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Benefits from Northern Mining 2017 Summary

Mining in Northern Saskatchewan uses the mineral The northern half of Saskatchewan is a land of lakes, surface lease agreement to help forests, mineral resources, and natural beauty. It is residents of Saskatchewan’s North home to about 40,000 people. The predominant benefit from mining operations in cultures in the region are , Dené, and Métis. their region. After 30 years, the Mining is the major private industry in the north. In outcomes are: an increase in local 2017, six operations employed 2,400 workers in skilled workers; competitive local mining, milling, and maintenance. suppliers; and better-informed operations included the McArthur River mine/Key communities. Lake mill, Cigar Lake mine/McClean Lake mill, and Rabbit Lake operation (in care and maintenance). Seabee operation mined and milled gold.

Six more operations no longer have employees: Midwest Project, Gold Project, Cluff Lake, Each year, the mining operations report to the Beaverlodge, Konuto, and Parks Lake. province on their efforts in meeting their socio- economic commitments under these agreements. Agreements in effect This document is a summary of their reports for 2017. The owners of these 12 operations entered into two agreements with the province for each site before operations began. 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 benefits for residents of Saskatchewan’s North.

Each lease also requires the mining operator to have a human resource development agreement, administered by the Ministry of Immigration and Native plant species used in reclamation and restoration at Career Training. These focus on opportunities for Rabbit Lake operation. northern training, employment, and job

advancement.

saskatchewan.ca Partners’ commitments In 2017, the mining industry in Northern Saskatchewan: 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 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 seven offices and satellite employment, training, business, and compensation offices in six northern communities – La to previous permit or leaseholders. Ronge, , English River, Black Lake, Hatchet Lake, and Fond du Lac. Uranium mining companies make four additional • Employed three liaison staff in the commitments for employee services, education Athabasca Basin to assist the seven promotion, community vitality monitoring, and Athabasca communities in recruitment, public involvement. training, community investment, and engagement.

Camsell • Provided air transportation for workers to Portage Beaverlodge Fond-du-Lac mine sites from 10 northern communities N Black Lake as well as Prince Albert and . • Advertised jobs broadly on company Cluff Lake Mine Midwest Deposit McClean Lake Mine websites, social media, radio stations, Points North Landing Rabbit Lake Mine Cigar Lake Mine Wollaston Lake provincial papers, northern publications, Parks Lake Mine McArthur River Mine and television scrolls.

Descharme Kinoosao • Assisted northern employees and other site Lake workers with applications and interviews for internal career opportunities to help Southend Garson Lake Bear Creek La Ronge them advance their careers. Dillon Gold Mine Buffalo Seabee • St. George's Narrows Mine Sandy Maintained union agreements that give Hill MissinipeGrand- Ba y PinehouseNemeiben mother's Bay Ile a la Crosse Rive r preference to northern and Indigenous Canoe Narrows Hall Lake Pelican La Ronge Beauval Narrows workers in jobs, apprenticeships, recalls, Jans Creighton Ba y Deschambault and retention during workforce reductions. Lake Konuto Sled Lake Green Lake We ya kwin Sturgeon Landing Montreal Lake Cumberland House Definition of a “Resident of Saskatchewan’s Uranium North” Operating/ Developing Not Operating Precious & Base Metals For recruitment purposes, a “Resident of Operating/ Developing Not Operating Saskatchewan’s North” is defined as: Twelve mineral surface lease agreements are in effect for • A person who has resided in mine/mill operations in Northern Saskatchewan Saskatchewan's North for a period of 10 Administration District. years or one-half his or her age, whichever is less. A person retains “northern status” if 1) Employment commitment he or she: All mining operations commit to work with the o needed to relocate outside of province, other mining operators, and other Saskatchewan’s North for education; agencies to use their best efforts to maximize o resided outside of Saskatchewan’s northern employment. Uranium companies make North for less than five years; or an additional commitment to work towards a long- o moved back to the North. term goal of 67 per cent northern participation in Or their northern labour force. • A northerner who is transferred to another northern mine, or re-employed by a mine within the year and met the above criteria at the time of recruitment.

