACT/ISSUES RAISED

RISK/ WHAT IS THE MANAGEMENT RISK FOR NOT CAUSE AND EFFECT STAKEHOLDER IF THERE IS A MEASURE, WHAT IS THE EFFECTIVENESS? OPPORTUNITY ISSUE OR IMPACT? MEASURE? ADDRESSING? RATING Negative Existing employees / Yes Hiring process not • Optimizing operations Reputational damage in IBA indirect reductions in Recruitment Worker retraining programs just beginning to be considered. High being followed • Reduction of employment in IBA communities communities local spending Audit • Aboriginal Awareness program was enhanced; program is • Reputational damage • Community provided to all employees and will be expanded to short term • Resentment in the COI Claims of New industry in the north makes for many employees members Yes contractors communities High discrimination from a variety of backgrounds working at the project. • Employees • No tolerance policy rolled out in bus talks and posters • Low employee moral • Auditor will review HR process to ensure proper investigation on claims Quarterly review of IBA targets by SIC did not take place from Employment • Impact Benefit Agreement targets for employment Mar 2012 to March 27, 2014. This has been re-engaged. IBA hiring Continued turnover and targets not Community members Yes Mild • Management of Turnover process in place. From 2011 to 2013 DBCI has experienced a resentment in community being met turnover of 3 HR managers. Consistency is being targeted. Community meeting attendance, understanding of Lack of awareness benefit options discussed during negotiations and The Community Engagement Plan is inclusive of awareness Continued resentment in the of IBA benefits to those eventually agreed to, limited communication Attawapiskat Yes presentations, yet access has been an issue. This has now been High community local communities between Chief and Council and their members about rectified through mediation. the agreement and its implementation. • Community requested training of members: • IBA commitment SIC committee has not been meeting to action this item. DBCI Training not • Capacity in the community to plan and partner has prepared a draft in 2012 yet it was not supported without Continued resentment in the Attawapiskat Yes Low provided not existed community participation. Needs to be prioritized and finalized community • Training strategy is an IBA commitment that will be in 2014. targeted Procurement Attawapiskat IBA commitment to facilitate a certain process for Contract process underwent a re-organization that increased the process not Albany/Kash Yes Resentment High awarding contract opportunities. number of days an opportunity is posted in the community. effective Moose Cree • IBA commitment in two IBAs to provide Harvesters compensation Attawapiskat On-going discussions on developing and agreeing to the due Resentment in the not receiving • Within Attawapiskat the process was that through Albany/Kash No High diligence process. Needs to be the priority for 2014. community compensation the annual payment made to them they would Moose Cree address harvester compensation Water quality of • Environment Committee has not been able to meet in the Misunderstanding and the river thought • Lack of information reaching the community. community from May 2012 to March 2014 Attawapiskat Yes resentment in the Medium to be effected by • Members feel that water may be effecting their river • Follow Up Plan Agreement summarizes the extensive water community mine assurance testing undertaken at the mine site • Visibility of management team has been minimal Mine leaders not over the two years The SIC, Window into Victor trade show and community events will Attawapiskat Yes Lack of trust Medium known • Renewed relation process has allowed open be targeted to expose the managers to the community. communication and engagement to begin again

The most impacted COI has 5 days to indicate interest in an Community businesses do not feel that they do not Resentment in the Enterprise opportunity. Opportunity workshops have also been incorporated to see all the opportunities posted, and also do not feel All IBA COI Yes community about lost High development present all upcoming opportunities for the year to COIs. have been they have sufficient time to submit their interest. benefit added for the other COI communities.

28 SEAT REPORT 2013

29 VICTOR MINE

RISK/ WHAT IS THE MANAGEMENT CAUSE AND EFFECT STAKEHOLDER IF THERE IS A MEASURE, WHAT IS THE EFFECTIVENESS? RISK FOR NOT ADDRESSING? OPPORTUNITY ISSUE OR IMPACT? MEASURE? RATING POSITIVE Economic impact/ Economic benefit as a result of the project has been estimated to Need for supplies and services Region No procurement be 4.2 Billion dollars to Northern Ontario’s GDP Business • Business uptake has been positive and targets have been Need for supplies and services Resentment by communities Local targets and surpassed in all years of operation IBA commitment Local communities and non-compliance of IBA High procurement procurement • For 2013 COI businesses accounted for 52M of the targeted Agreements process 40M in contracts Victor Mine employs 430 permanent employees, and National and Not able to maintain Employment Need for employees to maintain operation an additional 18 temporary and seasonal versus the High international operations predicted 375 Employment, Local communities/ • Need for employees to maintain operation training The selection process continues to be implemented with targets Non-compliance with IBA Aboriginal Local employment • IBA commitment targets and fluctuating with turnover. Of the 448 Permanent employees 44% Agreements and resentment by High communities a selection are from the Aboriginal COI. communities process • Victor Training Pipeline rolled out in 2012 to provide opportunity • Non-compliance with IBA Formal and access for 20 COI members per year to a 6 month training agreements Training Need to develop employees IBA communities traning program • Resentment from the High programs • Apprenticeship, summer and cooperative education programs to community members be an on-going activity to build capacity • Through social investment initiatives, Victor Mine provided $480,061 in 2011, $715,599 in 2012 and $622,314 in 2013 Social investment Within the areas DBC Corporate social responsibility Yes • Process is national in scope and allows for a fair, equitable Resentment Medium (CSI) operates review of requests made to the company

