Snap Lake Mine Socio-Economic Assessment Toolbox (SEAT) Report for the period 1 January to 31 December 2013 b SEAT REPORT 2013

CONTENTS

Foreword...... 1 Training in 2013 ...... 37 Executive Summary ...... 2 Opportunities for Students ...... 38 Introduction ...... 4 Scholarships and Summer Students ...... 38 Background ...... 4 NWT Post-secondary Scholarships Report Structure ...... 4 Awarded in 2013...... 39 Acknowledgements ...... 4 Shelby Skinner Puts Her Learning to Work at Snap Lake...... 40 1 THE SEAT PROCESS 5 Keelan Mooney: Sponsorship...... 41 Health and Wellness...... 42 SEAT Objectives ...... 6 Fitness Centre...... 42 Approach...... 7 Fit for Purpose ...... 42  Stakeholder Engagement and the SEAT Process...... 7 The Power of the Spoon...... 43 Community Conversations...... 8 Snap Lake Mine Family Visit...... 44 NWT Business Policy...... 45 2 SNAP LAKE MINE AND ITS COMMUNITIES OF INTEREST 11 Partnering with Northern Business...... 45 Profile of Snap Lake Mine ...... 10 Partners in Business...... 46 Employment ...... 12 Corporate Social Investment ...... 47 Mine Operations ...... 12 A Million Good Reasons to Invest...... 47 Capital Investment ...... 12 Committed to Addressing the Social Life of Mine ...... 12 and Economic Impacts of the Mine ...... 48 Communities near Snap Lake ...... 13 Charity Golf Classic...... 49 Tłįcho Communities...... 14 Stanton Diamond Fundraiser ...... 49 Yellowknives Dene First Nations Communities...... 22 Lutsel K’e Dene First Nation Community ...... 24 4 SOCIAL MANAGEMENT PLAN 51 North Slave Métis Alliance...... 26 Plan for Success...... 52 ...... 26 A Million Good Reasons to Invest...... 47 3 SOCIAL MANAGEMENT AND INVESTMENT 29 APPENDIX 1 - 2013 EMPLOYMENT DATA 57 Employment...... 30 Employment by the Numbers ...... 30 APPENDIX 2 - GLOSSARY AND CONTACT DETAILS 69 Women in Mining...... 34 Developing Human Resources and Training...... 35 Hiring Priorities ...... 35 Recruiting and Retaining Talent...... 35 Career Fairs...... 36 Strategic Job Postings...... 37 Working in Partnership ...... 37 SNAP LAKE MINE SEAT REPORT 2013 FOREWORD

Snap Lake Mine is De Beers' first In July 2013, we celebrated the fifth year diamond mine outside of Africa and of operations at Snap Lake, which saw Canada's first completely underground our young mine make slow but steady diamond mine . The commitments progress out of the global economic made by De Beers in the Environmental collapse of 2008/2009 . We have rebuilt Assessment for the Snap Lake Mine are our Snap Lake team over the past few to responsible development . This years and achieved a significant includes operating the mine in a milestone in 2013 when we reached full manner that contributes to the social, production for the first time . economic and cultural well-being of Community engagement is an integral the , in particular part of how we operate and of the those communities most impacted by foundation of the SEAT process . the mine . Dialogue with communities is an Although this is the first SEAT report ongoing process and helps us for Snap Lake, you may also be familiar understand how effective we have been with our annual Snap Lake Socio- in achieving our commitments and Economic Report which began in 2005 assists us in identifying where there are and updates progress of commitments opportunities for improvement . in the Socio-Economic Agreement with We wish to thank and acknowledge all the Government of the Northwest community members, business owners, Territories . local government, schools, territorial It is with pleasure that we present Snap Where there is significant similarity government and employees for engaging Lake Mine’s first Socio-Economic between the contents required in the in conversation with us regarding our Assessment Toolbox (SEAT) Report . SEAT report and in the annual report Snap Lake Mine . We value the time and This is a tool designed by our main for the GNWT, our Annual Socio- the feedback you have given us . shareholder, , for Economic Report for 2013 is included use by all of its operating mines . The This report provides summaries of in the SEAT report this year . Copies of report provides information to both De Beers’ involvement in the previous socio-economic agreement mine management and outside communities, the current social and reports for Snap Lake Mine are interested parties about progress we economic impacts of the mine and our available from our website at are making in addressing socio- social management plan which outlines www debeersgroup. com/canada. . economic issues in the areas in which how we will address these issues . we operate and the delivery benefits to In the process of completing this year’s We hope you will find this report to be a communities of interest . report, we obtained feedback from our true reflection of the key issues raised communities of interest so that we Upon acquiring the majority during our ongoing engagement and continue to build our understanding shareholding of De Beers in 2012, welcome feedback as we continue to of the communities close to our mines, Anglo American required all De Beers grow our partnerships in the Northwest communicate what De Beers is doing operations to produce their first SEAT Territories . in partnership with these communities Report for the Snap Lake Mine before and explain the progress of our the end of 2014 . This requirement will ongoing commitments . take place every three years until the end of the mine’s life .

Maxwell Morapeli General Manager, Snap Lake Mine

1 SNAP LAKE MINE EXECUTIVE SUMMARY

De Beers is proud of our record of training, employment, SOCIAL MANAGEMENT & INVESTMENT business building, and socio-economic support to the communities close to Snap Lake Mine since we began EMPLOYMENT developing the project into Canada’s only fully 1 underground diamond mine . De Beers' Snap Lake Mine registered 776 person-years of employment1 in 2013 . This is about the same number as the Before we began mining in the NWT, we signed a Socio- previous year . Economic Agreement (SEA) with the Government of the Northwest Territories, in which we made commitments to The workforce is comprised of De Beers employees, as well specific socio-economic benefit targets . Those targets align as those working for our on-site contractors . Eighty-six per with Anglo American’s commitment as a corporation to cent of these workers are male and 14 per cent are female . In assess and monitor its socio-economic impact in the 2013, 274 employees, or 35 per cent of all employees at Snap communities in which Anglo American has operating assets . Lake, were northerners, slightly short of the original northern employment target of 300 NWT Aboriginal and This report, De Beers’ first Socio-Economic Assessment Toolbox (SEAT) Report is our public accounting of our progress against our commitments and when combined with Tuktoyaktuk Sachs Harbour the 2011 and 2012 Snap Lake Mine Socio-Economic Reports, Aklavik Inuvik fulfills the reporting requirements for 2011-2013 for SEAT, Fort McPherson Tsiigehtchic Ulukhaktok and for De Beers’ 2013 Socio-Economic Report to the Paulatuk Government of the Northwest Territories . Colville Lake De Beers has Impact Benefit Agreements (IBAs) with the Fort Good Hope M a Norman c Aboriginal groups in communities that are impacted in some k e Wells n z ie Tulita way by the construction, operation and/or closure of the R i v

e

r mine: , Gameti, Whati, Behchokò¸ Lutsel K’e, Délîne , Ndilo, and the North Slave Metis Alliance . In 2013, Wrigley 86 residents of these communities worked at Snap Lake Mine . Gamètì Wekweètì Whatì Snap Lake Mine Fort Simpson Nahanni Behchoko Butte Jean Marie River Fort Yellowknife Fort Dettah Liard Trout Providence Lake Kakisa Lake Lutsel K’e Enterprise Hay Fort Resolution River

Fort Smith

Snap Lake Mine is located 220 km northeast of Yellowknife, NWT.

1 In 2013, it was expected that over a full year, an employee would work 13 cycles of 14 days with a day equalling a 12 hour shift . This represents 2,184 hours per year or an average of 182 hours per month . Therefore, estimating number of jobs in terms of person years requires summing the total number of hours worked by all employees and dividing that number by 2,184 .

2 SEAT REPORT 2013

non-Aboriginal employees . We continue to focus Since inception, De Beers has spent $1 4. billion - or more recruitment efforts on maximizing NWT resident than 67 per cent of the total spend - with northern businesses, participation and understand the challenges the territory of which more than $800 million, or 39 per cent was with faces with key demographics moving out and a shortage of Aboriginal businesses . available workers with mine-related skills training or experience . CORPORATE SOCIAL INVESTMENT HUMAN RESOURCES AND TRAINING In 2013, De Beers invested approximately $1 4. million in the NWT supporting training, education and literacy and De Beers follows hiring priorities identified in its Impact providing donations and sponsorships to support health, Benefit Agreements . These hiring priorities are designed to environment, arts, culture and sports . These contributions maximize northern Aboriginal employment . have spanned the spectrum of life in northern communities . De Beers corporate social investment includes Books in Candidates from communities with whom Homes, which annually donates three books each to children PRIORITY 1 De Beers has IBAs attending school in eight communities; sponsorship of PRIORITY 2 Other Northerners cultural activities such as Hand Games tournaments; sponsorship of fundraising activities in support of territorial PRIORITY 3 All others health facilities in Yellowknife and Hay River, among many others . De Beers does much to recruit, train, develop and retain employees . These efforts include: OUR SOCIAL MANAGEMENT PLAN We have a robust plan to continue providing support that is • Career fairs; consistent with the commitments we made in our Socio- • Community and school visits; Economic Agreement, and in our Impact Benefit Agreements • Summer student and co-op work/study opportunities; with communities . • Mining Professionals in Training program; Our plan for the future is to build on what we’ve already done • Strategic job postings; and done well, and to find new opportunities to raise the bar, to respond to community needs, and to build a strong, • Working in partnership with the Mine Training Society; resilient North . • Apprenticeships; and, Our plan includes innovative approaches to support a • Post-Secondary Scholarships . capable workforce for today and the future through education and training . HEALTH AND WELLNESS We will continue to focus on local capacity building in De Beers works hard to create an environment where northern businesses by providing opportunities for service employees have high levels of health and wellness on the job . provision, procurement and other initiatives . Mine-site amenities such as the Snap Lake fitness centre, Health and wellness has always been extremely important tailored medical assessments, regular recreational activities, to De Beers, and this will continue to be a focus of our nutritious meal options, and Snap Lake Mine family visits social investment . are just a few of the ways that De Beers addressed employee Culture and traditional ways of life are part of the fabric of health and wellness in 2013 . the North . De Beers has made a commitment to supporting Aboriginal culture in meaningful ways by working closely SUPPORTING NORTHERN BUSINESS with IBA committees to identify cultural activities important Diamond mines in the NWT have spent close to $13 billion to communities . since 1996 to build and operate the three existing mines . Of We will continue to care for the environment during this, 72 per cent, some $9 billion, was spent with northern operations and prepare for an effective closure when companies, including more than $4 billion spent with mining is complete . Aboriginal businesses . De Beers’ NWT Business Policy establishes a number of mechanisms that encourage and facilitate the participation of NWT and Aboriginal businesses in our business . In 2013 alone, De Beers spent more than $115 million with northern businesses, of which $44 million was spent with Aboriginal businesses .

3 SNAP LAKE MINE INTRODUCTION

This report presents information regarding the socio- Following pre-development design and engineering work, economic impacts of Snap Lake Mine . A full assessment of construction started with the winter road in 2005 . the impacts of the mine, including socio-economic impacts The mine has an average recoverable grade of 1 .2 carats per was undertaken as part of the Environmental Assessment in tonne, while the mine has the capacity to process about 2003 . The content of this report was guided by Anglo 1 1. million tonnes of ore each year . American plc’s Socio-Economic Assessment Toolbox (SEAT) Version 3 . REPORT STRUCTURE BACKGROUND This report is organized into four sections . The Snap Lake Mine is located within the barren lands of The first section of this report consists of an introduction to the Northwest Territories of Canada . It is situated at 63° the SEAT process used by Anglo American operations 34’ 30” latitude and 110° 52’ 00” longitude . Travel to and around the world, including De Beers’ mines . It sets out the from the mine site is by aircraft, except in February and objectives and the approach applied, and identifies the March annually when an ice road is constructed for the communities of interest and stakeholders that De Beers has transport of fuel, materials and supplies for the operation . engaged during Snap Lake’s SEAT process . The Snap Lake Mine, De Beers’ first mine outside of Africa, Snap Lake and its local communities of interest are then is unique in Canada . Built on the shore of Snap Lake, 220 profiled, followed by a section focussing on the existing kilometres northeast of Yellowknife, the mine is Canada’s social management initiatives and key community first completely underground diamond mine . The Snap investments made from 2011 to 2013 within those Lake ore body is unlike most diamond-bearing kimberlite communities that were identified as the primary impacted deposits which are known as pipes due to their conical or communities by the Snap Lake Mine during the carrot-like shape . The ore body is a 2 .5 metre thick dike that environmental assessment for the mine . dips an average of 12-15° from the northwest shore down Finally, Snap Lake’s current socio-economic impacts on under the lake . these primary communities of interest are presented with The kimberlite was discovered in 1997 by Winspear the key social management focus areas for 2014 . Resources . De Beers Canada bought the project in the fall of 2000 and submitted an application to the Mackenzie Valley Land and Water Board (MVLWB) in 2001 for a Type A Land ACKNOWLEDGEMENTS Use Permit and Class A Water Licence to construct and Assembling a report like this involves more than just operate the mine . The application was screened and then De Beers . Primary communities of interest, namely the referred to the Mackenzie Valley Environmental Impact Tłįcho Government, Lutsel K’e Dene First Nation, Review Board (MVEIRB) in May 2001 for an environmental Yellowknives Dene First Nation and the North Slave Métis assessment . Following technical and public hearings, the Alliance have made ongoing contributions through their project was approved to proceed to permitting in October honest feedback to us through Impact Benefit Agreement 2003 . Permits to build and operate the mine were received implementation committee meetings, community workshops in May 2004 . and meetings and in other related discussions . We also thank the City of Yellowknife, Town of Hay River and the Government of the NWT for their ongoing dialogue that has 1997 FALL MAY OCTOBER MAY 2005 contributed to the content and preparation of this report . 2000 2001 2003 2004 Our appreciation is also extended to the members of the Snap Lake team who collaborated to prepare this report Kimberlite Environmental Permits to build and to Tait Communications staff members who facilitated discovered assessment & operate mine initiated received a conversation with our key stakeholders regarding our draft report . De Beers buys Project approved Winter road project to proceed to construction permitting begins

4 SEAT REPORT 2013

1 THE SEAT PROCESS

5 SNAP LAKE MINE SEAT PROCESS

SEAT OBJECTIVES CHARACTERIZE THE DE BEERS Objectives of the SEAT process are: 1 OPERATION AT SNAP LAKE MINE • To identify and keep on top of key social and economic impacts and issues that need to be managed; • To improve the understanding within our management team regarding who local communities of interest and key stakeholders are, what their views and interests are CHARACTERIZE AND ENGAGE WITH THE and what our relationship is with them; 2 COMMUNITIES OF INTEREST • To build and maintain trust and goodwill; • To review existing community initiatives and identify where improvements might be made with our programs or through partnerships; • To guide the development and improvement of IDENTIFY AND ASSESS SOCIAL AND community engagement plans; ECONOMIC IMPACTS AND KEY LOCAL • To provide a framework through which our DEVELOPMENT ISSUES, AND ASSESS management team and others can assess our socio- 3 EXISTING MANAGEMENT MEASURES economic contribution and success in sustainable AND SOCIAL INVESTMENTS development; • To provide a planning tool for managing our operation’s social and economic impacts that can guide our social investment and eventually our mine closure plans; and IMPROVE THE MANAGEMENT • To identify or confirm key performance indicators OF SOCIO-ECONOMIC IMPACTS as a basis for tracking commitments for improving 4 AND ISSUES DURING OPERATION AND, the management of each operation’s socio-economic IN TIME, MINE CLOSURE impacts as the basis for local accountability . There are seven steps in the SEAT process, as shown in the adjacent diagram . 5 SUPPORT COMMUNITY DEVELOPMENT

DEVELOP A MANAGEMENT 6 AND MONITORING PLAN

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

This report is the culmination of the SEAT process for the Snap Lake Mine .

6 SEAT REPORT 2013

APPROACH Though the original impacts for the Snap Lake Mine were identified and assessed as part of the environmental assessment process in 2003, the fundamental purpose of the SEAT process is to ensure that ongoing engagement with communities of interest takes place over time in a variety of ways to identify and respond to social concerns relating to our mining operations . De Beers engages communities in a variety of ways and our approach is responsive to how communities like to, and choose to engage . Several engagement opportunities informed this report . These included community meetings, workshops, community visits to the mine site, meetings with the Government of the NWT, our participation in the development of annual Impact Benefit Agreement (IBA) Stacie McSwain, Process Plant control room operator at Snap Lake Mine, explains her work plans with community partners and the annual job and the training she received from the Mine Training Society to Prime Minister independent review of our Impact Benefit Agreement Stephen Harper, his wife Laureen, and federal cabinet ministers during an event in Hay implementation . Community liaison staff members have River, September 2013. held discussions with community members, committees or other key individuals in their visits to communities and in visits to the mine site to meet with employees on site . STAKEHOLDER ENGAGEMENT Some of our favourite conversations are the one-on-one discussions enjoyed over a good cup of tea with Elders who AND THE SEAT PROCESS are visited by our community liaison staff . In 2013, De Beers held a number of community meetings In all of these opportunities, the information shared with where the social performance of the Snap Lake Mine was De Beers has helped us better understand our relationship presented and discussed with members of the community . with communities of interest and any impacts from our Snap Community members asked questions, offered advice and Lake Mine . raised concerns, and these meetings were documented by company representatives . These community meetings are noted in the table below .