2017 Summary 2 Government Relations

Employment statistics In early 2018, about 800 workers at Key Lake and The northern workforce has grown in numbers and McArthur River operations were laid off temporarily in abilities over the years – an outcome of the for about 10 months, leaving a care and mining industry’s commitment to maximizing maintenance workforce of about 200. The operator northern employment and advancement plans to supplement Employment Insurance up to 75 opportunities. per cent of regular pay for its direct employees and consider secondments or transfers to other sites as The industry workforce, however, has declined by opportunities arise. Rabbit Lake mine continues in 1,500 total jobs since a peak in 2012. The decline is care and maintenance with a small workforce. Cigar the result of completion of construction projects Lake, McClean Lake, and Seabee operations plan to and, since 2016, layoffs in response to a weak maintain their production and employment levels. uranium market worldwide. The mining operations report they will recruit for about 50 jobs, mostly to replace turnover – these are What is the long-term employment trend at listed in the table below. As well, there will be about mines in northern Saskatchewan? 30 summer jobs available. 4000 Other Contract Employees 3500 Other Mine Employees Job Recruitment Forecast for 2018 3000 Northern Contractors Supervisory Technical/Professional 2500 Northern Mine Employees Mill shift supervisor Environmental trainee 2000 Safety officer 1500 Entry Level/Operations Trades 1000 Housekeeping Heavy duty mechanic 500 Kitchen Plumber 0 Mill labourer/entry level Service/general 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 maintenance operator

As of December 31, 2017, the industry: Truck/ heavy equipment operator • Employed 2,423 people at mine sites in Underground miner direct and contract jobs (400 less than a

year ago). • Maintained a high rate of northern Where were the 1,159 northern mine employment – 48 per cent. Of the 1,159 employees and contract workers hired northerners, 825 were employed by the from? mining operators and 334 by their long- North Central, term contractors (in catering, janitorial, 441, 38% security, construction, and underground Athabasca Other 203, 18% Areas, 21, mining). Northwest 2% • Achieved an Aboriginal participation rate of 397, 34% 41 per cent - one of the highest rates of Northeast, Indigenous employment in . 97, 8% • Employed 362 females – they made up 15 And where do they live as of Dec. 31, 2017? per cent of the workforce. One-third worked in technical and professional jobs. North Central, • Reported 69 per cent of northern workers Athabasca 319, 28% continue to reside in the northern region. 127, 11% Other Areas, 365, 31% Job forecast for 2018 North- Northeast west, 291, Employment opportunities at the northern 57, 5% operations will be limited in 2018 because of 25% continued weak uranium markets.

2017 Summary 3 Government Relations

2) Employee education and training What types of jobs are at mining operations and how many people work commitment in them? As of Dec. 31, 2017 All mining operations commit to use their best efforts to maximize training and job advancement Professional 25 191 Northern opportunities for northerners. Administration Support 40 25 Workers External partnerships Management/ Supervisory 79 191 Non-Northern Workers As partners in multi-party initiatives, mining Technical 100 178 companies help build a trained labour force in the Trades 145 399 North from which the mining companies and other businesses can recruit skilled workers. In 2017, Support Services 211 56 mining operations: Operations 559 224 • Provided 17 opportunities in work placements or summer jobs for students in 400 800

tri-trades certification, industrial mechanic, Training forecast for 2018 power engineer, and radiation/ • Collaborate with Northern Career Quest to environmental technician programs. offer northern employees training that will