IBA Agreement: 2011, 2012 and 2013 Victor Mine provided $90,000 in Non-compliance with IBA Education IBA bursaries IBA communities Yes Medium Educational Bursaries to all three IBA COIs. Agreement IBA commitment Not having this information Wellness commitment in the IBA allows baseline + socio- In 2013 Fort Albany and Kashechewan will update their wellness Health 2 IBA communities makes it difficult to plan CSI Medium study to track progress in community health economic studies to provide an indicator of where the communities stand projects study for new resource Follow up plan agreement is an annual assessment IBA The FUPA report prepared annually provides a complete snapshot of Environmental Region Non-compliance with EA High of the EA commitment where the project results stand in comparison to the original EA The processes to formulate compensation amounts • Non-compliance with IBA Local harvesters A number of best practices exist in the industry, yet no process vary from IBA to IBA. This compensation will IBA agreements seeking All IBA COI has been universally accepted. Will continue to support each High provide direct benefit to those harvesters commitment • Resentment from the compensation communities chosen process. impacted by the project. community members

30 SEAT REPORT 2013

31 VICTOR MINE

DBCI STAFF AT THE 2013 ANNUAL NISHNABE ASKI DEVELOPMENT CORPORATION BUSINESS AWARDS.

VICTOR HAUL TRUCK DRIVER.

32 SEAT REPORT 2013

4 SOCIAL MANAGEMENT PLAN

33 VICTOR MINE

The Victor Mine has made a commitment to operate a sustainably efficient mine that contributes to the communities in which it operates. This section will show the management responses to the issues identified and provide an indication of monitoring progress.

MANAGEMENT RESPONSES

TABLE 13 – PLANNED MANAGEMENT MEASURES STATUS, APRIL 2014

ISSUE/IMPACT/ Feeling the Victor Mine • Attawapiskat First RELEVANT RISK/ OPPORTUNITY/ discriminates against Nation Members STAKEHOLDERS CHALLENGE COI members • Employees

MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Create awareness of the zero tolerance policy and strive for a culture of unity and team.

MANAGEMENT OBJECTIVE – TIMING/ HOW YOU PLAN TO ACHIEVE PERFORMANCE TARGET RESPONSIBILITY TARGET BUDGET KPIS YOUR GOAL DATE Enhancement of Aboriginal 100% employee New program Training Q2–2013 No Awareness program at site target Roll out of zero tolerance Business Unit talks to 100% employee and discrimination policy to HR Q2–2013 No all employees target all employees Town Hall presentation 2 rotation x 2 RE discrimination in the AA&S Q2–2014 No 2 per year presentations workplace

Promote the toll free Implementation of hotline and ensure that the Enablon as complaints • Quality of data captured on complaints process at Victor and grievance system; AA&S Ongoing TBD Enablon mine fully complies with the 70% awareness among • Community Anglo American complaints community members of awareness and grievance procedure how to lay a complaint

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ISSUE/IMPACT/ IBA employment targets are not met. Leadership feel that RELEVANT Attawapiskat First RISK/ OPPORTUNITY/ members are not being selected STAKEHOLDERS Nation Members CHALLENGE as per required targets. MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Conform to the targets set out in the IBA and go beyond by sincerely training and developing as many community members as possible. MANAGEMENT OBJECTIVE – TIMING/ HOW YOU PLAN TO ACHIEVE PERFORMANCE TARGET RESPONSIBILITY TARGET BUDGET KPIS YOUR GOAL DATE SIMC Committee Quarterly Compliance AA&S Quarterly Yes Minutes of SIC Review

HR / AA&S Review of targets Compliance and strategy to address Compliance HR Quarterly No with IBA quarterly

ISSUE/IMPACT/ Recruitment/Hiring Process: Individuals do not feel they RELEVANT RISK/ OPPORTUNITY/ All COIs are being fairly reviewed and STAKEHOLDERS CHALLENGE communicated with. MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Ensure all employees and COIs understand the process Victor Mine is following and communicate the involvement of the Aboriginal Affairs team in the selection process. MANAGEMENT OBJECTIVE – TIMING/ HOW YOU PLAN TO ACHIEVE PERFORMANCE TARGET RESPONSIBILITY TARGET BUDGET KPIS YOUR GOAL DATE Full understanding of SIC Committee Transparent process HR 2014 No selection process reporting

All COI Present process to Presentation available AA&S 2014 No employees community and employees in the AA&S office provided

35 VICTOR MINE

ISSUE/IMPACT/ Procurement process not • Attawapiskat First being effective to provide RELEVANT RISK/ OPPORTUNITY/ Nation Members local businesses with STAKEHOLDERS CHALLENGE contracts • Other IBA communities

MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Ensure a transparent contract selection process accessible to all IBA businesses.