DATE - 2013 LOCATION COMMUNITY OF INTEREST NUMBER OF ATTENDEES May 24 Fort Resolution Deninu Kue First Nation 27 May 25 Slave Métis Alliance 13 May 29 N’dilo Yellowknives Dene First Nation 7 June 3 Wekweètì Tłįcho Government 4 June 4 Gamètì Tłįcho Government 25 June 5 Whatì Tłįcho Government 45 June 6 Behchoko Tłįcho Government 80 June 12 Hay River Northwest Territory Métis Nation 19

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In addition to the community meetings, as part of De Beers’ how De Beers is performing from its own and the Impact Benefit Agreement (IBA) implementation process, community’s perspective . Because the information for an annual independent evaluation of the Snap Lake Mine’s these annual reports is gathered by an independent third social performance related to its four impact benefit party, the reports produced in 2011, 2012 and 2013 agreements is undertaken . Community partners participate informed this report . with De Beers staff in drafting the scope of work for the Finally, De Beers provided a presentation of the draft of independent review and also participate in the selection of this report to the GNWT and to our four IBA the independent reviewer . The independent annual IBA communities, providing an opportunity for verification of reviewer conducts interviews with community members community facts and figures, and provide comment on the suggested by the community and also with the company’s company’s assessment of what the issues and concerns are staff involved in implementing IBA commitments . This for communities of interest . A table outlining these ensures an ongoing conversation regarding our social meetings is noted below . performance and an independent assessment regarding

DATE - 2014 COMMUNITY OF INTEREST REPRESENTATIVES September 4 Lutsel K’e Dene First Nation LKDFN IBA Committee September 8 Yellowknives Dene First Nation YKDFN IBA Committee Government of the Northwest Representatives from the Department of Industry, September 11 Territories Tourism and Investment September 12 Tłįcho Government Kwe Beh Working Group September 15 North Slave Métis Alliance President and Vice President

De Beers acknowledges the contribution made by individuals participating in the opportunities listed above and thanks those who participated in these information gathering activities . Active contribution to our ongoing discussions and self-assessments helps build understanding of our relationship with communities of interest to the Snap Lake Mine and the impacts we have to manage .

8 SEAT REPORT 2013

COMMUNITY CONVERSATIONS TRAINING • New approaches are needed to increase the number In preparing this report De Beers met with a number of of IBA community members in training positions, communities of interest, including four Aboriginal groups especially to fulfill training commitments made in IBAs . with whom we have Impact Benefit Agreements (IBA) for the Snap Lake Mine, and representatives from the • Quality of education and availability of training department of Industry, Tourism and Investment of the opportunities in communities is a barrier to Aboriginal Government of the Northwest Territories . The information youth . For example, some cannot challenge their sessions were held with members of each community’s IBA “Trades Entrance Exam” in their own community, implementation committee . The purpose of the meetings though this is required for acceptance into an was to share some of the information contained in the apprenticeship . report in advance of its release, and to confirm the accuracy • Individual training and progression plans should be of the written descriptions of the respective communities . developed, especially for IBA community members, so that they can advance into supervisory and Aboriginal communities were also asked to comment on management positions . their relationship with De Beers and to provide suggestions on what improvements they would like to see . A summary of • A management training program open to NWT the commonly raised comments from these sessions is Aboriginal employees was suggested as a way to ensure included on the following page . a northern Aboriginal voice at the mine’s management table . EMPLOYMENT AND RECRUITMENT BUSINESS DEVELOPMENT • De Beers to continue to share job postings with • Overall, participants from all groups indicated they community employment officers and organizations as would like to see much more of De Beers business it is essential to ensuring IBA community members are spending going to IBA companies . aware of current employment opportunities . • Most conversations about business communities occur • Participants indicated it is important for De Beers to between De Beers and each community’s business follow up with unsuccessful candidates, especially those development corporation . from Aboriginal communities because applicants need to understand why they weren’t selected so they can • Long-term commitments are essential to Aboriginal improve their chances of securing a job with De Beers business entities to continue to build capacity in order in the future . to improve the sustainability of their businesses . • There are perceptions in Aboriginal communities • Business opportunities targeted to individual that there is hiring favoritism across the NWT mining communities was suggested . industry and that creates a disincentive to apply on • Work with community IBA coordinators to identify positions or seek promotions . non-traditional business opportunities, including the • De Beers and Aboriginal communities need to work sale of arts and crafts to mine employees by community together to develop strategies for increasing the artisans . number of their members working at the Snap Lake • Participants suggested De Beers be more flexible and Mine . For example, the Snap Lake Human Resources creative when contracting needs change to find ways team has worked with employment coordinators to retain as much of the business spending with IBA from Tłįcho communities and the result has been an communities as possible . increased number of applications and Tłįcho members getting work at Snap Lake Mine . CORPORATE SOCIAL INVESTMENT • Aboriginal communities want to verify mine employees’ • Overall, communities would like to see more corporate self-declared Aboriginal status . social investment at the community level . • Development of supports for Aboriginal employees, • A number of relatively small donations and such as mentoring program, should be considered as sponsorships as “seed money” that support a wide range a way to help them overcome cultural barriers they of community events is generally preferred to one may face in the workplace, such as communicating larger contribution to a single event . with authority figures or advocating for their own advancement . This would assist Aboriginal employees • Most communities would like to see a “legacy project” in finding job success at the mine and developing that will benefit a community over the long term, but opportunities for advancement . not at the expense of smaller year-to-year funding . • The various IBA implementation committees indicated • It is important that De Beers continues to consult with that they are working on human resource related local communities to understand community priorities projects to help increase their ability to assist their when developing social investment plans and ensuring member in achieving employment with De Beers . the company continues to support projects that are of importance to the residents .

9 SNAP LAKE MINE

10 SEAT REPORT 2013

2 SNAP LAKE MINE AND ITS COMMUNITIES OF INTEREST

11 SNAP LAKE MINE

COMMUNITIES OF INTEREST

PROFILE OF SNAP LAKE MINE CAPITAL INVESTMENT De Beers expects to spend approximately $64 million in Snap Lake Mine is built on the shore of Snap Lake, located 2014 on capital investment . The largest portion of that $64 220 kilometres northeast of Yellowknife . The mine is an million goes toward infrastructure and footwall underground mine . development underground . EMPLOYMENT Other large capital projects include: Employees are flown to the remote worksite using a • Water management; combination of scheduled flights from pick up points in the • Tailings deposition; NWT and chartered flights . Workers are primarily on a two • Mobile equipment; and, week in, two week out rotation, with management employees • Power generation . working a four day in, three day out rotation . The total Snap Lake Mine workforce in 2013 was the equivalent of 776 full-time positions which were staffed by LIFE OF MINE both De Beers and contractor employees . The mine’s The current mine plan indicates that the known ore reserves workforce grew for the fourth year in a row in 2013, will be mined out by approximately 2028 . Unless extensions increasing to 776 from 757 in 2012 . NWT resident employees are made viable, the mine would then be closed and made up 35 per cent of the 2013 workforce . Aboriginal rehabilitated as outlined in the Mine Closure Plan which employment in 2013, including those residing outside the was approved by the Mackenzie Valley Land and Water territory, represented 27 per cent of the total workforce . Board (MVLWB) on January 30, 2014 . This plan is updated A description of how we determine the workforce numbers is regularly and the next update is January 30, 2017 . available in the employment section of this report . The objectives in the reclamation plan are to: MINE OPERATIONS • Protect public health and safety; The mine began commercial production on January 16, 2008 • Prevent or mitigate environmental damage caused by and the official mine opening took place on July 25, 2008 . mining; and • Ensure that when mining and processing activities The kimberlite ore is extracted by drilling, and breaking the end, the Snap Lake site is returned to a state for future rock with explosives . The broken rock is crushed underground generations' use . and then transported on an enclosed conveyor system to the treatment plant located on the surface . In the treatment plant, the ore is crushed to smaller pieces, and then the Specific reclamation criteria are developed in consultation dense particles, which include the diamonds, are separated with local communities, First Nations and other stakeholders, in a dense media separator . The heavy portion is then including regulators . passed through an X-ray machine where the X-rays cause the There is a financial guarantee with the GNWT to cover the diamonds to fluoresce (glow), and these particles are then entire estimated closure cost . The mine closure plan and the ejected and hand-sorted to provide a diamond concentrate . financial guarantee are periodically reviewed to ensure that The concentrate is then valued for royalty purposes in they are current and adequate . Yellowknife and is exported to a related company, De Beers Group Sightholder Services (Botswana), where they are sorted for sale to clients . In 2013, the mine treated 1 1. million tonnes of ore and recovered 1 .3 million carats .

12 SEAT REPORT 2013

Communities near Snap Lake

COMMUNITIES NEAR SNAP LAKE MINE2 De Beers has signed Impact Benefit Agreements (IBAs) with certain Aboriginal groups that are near the Snap Lake Mine . IBAs were signed with:

• Tłįcho Government – communities of Wekweètì, Gamètì, Whatì and Behchokò¸ ; • Yellowknives Dene First Nations – communities of Dettah and N’dilo; • Lutsel K’e Dene First Nation – community of Lutsel K’e; and • North Slave Métis Alliance – while not associated exclusively with any single municipality, it is no less a community . Its members live throughout the .

These IBA communities, along with Yellowknife, were identified as “Primary Communities” in the Socio-Economic Agreement with the Government of the Northwest Territories .

2 Community statistics throughout this section were taken from the NWT Bureau of Statistics: http://www.statsnwt.ca/community-data/infrastructure/YK.html

13 SNAP LAKE MINE

TŁĮCHO COMMUNITIES WEKWEÈTÌ De Beers and the Snap Lake Mine have a special relationship with the Tłįcho This community of 141 people is set on Government, which is our host in this beautiful land and with the Tłįcho rolling rock above the Snare River . communities that are our neighbours, partners, teachers and friends . Formally known as Snare Lake, the name was officially changed to The Snap Lake Mine signed an Impact Benefit Agreement (IBA) with the Tł cho į Wekweètì under the Tł cho Agreement Government in March 2006 bringing a wide range of benefits to the residents of į in 2005 . Wekweètì means “rock lakes” the four Tłįcho communities: Behchokò¸ , Gamètì, Wekweètì and Whatì . in the Tłįcho language . Since reaching a land and self government agreement with the Government of In 2013, three Wekweètì residents Canada in 2005, the Tł cho Government is the governing authority within į worked at Snap Lake Mine . Youth Tł cho lands . į attending Alexis Arrowmaker School The central government is led by a Grand Chief and an executive council which are beneficiaries of De Beers’ Books in includes the chiefs from each of the four Tłįcho communities . Each community Homes initiative . Each youth attending also elects Assembly Members to represent them on the Tłįcho Government . school was able to select three books of their very own, donated by De Beers . De Beers and other mining companies liaise with the Tłįcho Government through the Kwe Beh Working Group, which manages implementation of Impact Benefit Wekweètì, about 195 kilometres north Agreements in the region . of Yellowknife, was formerly an outpost hunting camp . The community was founded in the 1960s when Tłįcho Elder and former chief Alexis TLICHO GOVERNMENT Arrowmaker brought several families from Behchokò¸ who wanted to live a GRAND CHIEF Chief Eddie Erasmus more traditional lifestyle . OFFICER Tlicho Executive Officer Laura Duncan That traditional lifestyle is still KWE BEH WORKING GROUP Chairperson Sonny Zoe important to residents of Wekweètì as approximately 55 per cent of people TERRITORIAL GOVERNMENT REPRESENTATIVE still hunt and fish, 22 per cent still trap, 18 per cent produce traditional arts MEMBER OF LEGISLATIVE ASSEMBLY OF THE NWT and crafts and nearly 66 per cent of Hon. (Electoral District: ) households consume traditional foods . Nearly 94 per cent of residents are fluent in the Tłįcho language .

14 SEAT REPORT 2013

And although traditions are important, the community is WEKWEÈTÌ connected to the rest of the world through the Internet . A search of “Wekweètì” on YouTube will bring up LEADER Chief Johnny Arrowmaker a music video of students from Alexis OFFICER Senior Administrative Officer Ms. Grace Angel Arrowmaker School singing the SCHOOLS Alexis Arrowmaker School praises of their community . You can also watch a video of Wekweètì youth (Grades K-10, 37 students) talking about their experiences at a POPULATION (2012) 141 – 73 males / 68 females fish camp on an island near their TRADITIONAL ACTIVITIES (2008): Hunted and fished 55.6% community . Trapped 22.2% There’s a small hotel in Wekweètì and Produced arts and crafts 18.5% the Development Corporation offers outfitting services . There’s good Households consuming fishing nearby and good hiking near traditional foods (1/2 or more) 65.7% the northern edge of the treeline, PERCENTAGE THAT SPEAK AN ABORIGINAL LANGUAGE (2009) 93.6% close to the barren lands . The PERCENTAGE WITH HIGH SCHOOL DIPLOMA OR MORE 42.0% Bathurst caribou herd passes through this area on its way North in EMPLOYMENT RATE (2009): Less than high school diploma 53.2% spring and south in fall . High school diploma or greater 64.7% There’s also an historic site nearby LABOUR FORCE: Participation rate (2009) 67.9% which dates from the era of the Unemployment rate (2009) 14.5% search for the Northwest Passage . Employment rate (2009) 58.0% Explorer Sir John Franklin wintered here about two centuries ago on his Full-time (2009) 85.1% return from a disastrous trip Part-time (2009) 14.9% overland to the Arctic coast . EMPLOYMENT PROFILE (2009): Government, health, social services, education 59.6% Goods producing 21.3% Other industries 21.3% PRICES: 2010 food price index (Yellowknife = 100) 155.0 RECREATION INFRASTRUCTURE Community hall, arena and gymnasium TRANSPORTATION INFRASTRUCTURE Winter road, airport, air terminal building TOURISM INFRASTRUCTURE Lodges/outfitters (1) COMMUNICATION INFRASTRUCTURE: Postal service, television (satellite), 43% of homes have Internet access, Northwestel telephone service is available. There is no cellular telephone access. HOUSING INFRASTRUCTURE Private – owned (23), Private – rented (12) BUSINESS INFRASTRUCTURE Grocers (1) HEALTH INFRASTRUCTURE Health centre MUNICIPAL INFRASTRUCTURE Fire hall, sanitation (trucked), waste disposal (solid, sewage), road system (gravel)

15 SNAP LAKE MINE

GAMÈTÌ Gamètì is a community of 320 people located midway between Great Slave and Great Bear Lakes . It is located about 300 kilometres from Snap Lake Mine . In 2013 seven Gamètì residents worked at Snap Lake Mine . IT’S A HUGE DEAL. In 2013, at the request of the Gamètì School, De Beers provided first aid training for high school students as a high “THIS IS SOMETHING school credit course . We also provided support to the Gamètì graduation ceremony . THE COMMUNITY Gamètì is a small and isolated, but beautiful community . It is situated on a point reaching into Rae Lake . Tłįcho people used this site for ages as a temporary camp and families CAN BE PROUD OF. began settling here in the 1970s following the construction of an airstrip, school, store and new log homes . Gamètì now WE’VE WORKED boasts a community store, hotel and restaurant, fire station, health centre and school (Kindergarten to Grade 12) . Another source of local pride was the community’s first high HARD FOR THIS. school graduation in June 2013 with eight Grade 12 students receiving their diplomas . “It’s a huge deal . This is something the community can be proud of . We’ve worked hard for this,” Brendan Mulcahy, principal at Jean Wetrade Gamètì School, told the Northern Journal newspaper . “They don’t have to leave home any more to graduate high school ”. BRENDAN MULCAHY Gamètì students’ literacy skills are boosted by De Beers Principal, Jean Wetrade Canada’s annual Books in Homes program which visits ” Gamètì and seven other NWT communities . Gamètì Gamètì School students each take home three free books of their choosing .

Today, residents are employed by Tłįcho government, the community government and local businesses while some work at diamond mines such as Snap Lake Mine . However, the people of Gamètì still practice traditional subsistence hunting and fishing (nearly 40 per cent) and trapping (14 per cent) . About 24 per cent of residents produce traditional arts and crafts . The traditional Hand Games are also popular and the Gamètì team, led by Brenden Bekale, who recently finished 5th at the ninth annual Aboriginal Men’s Hand Games Tournament in Behchokò¸ . Media reports said the exciting young team “…got the crowd’s attention ”. The Community Government is responsible for community planning, public works and community improvements, public utilities such as water quality, water delivery and sewage services as well as emergency response planning and fire protection, recreation and other services .