help them move up in their careers. In-house employee development Training plans include: mill operator; utility • Delivered thousands of hours of skill operator; environmental trainee; advancement training for employees and information technology; supervisor in contractors in underground mining, mobile training; and peer training/coaching and equipment operations, trades, supervisory mentoring. skills, and process operations. • Continue in-house training for apprentices, • Ensured safe workplaces by delivering power engineers, and process operators, training for a respectful workplace, WHMIS, and deliver refresher training. fall protection, first aid, radiation basics, control of hazardous materials, mine rescue, ventilation, underground hazards, Provincial commitments and fire suppression. The government undertook the following education and training initiatives in 2017: Up-skilling employees • Jointly funded second year of the Dené • Trained 17 northern apprentices as Teacher Education Program in La Loche. electricians, heavy-duty mechanics, • Funded $1.55 million for the Following industrial mechanics, welders, Their Voices initiative to raise pipefitter/steamfitters, and scaffolders. educational achievement and • Provided certified training to nine participation of Saskatchewan's First employees to help them advance within the Nations, Métis, and Inuit students. companies as power engineers, Northern schools included Canoe Lake, environmental technicians, and mine Cumberland House, Ile a la Crosse, La engineer technicians. Loche, La Ronge, and Pinehouse. • Supported 349 northerners in higher skill • Awarded $30,300 to 96 northern school jobs in management/supervision, students under the Lieutenant professional, technical, and trades Governor's Awards of Excellence and the categories. These northern workers made Northern Saskatchewan Student up 27 per cent of all workers in the higher Achievement Awards. skill levels. Other categories include • Matched donations of industry partners Administration Support (clerks), Operations to award $1,000 each to 100 high school (mill, equipment, and mining positions) and students under the Saskatchewan Youth Support Services (labourers, helpers, Apprenticeship (SYA) Industry janitorial, and kitchen workers). Scholarships to encourage youth to enter skilled trades. 2017 Summary 4 Government Relations

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 northern participation in the Uranium operations make an additional categories of fuels, freighting, flights, commitment – to use their best efforts to achieve a catering, janitorial, environmental, goal of northern businesses annually supplying 35 industrial, and maintenance services. per cent of the total goods and services to support their operations in Northern Saskatchewan. Northern mining operations paid $89.7 million in wages to their northern employees. Northern wages As of December 31, 2017, the northern mining made up 36 per cent of the total $251 million in industry: wages. Although total and northern wages have • Exceeded the target of 35 per cent northern declined, the values are double the wages paid in procurement for the twenty-second year in 2006. These amounts exclude contract payroll, a row, achieving 51 per cent in 2017. which is included in business supply expenditures. • Maintained preferred supplier programs to maximize procurement from northern What did northern employees earn at suppliers. Northern Saskatchewan mines? • Shared information about current and In millions future business opportunities at meetings $120

with communities, leadership, and partners $100 $89.7 in collaboration agreements. $80 • Employed staff to liaise with northern $60 businesses. $40 Expenditure statistics $20 $12.5 Over the years, the number of northern suppliers $0 has grown and the variety of their goods and 91 93 95 97 99 01 03 05 07 09 11 13 15 17 services has expanded. Many of the main suppliers are businesses owned by Indigenous persons or northern communities. In 2017, the northern mining Since 1991, northern mining operations have paid industry: $7.5 billion to northern employees and northern • Reported total expenditures of $515.1 goods and services suppliers. million on goods and services.

• Purchased 51 per cent of their total goods Provincial commitments and services - $261.3 million - from In business initiatives, the government: northern businesses and joint ventures. • Co-hosted the 48th annual Saskatchewan Geological Open House in How much did northern businesses and Saskatoon. The event highlighted new, joint ventures supply to mine operators high-quality geoscience data to support in north Saskatchewan? In millions exploration programs and displayed advances in exploration techniques. $624.2 • Sponsored the ninth annual Saskatchewan Mining Supply Chain Forum with partners. Forum topics $261.3 included mine supply opportunities and the first-ever Mining Innovation Boot Camp, featuring those able to assist and 91 93 95 97 99 01 03 05 07 09 11 13 15 17 fund research and development. Year

2017 Summary 5 Government Relations

Business Opportunities Forecast for 2018 In service categories, potential opportunities include Mining operations report gold production will be professional services in accounting, law, information slightly up in 2017 while uranium production will be technology, and environmental consulting. down considerably.