MANAGEMENT OBJECTIVE – TIMING/ HOW YOU PLAN TO ACHIEVE PERFORMANCE TARGET RESPONSIBILITY TARGET BUDGET KPIS YOUR GOAL DATE Flowchart of business process 100% SIC AA&S 2014 No 100% targeted presented to each SIC

Flowchart of business process 100% businesses AA&S 2014 No 100% targeted presented to each business

ISSUE/IMPACT/ Harvesters claims not RELEVANT Attawapiskat First RISK/ OPPORTUNITY/ being compensated STAKEHOLDERS Nation Members CHALLENGE

MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Complete the process of due diligence: to identify, determine fair compensation and distribute compensation.

MANAGEMENT OBJECTIVE – TIMING/ PERFORMANCE HOW YOU PLAN TO ACHIEVE RESPONSIBILITY TARGET BUDGET KPIS TARGET YOUR GOAL DATE Support each community’s Proposal outlining Proposals submitted research into who needs to be proposed COI 2014 50,000 to community compensated recipients leadership

Support the development Monetary Proposal submitted of a formula to understand compensation AA&S 2014 TBD to community compensation pay out justified leadership

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ISSUE/IMPACT/ Lack of Training RELEVANT Attawapiskat First RISK/ OPPORTUNITY/ Opportunities STAKEHOLDERS Nation Members CHALLENGE MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Develop a Community Training Plan that will detail the required training schedule for the community over the life of the mine. MANAGEMENT OBJECTIVE – TIMING/ PERFORMANCE HOW YOU PLAN TO ACHIEVE RESPONSIBILITY TARGET BUDGET KPIS TARGET YOUR GOAL DATE Training Strategy presented Training Strategy Training 2014 Yes Strategy to SIC by September 2014

Implementation of Training Training taking Training 2015 Yes Enrolment in the community place

37 VICTOR MINE

ISSUE/IMPACT/ Insufficient leadership visibility: RELEVANT Neighbouring RISK/ OPPORTUNITY/ COIs don’t know who the leadership STAKEHOLDERS communities CHALLENGE of Victor mine is MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Enhance the effectiveness of engagement on mining related activities, developments and impacts through increased leadership visibility and more face-to-face engagement. MANAGEMENT TIMING/ OBJECTIVE – PERFORMANCE TARGET RESPONSIBILITY TARGET BUDGET KPIS HOW YOU PLAN TO DATE ACHIEVE YOUR GOAL

• Number of meetings scheduled and number Annual community of concerns, issues and “Window into Victor” 1 x community questions answered during the road show by mine management. road show per COI; AA&S 2014 Yes • Senior leadership team Informal engagement Increased awareness visibility during road with community about mining activities shows leaders. • Community awareness and knowledge about mining activities

The general manager Profile the GM and and senior leadership leadership team in team to be visible community events at special events • Community perceptions (sod turning, and stakeholder Per on leadership visibility; project launches / AA Department Ongoing engagement sessions; project • Media coverage handovers, milestone Focussed media celebrations) and coverage profiling engagement with key the GM and leadership strategic stakeholders during special events

• Number of meetings Structured stakeholder scheduled and number engagement forums 1 forum per community, of concerns, issues and AA 1 per with identified all stakeholders within Yes questions answered Department quarter community stakeholder each area engaged • Forum participants’ groups satisfaction

• Number of meetings scheduled and number Semi-annual CEO visit of concerns, issues and 2 visits per year, per AA 1 st and 3rd into the Community of Yes questions answered; community Department quarter Interest communities • Community perceptions on leadership visibility

38 SEAT REPORT 2013

• Attawapiskat First ISSUE/IMPACT/ Mine affects water quality and availability negatively (COI respondents RELEVANT Nation Members RISK/ OPPORTUNITY/ believe Victor mine has had some STAKEHOLDERS • Mushkegowuk Tribal CHALLENGE negative impact on water quality) Council MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Demonstrate Victor Mine’s commitment to responsible management of its environmental impact on the River system.