16 SEAT REPORT 2013

GAMÈTÌ

LEADER Chief David Wedawin OFFICER Senior Administrative Officer Mr. Judal Dominicata SCHOOLS Jean Wetrade Gamètì School (Grades K-12, 115 students) POPULATION (2012) 311 160 Males / 151 Females TRADITIONAL ACTIVITIES (2008): Hunted and fished 37.9% Trapped 14.0% Produced arts and crafts 24.3% Households consuming traditional foods (1/2 or more) 73.2% PERCENTAGE THAT SPEAK AN ABORIGINAL LANGUAGE (2009) 93.3% PERCENTAGE WITH HIGH SCHOOL DIPLOMA OR MORE 32.2% EMPLOYMENT RATE (2009): Less than high school diploma 33.6% High school diploma or greater 80.0% LABOUR FORCE: Participation rate (2009) 64.0% Unemployment rate (2009) 24.1% Employment rate (2009) 48.6% Full-time (2009) 89.4% Part-time (2009) 5.8% AVERAGE PERSONAL INCOME (2010) $36,794 AVERAGE EMPLOYMENT INCOME (2010) $32,438 AVERAGE FAMILY INCOME (2010) $79,268 PERCENTAGE FAMILIES LESS THAN $30,000 (2010) 42.9% PERCENTAGE FAMILIES MORE THAN $75,000 (2010) 42.9% PRICES: 2009 living cost differential (Edmonton = 100) 147.50 2010 food price index (Yellowknife = 100) 127.40 AVERAGE TEMPERATURE (°C): December 2002 -22.40 June 2003 20.40 RECREATION INFRASTRUCTURE: Community hall, arena and gymnasium (2) TRANSPORTATION INFRASTRUCTURE: Winter access road, airport, air terminal building TOURISM INFRASTRUCTURE Accommodations (1) COMMUNICATION INFRASTRUCTURE: Postal service, television (satellite), radio station, 41% of homes have Internet access, Northwestel telephone service is available. There is no cellular telephone service available in the community. HOUSING INFRASTRUCTURE Private – owned (47), private – rented (8), public housing – rented (8), staff housing – rented (7) BUSINESS INFRASTRUCTURE Grocers (1)

HEALTH INFRASTRUCTURE Health centre MUNICIPAL INFRASTRUCTURE: Fire hall, sanitation (trucked), waste disposal (solid, sewage), road system (gravel)

17 SNAP LAKE MINE

WHATÌ Whatì is the oldest of all Tłįcho communities and is home to hunting and fishing, about 15 per cent trapping and 17 per approximately 519 people . It is located on the shore of cent creating traditional arts and crafts . Nearly 80 per cent magnificent Lac La Martre, the third largest lake in the of households eat traditional food, such as caribou and fish . NWT, about 164 kilometres northwest of Yellowknife . The community infrastructure is a blend of traditional Sixteen Whatì residents were employed at Snap Lake Mine meets contemporary . in 2013 . Whatì residents had the opportunity to participate Log homes, the original dwellings constructed when Whatì in a number of activities in Tł cho communities sponsored į became a permanent settlement, are contrasted with by De Beers, such as the Annual National Addictions modern day conveniences such as the youth centre, culture Awareness Week activities in the region . centre and the well-equipped Mezi Community School . The community was formally known as Lac La Martre until Services in the community include: a Catholic Church, it was officially changed under the Tł cho Agreement in į RCMP detachment, grocery store, bed and breakfast, and 2005 to Whatì which means “Marten Lake ”. convenience store . Traditional arts and crafts, such as More than 92 per cent of community residents fluently speak beaded jackets, mitts, gloves and moccasins are available for the Tłįcho language . Community members actively purchase through the Whatì Community Store . participate in traditional activities with nearly 50 per cent

NWT Commissioner George Tuccaro, left, helps a student at Mezi Community School in Whatì, check out her three books during De Beers’ annual Books in Homes event in April 2013. Also pictured is Elizabeth (Sabet) Biscaye, Superintendent of Community Relations with De Beers.

18 SEAT REPORT 2013

WHATÌ

LEADER Chief Alfonz Nitsiza OFFICER Senior Administrative Officer (SAO) Mr. Larry Baran SAO TRAINEE Lisa Mackenzie Nitsiza SCHOOLS Mezi Community School (Grades K-12, 137 students) Community Learning Centre POPULATION (2012) 519 274 males / 245 females TRADITIONAL ACTIVITIES (2008): Hunted and fished 47.2% Trapped 14.7% Produced arts and crafts 17.5% Households consuming traditional foods (1/2 or more) 78.0% PERCENTAGE THAT SPEAK AN ABORIGINAL LANGUAGE 92.8% PERCENTAGE WITH HIGH SCHOOL DIPLOMA OR MORE 33.6% EMPLOYMENT RATE (2009): Less than high school diploma 34.1% High school diploma or greater 58.7% LABOUR FORCE: Participation rate (2009) 59.4% Unemployment rate (2009) 27.1% Employment rate (2009) 43.3% Full-time (2009) 80.8% Part-time (2009) 16.7% EMPLOYMENT PROFILE (2009): Government, health, social services, education 46.2% Goods producing 35.3% Other industries 17.3% AVERAGE PERSONAL INCOME (2010) $31,500 AVERAGE EMPLOYMENT INCOME (2010) $28,733 AVERAGE FAMILY INCOME (2010) $66,393 PERCENTAGE FAMILIES LESS THAN $30,000 (2010) 35.7% PERCENTAGE FAMILIES MORE THAN $75,000 (2010) 28.6% PRICES: 2009 living cost differential (Edmonton = 100) 147.50 2010 food price index (Yellowknife = 100) 138.40 AVERAGE TEMPERATURE (°C): December 2002 -21.50 June 2003 17.20 RECREATION INFRASTRUCTURE: Community hall, arena and gymnasium TRANSPORTATION INFRASTRUCTURE: Winter access road, airport, air terminal building TOURISM INFRASTRUCTURE Accommodations (1) COMMUNICATION INFRASTRUCTURE: Postal service, television (satellite), radio station, 43% of homes have Internet, cellular telephone and regular telephone service are available. HOUSING INFRASTRUCTURE: Private – owned (73), private – rented (10), public housing – rented (16), staff housing – rented (20) BUSINESS INFRASTRUCTURE Grocers (1) JUDICIAL INFRASTRUCTURE Police officers (2) HEALTH INFRASTRUCTURE Health centre MUNICIPAL INFRASTRUCTURE: Fire hall, sanitation (trucked), waste disposal (solid, sewage), road system (gravel)

19 SNAP LAKE MINE

BEHCHOKO “Edzo” was named after a Tłįcho leader who arranged peace between the Tłįcho and the Akaitcho . The NWT government Behchokò¸ , home to approximately 2,174 people, is the began developing Edzo in 1965 and encouraged residents of largest of the four Tłįcho communities and the only one Rae to move but many stayed in Rae where hunting, fishing that is accessible year-round by road . Behchokò¸ is located and trapping are more accessible . Edzo is largely a residential on Marion Lake near the North Arm of Great Slave Lake community and home to the Chief Jimmy Bruneau Regional and about 80 kilometres northwest of Yellowknife and 300 High School . It is located just off of Highway No . 3 and is kilometres (as the raven flies) southwest of Snap Lake Mine . about a 15 kilometre drive from Rae . In 2013, 39 Behchok residents worked at Snap Lake Mine . ò¸ Today, many of Behchokò¸ ’s younger residents are employed De Beers sponsored the 2013 Youth Hand Games and Men’s in Tłįcho companies, in local government and business or Hand Games Tournaments in Behchokò¸ . work on rotation at the diamond mines . Behchokò¸ is comprised of two communities: Rae and Edzo . However the traditional lifestyle remains important in The community was formerly known as Rae-Edzo but the Behchokò¸ and nearly 40 per cent of residents continue to name was officially changed under the Tłįcho agreement hunt and fish, 12 per cent trap, and nearly 13 per cent in 2005 . produce traditional arts and crafts . Nearly 90 per cent of “Rae” was named in honour of Dr . John Rae, a Hudson’s people speak the Tłįcho language . Bay Company explorer who became famous for his search And while traditions live on in Behchokò¸ and across the for the Franklin expedition in the high arctic during the st Tłįcho lands, the people have also embraced 21 Century late 1840s and early 1850’s . Old Fort Rae is located about technology and communications . Look for Tłįcho on eight km from the present community . Most of Behchokò¸ ’s Facebook! people live in Rae and most of its services are located there along with the central offices for the Tłįcho Government and the Tłįcho Community Services Agency and Tłįcho Investment Corporation .

De Beers provides annual support to the youth and men’s Hand Games tournaments held in Behchoko each year.

20 SEAT REPORT 2013

BEHCHOKO

LEADER Chief Clifford Daniels OFFICER Senior Administrative Officer Mr.David Steele SCHOOLS Chief Jimmy Bruneau School (Grades K-12, 392 students) Elizabeth Mackenzie Elementary School (Grades K-6, 214) POPULATION (2012) 2,174 1,154 males / 1,020 females TRADITIONAL ACTIVITIES (2008): Hunted and fished 37.5% Trapped 12.1% Produced arts and crafts 12.7% Households consuming traditional foods (1/2 or more) 73.2% PERCENTAGE THAT SPEAK AN ABORIGINAL LANGUAGE 89.1% PERCENTAGE WITH HIGH SCHOOL DIPLOMA OR MORE 33.9% EMPLOYMENT RATE (2009): Less than high school diploma 23.2% High school diploma or greater 64.6% LABOUR FORCE: Participation rate (2009) 48.5% Unemployment rate (2009) 22.7% Employment rate (2009) 37.5% Full-time (2009) 91.3% Part-time (2009 6.4% EMPLOYMENT PROFILE (2009): Government, health, social services, education 54.0% Goods producing 29.7% Other industries 14.4% AVERAGE PERSONAL INCOME (2012) $37,790 AVERAGE EMPLOYMENT INCOME (2010) $41,027 AVERAGE FAMILY INCOME (2010) $78,900 PERCENTAGE FAMILIES LESS THAN $30,000 (2010) 32.0% PERCENTAGE FAMILIES MORE THAN $75,000 (2010) 42.0% PRICES: 2009 living cost differential (Edmonton = 100) 127.50 2010 food price index (Yellowknife = 100) 135.10 RECREATION INFRASTRUCTURE: Community hall, gymnasium (3), youth centre, cultural centre and swimming pool (seasonal) TRANSPORTATION INFRASTRUCTURE All weather access road TOURISM INFRASTRUCTURE: Lodges/outfitters (1), accommodations (1), park (1), restaurant COMMUNICATION INFRASTRUCTURE: Postal service, television (satellite), radio stations (2), 4G cellular service, 40% of homes have Internet HOUSING INFRASTRUCTURE: Private – owned (251), private – rented (13), public housing – rented (168), staff housing – rented (35) BUSINESS INFRASTRUCTURE Grocers (1) JUDICIAL INFRASTRUCTURE Police officers (12) HEALTH INFRASTRUCTURE Health centre MUNICIPAL INFRASTRUCTURE: Fire hall, sanitation (trucked/piped), waste disposal (solid, sewage), road system (gravel)

21 SNAP LAKE MINE

YELLOWKNIVES DETTAH DENE FIRST NATION MEMBER OF LEGISLATIVE ASSEMBLY OF THE NWT COMMUNITIES Hon. Bob Bromley (Electoral District: Weledeh) N’dilo and Dettah, along with Lutsel LEADER Chief Edward Sangris K’e and Deninu Kue (Fort Resolution) are part of the Akaitcho Territory . OFFICER Chief Executive Officer Mr. Michael Cheeks The Dene of N’dilo, descendants of SCHOOLS Kaw Tay Whee School (Grades K-7, 35 students the Chipewyan and Tłįcho people, are POPULATION (2012) 260 130 males / 130 females known as the Weledeh Yellowknives, deriving their name from the colour TRADITIONAL ACTIVITIES (2008): Hunted and fished 38.5% of their tools, traditionally made from Trapped 19.8% local copper . Produced arts and crafts 22.5% Dettah and N’dilo are part of the Households consuming Yellowknives Dene First Nation, which traditional foods (1/2 or more) 70.0% signed an Impact Benefit Agreement PERCENTAGE THAT SPEAK AN ABORIGINAL LANGUAGE (2009) 59.9% with the Snap Lake Mine in 2005 . PERCENTAGE WITH HIGH SCHOOL DIPLOMA OR MORE 31.9% In De Beers’ employment tracking EMPLOYMENT RATE (2009): Less than high school diploma 37.1% system, Dettah and N’dilo residents are considered to be part of High school diploma or greater 72.9% Yellowknife, and in 2013 19 YKDFN LABOUR FORCE: Participation rate (2009) 48.5% members worked at Snap Lake Mine . Unemployment rate (2009) 28.2% Since 2006, De Beers has provided an annual financial contribution to Employment rate (2009) 48.9% support scholarships for YKDFN Full-time (2009) 85.4% students . Part-time (2009) 12.4% In 2013, De Beers supported a wide EMPLOYMENT PROFILE (2009): Government, health, range of activities sponsored by the social services, education 42.7% YKDFN, including a fall berry-picking Goods producing 30.3% event, Christmas feast and Hand Games tournament, summer Other industries 27.0% programs and National Aboriginal RECREATION INFRASTRUCTURE: Community hall, gymnasium, wellness centre Day activities . TRANSPORTATION INFRASTRUCTURE: All weather access road, winter access road Students attending Kaw Tay Whee TOURISM INFRASTRUCTURE Lodges/outfitters (1) School in Dettah and K’alemi Dene COMMUNICATION INFRASTRUCTURE: Postal service, television (satellite), 4g cellular School in N’dilo also benefit from De Beers’ Books in Homes program service, 36% of homes have Internet. annually . HOUSING INFRASTRUCTURE: Private – owned (41), private – rented (3), public housing – rented (36), staff housing – rented (0) DETTAH BUSINESS INFRASTRUCTURE None Dettah is a Yellowknives Dene First JUDICIAL INFRASTRUCTURE Police officers (0) Nation community of about 260 HEALTH INFRASTRUCTURE None people that is located across Yellowknife Bay from the NWT capital MUNICIPAL INFRASTRUCTURE: Fire hall, sanitation (trucked), waste disposal city of Yellowknife: a 27 kilometre (solid, sewage), road system (gravel) drive in the summer on the Ingraham Trail or a six and a half kilometre drive in the winter via an ice road fishing still dominate the local economy . About 40 per cent of Dettah residents hunt across the bay . and fish, about 20 per cent trap, about 23 per cent produce traditional arts and crafts and 70 per cent of households consume traditional foods . Dettah means “Burnt Point” in the Weledeh language . Dettah has been The community is home to the renowned Dettah Drummers who perform at a traditional fish camp for hundreds ceremonies throughout the region – including the swearing-in ceremony for the of years and hunting, trapping and NWT Commissioner George Tuccaro in 2010 and welcoming royalty when the Duke and Duchess of Cambridge visited Yellowknife in June 2011 .

22 SEAT REPORT 2013

N’DILO N’DILO N’dilo is located at the north end of Latham Island which basks in MEMBER OF LEGISLATIVE ASSEMBLY OF THE NWT sunrises over Yellowknife Bay and Hon. Bob Bromley (Electoral District: Weledeh) sunsets falling over Back Bay . N’dilo LEADER Chief Ernest Betsina residents can launch their boats (or snowmobiles in the winter) and OFFICER Chief Executive Officer Mr. Michael Cheeks within minutes venture north up the SCHOOLS K’álemì Dene School (Grades K-12, 108 students) Yellowknife River system or south to POPULATION (2011) Approximately 250 the vast expanse of Great Slave Lake . TRADITIONAL ACTIVITIES (2008): Hunted and fished 36.5% N’dilo shares Latham Island with Trapped 14.1% the city of Yellowknife, and the Produced arts and crafts 20.2% community of 250 people stands shoulder-to-shoulder with the capital Households consuming city’s Old Town where reminders of the traditional foods (1/2 or more) 45.0% Yellowknife’s gold mining roots can PERCENTAGE THAT SPEAK AN ABORIGINAL LANGUAGE (2009) 46.2% still be found . PERCENTAGE WITH HIGH SCHOOL DIPLOMA OR MORE 40.1% N’dilo boasts the popular Smokehouse EMPLOYMENT RATE (2009): Less than high school diploma 30.3% Cafe, Det’on Cho Corporation office, Akaitcho Business Development High school diploma or greater 63.8% Corporation, the award-winning LABOUR FORCE: Participation rate (2009) 64.1% K’álemì Dene School and the Vital Unemployment rate (2009) 31.5% Abel Boarding Home which provides Employment rate (2009) 43.9% accommodations for Northerners travelling to Yellowknife for medical Full-time (2009) 85.2% services at Stanton Territorial Hospital . Part-time (2009) 13.0% Tourism NWT describes N’dilo as “… a vibrant focus of Aboriginal life and residents frequently host cultural events where you can learn about Dene arts, customs and history ”. Many N’dilo residents work in Yellowknife in government, business services, and mining, but more than 35 per cent of N’dilo residents still hunt and fish, 14 per cent trap and about 20 per cent produce traditional arts and crafts .

Meat is cooked on the barbecue during National Aboriginal Day celebrations held by the Yellowknives Dene First Nation in June 2013. De Beers provided funding to support the event.

23 SNAP LAKE MINE

Another example of the community’s strong cultural LUTSEL K’E DENE FIRST NATIONS traditions can be found in the first-ever Hand Games COMMUNITY tournament and fishing derby that was held in July 2013 in Lutsel K’e, along with N’dilo and Dettah, and Deninu Ku’e Lutsel K’e . Northern media reported that more than 100 (Fort Resolution) are part of the Akaitcho Territory . people camped out in Lutsel K’e to take part in the event and compete for prizes . De Beers provided financial support LUTSEL K’E for the event . A small, traditional community of approximately 310 people The people of Lutsel K’e are also working to protect their on the East Arm of Great Slave Lake, Lutsel K’e is renowned traditional way of life and build a sustainable future by for its beautiful location and its trophy lake trout, pike creating a new national park on the East Arm of Great Slave and grayling . Lake to be called Thaidene Nene – which means the “Land of the Ancestors ”. Lutsel K’e signed an Impact Benefit Agreement (IBA) with Snap Lake Mine in April 2007 . In 2013, two Lutsel K’e “The protection of Thaidene Nene has been a decades-long residents worked at Snap Lake Mine . dream for the Lutsel K’e Denesoline,” Chief Dora Enzoe said in a November 2013 press release . “Our Elders and the Lutsel K’e participates in the Books in Homes program and leadership have long maintained that we have a responsibility approximately $9,000 worth of books was distributed to to protect this area of our territory to ensure that our way of community youth attending Lutsel K’e Dene School in life can be maintained in the future ”. support of enhancing literacy . In 2013, De Beers contracted with trainers to provide a first aid workshop for the community, as well as a workshop entitled “Professionalism in the Workplace ”. De Beers also supports cultural events such as youth on the land day camps, and Hand Games tournaments . Lutsel K’e, located about 200 kilometres east of Yellowknife, means “place of the Łutsel,” which is a type of small fish . The community was previously known as Snowdrift (until July 1992) because it lies near the mouth of the Snowdrift River . The community features a Royal Canadian Mounted Police detachment with two constables, a health centre, the Lutsel K’e Co-op, a post office and nine lodges or outfitters in the area . Lutsel K’e Dene School offers classes from Kindergarten-Grade 12 and there is also a community learning centre run by Aurora College . Although not accessible by road, there is a small airport with scheduled services by one airline from Yellowknife . An annual sealift is provided by Northern Transportation Company Limited from Hay River in the summer . Lutsel K’e Water Aerodrome is available in the summer months when the lake is clear of ice .