Uranium companies continue their efforts to find Provincial commitments savings because of prolonged low uranium prices In environmental and engagement initiatives, the and demand. Three uranium operations will be in government: care and maintenance shutdowns in 2018 - • Maintained competitive tax regimes, McArthur River, Key Lake, and Rabbit Lake. Cigar efficient permitting procedures, and Lake mine, McClean Lake mill, and Seabee operation certainty surrounding environmental will be the only uranium and gold producers in the regulations and land-claims. Because of province. these actions, the Fraser Institute named Saskatchewan the second-most With the shutdowns, mining operations will be attractive jurisdiction in the world for purchasing fewer goods and services. Northern mining investment in 2017. businesses will likely see significant reductions in • Continued a contract with Saskatchewan both the number of opportunities and the volume of Research Council (SRC) to manage goods and services they supply such as in catering, remediation of legacy uranium sites janitorial, flights, freighting, and exploration. under Project CLEANS. In 2017, SRC: o Continued work at several of the 35 Northern suppliers of goods could find new satellite sites. They installed six opportunities in categories where they had low stainless-steel caps and conducted participation rates in 2017 (see next chart). These water sampling and surveys of include supplying aggregates; medical, laboratory, wildlife, vegetation, and heritage and safety supplies; pumps, electrical and shop sites. supplies; and office and computer supplies. o Oversaw regrading of tailings at /mill, undertaken by What goods and services do northern contractor Fond du Lac Nuna Joint businesses supply to the mines? Based Venture. on per centage of northern business by o Mentored five students from the category in 2017 Athabasca Basin in the Student Goods Fuels 86% Environmental Monitoring Lubricants & Filters 31% Program. Aggregate & Raw Material 16% Reagents & Chemicals 14% o Toured northern leaders to the Building Maintenance/Rentals 7% Gunnar mine/mill site. Office & Computer Supplies 5% Medical, Lab & Safety Supplies 3% • Renewed the Northern Saskatchewan Mining Equip, Explosives 3% Environmental Quality Committee Plumbing, Heating, Processing 1% Electrical Equip. & Supplies 0% program for five years and appointed Mobile Equipment & Parts 0% people to represent 30 northern Shop & Maintenance Equip 0% Fees, Dues, Permits 0% communities. The committee met in Utilities & Powerhouses 0% November to have questions answered Goods Subtotal 20% Services and provide constructive input into Catering, Janitorial & Disposals 98% uranium and other developments that Flights & Air Charters 91% Environmental Services 82% they consider to have environmental Exploration, Drilling, Linecutting 81% interest. Industrial Contractors 79% Freighting & Expediting 49% • Sampled country foods (fish, berries, Contractors/Consultants 42% moose, and caribou) in Athabasca Business Meals & Travel 1% Professional Services 1% localities under the Eastern Athabasca Office & Computer Services 0% Regional Monitoring Program between Services Subtotal 61% September 2016 and March 2017. All Northern Total Percentage 51% country foods were found to be safe to eat.