MANAGEMENT OBJECTIVE – TIMING/ PERFORMANCE HOW YOU PLAN TO ACHIEVE YOUR RESPONSIBILITY TARGET BUDGET KPIS TARGET GOAL DATE

Semi-annual engagement with COI through the community Forum to discuss the mitigation 80% of COI COI perceptions of the impact of dewatering in satisfied with Semi- 3,000 per of Victor Mine’s the impact zone, as well as other Victor Mine’s Environment annual meeting environmental environmental concerns. mitigation impact improved Ensure data communicated to actions First Nations in an appropriately understandable format.

Reporting and Strict compliance with the monitoring Water use permit Integrated Water Permit in terms Environment Ongoing requirements compliance of monitoring and reporting adhered to

Community Showcase members Victor Mine’s perception of Exhibition at the window commitment Environment Annual Victor Mine’s into Victor to sustainable commitment communities to sustainable development

39 VICTOR MINE

ISSUE/IMPACT/ RELEVANT • Attawapiskat First Nation Members Enterprise Development • Fort Albany RISK/ OPPORTUNITY/ and Utilization STAKEHOLDERS • Kashechewan and Moose Cree CHALLENGE • Mushkegowuk Tribal Council

MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Demonstrates Victor Mine’s commitment to Entrepreneurship and the sustainability of the region.

MANAGEMENT TIMING/ OBJECTIVE – PERFORMANCE TARGET RESPONSIBILITY TARGET BUDGET KPIS HOW YOU PLAN TO DATE ACHIEVE YOUR GOAL Continue the training of entrepreneurs in basic business 20 local entrepreneurs Semi- Number of skills through the AA&S Operational trained per year annual entrepreneurs trained Wakenagun Economic Development Corporation Awareness and understanding among Awareness and Make use of initiatives 60% of youth and youth understanding such as career focused organisations of of alternative guidance exhibitions, alternative opportunities AA&S Ongoing N/A opportunities for the the Mining Ready for youths as part of youth in the James Forum Victor Mine’s socio- Bay area economic development initiatives

Community members Showcase Victor perception of Victor Exhibition at the Mine’s procurement Procurement Annual Mine’s commitment Window into Victor opportunities to sustainable development

40 SEAT REPORT 2013

• Attawapiskat First Nation Members ISSUE/IMPACT/ • Fort Albany IBA Awareness/Benefit RELEVANT Attawapiskat First • Kashechewan and Moose Cree RISK/ OPPORTUNITY/ Distribution STAKEHOLDERS Nation Members • Mushkegowuk Tribal Council CHALLENGE MANAGEMENT GOAL – WHAT YOU WANT TO ACHIEVE Clear communication strategy with presentation provided to all concerned COI members and available in an easy to locate space. MANAGEMENT OBJECTIVE – PERFORMANCE TIMING/ HOW YOU PLAN TO ACHIEVE YOUR RESPONSIBILITY BUDGET KPIS TARGET TARGET DATE GOAL Youth IBA Officer to present Survey in 2015 80% community IBA orientation in community AA&S Quarterly Yes to clarify understanding quarterly understanding

Newsletter in 2013 clarified Survey in 2015 Delivery to all ratification and benefits AA&S 2014 Yes to clarify households contained in IBA. Redistribute. understanding

Survey in 2015 Simple online presentation to be Delivery to 100 AA&S 2014 Yes to clarify shared with community members. members understanding