Lutsel K’e’s economy is largely traditionally based although Lutsel K’e residents take part in a small business workshop supported by De Beers arts and crafts and tourism are important, especially sport in March 2013. fishing . The traditional way of life is strong in Lutsel K’e with nearly 75 per cent of residents fishing and hunting, more than 30 per cent trapping, about 17 per cent producing traditional arts and crafts, and more than 90 per cent of households consuming traditional foods . More than 75 per cent of people speak an Aboriginal language .

24 SEAT REPORT 2013

LUTSEL K’E

MEMBER OF LEGISLATIVE ASSEMBLY OF THE NWT Hon. Tom Beaulieu (Electoral District: Tu Nedhe) LEADER Chief Dora Enzoe (Election being held in May 2014) OFFICER Senior Administrative Officer Ms. Agatha Laboucan SCHOOLS Lutsel K’e Dene School (Grades K-11, 65 students) POPULATION (2012) 310 165 Males / 145 Females TRADITIONAL ACTIVITIES (2008): Hunted and fished 73.3% Trapped 32.9% Produced arts and crafts 17.7% Households consuming traditional foods (1/2 or more) 91.9% PERCENTAGE THAT SPEAK AN ABORIGINAL LANGUAGE (2009) 76.9% PERCENTAGE WITH HIGH SCHOOL DIPLOMA OR MORE 31.3% EMPLOYMENT RATE (2009): Less than high school diploma 24.0% High school diploma or greater 56.6% LABOUR FORCE: Participation rate (2009) 47.3% Unemployment rate (2009) 27.8% Employment rate (2009) 34.2% Full-time (2009) 71.7% Part-time (2009) 24.1% EMPLOYMENT PROFILE (2009): Government, health, social services, education 65.1% Goods producing 15.7% Other industries 19.3% AVERAGE PERSONAL INCOME (2010) $32,875 AVERAGE EMPLOYMENT INCOME (2010) $32,063 AVERAGE FAMILY INCOME (2010) $59,625 PERCENTAGE FAMILIES LESS THAN $30,000 (2010) 50.0% PERCENTAGE FAMILIES MORE THAN $75,000 (2010) 25.0% PRICES: 2009 living cost differential (Edmonton = 100) 162.5 2010 food price index (Yellowknife = 100) 167.1 AVERAGE TEMPERATURE (°C): December 2002 -20.6 June 2003 17.8 RECREATION INFRASTRUCTURE: Community hall, arena, gymnasium TRANSPORTATION INFRASTRUCTURE: Marine re-supply facility, airport, air terminal building TOURISM INFRASTRUCTURE Four lodges or outfitters in the area COMMUNICATION INFRASTRUCTURE: Postal service, television (satellite), radio stations (2), 17% of homes have Internet. HOUSING INFRASTRUCTURE: Private – owned (60), private – rented (7), public housing – rented (37), staff housing – rented (7) BUSINESS INFRASTRUCTURE Grocers (1) JUDICIAL INFRASTRUCTURE Police officers (2) HEALTH INFRASTRUCTURE Health centre MUNICIPAL INFRASTRUCTURE: Fire hall, sanitation (trucked), waste disposal (solid, sewage), road system (gravel)

25 SNAP LAKE MINE

NORTH SLAVE MÉTIS ALLIANCE YELLOWKNIFE Although the North Slave Métis Alliance (NSMA) is not a Yellowknife describes itself as a “…vibrant city in the heart of town or hamlet like our other neighbours, it is indeed a the wilderness ”. It is the capital city of the Northwest community of about 500 people . Territories and the largest community in the NWT with a population of 19,752 (2012) . The NSMA represents Métis in Yellowknife, Behchokò¸ , Whatì, Gamètì, Wekweètì, Dettah and N’dilo . The North Yellowknife is located on the northern shore of Great Slave Slave Métis Alliance (NSMA) signed an Impact Benefit Lake, approximately 500 kilometres south of the Arctic Circle, Agreement (IBA) with Snap Lake Mine in August 2006 . In on the west side of Yellowknife Bay near the outlet of the 2013, nine NSMA members worked at Snap Lake Mine . Yellowknife River . The city is about 1,020 kilometres north of Since 2008, De Beers has provided $5,000 annually to Edmonton (as the raven flies) or about a 1,500 kilometre drive . support post-secondary scholarships for NSMA members . In 2013, approximately 186 full-time equivalent jobs were The NSMA organizes an Aboriginal Day Fish Fry held each held by Yellowknife residents working for De Beers in June 21st in Yellowknife . De Beers provided sponsorship for Yellowknife or at Snap Lake Mine located about the 2013 Fish Fry, in addition to contributing to the 220 kilometres northeast of the city . purchase of an additional barbecue for the event . Yellowknife was named after the Yellowknives Dene First More than 5,000 people attended the celebration . The event Nation who were once referred to by explorers as the included performances by Aboriginal musicians, a teepee “Copper Indians” or “Yellowknife Indians” because they used building contest, booths selling handmade traditional arts tools made from copper . In the Tłįcho language, the city is and crafts, a Hand Game demonstration, drum dance and known as Somba K’e which means “where the money is ”. of course, a free meal including locally caught whitefish . Yellowknife was founded in 1934 after gold was found in the The North Slave Métis have occupied and used the North area although a community with commerce did not emerge Slave region for more than 200 years . During this time they until 1936 . Yellowknife soon became the centre of economic have developed distinctive social and economic patterns activity in the NWT, and became the capital of the Northwest and traditions that define the North Slave Métis, culture Territories in 1967 . and community . As gold production began to wane in the 1980s, Yellowknife The NSMA is vitally concerned with the protection, shifted from being a mining town to being a centre of preservation and sustainable use of its traditional lands government services . This shift began to reverse, however, and resources . With that in mind, the NSMA is committed with the discovery of diamonds north of Yellowknife in 1991 . to principles of economic sustainability, environmental NWT Tourism describes Yellowknife as a city that glitters like a stewardship and self-determination in respect of its diamond year round . In summer, Great Slave Lake beckons, traditional lands and resources luring fishers and boaters, while festivals and events take The NSMA’s Board of Directors are: President William centre stage . (Bill) Enge, Vice President Marc Whitford, Secretary- “By autumn, the night sky begins to sparkle with the world’s Treasurer Alan Harman, Director Robert Mercredi, most awe-inspiring displays of northern lights . By winter, Director Edward Jones and Director Arnold Enge . Yellowknife’s world turns snow white and dark nights sparkle under the Aurora Borealis . Dog teams and snowmobiles explore the snow covered landscape, while visitors curl up in luxury at winter lodges to watch the Aurora . Yellowknife’s colours return in spring . Out on the lake there are dog races and foot races, an ice palace, and kite skiing on spectacular Great Slave Lake ”.

26 SEAT REPORT 2013

YELLOWKNIFE

MEMBERS OF LEGISLATIVE ASSEMBLY OF THE NWT Hon. Bob Bromley (Electoral District: Weledeh) Wendy Bisaro (Electoral District: Frame Lake) Hon. Glen Abernethy (Electoral District: Great Slave) Hon. David Ramsay (Electoral District: ) Daryl Dolynny (Electoral District: ) Bob Bromley (Electoral District: Weledeh) Robert Hawkins (Electoral District: ) Hon. Bob McLeod (Electoral District: ) LEADER Mayor Mark Heyck OFFICER Senior Administrative Officer Mr. Dennis Kefalas YELLOWKNIFE CATHOLIC SCHOOLS: Weledeh Catholic School (Grades K-8, 383 students) École St. Patrick High School (Grades 9-12, 477 students) École St. Joseph School (Grades K-8, 457 students) COMMISSION SCOLAIRE FRANCOPHONE, TERRITORIES DU NORD-OUEST École Allain St-Cyr (Grades K-12, 97 students) YELLOWKNIFE EDUCATION DISTRICT NO. 1: École J.H. Sissons School (Grades K-5, 216 students) Mildred Hall Elementary School (Grades K-8, 221 students) N.J. Macpherson School (Grades K-5, 264 students) Range Lake North School (Grades K-8, 323 students) École William McDonald School (Grades 6-8, 144 students) École Sir John Franklin High School (Grades 9-12, 700 students) POPULATION (2012) 19,752 10,214 Males / 9,538 Females TRADITIONAL ACTIVITIES (2008): Hunted and fished 34.5% Trapped 1.2% Produced arts and crafts 3.5% Households consuming traditional foods (1/2 or more) 10.7% PERCENTAGE THAT SPEAK AN ABORIGINAL LANGUAGE 18.0% PERCENTAGE WITH HIGH SCHOOL DIPLOMA OR MORE 83.8% EMPLOYMENT RATE (2009): Less than high school diploma 48.1% High school diploma or greater 85.7% LABOUR FORCE: Participation rate (2009) 84.5% Unemployment rate (2009) 5.6% Employment rate (2009) 79.7% Full-time (2009) 90.4% Part-time (2009) 9.3% EMPLOYMENT PROFILE (2009): Government, health, social services, education 39.9% Goods producing 14.5% Other Industries 43.9%

27 SNAP LAKE MINE

YELLOWKNIFE

AVERAGE PERSONAL INCOME (2010) $64,127 AVERAGE EMPLOYMENT INCOME (2010) $63,127 AVERAGE FAMILY INCOME (2010) $138,620 PERCENTAGE FAMILIES LESS THAN $30,000 (2010) 9.4% PERCENTAGE FAMILIES MORE THAN $75,000 (2010) 74.8% PRICES: 2009 living cost differential (Edmonton = 100) 117.5 2010 food price index (Yellowknife = 100) 100.0 AVERAGE TEMPERATURE (°C): December 2002 -21.4 June 2003 18.7 RECREATION INFRASTRUCTURE: Community hall (1), arena (3), curling rink (1), gymnasiums (12), year- round swimming pool (1) TRANSPORTATION INFRASTRUCTURE: All weather road, airport, air terminal building TOURISM INFRASTRUCTURE: Lodges/outfitters (38), accommodations (19), campgrounds (3), parks (9), restaurants (33), visitor centres (2) COMMUNICATION INFRASTRUCTURE: Postal service, television (cable), radio stations (6), 4G cellular service, 89.9 per cent of homes have Internet HOUSING INFRASTRUCTURE: Private – owned (3,621), private – rented (2,292), public housing – rented (289), staff housing – rented (541) BUSINESS INFRASTRUCTURE: Government financing (3), chartered bank branches (5), ATM service (6), grocers (5) JUDICIAL INFRASTRUCTURE: Police officers (45), correctional facility, young offenders facility HEALTH INFRASTRUCTURE: Hospital, medical centre, women’s shelter/transition house MUNICIPAL INFRASTRUCTURE: Fire hall, sanitation (trucked/piped), waste disposal (solid, sewage), road system (paved)

The City’s 2014 Visitor’s Guide boasts that Yellowknife offers many of the urban amenities you’d find in any Canadian centre including the Prince of Wales Northern Heritage Centre, the Northern Arts and Cultural Centre, and the Northern Frontier Visitors Centre . At the same time, it is a magical place on the edge of the great Boreal Forest wilderness, where the outdoors, in all its glory, is easily accessible . In summer, the sun stays up for nearly 24 hours– meaning endless, light-filled days full of camping, fishing or taking in the tunes at the city’s famous Folk on the Rocks music festival . Winter is the crisp, invigorating season of dogsledding, snowmobiling and ice fishing, and awe-inspiring northern lights displays that draw visitors from around the world . There’s also the Snow King’s Winter Festival and the Long John Jamboree . In Yellowknife, De Beers provides support for a range of events and activities, including the Northern Arts and Cultural Centre, Folk on the Rocks, and the Long John Jamboree . The Jamboree’s centrepiece attraction is De Beers’ Inspired Ice – NWT Ice Carving Championship, which started in 2012 . In 2013, 10 teams from across North America participated . Yellowknife residents (known as Yellowknifers) earn more, on average, than people in nearly every other Canadian city (average personal income of $64,350 in 2012) . What’s more, there’s a federal tax deduction of up to $16 .50 per day or $6,022 .50 annually that allows northern Canadians to keep more of their yearly income . On personal income of $100,000 and lower, people in the NWT are taxed less than any province . There is also no territorial sales tax . Guardian of the Deep, winning piece in the second annual De Beers Inspired Ice – NWT Ice Carving Championship, shines in the late afternoon sun during the 2013 Long John Jamboree in Yellowknife.

28 SEAT REPORT 2013

3 SOCIAL MANAGEMENT AND INVESTMENT

29 SNAP LAKE MINE EMPLOYMENT

De Beers Snap Lake Mine is a major NWT employer, creating 776 direct, full-time equivalent jobs in 2013 . EMPLOYMENT BY THE The section that follows provides highlights of De Beers’ employment record . Further details, including graphs NUMBERS and charts, are included at the back of this report . NORTHERN EMPLOYMENT The Snap Lake Mine workforce grew by 19 person years over SNAPSHOT OF WHO WORKS AT DE BEERS 2012 to 776 in 2013 . The contribution of NWT residents to the workforce held steady throughout the year, finishing at 274 person years of employment, which is slightly below our FULL-TIME original goal of providing 300 full-time jobs to NWT residents . EQUIVALENT Attracting and retaining NWT resident employees remains a priority for De Beers . Over the course of 2013, we held 71 776 EMPLOYEES competitions for jobs at Snap Lake Mine . We received 4,443 applications, of which 25 per cent came from NWT residents . In 2013, De Beers hired 68 people, of whom 35 are residents of the NWT, including 17 NWT Aboriginal residents .

Annual Employment at the Snap Lake Mine 86% MALE (Construction phase 2005 to 2007; operations phase 2008 to 2013) NUMBER OF PERSON YEARS OF EMPLOYMENT 0 200 400 600 800 1,000 1,200

2005 2006 26,000 FEMALE 2007 24,000 14% 2008 2009 2010 2011 NORTHERN 12,000 35% 2012 10,000 2013

NON-NWT RESIDENTS NWT RESIDENTS

30 SEAT REPORT 2013

Number of Applicants Number of New Hires Outmigration and a shortage of mining-specific skills continue to pose a challenge to grow our NWT workforce . The number of NWT residents has not changed markedly for the past 10 years and the labour force is actually 12% 25% smaller than it was in 2007 . Of those that apply for positions, too few have the 75% 13% 49% required training and experience to fill most of the jobs available . Semi-skilled, skilled, and professional jobs 26% outnumber the available unskilled positions, creating gap and underrepresentation of NWT residents at the mine .

SOUTHERN NWT ABORIGINAL OTHER NWT RESIDENTS RESIDENTS RESIDENTS

NWT Population (Annual, 2004 to 2013)

44,000 42,000

RESIDENTS 40,000

NUMBER OF NWT NUMBER OF NWT 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: NWT Bureau of Statistics, Population Estimates.

NWT Labour Force (Annual, 2004 to 2013)

26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Statistics Canada, Labour Force Survey

NWT RESIDENTS

31 SNAP LAKE MINE

Another challenge for the NWT and its search for potential BY JOB CLASSIFICATION employees interested in relocating to the territory and working in the mining sector is that the demand for this The largest percentage of NWT labour is employed in type of labour is outstripping supply right across Canada . unskilled jobs, filling 90 per cent of the 95 .9 positions Labour shortages exist at all skill levels, from heavy available . There are many more jobs at the mine that are equipment operators to engineers . A report produced in classified as semi-skilled and skilled: 283 and 342 2013 by the Petroleum Human Resources Council of respectively . These represent 80 per cent of all jobs and Canada predicted expansion of Alberta’s oil sands alone is require additional education and skills and/or work likely to create 16,000 new direct jobs over the next decade . experience . NWT residents fill 30 per cent of the semi- skilled jobs and 25 per cent of the skilled jobs . The 2009 survey of mine workers conducted by the NWT Bureau of Statistics on behalf of the Government of the NWT residents filled nine of the 34 4. professional positions Northwest Territories and the three diamond mines available at the mine site . The professional job category revealed the high cost of living and distance from family includes mine engineers and geologists . Meanwhile, the and friends are important factors that influence a person’s number of people working in management positions on a residency decision . full-time basis grew to 20 7. in 2013 from 14 4. in 2012 . Non-residents filled all of these new positions . Regardless of these challenges, we are committed to continuing our efforts to find and develop new labour within the NWT and are confident that our employment Snap Lake Employment by Job Classification and Hiring commitments will be realized over the life of our Priority (Residency) operations .3 One initiative has expanded our number of pick-up points to include Fort Smith, Fort Simpson, Norman Wells, and Inuvik, bringing the total to 10 pick-up 350 points 4. Employees living in any other NWT community are offered financial assistance to lower the cost of travelling to 300 the nearest pick-up point . These policies work to remove financial disincentives to working at Snap Lake Mine and 250 to provide employees the option of remaining in their home community while working for De Beers . Despite these 200 efforts, attracting and retaining labour from outside the 150 North Slave and South Slave regions of the NWT has been a challenge . Residents of the Sahtu, Gwich’in, and Inuvialuit 100 regions combined to register a total of nine person years of NUMBER OF FTE JOBS employment in 2013 . 50 EMPLOYMENT BY HIRING PRIORITY 0 AND JOB CLASSIFICATION NWT residents contributed 274 person years of employment

to the 2013 workforce . This is essentially unchanged from SKILLED the previous year when resident workers filled 275 jobs . Similarly, NWT residents represented 35 per cent of the UNSKILLED MANAGEMENT total workforce, almost identical to the 36 per cent recorded SEMI-SKILLED in 2012 . PROFESSIONAL

Increasing the overall participation rate of NWT Aboriginal NON-NWT RESIDENTS and non-Aboriginal residents is a priority for De Beers and our contractors . We believe that our target of 300 resident NWT RESIDENTS employees is attainable .5 De Beers is working alongside our contractors to find new candidates from throughout the territory while at the same time encouraging potential and existing non-resident employees to relocate to the territory .