2017 Summary 6 Government Relations

4) Compensation commitment People; and Saskatchewan's Top Employers. – 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. Northern Saskatchewan Environmental Quality Committee As of December 31, 2017, the northern mining touring clean water released at McArthur River operation. industry: • Honoured five compensation agreements 6) Education Promotion (Stay in with trappers around six operations; • Contributed over $40,000 in cash payments; School) commitment • Provided fuel valued at over $6,000; and Uranium mining operations commit to work with • Provided security checks of trappers’ other companies, government, and northern schools properties. to plan and implement programs that encourage northern students to complete high school, pursue 5) Employee services commitment higher levels of education, and consider professional Uranium mining operations commit to provide their careers related to the mining industry. In 2017, the employees with on-site services and counseling mining industry: programs and to consider employee suggestions to • Awarded or funded scholarships totaling enhance these services. $47,000 to 23 northern students in technical and university programs including Employee Services and Programs in 2017 mine engineering technology, Bachelor of Employment equity, Health, dental, and Science, process operations, and mental diversity, and respectful wellness plans, disability health and wellness. workplace policies and management, and • Awarded over $20,000 to 84 students in training sessions retirement programs Grades 7 to 12 to promote achievement Employee share Employee involvement in and academic success among students in ownership plans and process improvements the Athabasca region. bonus programs and innovation • Since 2010, awarded 1,013 total awards and Elder advisors at sites Recreation clubs and scholarships, worth $1.5 million, to and community relations facilities including fitness northern students. staff in communities to centres, fishing boats, • Made 17 visits to northern schools, career translate, share bicycles, libraries, fairs, and science camps to increase career information, and provide movies, and high speed awareness and promote future support internet opportunities in mining. Employee and family Healthy living initiatives • counseling and to contribute to healthy Contributed to the Science Ambassador resources for legal, lifestyles, nutrition, Program in Beauval, Pinehouse, Wollaston, financial, and work- mental health, and Ile a la Crosse, Green Lake, Cumberland related advice, and fitness House, , Stony Rapids, Black caregiver support Lake, and Fond du Lac. The Science Ambassadors (senior university students) Uranium operations are leaders in supportive and help students explore culturally relevant inclusive workplaces. For example, in 2017, science activities to promote interest in Cameco’s initiatives earned the company several science and math education. The prestigious awards including being named among experience also gives the Ambassadors new Canada’s Top 100 Employers; Canada’s Best Diversity perspectives on learning and knowledge, Employers; Canada's Top Employers for Young and an appreciation for Indigenous cultures.

2017 Summary 7 Government Relations

7) Community vitality commitment 2017 by the numbers: Uranium mining operations commit to study the • 1,159 northerners worked at sites influence of operations on the vitality of • communities in Northern Saskatchewan. To do so, 41 per cent of the total workforce were Indigenous northerners the uranium industry funds the Community Vitality • Monitoring Partnership (CVMP) of government $261.3 million in northern ministries, regional health units, and uranium mining purchases companies. CVMP works to identify and track • $89.7 million in northern wages indicators that provide insight into community • $67,000 in northern school awards vitality. People can use that knowledge to maintain and scholarships and improve their quality of life. • 95 northern community visits

In 2017, the CVMP: • Maintained an information website at • Surveyed public opinion in autumn and www.cvmpsk.ca/; and found that 82 per cent of Saskatchewan • Collaborated with organizations on projects residents and 73 per cent of northerners and information sharing, including supported the continuation of uranium International Centre for Northern mining in the province. The level of support Governance and Development, and the has been consistent since 1990. Northern Alcohol Strategy. • Donated to programs and initiatives that benefit northern communities and children Plans for 2018 such as the Six Rivers Trust Fund, school The CVMP plans to: trips, youth activities, graduations, cultural • Hold a workshop for stakeholders; and events, and science activities. • Begin a new project on Sustainable • Organized visits of northern leaders to key Communities Beyond Mining that will national decision-makers to establish identify challenges and opportunities in relationships and identify opportunities for building robust communities, independent the North. of mining revenues. • Shared information on projects, jobs, health, safety, and environment with 8) Public involvement commitment northerners and employees by websites, Uranium mining operations commit to work with LinkedIn, YouTube, Facebook, Twitter, governments, regulatory agencies, and community radio, email, magazines, Opportunity North, leaders to consult with and inform northerners newspapers, brochures, and newsletters. about their operations in Northern Saskatchewan. In 2017, companies: Outside of the expectations under mines’ surface • Made 95 visits to northern communities, lease agreements, uranium operations signed a fifth leaders, schools, cultural events, career collaboration agreement in 2017. These agreements fairs, and open houses regarding benefit 17 of their key northern communities in collaboration agreements, projects, employment, business, environmental stewardship, employment, and career opportunities. and communications. • Hosted three visits to mine/mill sites for community members, regulatory agencies, For more information, contact: and a youth drumming group. Ministry of Government Relations, Northern • Participated in the Environmental Quality Engagement Branch - 306-425-4200 Committee for Northern Saskatchewan to Email - [email protected] help bridge the information gap between Ministry of Immigration and Career Training, Labour northern communities, industry, and Market Services - 306-236-7648 government. The summary is available at www.saskatchewan.ca by using the search box.

2017 Summary 8 Government Relations