41 VICTOR MINE

42 SEAT REPORT 2013

GLOSSARY

43 VICTOR MINE

GLOSSARY OF KEY TERMS AND ABBREVIATIONS “AA&S”: Aboriginal Affairs and Sustainability department. “ISO”: is the abbreviation for the International Standards Organization. “AEAC”: is the abbreviation for Attawapiskat Employee Advisory Committee. “Kimberlite”: is a volcanic rock originating deep in the earth that is the main primary source for diamonds. Most “AFN”: is the abbreviation for Assembly of First Nations. kimberlites occur as cone-shaped bodies called ‘pipes’, “AttFN”: is the abbreviation for Attawapiskat First Nation. although other types of intrusion occur, such as dykes or sills. “CELC”: is the abbreviation for Community Employees “Mgr”: is the abbreviation for Manager. Liaison Committee. “MPiT”: is the abbreviation for Mining Professional in “CEO”: is the abbreviation for Chief Executive Officer. Training. "CFO": is the abbreviation for Chief Financial Officer. “NAN”: is the abbreviation for Nishnawbe Aski Nation. “COI”: see Community of interest. “OHASA”: is the abbreviation for Occupational Health and Safety Standard. “Community of interest”: a collective term used to refer to any community, individual or organisation, including “Q1”, “Q2”, “Q3”, “Q4”: is, respectively, the first, second third government, either directly or indirectly affected by our or fourth calendar quarter of the year. activities or interested in them. “SEAT”: is the abbreviation for Socio-Economic Assessment "COO": is the abbreviation for Chief Operating Officer. Tool Box. “DBCI”: is the abbreviation for De Beers Canada Inc. “SIC”: is the acronym for Senior Implementation Committee, the most senior engagement committee between the project “Dyke”, also spelled ‘dike’: is the term used to refer to a leadership and community of interest leadership. tabular igneous intrusion that cuts across the bedding and foliation (i.e. the “layers”) of the surrounding rock. A dyke “Sightholder”: is the term used for a customer of De Beers may dip steeply or at a shallow angle. Global Sightholder Sales (DBGSS), who through a selection process and has qualified to purchase rough diamonds from “EMC”: is the abbreviation for Environmental Management DBGSS. DBGSS is part of the De Beers Group, the largest Committee. producer of rough diamonds in the world by value. “FUPA”: is the abbreviation for Follow-Up Program “Sill”: is the term used to refer to a tabular igneous intrusion Agreement. that parallels the bedding or foliation (i.e. the “layers”) of “GDP”: is the abbreviation for Gross Domestic Product. the surrounding sedimentary or metamorphic rock respectively. “GM”: is the abbreviation for General Manager. “SIMC”: is the abbreviation for Senior Implementation “HR”: is the Human Resources department. Management Committee. “IBA”: is the acronym for Impact Benefit Agreement, the “WREMMC”: is the abbreviation for Winter Road most widely used agreements made with Aboriginal Environmental Management and Monitoring Committee. communities to lay out the benefits provided from a project and engagement agreed to. “yr”: is the abbreviation for year.

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YOUR FEEDBACK IS IMPORTANT

As a member of the De Beers Group of Companies, we are committed to Best Practice Principles, ISO 14001 International Environmental Management standards at our mines and Sustainable Development in the communities in which we operate. We are also a member of the Mining Association of Canada and their Towards Sustainable Mining initiative. To ensure we gain a better understanding of the communities in which we operate, our key local stakeholders and the community at large, we encourage people to share your thoughts and ideas on our company, to comment on an event or initiative of De Beers Canada or to notify us of a concern or complaint you wish to have addressed regarding our company and our operations. Your input is extremely important to us and will be reviewed and actioned as quickly as possible. Please go to www.debeersgroup.com/canada/feedback

SPEAK UP! PROGRAM

Through our commitment to the highest standards of ethical behaviour, the De Beers Group of Companies provides a confidential and secure mechanism to enable employees, suppliers, business partners and other stakeholders to raise concerns about any potentially unsafe, unethical or unlawful conduct. Speak Up! is a confidential reporting service for all employees and stakeholders of business units and group functions of the Anglo American Group. It is independently managed by Deloitte Tip-offs Anonymous. Concerns can be raised about unlawful, unethical or unsafe conduct or practices, including but not limited to: • Health and Safety: actions that could result in harm to individuals or the environment. • Bribery and Corruption: illegally taking or offering financial incentives. • Misuse of Assets: inappropriate use or theft of company property. • Legal Obligation: failure to comply with or meet legal commitments. • Conflict of Interest: concealment of interests which may influence decisions.

Contact information from within Canada: • Email: [email protected] • Telephone: 1 866 451 1590 • In writing: Speak Up, P.O. Box 774, Umhlanga Rocks, 4320, South Africa (To which you can mail letters and other relevant documentation globally.)

For more information visit https://www.speak-up-site.com In making a disclosure using one of the above means, the whistleblower is encouraged to provide as much information as possible relating to the matter, bearing in mind that the greater the information available, the more thoroughly the matter is likely to be investigated and, in turn, resolved.

45 VICTOR MINE

APPENDICES

SURVEY RESULTS

46 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q1 What is your age?

Answered: 644 Skipped: 7

15 - 24

25 - 44

45 - 64

65 - 70

70+

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

15 - 24 18.01% 116

25 - 44 45.50% 293

45 - 64 31.68% 204

65 - 70 2.64% 17

70+ 2.17% 14

Total 644 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q2 Gender

Answered: 644 Skipped: 7

Male

Female

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Male 38.82% 250

Female 61.18% 394

Total 644 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q3 Please indicate which community you normally live in

Answered: 644 Skipped: 7

Attawapiskat

Fort Albany

Kashechewan

Moose Factory

Moosonee

Other (please specify)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Attawapiskat 5.12% 33

Fort Albany 10.40% 67

Kashechewan 21.43% 138

Moose Factory 22.05% 142

Moosonee 26.86% 173

Other (please specify) 14.13% 91

Total 644

3 / 31 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q4 Are you of Aboriginal ancestry?