3 See Section 3 4. .2 in the Snap Lake Socio-Economic Agreement . Achieving this 60 per cent target is subject to the availability of persons in the priority groups with the required skills, training and experience .

4 De Beers continues to pick up employees in all Tłįcho communities, Yellowknife (including N’dilo and Dettah), Lutsel K’e, and Hay River . 5 An employment target of 300 person years for NWT residents was established for the Snap Lake Diamond Mine during its environmental assessment . 32 SEAT REPORT 2013

EMPLOYMENT BY COMMUNITY The Snap Lake Socio-Economic Agreement establishes priority groups within the NWT, which inform our hiring practices 6. The order of hiring priority is as follows: 1 . Members of Aboriginal Authorities, including a . Lutsel K’e and Kache Dene First Nation; b . North Slave Métis Alliance; c . Tłįcho; and d . Yellowknives Dene First Nation .

2 . Aboriginal people residing in the NWT; 3 . NWT residents who have been continuously resident in Erin Inch is one of the women who works underground at Snap Lake Mine. the NWT for at least six months; 4 . All others residing in or relocating to the NWT; and Women are most represented in unskilled positions, filling 37 4. full-time equivalent jobs in that category, but also 5 . Others (non-NWT residents) . contribute 36 .8 person years to semi-skilled jobs and 26 Overall, 16 communities were represented in the person years to skilled positions . The relative contribution workforce in 2013 . Most of these employees reside in of men to the overall workforce is unchanged from 2012 at Yellowknife, accounting for 68 per cent of the NWT 86 per cent . workforce with 185 6. person years of employment . Hay River contributed 34 .2 person years (12 per cent), while Behchokò¸ added another 19 .8 person years Distribution of Women by Job Classification (seven per cent) of employment to the mine .

NEW HIRES BY RESIDENCY, COMMUNITY 34% AND JOB CLASSIFICATION UNSKILLED Our contractors are typically more active in hiring new employees, largely because of the seasonal or temporary SEMI-SKILLED nature of some of their responsibilities . The total number of new hires by contractors was 161 . Similar to De Beers, SKILLED 24% 35% a majority (52 per cent) of these new employees was hired PROFESSIONAL from outside the territory . MANAGEMENT EMPLOYMENT BY GENDER AND JOB CLASSIFICATION We support and encourage the participation of women in 5% 2% all areas of work related to Snap Lake Mine and encourage similar commitments from our contractors 7. There were 108 women employed at Snap Lake Mine in 2013, representing 14 per cent of the overall workforce . Women provided the mine with 33 6. person years of employment in jobs classified as management, professional, or skilled, which represents an 18 per cent increase over 2012 .

6 See Section 3 .2 in the Snap Lake Socio-Economic Agreement . 7 See Section 4 10. in the Snap Lake Socio-Economic Agreement .

33 SNAP LAKE MINE

WOMEN IN MINING

A supportive work environment, friendly colleagues and opportunities for career advancement are just some of the reasons that Mavis Moosenose enjoys working for De Beers Canada – and plans to do so for years to come . Mavis, an accountant in the Yellowknife office, laughs and says, of course there’s also a generous wage and benefits package that makes working for De Beers very attractive .

Mavis is originally from the Tłįcho community of Whatì but she and her family now call Yellowknife home (although her parents and siblings still live in Whatì) . Mavis does get to travel to Snap Lake Mine once or twice each year and she says that’s an enjoyable change of pace .

Mavis Moosenose is an accountant working at De Beers’ Yellowknife office. She’s originally from Whatì.

Women filled a diverse range of occupations, including Since then Mavis has advanced her career to become an working as underground miners, process plant operators, in accountant . Mavis says she enjoys working in the finance the environment department, including three in senior department and is interested in furthering her studies in management positions during 2013 . accounting – but she hasn’t ruled out a career in the trades with De Beers someday . De Beers supports and encourages the participation of women such as Mavis in all aspects of work related to the Whichever career path Mavis chooses, she says that De Beers Snap Lake Mine and encourages similar commitments has been supportive of her and her career aspirations – and from contractors . she looks forward to working for the company for many years to come . That support and encouragement is evident in Mavis’s career path with De Beers Canada . Mavis began working for Mavis, who has worked her entire career in the mining De Beers with Tłįcho Logistics in December 2007 . In August industry, says she certainly encourages young women to 2008 she signed on with De Beers in the Maintenance consider a career in the mining industry and with De Beers . department .

34 SEAT REPORT 2013 DEVELOPING HUMAN RESOURCES AND TRAINING

In 2013, 35 per cent of our workforce was northern, including northern HIRING PRIORITIES Aboriginal . This is less than we wanted De Beers has four signed Impact Benefit Agreements for Snap Lake . The IBAs to achieve . So we’ve been working on inform De Beers’ hiring priorities in order to maximize northern Aboriginal ways to continue to be innovative in employment . We look first to hire candidates from communities with whom our approaches, and to position De De Beers has IBAs . If we are unable to fill a position with a candidate from an IBA Beers to increase its priority hires . community, we look to other Northerners to fill the position . We don’t look south Some of these initiatives take time . You until we’ve exhausted both these opportunities . have to sow the seeds and establish the roots before a good strategy can bear fruit . Many of the initiatives you’ll read PRIORITY 1 Candidates from communities with whom De Beers has IBAs about in this section are the result of PRIORITY 2 Other Northerners the planning and root planting efforts that will help us grow our northern PRIORITY 3 All others workforce . We have invested in the education and training of apprentices over the past years, and now those apprentices are Employment by Hiring Priority, 2013 becoming journeymen in their trades . Between 2008 and the end of 2013, De Beers employed 27 apprentices, nearly all of whom are Aboriginal 18% NON NWT (502) residents of the NWT . NWT ABORIGINAL PROFESSIONAL (139) We’re working hard to connect with youth in ways that are meaningful to OTHER NWT RESIDENTS (135) them, like introducing them to 17% mentors from their own communities 65% 776 EMPLOYEES (PERSON YEARS) who have come to work at De Beers, as we did with our mentor career fairs, held in five communities in May 2013 . We’re working with our partners like the Mine Training Society, Aurora College, and Community Learning Centres to provide training RECRUITING AND RETAINING TALENT opportunities . It’s a competitive marketplace . De Beers has to work hard to find and train great We believe our efforts are starting to employees . So when it finds those great employees, it works even harder to keep bear fruit . Our priority one hires are them . This has been a focus for De Beers in 2013 . on the rise . De Beers has stabilized its After De Beers reduced the overall size of its workforce in response to changes in operations, and we’ve reached a level the global economy in 2008 and 2009, we experienced a high rate of turnover . of maturity in our hiring and training We’ve been focussing on reducing that turnover and stabilizing our team . process that we feel will continue to grow our number of northern Several years ago De Beers made a commitment to train apprentices . Those Aboriginal employees . apprentices are now becoming journeymen, and starting their journeyman career with De Beers . We’re filling vacant positions faster, which puts less pressure on other employees to fill in . We’ve seen short-term disability and sick leave go down as a result . All these efforts are paying off . In 2013, we reduced turnover by five per cent over 2012 .

35 SNAP LAKE MINE

BUILDING OPPORTUNITIES CAREER FAIRS There are career fairs, and then there are De Beers works closely with partners to find unique and effective career fairs . De Beers attended career fairs opportunities to build employee skills and retain the existing hosted by the Yellowknives Dene First workforce . De Beers has recently partnered with the Mining Industry Nation in Dettah, Deninoo School in Fort Human Resources Council (MiHR) to provide occupational Resolution and Skills Canada NWT in certification for workers at site . Yellowknife . Every now and then, you have to mix it up a little to get attention . That’s just what De Beers did in conceiving and hosting our first-ever Mentor Career Fair, held May 6-10, 2013 . More than simply a person at a booth with some pamphlets, we found a THIS IS A GREAT way to really engage the interest of students and community members in Whatì, Gamètì, Behchokò¸ , Lutsel K’e and “OPPORTUNITY FOR OUR N’dilo . Instead of packing up with literature and hitting the road, we packed EMPLOYEES, AND IT ALSO along five Aboriginal De Beers employees working in skilled trades, and took them on the road . These mentors and role GIVES OUR EMPLOYEES models connected with the youth with hands-on activities as well as personal stories of what it’s like to go from the ONE MORE REASON TO BE community to the mine site . They even packed along a representative LOYAL AND LONG-TERM from the Government of the NWT to help fill out application forms for student DE BEERS EMPLOYEES. assistance . “We can’t easily bring them to the mine site,” notes Steve Bonhomme, Training Superintendent . “But this is almost like bringing the mine site to them ”. De Beers also attended career fairs hosted by the Yellowknives Dene First Nation in Dettah and Skills Canada in Yellowknife during 2013 . STEVE BONHOMME ”Training Superintendent

“When you become a welder, you get a certification that recognizes you as a qualified welder no matter where you go in Canada,” notes Steve Bonhomme, Training Superintendent . “Our process operators and underground miners are no less trained and expert in their fields, but until now they have not received any recognition for their abilities ”. Working with MiHR, De Beers is using a competency-based approach to qualifying its employees for occupational certification in these areas . With employees formally recognized for their competencies, this program allows employees to achieve a nationally recognized designation .

Glen Koropchuk, Chief Operating Officer for De Beers in Canada, explains De Beers’ NWT Post-Secondary Scholarship Program with students at St. Patrick High School in May 2013.

36 SEAT REPORT 2013

MENTOR CAREER FAIR STRATEGIC JOB POSTINGS You can’t put a message in one place and expect people will During the mentor career fair event in Whatì, we saw a see it . That’s why, when it comes to something as important fellow who had graduated from the high school the as advertising job postings, De Beers covers the field across previous year working cleaning up the school . He was the North . All job opportunities are published in NWT interested in what we were . He said he always wanted to News/North newspaper and posted online at jobsnoth ca. and be a heavy equipment operator . on the De Beers Canada website . We invited the fellow to chat with Austin Larocque of For those who don’t search the Internet for job postings, our Hay River, a De Beers employee who just completed his career opportunities are also sent to community career heavy duty mechanic apprenticeship with De Beers . centres and regional employment offices . We send our postings to Aboriginal governments, community By the time the Mentor Career Fair was over that day, he organizations and community learning centres . To was filling out paperwork to apply for Student Financial encourage applications from our IBA communities, we send Assistance to pursue his dream . That’s what this is all the job ads directly to our community liaisons and IBA about . We want to inspire people to pursue their coordinators to post and circulate in their communities . interests . Of course we want them to come and work at De Beers . But even if they don’t, we're happy knowing we’ve been able to inspire someone to take the first step WORKING IN PARTNERSHIP to pursing what they’re passionate about . The Mine Training Society (MTS) continues to be one of De Beers’ best partnerships in creating a trained workforce . In 2013, MTS ran training courses for mineral processing and underground mining and De Beers hosted two mineral processing program participants and 12 underground miner program participations for fully paid three-month work experience placements . Of these program graduates, De Beers hired six underground miners in 2013 . "The longer we work together, the more we understand each other’s needs,” notes Hilary Jones, General Manager of MTS . Having partnered since before the mine opened, De Beers and MTS have a solid foundation for their relationship, a foundation that results in well-trained Northerners with the opportunity of a great job when they successfully complete the training . TRAINING IN 2013 Snap Lake Mine has a fully-staffed training centre, where we host site orientation for new employees and regular skills- orientated training that ranges from first aid to fall protection, Surveyor Matthew Rabesca, left, shows some of the equipment he uses at Snap heavy equipment operator courses among many others . Lake Mine to a student at Jean Wetrade Gamètì School during De Beers’ mentor Throughout the year, 6,455 people took training through career fair in May 2013. the learning centre . De Beers also committed to providing 40 training positions in trades, apprenticeships and underground mining within the first three years of operations . In 2013, a total of 29 NWT residents were enrolled in these programs . To help apprentices succeed, De Beers has a very attractive package that includes providing financial support for travel to their destination school, housing, and tuition while the apprentices are attending classes . While they attend school, apprentices remain on De Beers’ payroll .

37 SNAP LAKE MINE

SCHOLARSHIPS AND SUMMER 6,455 STUDENTS Throughout the year, 6,455 people took training Pursuing an education is expensive for through the learning centre. any student, and even more so for those in the NWT who must leave In addition to directly supporting our apprentices, De Beers provided financial home and the support of family to support in 2013 to the Northern Student Education Initiative (NSEI) . Through attend school in the south . A little help this program an Edmonton -based social worker liaises with NWT students can go a long way . attending post-secondary education institutions . Many of these students are in a big city for the first time and the social worker is available to help them adjust . De Beers provides scholarships to NWT students annually through our Apprentices and trainees employed by site-based contractors are not included in Impact Benefit Agreements . In 2012, this report . we added to the number of scholarships it makes available by offering its 2013 Snap Lake Mine Training support to students studying in fields of particular interest to De Beers, like LIFE OF MINE CUMULATIVE CUMULATIVE mining engineering and geology, for TRAINING CURRENT TR AINEES TO PROGR AM example . De Beers invests thousands TRAINING COMMITMENT TRAINEES* DATE GRADUATES of dollars each year in scholarships to TRADES 10 6 26 16 help train a northern workforce . APPRENTICESHIP 10 7 27 5 Beginning in 2013, De Beers also offers select students a full education UNDERGROUND 20 5 39 18 Sponsorship . De Beers provides TOTAL 40 18 92 39 significant annual financial support for up to four years, annual summer *Includes trainees from 2012 who are continuing their training programs in 2013 employment – and a job with De Beers after graduation in this program . In return, the sponsored students commit OPPORTUNITIES FOR STUDENTS to working for De Beers until the financial support is forgiven . Connecting with future employees early gives them the best opportunity to find out if a job in mining with De Beers is for them . The Sponsorship program is part of De Beers Canada’s ongoing efforts to De Beers offers summer employment opportunities for students both in its office build capacity to ensure that the next in Yellowknife and at the mine site . In addition, De Beers offers placements for two generation of NWT residents will have students in co-op work/study programs . Summer employment opportunities and the professional skills required by co-op placements help us identify great employment candidates, and help students De Beers . see what our world is all about . In 2013, De Beers also launched the Mining Professionals in Training program . New graduates from engineering, geology and other mining-related degree programs are put through a three year program that lets them see all aspects of De Beers’ operations . They rotate through placements at Victor, Gahcho Kué, Yellowknife and Snap Lake . We’re also involving them in the Books in Homes program . What better way to put them in touch with the communities, have them learn about the communities we work with and make a social connection, than having them participate as part of Books in Homes in eight different communities .

38 SEAT REPORT 2013

NWT POST-SECONDARY SCHOLARSHIPS AWARDED IN 2013 Since 2006, De Beers has provided $15,000 annually to support scholarships for Yellowknives Dene First Nation students . In 2013, seven students received financial support from this fund: • Denise Beaulieu • Bobbie-Jo Black • Brandon Etsemba-Sangris • Wesley Lines • Eileen Liske • Jeffrey Rosnawski • Stacey Sundberg

In 2013, De Beers awarded 13 scholarships to NWT students through our annual NWT Post-Secondary Education Scholarship Program:

SCHOLARSHIP STUDENT COURSE OF STUDY HOME COMMUNITY AMOUNT Environmental Justin Byatt Management Fort Simpson $2,000 Electrical Weifeng Hong Engineering Yellowknife $2,000 Chemical Cherryl Li Engineering Yellowknife $2,000 Environmental Martha Hamre Engineering Yellowknife $2,000 Engineering Juliana Neudorf (Applied Science) Yellowknife $2,000 Environmental Shelby Skinner Sciences Yellowknife $2,000 Mechanical Alex Hunt Engineering Yellowknife $2,000 Austin Lee Business Yellowknife $2,000 Ashley Ens Human Resources Yellowknife $2,000 Sean Kearnan- Carbonneau Ecology/Math Yellowknife $2,000 Jensen Hu Mine Engineering Yellowknife $2,000 Mechanical Zachary Biggar Engineering Hay River $2,000 Kaitlyn Vician Aquatic Resources Yellowknife $2,000

De Beers also provides $5,000 a year to the North Slave Métis Alliance toward scholarships .

39 SNAP LAKE MINE SHELBY SKINNER PUTS HER LEARNING TO WORK AT SNAP LAKE

Shelby Skinner of Yellowknife is one of 10 students who worked for De Beers, either at Snap Lake Mine or from our Yellowknife office during the summer of 2013 . She also received a $2,000 De Beers post-secondary education scholarship in 2013 (one of Snap Lake Mine’s commitments is to also hire scholarship recipients for summer jobs where possible) . “It was really nice and a good confidence booster to get that scholarship in September,” says Shelby, who was born and raised in Yellowknife and attended Sir John Franklin High School . Shelby, 23, is in her fifth and final year of the Earth and Environmental Science Program at the University of British Columbia, Okanagan Campus, and scheduled to graduate in Shelby Skinner is pictured at Snap Lake Mine, where she worked for the environment June 2014 . department as a summer student employee in 2013. She worked at Snap Lake Mine in the Environmental Lab as “I’d recommend to any other student to take the a technician in the summer of 2013 . “I loved it – it was a opportunity to work up there for a summer because it’s really great experience . It was really nice to see how definitely a good experience,” she adds . everything that I learned in school is actually used in the Although Shelby will be working for the GNWT for the real world,” noted Shelby . summer of 2014, she encouraged a classmate from UBC to Shelby says she learned a lot of different techniques during apply for summer work at Snap Lake Mine . her summer at Snap Lake Mine that will help her in her Shelby says she’s definitely staying in Yellowknife after she career, and added that she learns a lot more on the job by completes her summer position with the GNWT although doing things “hands on” rather than in a classroom . So, she she doesn’t know where she’ll be working as of September – enjoyed getting out of the lab and taking samples, preparing but she would certainly apply if a position came open in the the samples and understanding how important this work was Snap Lake Mine environment department . for the mine’s water license . Shelby says she had a somewhat negative opinion of mining “It was fun . I’d worked in field camps before where you’re in before working at Snap Lake Mine last summer but the a tent for six weeks, so it was quite luxurious for me to have a experience “…definitely changed my point of view and bed and a shower every night . And I learned a lot of lab taught me to look more carefully into things before making techniques that I hadn’t had experience doing before ”. a judgment based on what other people might say ”. Shelby says her friends and family were all excited for her to be working at Snap Lake Mine . She had previously worked for Environment Canada so she enjoyed working for industry, and the two-week-on two-week-off work scheduled allowed her to spend a lot of time with her family . Shelby laughs and says her friends were “…all jealous of the kind of work that I got to do, the amount of time that I got off – and that I was actually working in my field!”

40 SEAT REPORT 2013 KEELAN MOONEY: DE BEERS SPONSORSHIP

Keelan Mooney of Yellowknife is a young man who has set his goals high and is pursuing them with dedication, discipline and sacrifice – which is why he was selected as De Beers Canada’s first northern sponsorship recipient . This is a life-changing accomplishment for 18-year-old Keelan that will see De Beers provide significant financial support during the remaining three years of university, provide him with summer employment – and a guaranteed position with De Beers when he completes his degree . Keelan says it took some time for the enormity of the achievement to sink in when he learned he’d been awarded the sponsorship . But when realization struck, he was pleased, proud – and enormously relieved that the financial burden Keelan Mooney is the first recipient of De Beers NWT Post-Secondary Education of his post-secondary education had been lifted from his Sponsorship. He will receive $35,000 over three years to help him finish his degree in family’s shoulders . chemical engineering. The sponsorship program is part of De Beers’ ongoing efforts to build capacity to ensure that the next generation “What was most remarkable about Keelan was his ability to of NWT residents will have the professional skills required in maintain a fine balance between holding an honours-level the mining industry and to ensure that outstanding young average while being such an active and strong member of the people such as Keelan choose a career with De Beers . school and community,” says Don Reid, Assistant Principal at École St . Patrick High School . The terms of the sponsorship require that Keelan work for De Beers for a period of three years after he graduates, but “I have been an educator for the past 20 years . During this this is anything but a hardship for Keelan who is looking time, I have had the good fortune to teach and witness a forward to working in the process plant at Snap Lake Mine great many excellent young students pursue their studies at during the summer of 2014 and when he graduates – and is our school . Comparatively speaking, in terms of his ability, the envy of his friends and classmates for this guaranteed character and work ethic, I would rank Keelan amongst the career opportunity . top,” says Reid . "He is indeed an exceptional young man with a great deal to offer ”. Keelan also received a $2,000 scholarship from De Beers in 2012 as part of the $30,000 in scholarships that De Beers Keelan has continued his athletics at university and is a Canada awarded to NWT students during the first year of member of the UNB Varsity Reds Swim Team, which involves the program . swimming up to 20 hours per week as well as an additional four hours of dry-land training . Keelan is currently finishing his second year of studies toward a Bachelor of Science Degree in Chemical “Keelan achieved a 3 .9 grade point average in his first season Engineering at the University of New Brunswick (UNB), at UNB . He is one of very few Engineering student-athletes Fredericton along with a Minor in Mathematics . And if that on campus because of the heavy workload in the Engineering wasn’t challenge enough, he’s also working towards a Faculty . Not only did he complete his first year of Diploma in Technology Management and Entrepreneurship . engineering, but he received Academic All-Canadian status for being a full-time student athlete and achieving over a 3 .5 Keelan was born in South Africa but relocated to Yellowknife GPA,” says UNB Swimming Head Coach Robin Ferdinand . in 2008 with his family . Keelan’s father, Peter, works for De Beers . Coach Ferdinand adds that Keelan is a team player who is always willing to encourage and help out his teammates in And while Keelan may be the son of a De Beers employee, the pool and in the classroom . that’s not why he was selected for sponsorship . Keelan is the kind of well-rounded northern youth that the De Beers Keelan says his future plans are to complete his undergraduate sponsorship program was built for: a dedicated student, degree, work full-time for a few years and then earn a competitive athlete and community-minded volunteer . Master’s Degree in Electrochemical Engineering . During his years at École St . Patrick High School, Keelan was De Beers’ NWT Post-secondary sponsorship program has one of the top students in his class and always on the virtually guaranteed that a dedicated and disciplined Honour Roll with Distinction . He was also active as an student such as Keelan will be able to achieve his dreams . athlete playing badminton throughout high school and And Keelan encourages other northern students to take competing on the Yellowknife Polar Bear Swim Club advantage of this great opportunity being provided by including representing Yellowknife and the NWT at the De Beers and to apply for the sponsorship . Western Canada Games and Canada Games .

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HEALTH AND WELLNESS

In many ways, Snap Lake Mine is like a small community . FIT FOR PURPOSE People live and work there for two weeks at a time . During their rotation, Snap Lake is their home . Some of the work at Snap Lake is strenuous . But not all jobs are strenuous in the same ways . How do you make sure that As its own small community, Snap Lake must be more than your workforce is fit for work: the specific work they need to just a worksite . It must be a place where employees get what do? For De Beers, it’s a part of doing business . Starting in they need to be mentally and physically healthy and well . 2013, and continuing in 2014, De Beers is updating its HEG Snap Lake takes that responsibility seriously in the (homogeneous exposure group) and SEG (similar exposure recreational and fitness activities it supports, its medical group) ratings . These are ratings of risk for various initiatives, and making sure employees have delicious, occupations and tasks, which allows De Beers to better nutritious food . understand health risks in those jobs, and tailor medical assessments to the job . In 2013, De Beers started doing additional medical testing at FITNESS CENTRE site . It added medical assessment for working at heights; audio Snap Lake has three fitness rooms, a weight room with (hearing) assessments, and spirometry (lung capacity) . free weights, machines and contact equipment like heavy bags, a cardio room with equipment such as stationary In 2014, De Beers will begin designing and implementing bikes and treadmills, and a room where people can do physical demands assessments and fitness for duty assessments: Pilates and yoga . measures that will help ensure De Beers employees are medically capable of doing their work without injury . True to the saying, “if you build it, they will come,” each of these rooms gets its own workout regularly by De Beers employees before and after shift . More than simply an indoor venue, when the weather permits, De Beers promotes the use of a safe seasonal hiking trail along the shore of Snap Lake .

AS ITS OWN SMALL COMMUNITY, SNAP LAKE MUST BE MORE THAN JUST A WORKSITE. IT MUST BE A PLACE WHERE EMPLOYEES GET WHAT THEY NEED TO BE MENTALLY AND PHYSICALLY HEALTHY AND WELL.

42 SEAT REPORT 2013

Snap Lake Mine has a well-equipped weight room, one of three fitness facilities used by employees to stay healthy and active when they are not working.

THE POWER OF THE SPOON The result? Managing portion sizes reduced wastage caused by hungry “eyes larger than stomach” after a long, tiring Who would have thought that shrinking a spoon by shift on the job . Food costs went down, allowing the budget one-third could save thousands of dollars, reduce tonnes of to go further without affecting menu choices . Waste also waste and improve eating habits? That’s one powerful spoon! went down . Fewer table scraps found the garbage can . De Beers had been noticing that employees were piling up Kitchen waste went down by more than 12 per cent . plates of food that went uneaten . Working with camp In addition to introducing portion management, De Beers’ catering contractor Bouwa Whee, the size of the serving cafeteria also helps employees make informed choices for spoon was reduced and servers were trained on how much their health . Every menu item is colour-coded according to should be served at once . No more double, triple or larger its health characteristics . A red-coded menu item is an alert portions of mashed potatoes or steak . Portion sizes were to possible allergens such as nuts or fish in the item; a yellow limited, but employees were welcome to come back for code is the healthiest choice, while a blue item is the seconds… or thirds . indulgent one . Gluten sensitive items are also available and identified on the menu .

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SNAP LAKE MINE FAMILY VISIT For De Beers, the strength of our family of workers at our Snap Lake Mine is crucial to our shared success . A strong family allows us to pull together and turn the diversity of our people’s skills and their experience into a great source of strength for Snap Lake Mine and De Beers Canada . We are working to build a skilled northern workforce at Snap Lake Mine by providing training, supporting apprentices and developing career paths with our employees . But our employees are not the only members of Snap Lake Family . Our employees’ families are also part of Snap Lake Mine’s extended family . And we recognize that a happy family is one that shares activities, affection, communication, support and, of course, resilience . Underground trainer Mike Penkala, left, explains the PED lamps used by miners at Snap We also recognize that it can be challenging for families Lake to family members visiting the mine in August 2013. when a loved one works on rotation at Snap Lake Mine and is away from home for a week or two at a time . One way we’re bridging the distance between home and work is the Snap Lake Mine Family Visit program . Following lunch with their family members and other First offered in 2013, the Snap Lake Mine Family Visit employees in the mine dining room, the visitors viewed a program was open to families of De Beers employees who presentation which gave an overview of the mine’s work at Snap Lake Mine . In August, we flew 34 family operations and our achievements to date . Family members members (maximum of two visitors per employee) from also got a chance to view some diamonds from Snap Lake Yellowknife to Snap Lake Mine for a one-day visit . Mine as well as an up-close look at some underground mining equipment . The lucky participants in the Snap Lake Mine Family Visit were selected by random draw from all De Beers employees They were also treated to a game of bingo and everyone who submitted an application . received a De Beers backpack and copy of On Good Ice – a history of the Tibbit to Contwoyto ice road. The visit began with family members gathering at the Yellowknife airport around 7:30 a .m . The charter flight The tour concluded with a group photo taken in front of the departed at 8:00 a .m . and 45 minutes later they arrived at Snap Lake Mine flag, and then it was back on the chartered Snap Lake Mine . flight for a 3:30 p .m . departure for Yellowknife . The first order of business was, of course, a safety The 2013 Snap Lake Mine Family visit took place on August orientation, distribution of safety gear and a chance to meet 13 and the winning employees of the Family Visit draw were: the tour guides – served up with breakfast prepared by Sharon Alanak Peter Mooney Bouwa Whee Catering . Sean Anderson Alexander Norwegian The family members were able to visit employee Clifford Carter Michelle Peters accommodations, visit the dining room, weight room, medic Sally Chocolate Phyllis Radchenko station, recreation room, TV room, cardio-fitness centre, David Jacobs Kerri Riehl cultural centre and more . Bill Liddicoat Elisha Sakarombe Norm Lowe Johan Scheepers On board one of the mine’s buses, the visitors were treated Chris MacNaughton James Shaw to a surface tour, followed by a visit to the Mine Dry where Chris Maddeaux Errol Villeneuve they learned about working underground, and then tours of Ron Messier Craig Wessner the administration area and the environmental lab . Each stop on the tour was about half an hour .

44 SEAT REPORT 2013

NWT BUSINESS POLICY Being a competitive business is a key ingredient for success not only for In November 2013, De Beers hosted a De Beers which operates in a global environment, but for our business partners business opportunities breakfast for as well . Our NWT Business Policy establishes a number of mechanisms that NWT and Aboriginal businesses, encourage and facilitate the participation of NWT and Aboriginal businesses in outlining the upcoming contracts in our business . Our procurement approach brings together a competitive process the NWT for 2014 . This annual that ensures selected suppliers have the ability to supply and deliver the required meeting provides northern businesses goods and services, can provide timely delivery and that they meet technical, an opportunity to hear from De Beers safety, environmental and other key performance requirements while also directly regarding business enabling NWT and Aboriginal businesses an opportunity to earn points in the opportunities on the horizon and to adjudication process simply for being an NWT and/or Aboriginal business . meet staff to discuss De Beers’ supply requirements . The implementation of our NWT Business Policy is supported by a Business Development Manager in Yellowknife . He works with local businesses to help During this meeting, we also seek them understand upcoming business opportunities and the requirements and donations to support a local process to pre-qualify for bid requests . He provides local businesses with organization, and collected $3,695 constructive feedback, helping them understand what improvements are needed which went to the Sewing Circle to better position themselves for opportunities . Project of the Native Women’s Association of the NWT . The total included $2,270 from De Beers . In 2013, the Snap Lake Mine procured SPENT IN 2013 SPENT SINCE INCEPTION $187 million in goods and services . $ % $ % Of that, $115 .3 million was spent with NWT businesses and $45 million was TOTAL SPEND 187.0 million 100 2.08 billion 100 spent with Aboriginal businesses . NORTHERN By December 31, 2013 $2 08. billion BUSINESS 115.3 million 61.7 1.4 billion 67.3 had been spent on the construction and operation of the mine . Of that ABORIGINAL total, $1 4. billion was spent with BUSINESS SPEND 45.0 million 24.1 812 million 39.0 NWT-based contractors and suppliers, including $812 million with Aboriginal businesses or joint ventures .

PARTNERING WITH NORTHERN BUSINESS Local businesses are an integral part of the diamond mining industry in the Northwest Territories . They have been significant contributors to and beneficiaries from the industry since 1998 when the first NWT diamond mine opened . From 1996 – 2013, the three operating diamond mines in the NWT spent a total of $14 .8 billion to build and operate the Ekati, Diavik and Snap Lake Mines . Of this $10 6. billion or 73 per cent was spent with northern companies and joint ventures, including $4 .8 billion or 33 per cent of the northern expenditure being spent with Aboriginal businesses .

TOTAL DIAMOND MINING SPENT 1996 - 2013 INVESTMENT IN THE NWT $ % Representatives of Tli Cho Logistics show the TOTAL SPEND 14.8 billion 100 donation made to the Hay River Hospital Foundation NORTHERN BUSINESS 10.6 billion 73 during De Beers Charity Classic Golf Tournament in Hay River, July 6, 2013. ABORIGINAL BUSINESS SPEND 4.8 billion 33

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PARTNERS IN BUSINESS Like any relationship, business relationships are about give and take . While De Beers counts on its northern business partners to supply us with many of the goods and services needed to go about our daily business, we also know De Beers is making a difference in the growth and success of northern businesses .

THE BOOK CELLAR, DET’ON CHO LOGISTICS, POISON PAINTING, HAY RIVER YELLOWKNIFE YELLOWKNIFE Signs . They are one of those things The Book Cellar has had a relationship Matt Mossman and Stu Impett built that you don’t really think about, but with De Beers that spans almost a their company by constantly looking are everywhere . A company like decade . Sometimes business for ways to add value for their clients . De Beers needs signage on the ice relationships come together in Over the course of their four years road, underground, in camp, at unexpected ways . Says Judith Drinnen, providing expediting and logistics events– practically anywhere it has owner/operator of the Yellowknife support for Snap Lake Mine, Det’on people . De Beers often looks to Hay business, “Nine years ago our business Cho Logistics has proven itself an River-based Poison Painting to fill the started the NorthWords Writer’s attentive, innovative partner that need . Festival . At that time we approached regularly looks for ways to help “We do signage for all three of the De Beers to sponsor the festival . De Beers save money and increase diamond mines,” says Wally Schumann, We had no track record, yet De Beers efficiency . owner of Poison Painting . The agreed to sponsor us, and we had a “Half the fun is finding better ways industry’s needs required specialized successful event . They’ve continued to to do things,” says Matt Mossman . equipment, which Poison Painting be a major supporter ever since ”. “The more we get to know De Beers’ purchased . “We have equipment that is Having worked with The Book Cellar business, the more ways we can find to unique in the North, so that we can so successfully on the festival, De Beers improve the process of getting goods serve the mining industry,” says Wally . approached the company to work with and people to site ”. “It’s allowed us to develop a niche in them on Books in Homes, a literacy aluminium signage which means we’ve What DCL does for De Beers goes well initiative spearheaded by De Beers that been able to open up new markets in beyond simple movement though . DCL distributes books to students attending B C. . and Alberta in the oil and gas has worked with De Beers to streamline schools in eight communities . Starting and forestry industries ”. ordering processes and to improve in 2007, De Beers has purchased books inventory tracking and control . For De Beers, the business relationship distributed to students from The Book with Poison Painting is everything a Cellar, rather than a southern supplier . “Operating at a remote mine site has a relationship should be . We get a quality But it’s more than just a purchase much higher degree of difficulty . product at a competitive price, the arrangement . When you run out of something, it’s money stays in the North, and we’ve not like you can go to get more . And if “They give us a budget, and tell us how helped grow a business that has the something breaks, you’re not able to many kids there are, and we get to ability to stay strong and succeed in pop into the hardware store to buy a work picking the books . We go to the other markets long after the diamond replacement,” notes Mossman . “When communities every year, we get to know mines are no longer operating . you know exactly how much of the communities, and we listen . And something you’ve got in stock, how then we’re better able to pick books long it takes to get it, and when you’re that we think the kids will enjoy . It likely to need it, you can make much seems to be working ”. better – and more efficient - buying Working indeed! This is one business decisions ”. relationship that’s working for De Beers, Now that’s value-added . for a northern business, and for children in northern communities .