Answered: 644 Skipped: 7

Yes, First Nation

Yes, Métis

Yes, Inuit

No, non-Aboriginal

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Yes, First Nation 84.16% 542

Yes, Métis 2.48% 16

Yes, Inuit 0.31% 2

No, non-Aboriginal 13.04% 84

Total 644

4 / 31 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q5 If you are a member of a First Nation, do you belong to

Answered: 627 Skipped: 24

Attawapiskat First Nation

Fort Albany First Nation

Kashechewan First Nation

Moose Cree First Nation

Non-Aboriginal

Other First Nation (plea...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Attawapiskat First Nation 13.56% 85

Fort Albany First Nation 16.59% 104

Kashechewan First Nation 23.29% 146

Moose Cree First Nation 22.97% 144

Non-Aboriginal 10.85% 68

Other First Nation (please specify) 12.76% 80

Total 627

5 / 31 Victor Mine Socio-EconomicQ Assessment Toolbox (SEAT) Survey

Q6 Please indicate your occupation

Answered: 644 Skipped: 7

Business owner or serv ice...

Prov incial or Federal...

First Nation employee (Fi...

Non-gov ernment organisation

Unemployed

Student

Apprentice

Retired

Harv ester

Transport

De B eers employee

De B eers apprentice/t...

Contractor w orking with...

Other

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices R esponses

Business owner or service provider 5.59% 36

Provincial or Federal Government employee 14.13% 91

First Nation employee (First Nation o ce, health, education) 24.53% 158

Non-government organisation 6.99% 45

Unemployed 18.79% 121

Student 10.25% 66

Apprentice 0.78% 5

Retired 4.50% 29

Harvester 1.55% 10

Transport 0.47% 3

De Beers employee 2.48% 16

De Beers apprentice/trainee 0.31% 2

Contractor working with De Beers 1.55% 10

Other 8.07% 52

Total 644 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q7 How long have you lived in your community?

Answered: 637 Skipped: 14

Less than one year

1 to 3 years

3 to 5 years

5 to 10 years

Ov er 10 years

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

Answer Choices Responses

Less than one year 3.14% 20

1 to 3 years 7.54% 48

3 to 5 years 5.18% 33

5 to 10 years 9.42% 60

Over 10 years 74.73% 476

Total 637

Q8 Are you aware of any help or support given by De Beers Victor Mine to your home community?

Answered: 632 Skipped: 19

Yes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Yes 42.88% 271

No 57.12% 361

Total 632 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q9 How effective do you think this help has been?

Answered: 644 Skipped: 7

Very poor

Poor

Av erage

Good

Very good

Not applicable

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Very poor 9.78% 63

Poor 10.09% 65

Average 23.29% 150

Good 17.39% 112

Very good 8.23% 53

Not applicable 31.21% 201

Total 644

10 / 31

Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey 10 In which of these areas do you think De Beers has helped? Please tick all that apply.

training

education

and

Infrastructure sewage)

Business creation...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Housing 96

Sport 96

Arts 16

Health 54

Environment 69

Education 173

Trades / Skills training 223

Childcare / Early education 34

Elder Care 38

Culture and Heritage support 117

Infrastructure (water, sewage) 28

Business creation /support 101

Financial 117

Other 53

Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q11 Do you feel you have benefited from the mine? Answered: 613 Skipped: 38

Yes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Respons es

Yes 27.1% 166

No 72.9% 447

Total 613

13 / 31 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q12 If the answer in question 11 is “Yes”, please indicate in which of the following areas. Please mark all that apply.

Answered: 182 Skipped: 469

Housing

Sport

Arts

Health

Employment

Env ironment

Education

Trades / Skills training

Childcare / Early education

Elder Care

Culture and Heritage...

Infrastructure (water, sewage)

Business creation...

Financial

Other

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Housing 20.88% 38

Sport 17.03% 31

Arts 4.95% 9

Health 15.38% 28

Employment 15.38% 28

Environment 14.84% 27

Education 29.12% 53

Trades / Skills training 29.67% 54

Childcare / Early education 4.95% 9

Elder Care 8.24% 15

Culture and Heritage support 25.27% 46

Infrastructure (water, sewage) 7.69% 14

Business creation /support 19.78% 36

Financial 5.49% 10

Other 10.44% 19

Total Respoponndents:dents: 182 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

3 areas of the community do your believe that the company should help? Please rank from (1) low to (12) high in order of priority.

training

education

and

Infrastructure sewage)

Business creation

0510 15 20 25 30 35 40 45 50

Housing 45 9 12 8 25 33 19 26 23 57 19 307 583 9.37

Sport 29 22 12 20 33 61 32 33 27 75 23 184 551 8.46

Arts 53 22 21 25 40 66 44 24 24 51 22 117 509 7.32

Health 33 5 8 13 23 22 18 30 33 62 35 271 553 9.56

Environment 21 8 5 8 12 22 22 24 26 74 35 284 541 9.96

Education 27 2 7 7 8 17 19 28 18 55 42 339 569 10.23

Trades / Skills training 19 2 8 9 15 23 23 28 33 66 36 322 584 10.10

Childcare / Early education 33 10 18 16 25 37 35 30 27 62 22 226 541 8.91

Elder Care 34 5 15 19 25 31 20 28 35 55 22 261 550 9.23

Culture and Heritage support 32 12 11 10 28 33 34 26 27 82 19 239 553 9.14

Infrastructure (water, sewage) 39 10 10 9 29 33 17 24 24 68 26 255 544 9.23 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q14 What key role do you see Victor Mine taking in the development of community projects? Please rank from 1 to 3 (high).