46 SEAT REPORT 2013 CORPORATE SOCIAL INVESTMENT A MILLION GOOD REASONS TO INVEST In 2013, De Beers invested almost $1 .5 million dollars in the Northwest Territories, supporting training, education and literacy and providing donations and sponsorships to support health, environment, arts, culture and sports: De Beers’ contributions covered the spectrum of life in northern communities . Here’s where De Beers’ corporate social investment contributions were applied through donations, sponsorships, and support of community activities in 2013 .

Health $21,479.60 Education & Training (Literacy) $1,272,386.79 Environment $2,500.00 General Community Development $11,769.05 Tim Harris, Business Development Manager for De Beers, presents a cheque to the Native Arts, Culture & Heritage $140,350.00 Women's Association of the NWT to support the association's Sewing Circle program. Policy & Advisory $15,000.00 Approximately $3,600 was raised to support the program though a donation from De Beers and businesses that attended our annual Business Opportunities Breakfast Sports $8,105.00 in November 2013. Other $17,720.00 Total $1,489,310.44

Take a look at some of the activities where we gave back to the community .

Eli Nasogaluak works on his carving during the 2013 De Beers Inspired Ice – NWT Ice Reneltta Arluk gives an impassioned reading during the De Beers Gala Reading, held Carving Championship held during the Long John Jamboree in Yellowknife. during the 2012 NorthWords Writers Festival.

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COMMITTED TO ADDRESSING THE SOCIAL AND ECONOMIC IMPACTS OF THE MINE Before any sod was turned for construction of De Beers’ Snap Lake Mine, the project underwent an environmental assessment by the Mackenzie Valley Environmental Impact Review Board . As part of this robust regulatory process, and through ongoing community engagement De Beers identified the social and economic impacts of the mine, and entered into a socio-economic agreement with the Government of the Northwest Territories . The agreement was developed with the participation of the Aboriginal communities affected by the mine, including the Tłįcho communities, the Yellowknives Dene First Nation, Lutsel K’e Dene Band and the North Slave Métis Alliance . The agreement establishes the framework for addressing impacts of Snap Lake and De Beers’ commitments to give back to its communities of interest in the following areas: • Protection of the environment; • Local employment; • Building local business capacity; • Training and advancement of a northern workforce; • Health and wellness initiatives; and • Preservation of traditional culture .

Meeting these commitments, like those in any relationship, takes focus, determination, strong communication and a genuine effort of collaboration . For De Beers, it means being good listeners and then establishing and following through on community engagement plans with each of our communities of interest . In 2013, De Beers initiated a number of engagement activities . The primary focus of engaging with communities over this period has been the development of the Aquatic Effects Monitoring Program (AEMP), Interim Closure and Lutsel K’e Elder Ernest Boucher examines one of the trout caught during the annual fish Reclamation Plan (ICRP), and Effluent Quality Criteria tasting at Snap Lake Mine, September 2013. (EQC) . Community visits and workshops, ranging from fish tasting to traditional knowledge workshops to summer site visits were held over the course of the year . These community visits not only presented opportunities for our communities to provide input on De Beers’ AEMP and ICRP . They also provided opportunities for community members to find out about opportunities for employment, training, scholarship programs and business opportunities .

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De Beers provides a diamond and works with the Foundation CHARITY GOLF CLASSIC and First Air to arrange a trip to an exotic location like In 2007, De Beers was looking for an opportunity to enhance Costa Rica or the Bahamas, plus amazing second and third its relationship with key business partners and give back to prizes . We print the tickets, arrange the advertising and our the community at the same time . The De Beers Charity employee volunteers sell about half of the available tickets, Classic Golf Tournament was born! many being snapped up by our Snap Lake employees . By holding the golf tournament in Hay River, we have been In 2013 our raffle, "A Beauty and A Beach", offered a one- able to bring business partners from Yellowknife and outside carat diamond, $1,000 toward a setting, plus a week-long the NWT to the South Slave community, filling hotel rooms all-inclusive vacation to the Bahamas, including flights as and local restaurants . first prize . Second prize was a weekend trip to Edmonton De Beers organizes the tournament and invites participating including two tickets to an NHL game, two tickets to an businesses to provide a donation which goes to the Health Edmonton Symphony Orchestra performance, flights and and Wellness Foundation of Hay River . Golfers enjoy a great hotel . The prize package was rounded out with a $1,000 weekend on the grass fairways of the Hay River Golf Club gift basket jam-packed with northern arts and crafts as and a tasty meal catered by the Ptarmigan Inn . Since the third prize . first tournament we have helped raise $267,000 for the The prizes were drawn at the Foundation’s Festival of Giving, Foundation, including a record $67,000 in 2013 . in November . De Beers even sweetened the pot at the Festival of Giving throwing in a .24 carat diamond and a trip for two to Snap Lake Mine as part of the Festival’s live STANTON DIAMOND FUNDRAISER auction, helping raise an additional $3,000 . At De Beers, we believe that when people pull together toward a common cause, great things can result . That’s what When the raffle was done, we had helped raise $30,000 for we have done since 2007 to help raise $230,000 for the the Foundation with all funds going toward a new Stanton Territorial Hospital Foundation through our annual chemotherapy/IV treatment suite . Since 2011, De Beers’ diamond and vacation raffle . raffle has raised $140,000 toward the new chemo suite that will be built at Stanton Territorial Hospital in Yellowknife .

De Beers’ Charity Classic Golf Tournament in Hay River has raised $267,000 for the Health and Wellness Foundation of Hay River since 2007. Taking part in the 2013 tournament are, from left: Steve Anderson, superintendent of Materials Management, Snap Lake Mine; Heather Coakwell, chair of the Foundation; Eric Kuleba, Mine Production Superintendent, Snap Lake Mine; and Rob Johnson, Mine Production Superintendent, Snap Lake Mine.

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50 SEAT REPORT 2013

4 SOCIAL MANAGEMENT PLAN

51 SNAP LAKE MINE PLAN FOR SUCCESS

At De Beers, we take great pride in seeing the success of the Our plan includes continued efforts to support a capable people, businesses, cultures and economies of the workforce for today and the future through education and communities in which we operate . training: We feel great when we see the eyes of children light up as • We implemented a new scholarship program in 2012 they pick out a book for their very own through Books in that is continuing . Through this program, northern Homes . That’s one of the reasons we send our new students will be better supported through their post- employees to work on this project . There’s nothing like secondary studies, and thus more likely to succeed . seeing the impact of what you’re doing first hand; nothing • We initiated a sponsorship program for students as a that helps you understand what’s important . pilot in 2013 and will grow this commitment over time We are inspired by the likes of Keelan Mooney, when we see to include as many as four sponsored students at any his focussed dedication to his studies as he works to better given time . Sponsorship provides career certainty for himself through education so that he can become part of the northern student: support follows high potential our team . students throughout their post-secondary education, ensuring their financial stability, exposure to a summer We are comforted and encouraged by the success of job in their field of study, and a guaranteed job companies like the Det’on Cho Corporation, which was placement upon successful graduation . named one of Canada’s fastest growing companies, having • In 2013 we provided summer employment grown strong with the help of business contracts that help us opportunities for 10 students . We are growing this run Snap Lake Mine . initiative, and plan to increase the number of summer But we’re not content to know that we’ve done a good job in student positions for 2014 . the past . We remain focussed on the future . We know that • We supported Underground Mining and Mineral there are innumerable opportunities to continue to Processing training programs through the Mine strengthen the socio-economic fabric of the North, while Training Society (MTS) in 2013 . De Beers’ commitment pursuing our own corporate imperatives: operating an to this partnership continues through active efficient, safe, productive mining operation . involvement on the MTS board of directors, close Our plan for the future is to build on what we’ve already done partnership, funding, and the creation of training well, and to find new opportunities to raise the bar, to respond opportunities to fill identified jobs . to community needs, and build a strong, resilient north . • We worked in partnership with Skills Canada in the past, encouraging De Beers personnel to compete in regional and territorial competitions . As we move into the future, our involvement is increasing as we participate as coaches and judges for the competition . • For many years, we have provided annual financial support to the Northern Student Education Initiative . This program funds a social worker in Edmonton who works closely with NWT students to help them cope with the challenges of adjusting to the big city while attending post-secondary institutions . • We initiated a Leadership Development Program for Aboriginal Employees through Aurora College, a program that will continue into the future .

52 SEAT REPORT 2013

We continue to grow capacity in northern businesses by providing opportunities for growing their businesses, and by committing to northern purchasing: • We have a dedicated Business Development Manager in the Yellowknife office whose role is to identify PLAN FOR opportunities to match De Beers’ needs with northern business capabilities . This is a long-term commitment to building capacity in northern businesses . • The Business Development Manager hosts an Annual Business Opportunities presentation . In 2013 the presentation was held in conjunction with the SUCCESS Geoscience Forum in Yellowknife . This event not only connected invited businesses with upcoming De Beers needs, it provided a forum for networking and one-on- one discussions between suppliers and De Beers buyers . • As it has in the past, De Beers will continue to provide a weighting, in its procurement process, to NWT and Aboriginal businesses . In this way, northern and Aboriginal businesses benefit from higher scoring on evaluations, which provide greater opportunities to win contracts and develop their businesses . Guylaine Gueguen, environmental technician at Snap Lake Mine, retrieves a water De Beers will continue to work toward meeting its northern sample from a hole in the ice covering Snap Lake. and Aboriginal employment targets through innovative approaches: We work hard to build the skills of our employees, and offer • De Beers will continue to screen applicants by hiring them continuous opportunities for further training and priorities, giving preference to northern Aboriginal advancement: candidates and northern candidates before all others . • Moving forward in 2014 and beyond, De Beers will • Not only do we pursue employment targets through continue to work closely with the Mine Training Society, our direct employment, but we will continue to continuing to identify our upcoming employment encourage our contractors to do the same . De Beers needs, and offering work experience opportunities and collects contractor information annually, and delivers hiring qualified MTS graduates to available positions . an information session to refresh our contractors on • At De Beers, we will continue to improve our training hiring priorities and ensure they understand their programs . We will be introducing an integrated training performance is part of our performance . program that will enable us to track our employees’ • We make connections for our contractors, bridging training needs and training taken . Our learning them with community employment officers by updating management system will help us know and keep track community contact information regularly and sharing of who is training, and identify personnel interested in with our contractors . upcoming training opportunities . All this will help us to do better human resource performance planning . • We continue to make it easier for Northerners from across the territory to work for De Beers . We have done • At De Beers, we don’t just hire and retain . We know this by expanding our pick-up points across the NWT . there’s more to it than that . We hire, train, develop and We pick up employees from Yellowknife, Lutsel K’e, retain our employees . The result is a more stable, more Hay River, Fort Smith, Wekweètì, Whatì, Gamètì, Fort highly trained workforce . When our workforce is stable Simpson, Norman Wells and Inuvik – exceeding our and well trained, it is also productive and efficient . SEA commitments . When it comes to training and development, what’s good for our employees is good for De Beers . • In addition, we offer a travel allowance for NWT residents to get to the nearest De Beers pick up point • In 2014, De Beers will roll out its certification of process making distance no obstacle if an NWT resident has operators and underground miners in partnership skills and wants to work for De Beers . with the national Mining Industry Human Resources Council (MiHR) . Through this certification process, De Beers employees will earn and receive nationally recognized certification for their mining skills .

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Not only are we interested in the miners of today, but we also Health and wellness initiatives have always been important look to develop the miners of tomorrow: to De Beers, and will continue to be a focus of our social investment . • Given the tremendous positive response from youth, schools, and communities, De Beers will continue the • We have developed key partnerships with Stanton highly successful Mentor Career Fair we initiated in Territorial Hospital, which serves the entire territory, 2013 . We will visit more communities in 2014 with our as well as with the hospital in Hay River . We support mentor career fair . Fort Smith, Lutsel K’e, Behchokò¸ , fundraising efforts that purchase critical health Dettah and Hay River are all scheduled for visits by our equipment for these facilities, through the “Diamond team of northern Aboriginal mentors . and Vacation” raffle and the “Charity Golf Classic” in • Books in Homes is a long-term initiative started in 2003 . Hay River . These initiatives address a long-term need for This program is welcomed by communities, and aims to support of an effective health care system . instil a love of reading and learning, and ultimately to • Unfunded by the territorial government, which is increase literacy in the next generation workforce . responsible for delivering health services to all northern • Participate with GNWT in labour market assessment residents, De Beers provides its own medical services on and development strategies and programs . site . Ranging from medical assessments to emergency care, to preventative medicine like flu shots, De Beers • On the job training is an important part of building has, and will continue to look after the health of its capacity . De Beers had 18 training positions in 2013 . employees, which in turn supports the overall health of our employees’ communities . • We have and will continue to provide training programs for first aid, addictions awareness programs, or other programs that prepare people for employment .

Glen Koropchuk, Chief Operating Officer for De Beers in Canada, right, congratulates the winners of the 2013 De Beers Inspired Ice – NWT Ice Carving Championship, Chad Kitburi and Dean Murray. Pictured at left is Ken Diederich, lead judge and executive director of the National Ice Carving Association.

54 SEAT REPORT 2013

Culture and traditional ways of life are part of the fabric of PROTECTION OF ENVIRONMENT the North . De Beers has made a commitment to supporting At De Beers, we understand that our social license to Aboriginal culture through a number of initiatives: operate comes from our commitment to social investment • De Beers will continue to provide support for in the communities in the areas close to Snap Lake . community cultural events such as Hand Games, Social investment is about more than sponsorship and community gatherings and assemblies . De Beers donations . It’s about communities identifying legacy works closely with IBA committees to identify cultural projects that will support the social, cultural, and activities important to communities of interest, economic health of communities for the long-term health and support these activities with financial support, of the community . sponsorship and organizational support . • In 2013, De Beers updated its social investment • Every employee who works at Snap Lake Mine works policies, a suite of policies that direct how we invest in a cultural environment . We help our employees in communities in ways that are meaningful to our understand what this means, and how this makes our employees and to the community . These policies workplace unique by making cross-cultural training set the foundation for how we move forward with mandatory for every employee . social investment and crystalize our philosophy and • Several times a year, cultural activities are hosted at the commitment . mine’s cultural centre . In 2013, we hosted painting • One of the policies created the De Beers Canada classes, dreamcatcher-making classes and duffle mitt- Fund for community capacity building . This fund will making sessions . In previous years, we have hosted support legacy projects, identified by the community, jewellery-making classes, brought in an artist to teach that support social, cultural and economic growth sculpture and even hosted northern musicians on site, and stability . like Leela Gilday .

Students take part in cultural activities during the 2013 NWT Heritage Fair, held in Fort Members of the NWT Society for the Prevention of Cruelty to Animals (SPCA), sort some Smith. Students from across the NWT took part in this event and De Beers was proud to of the recyclables received from Snap Lake Mine in 2013. Bottles and cans recovered at support cultural activities during the fair. the mine are donated by De Beers to charity and non-profit organizations who receive the deposit refund, which totaled a combined $4,486 in 2013.

55 SNAP LAKE MINE

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: anonymous@speak-up-site .com • 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 .

56 SEAT REPORT 2013

APPENDIX 1 2013 EMPLOYMENT DATA

57 SNAP LAKE MINE

Annual Employment at the Snap Lake Mine NON-NWT RESIDENTS (Construction phase 2005 to 2007; operations phase 2008 to 2013) NWT RESIDENTS

1,200 1,000 800 600 400 EMPLOYMENT 200 # OF PERSON YEARS OF OF YEARS # OF PERSON 0 2005 2006 2007 2008 2009 2010 2011 2012 2013

26,000 24,000 2013 De Beers Recruitment by Priority (Competitions and New Hires)

NUMBER OF APPLICANTS NUMBER OF NEW HIRES (based on 73 competitions held in 2013) NWT RESIDENTS 1,101 25% 35 51%

NON-NWT RESIDENTS 3,342 75% 33 49% TOTAL 4,443 100% 68 100% 12,000 10,000

Number of Applicants Number of New Hires

12% 25% SOUTHERN RESIDENTS 75% 13% 49% NWT ABORIGINAL RESIDENTS 26% OTHER NWT RESIDENTS

58 SEAT REPORT 2013

NON-NWT RESIDENTS NWT Population (Annual, 2004 to 2013) NWT RESIDENTS 44,000 42,000

RESIDENTS 40,000

NUMBER OF NWT NUMBER OF NWT 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: NWT Bureau of Statistics, Population Estimates.

NWT Labour Force (Annual, 2004 to 2013)

26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Statistics Canada, Labour Force Survey

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EMPLOYMENT BY HIRING PRIORITY Table 1 presents employment in person years8 by hiring priority for the Snap Lake Mine from 2005 to 2013 . The first three years of data represent employment during the mine’s construction phase . The mine began operations in 2008 with the number of person years of employment growing each year since 2009 when the worldwide economic recession forced a temporary slowdown of production and a decrease in labour demand .