Answered: 602 Skipped: 49

Supports organisation...

Prov ides part of the funds...

Prov ides all the funds fo...

0 1 2 3 4 5

1 = Low 2 3 = High Total Av erage Rating

Supports organinzation i lobbying for projects or services 31.06% 46.68% 22.26% 173 260 124 557 1.91

Provides part of the funds for projects or services along with First Nation, Government and other industry bodies 22.50% 46.40% 31.11% 128 264 177 569 2.09

Provides all the funds for a project or service 31.87% 46.06% 22.07% 182 263 126 571 1.90

Q15 Have you made a formal complaint or logged a grievance with Victor Mine?

Answered: 622 Skipped: 29

Yes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

Answer Choices Responses

Yes 3.22% 20

No 96.78% 602

Total 622 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q16 If the answer in 16 was “Yes,” were you satisfied that

Answered: 73 Skipped: 578

The issue was dealt with i...

The issue was resolv ed in ...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Very satisfied Satisfied Still being dealt with Unsatisfied

Very unsatisfied

Very satisfied Satisfied Still being dealt with Unsatisfied Very unsatisfied Total

The issue was dealt with in a timely manner? 7.35% 27.94% 26.47% 17.65% 20.59% 5 19 18 12 14 68

The issue was resolved in a satisfactory manner? 5.80% 27.54% 31.88% 15.94% 18.84% 4 19 22 11 13 69

20 / 31 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q17 Please rank your knowledge of Victor Mine on the following subjects. Where Very aware = 5 and No knowledge = 1

Answered: 633 Skipped: 18

Operations

Job Opportunities

Contracting opportunities

Social inv estment...

Community engagement...

Newsletter

Complaints and grievance...

Economic benefits /...

Number of community...

Total number of employees...

0 1 2 3 4 5

Very aware Aware Average Some knowledge No knowledge Total Av erage Rating

Operations 7.36% 16.32% 27.52% 22.08% 26.72% 46 102 172 138 167 625 2.56

Job Opportunities 13.40% 22.49% 27.27% 21.53% 15.31% 84 141 171 135 96 627 2.97

Contracting opportunities 8.04% 14.95% 23.47% 19.29% 34.24% 50 93 146 120 213 622 2.43

Social investment program 4.68% 9.03% 20.65% 16.94% 48.71% 29 56 128 105 302 620 2.04

Community engagement processes 5.63% 11.58% 20.42% 22.83% 39.55% 35 72 127 142 246 622 2.21

Newsletter 5.34% 12.14% 20.55% 22.17% 39.81% 33 75 127 137 246 618 2.21

Complaints and grievance procedure 4.55% 7.14% 17.86% 13.47% 56.98% 28 44 110 83 351 616 1.89

Economic benefits / input into the community 5.53% 11.22% 21.63% 24.07% 37.56% 34 69 133 148 231 615 2.23

Number of community members employed at site 7.83% 14.36% 17.94% 21.86% 38.01% 48 88 110 134 233 613 2.32

Total number of employees at site 7.50% 9.14% 15.01% 18.27% 50.08% 46 56 92 112 307 613 2.06

21 / 31 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q18 Does your First Nation have an Impact Benefit Agreement with De Beers for Victor Mine?

Answered: 644 Skipped: 7

Yes

Don't know

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

Answer Choices Responses

Yes 38.66% 249

No 9.63% 62

Don't know 51.71% 333

Total 644

Q19 If your First Nation has an IBA with De Beers, is the agreement working?

Answered: 606 Skipped: 45

Yes

Don't know

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

Answer Choices Responses

Yes 10.73% 65

No 18.15% 110

Don't know 71.12% 431

Total 606 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey Q20 Do you volunteer in your community?

Answered: 633 Skipped: 18

Yes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Yes 49.45% 313

No 50.55% 320

Total 633

Q21 If yes, how many hours per week?

Answered: 315 Skipped: 336

1 to 2 hours

3o t 5 hours

6o t 10 hours

Greater than 10 hours

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

1 to 2 hours 41.59% 131

3 to 5 hours 29.52% 93

6 to 10 hours 12.38% 39

Greater than 10 hours 16.51% 52

Total 315 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

22 Please indicate whether you agree or disagree with the following statements with regards to your home community.

Answered: 520 Skipped: 31

Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q23 Please indicate your satisfaction with the following (please provide feedback on items that are applicable to you on a scale of 1 (low) to 5 (high), otherwise use Not Applicable)

Answered: 608 Skipped: 43

Footpaths, walking/cycl...

Roads

Street lighting

Traffic management

Parking facilities

Sporting and recreational...

Cultural and entertainmen...

Libraries and other...

Community safety

Shopping facilities

Economic dev elopment

Dev elopment of tourism

Gov ernment serv ices

Childcare

Housing and accommodation

Health

Education

Disability serv ices

Facilities for Youth

Facilities for Elders

0 1 2 3 4 5

17.45% 7.21% 16.44% 7.72% 13.76% 37.42% 104 43 98 46 82 223 596 2.89 Victor Mine Socio-Economic Assessment Toolbox (SEAT) Survey

Q23Facilities Please for indicate your satisfaction with the following (please Elders provide feedback on items that are applicable to you

on a scale of0 1 (low) to1 5 (high), 2 otherwise 3 use Not4 Applicable)5 Answered: 608 Skipped: 43

1 2 3 4 5 N/A Total Av erage Rating

Footpaths, walking/cycling facilities 17.45% 7.21% 16.44% 7.72% 13.76% 37.42% 104 43 98 46 82 223 596 2.89

Roads 24.11% 9.11% 14.67% 11.80% 15.68% 24.62% 143 54 87 70 93 146 593 2.81

Street lighting 9.51% 7.30% 21.05% 15.62% 19.35% 27.16% 56 43 124 92 114 160 589 3.38

Tra c management 14.12% 8.74% 20.50% 12.77% 9.58% 34.29% 84 52 122 76 57 204 595 2.92

Parking facilities 14.24% 9.83% 19.49% 9.66% 10.17% 36.61% 84 58 115 57 60 216 590 2.87

Sporting and recreational facilities 14.98% 10.98% 18.47% 9.82% 17.80% 27.95% 90 66 111 59 107 168 601 3.06

Cultural and entertainment facilities 14.88% 11.71% 17.22% 12.88% 15.22% 28.09% 89 70 103 77 91 168 598 3.03

Libraries and other information access 21.89% 8.62% 14.26% 10.28% 11.44% 33.50% 132 52 86 62 69 202 603 2.71

Community safety 12.69% 10.18% 17.36% 11.85% 19.53% 28.38% 76 61 104 71 117 170 599 3.21

Shopping facilities 20.17% 14.00% 15.00% 7.67% 10.83% 32.33% 121 84 90 46 65 194 600 2.63

Economic development 16.64% 10.53% 21.39% 11.88% 13.75% 25.81% 98 62 126 70 81 152 589 2.94

Development of tourism 21.75% 12.48% 14.84% 7.93% 12.14% 30.86% 129 74 88 47 72 183 593 2.66

Government services 14.87% 10.77% 20.85% 10.77% 11.62% 31.11% 87 63 122 63 68 182 585 2.91

Childcare 14.80% 10.50% 17.90% 10.15% 14.46% 32.19% 86 61 104 59 84 187 581 2.98

Housing and accommodation 21.25% 10.29% 15.85% 8.09% 15.85% 28.67% 126 61 94 48 94 170 593 2.82

Health 13.34% 10.47% 18.24% 12.84% 19.59% 25.51% 79 62 108 76 116 151 592 3.20

Education 12.31% 8.60% 19.22% 14.67% 20.74% 24.45% 73 51 114 87 123 145 593 3.30

Disability services 18.14% 8.14% 17.12% 7.97% 15.93% 32.71% 107 48 101 47 94 193 590 2.93

Facilities for Youth 20.85% 9.83% 14.24% 9.49% 15.93% 29.66% 123 58 84 56 94 175 590 2.86

Facilities for Elders 21.68% 8.24% 15.63% 7.90% 16.30% 30.25% 129 49 93 47 97 180 595 2.84 SEAT REPORT 2013

CONTACT DETAILS

Feedback: We appreciate your feedback on this report or any other aspect of our performance. Please contact us at:

Aboriginal Affairs & Sustainability De Beers Canada Victor Mine 310-119 Pine Street South, Timmins, ON P4N 2K3 Canada

T. 705.268.0988 F. 705.268.0179

Feedback form: www.debeersgroup.com/canada/Feedback E-mail: [email protected]

Related Links: Mining, Canada: www.debeersgroup.com/canada Donations and Sponsorship: www.debeersgroup.com/canada/Sustainability/Social-Investment

Careers: www.debeersgroup.com/canada/Careers