Table 1: Employment by Hiring Priority, to the end of 2013

2005 2006 2007 2008 2009 2010 2011 2012 2013 TOTAL AVERAGE (person years) NWT ABORIGINAL 39 93 126 139 92 123 145 149 139 1,045 116 OTHER NWT RESIDENTS 56 130 143 135 71 106 104 126 135 1,005 112 SUBTOTAL NWT RESIDENTS 95 223 269 274 163 229 249 275 274 2,050 226 NON-NWT 137 614 875 454 269 406 429 482 502 4,167 463 GRAND TOTAL 231 838 1,144 728 431 635 678 757 776 6,218 691

(per cent of total) NWT ABORIGINAL 17% 11% 11% 19% 21% 19% 21% 20% 18% 17% 17% OTHER NWT RESIDENTS 24% 16% 13% 19% 16% 17% 15% 17% 17% 16% 16% SUBTOTAL NWT RESIDENTS 41% 27% 24% 38% 38% 36% 37% 36% 35% 33% 33% NON-NWT 59% 73% 76% 62% 62% 64% 63% 64% 65% 67% 67% GRAND TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Note: Those that did not self identify in the survey are recorded as non-Aboriginal . NWT Aboriginal employees who were identified as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table . Figures may not add up due to rounding error .

8 In 2013, it was expected that over a full year, an employee would work 13 cycles of 14 days with a day equalling a 12 hour shift . This represents 2,184 hours per year or an average of 182 hours per month . Therefore, estimating number of jobs in terms of person years requires summing the total number of hours worked by all employees and dividing that number by 2,184 .

60 SEAT REPORT 2013

Table 2 provides information on the employment record of De Beers and our contractors for 2013 . Our employees contributed 509 person years of labour to Snap Lake Mine . This is an increase over 2012 when our employees totalled 466 . The 2013 workforce consisted of 90 .5 NWT Aboriginal residents and 86 NWT non-Aboriginal residents . Another 44 6. person years of employment came from Aboriginal labour residing outside the territory .9 Snap Lake Mine’s contractor workforce is smaller than ours, employing 266 6. people on a full-time equivalent (FTE) basis . This represents a decrease from the 291 FTE workforce reported last year . NWT residents accounted for 37 per cent of this labour in 2013 .

Table 2: Employment by Hiring Priority, 2013

DE BEERS CONTRACTOR TOTAL Snap Lake Employment by (person years) Priority Hiring Group (De Beers and contractors) NWT ABORIGINAL 90.5 48.6 139.1

OTHER NWT RESIDENTS 86.0 48.9 134.9 SUBTOTAL NWT RESIDENTS 176.5 97.4 273.9 NON-NWT ABORIGINAL 44.6 10.4 55.1 OTHER NON-NWT 35% RESIDENTS 288.0 158.8 446.8 SUBTOTAL NON-NWT 332.7 169.2 501.9 RESIDENTS 65% GRAND TOTAL 509.2 266.6 775.8

(per cent of total) NWT ABORIGINAL 18% 18% 18% OTHER NWT RESIDENTS 17% 18% 17% NON NWT RESIDENTS SUBTOTAL NWT RESIDENTS 35% 37% 35% NWT RESIDENTS NON-NWT ABORIGINAL 9% 4% 7% OTHER NON-NWT RESIDENTS 57% 60% 58% SUBTOTAL NON-NWT RESIDENTS 65% 63% 65% GRAND TOTAL 100% 100% 100%

Note: Those that did not self identify in the survey are recorded as non-Aboriginal . NWT Aboriginal employees who were identified as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table . Figures may not add up due to rounding error .

9 The Employment Statistical Information (ESI) Form conducted for the Snap Lake Mine results in data that require some explanation and interpretation . Aboriginal employees can record their status in one of three categories within the survey: Impact Benefit Agreement (IBA) Group, NWT Aboriginal, or Other Aboriginal . De Beers assumes that an Aboriginal person who is a member of the North Slave Métis Alliance, Yellowknives Dene First Nation, Lutsel K’e and Kache Dene First Nation or Tłicho would identify themselves as representatives of their IBA Group, regardless of where they live . “NWT Aboriginal” is defined in the survey as any Indian, Inuit or Métis individual who originated in the NWT or is a descendant of an Aboriginal person originating in the NWT . De Beers assumes that this will capture every employee who represents any other Aboriginal group in the NWT regardless of their residency . Finally, De Beers assumes that “Other Aboriginal” captures all other Aboriginal people . It is important to note that someone who identifies himself or herself as part of an IBA group or another NWT Aboriginal group might not reside in the NWT . Also, a number of individuals choose not to self-identify themselves by their heritage or location . These individuals are recorded as non-Aboriginal, non-NWT residents .

61 SNAP LAKE MINE

EMPLOYMENT BY HIRING PRIORITY AND JOB CLASSIFICATION Tables 3a and 3b contain employment results by hiring priority and job classification . Most of the NWT resident employees work in jobs classified as skilled, semi-skilled, and unskilled . These results highlight the skill gap that exists in the NWT workforce .

Table 3(a): Employment by Hiring Priority and Job Classification, 2013

OTHER NWT SUBTOTAL NWT NON-NWT NWT ABORIGINAL GRAND TOTAL RESIDENTS RESIDENTS RESIDENTS (person years) MANAGEMENT 0.9 1.6 6.9 13.8 20.7 PROFESSIONAL 0.9 8.1 9.0 25.4 34.4 SKILLED 32.3 54.7 87.0 255.0 342.0 SUBTOTAL 34.1 68.7 102.8 294.3 397.1 SEMI-SKILLED 49.8 35.0 84.8 198.0 282.8 UNSKILLED 55.2 31.1 86.3 9.6 95.9 SUBTOTAL 105.0 66.1 171.9 207.6 378.7 GRAND TOTAL 139.0 134.9 273.9 501.8 775.8

(Per cent of total by job classification) MANAGEMENT 4% 29% 33% 67% 100% PROFESSIONAL 2% 24% 26% 74% 100% SKILLED 9% 16% 25% 75% 100% SUBTOTAL 9% 17% 26% 74% 100% SEMI-SKILLED 18% 12% 30% 70% 100% UNSKILLED 58% 32% 90% 10% 100% SUBTOTAL 28% 17% 45% 55% 100% GRAND TOTAL 18% 17% 35% 65% 100%

(Per cent of total by hiring priority) MANAGEMENT 1% 4% 3% 3% 3% PROFESSIONAL 1% 6% 3% 5% 4% SKILLED 23% 41% 32% 51% 44% SUBTOTAL 24% 51% 38% 59% 51% SEMI-SKILLED 36% 26% 31% 39% 36% UNSKILLED 40% 23% 32% 2% 12% SUBTOTAL 76% 49% 62% 41% 49% GRAND TOTAL 100% 100% 100% 100% 100%

Note: Those that did not self identify in the survey are recorded as non-Aboriginal . NWT Aboriginal employees who were identified as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table . Figures may not add up due to rounding error .

62 SEAT REPORT 2013

Table 3b reorganizes the data to highlight the number of Aboriginal employees working at the Snap Lake Mine . The number of Aboriginal employees residing outside the territory decreased slightly, slipping from 46 7. in 2012 to 43 6. in 2013 . Almost all of these non-resident Aboriginal employees work in semi-skilled or skilled positions .

Table 3(b): Employment by Hiring Priority and Job Classification, 2013

OTHER NWT NON-NWT TOTAL OTHER NWT NON-NWT GRAND TOTAL ABORIGINAL ABORIGINAL ABORIGINAL RESIDENTS RESIDENTS (person years) MANAGEMENT 0.9 1.6 2.5 6.0 12.2 20.7 PROFESSIONAL 0.9 0.0 0.9 8.1 25.4 34.4 SKILLED 32.3 18.6 50.9 54.7 236.4 342.0 SUBTOTAL 34.1 20.2 54.3 68.7 274.0 397.1 SEMI-SKILLED 49.8 22.9 72.7 35.0 175.1 282.8 UNSKILLED 55.2 0.4 55.6 31.1 9.2 95.9 SUBTOTAL 105.0 23.3 128.3 66.1 184.3 378.7 GRAND TOTAL 139.0 43.6 182.6 134.9 458.3 775.8

(Per cent of total by job classification) MANAGEMENT 4% 8% 12% 29% 59% 100% PROFESSIONAL 2% 0% 2% 24% 74% 100% SKILLED 9% 5% 15% 16% 69% 100% SUBTOTAL 9% 5% 14% 17% 69% 100% SEMI-SKILLED 18% 8% 26% 12% 62% 100% UNSKILLED 58% 0% 58% 32% 10% 100% SUBTOTAL 28% 6% 34% 17% 49% 100% GRAND TOTAL 18% 6% 24% 17% 59% 100%

(Per cent of total by hiring priority) MANAGEMENT 1% 4% 1% 4% 3% 3% PROFESSIONAL 1% 0% 0% 6% 6% 4% SKILLED 23% 43% 28% 41% 52% 44% SUBTOTAL 24% 46% 30% 51% 60% 51% SEMI-SKILLED 36% 53% 40% 26% 38% 36% UNSKILLED 40% 1% 30% 23% 2% 12% SUBTOTAL 76% 54% 70% 49% 40% 49% GRAND TOTAL 100% 100% 100% 100% 100% 100%

Note: Those that did not self identify in the survey are recorded as non-Aboriginal . NWT Aboriginal employees who were identified as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table . Figures may not add up due to rounding error .

63 SNAP LAKE MINE

Snap Lake Employment by Job Classification and Hiring EMPLOYMENT BY COMMUNITY Priority (Residency) Table 4 shows employment data by NWT community . These statistics are recorded as the number of person years of employment and include De Beers and 350 contractor employees . 300 250 Table 4: Employment by NWT Community 200 COMMUNITY PERSON % OF TOTAL % OF NWT 150 YEARS EMPLOYMENT EMPLOYMENT Aklavik 0.0 0 0 100 Behchoko 19.8 3 7 NUMBER OF FTE JOBS 50 Colville Lake 0.0 0 0 0 Deline 5.3 1 2 Enterprise 0.8 0 0 Fort Good Hope 0.0 0 0 Fort Liard 0.0 0 0 SKILLED Fort McPherson 0.1 0 0 UNSKILLED Fort Providence 3.4 0 1 MANAGEMENT SEMI-SKILLED

PROFESSIONAL Fort Resolution 2.1 0 1 Fort Simpson 0.0 0 0 NON-NWT RESIDENTS Fort Smith 8.8 1 3 NWT RESIDENTS Gamètì 2.4 0 1 Hay River 34.2 4 12 Holman 0.0 0 0 Inuvik 1.0 0 0 Jean Marie River 0.0 0 0 Kakisa 0.0 0 0 Lutsel K’e 1.3 0 0 Nahanni Butte 0.0 0 0 Norman Wells 0.9 0 0 Paulatuk 0.0 0 0 Sachs Harbour 0.0 0 0 Trout Lake 0.0 0 0 Tsiigehtchic 0.0 0 0 Tuktoyaktuk 0.0 0 0 Tulita 1.9 0 1 Wekweètì 2.7 0 1 Whatì 3.8 0 1 Wrigley 0.0 0 0 Yellowknife 185.6 24 68 Other 501.8 65 - TOTAL 775.8 100 100

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

64 SEAT REPORT 2013

NEW HIRES BY RESIDENCY, COMMUNITY, AND JOB CLASSIFICATION Table 5 presents the number of new hires by residency separated into employees of De Beers and our contractors . The data in this table is not in person years, but rather number of individuals hired 10. We hired 143 new people over the course of 2013, of which 35 per cent were NWT residents . Our contractors are typically more active in hiring new employees, largely because of the seasonal or temporary nature of some of their responsibilities . The total number of new hires by contractors was 161 . Similar to De Beers, a majority (52 per cent) of these new employees was hired from outside the territory . Table 4: Employment by NWT Community Table 6 highlights the communities in which our new hires and those of our contractors live . This distribution represents the overall workforce at Snap Lake Mine, with the majority residing in Yellowknife (which includes the Yellowknives Dene communities of N'dilo and Dettah) . An aberration was the 11 residents of Whatì who were hired by our contractors this year . Table 7 further disaggregates the new hire data according to hiring priority and job classification . These data reaffirm the established division of labour between the different priority groups . New Aboriginal employees were hired primarily to fill positions in unskilled and semi-skilled job categories; non-Aboriginal NWT residents were hired for positions across all categories; non-Aboriginal, non-resident new hires filled the majority of skilled, professional, and management positions, 75 per cent, 94 per cent, and 81 per cent respectively .

Table 5: New Hires by Residency

>6 MONTHS <6 MONTHS NWT NON-NWT TOTAL NUMBER OF NEW EMPLOYEES DE BEERS CANADA INC. 37 13 50 93 143 CONTRACTORS 66 11 77 84 161 GRAND TOTAL 103 24 127 177 304

PER CENT OF TOTAL DE BEERS CANADA INC. 26% 9% 35% 65% 100% CONTRACTORS 41% 7% 48% 52% 100% GRAND TOTAL 34% 8% 42% 58% 100%

Note: Figures may not add up due to rounding error . 10 The figures representing contractor hiring will appear inflated or would otherwise suggest excessive turn-over . This is not the case, however . It is not uncommon for someone to accept several short-term positions with different contractors throughout the year . Depending on the duration of their work term, which could be as short as two weeks (a single work rotation), it is possible for the same person to be entered into the system as a new hire multiple times each year . This issue does not exist with De Beers’ employees . If the Company hires back an employee twice in one year, they are entered into the system only once .

65 SNAP LAKE MINE

Table 6: New Hires by Community - Person Years

# OF EMPLOYEES # OF EMPLOYEES % OF TOTAL COMMUNITY HIRED BY HIRED BY TOTAL NEW EMPLOYEES DE BEERS CONTRACTORS HIRES HIRED Aklavik 0 0 0 0.0 Behchoko 6 12 18 5.9 Colville Lake 0 0 0 0.0 Deline 1 0 1 0.3 Enterprise 0 0 0 0.0 Fort Good Hope 0 0 0 0.0 Fort Liard 0 0 0 0.0 Fort McPherson 0 0 0 0.0 Fort Providence 1 1 2 0.7 Fort Resolution 1 1 2 0.7 Fort Simpson 0 0 0 0.0 Fort Smith 3 0 3 1.0 Gamètì 2 4 6 2.0 Hay River 5 4 9 3.0 Holman 0 0 0 0.0 Inuvik 1 0 1 0.3 Jean Marie River 0 0 0 0.0 Kakisa 0 0 0 0.0 Lutsel K’e 1 0 1 0.3 Nahanni Butte 0 0 0 0.0 Norman Wells 0 0 0 0.0 Paulatuk 0 0 0 0.0 Sachs Harbour 0 0 0 0.0 Trout Lake 0 0 0 0.0 Tsiigehtchic 0 0 0 0.0 Tuktoyaktuk 0 0 0 0.0 Tulita 0 0 0 0.0 Wekweètì 0 0 0 0.0 Whatì 1 11 12 3.9 Wrigley 0 0 0 0.0 Yellowknife 32 44 76 25.0 Other 89 84 173 56.9 TOTAL 143 161 304 100

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

66 SEAT REPORT 2013

Table 7: New Hires by Hiring Priority and Job Category

UNSKILLED SEMI-SKILLED SKILLED PROFESSIONAL MANAGEMENT TOTAL NEW HIRES

MEMBERS OF THE IBA GROUPS WHO LIVE IN NWT 33 29 7 0 0 69 OTHER ABORIGINAL PEOPLE LIVING IN NWT 13 8 9 1 0 31 NON-ABORIGINAL NWT RESIDENTS 8 6 12 0 1 27 TOTAL NWT RESIDENT NEW HIRES 54 43 28 1 1 127 MEMBERS OF THE IBA GROUPS WHO DO NOT LIVE IN NWT 0 0 0 0 0 0 OTHER ABORIGINAL PEOPLE WHO DO NOT LIVE IN NWT 4 1 4 0 2 11 OTHER NON-NWT RESIDENTS 5 36 97 15 13 166 TOTAL NEW HIRES 63 80 129 16 16 304

Per cent of total by hiring priority MEMBERS OF THE IBA GROUPS WHO LIVE IN NWT 48% 42% 10% 0% 0% 100% OTHER ABORIGINAL PEOPLE LIVING IN NWT 42% 26% 29% 3% 0% 100% NON-ABORIGINAL NWT RESIDENTS 30% 22% 44% 0% 4% 100% TOTAL NWT RESIDENT NEW HIRES 43% 34% 22% 1% 1% 100% MEMBERS OF THE IBA GROUPS WHO DO NOT LIVE IN NWT ------OTHER ABORIGINAL PEOPLE WHO DO NOT LIVE IN NWT 36% 9% 36% 0% 18% 100% OTHER NON-NWT RESIDENTS 3% 22% 58% 9% 8% 100% TOTAL NEW HIRES 21% 26% 42% 5% 5% 100%

Per cent of total by job classification MEMBERS OF THE IBA GROUPS WHO LIVE IN NWT 52% 36% 5% 0% 0% 23% OTHER ABORIGINAL PEOPLE LIVING IN NWT 21% 10% 7% 6% 0% 10% NON-ABORIGINAL NWT RESIDENTS 13% 8% 9% 0% 6% 9% TOTAL NWT RESIDENT NEW HIRES 86% 54% 22% 6% 6% 42% MEMBERS OF THE IBA GROUPS WHO DO NOT LIVE IN NWT 0% 0% 0% 0% 0% 0% OTHER ABORIGINAL PEOPLE WHO DO NOT LIVE IN NWT 6% 1% 3% 0% 13% 4% OTHER NON-NWT RESIDENTS 8% 45% 75% 94% 81% 55% TOTAL NEW HIRES 100% 100% 100% 100% 100% 100%

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

67 SNAP LAKE MINE

EMPLOYMENT BY GENDER AND JOB CLASSIFICATION Table 8 and Table 9 provide evidence of our record in hiring women . There were 108 women employed at the Snap Lake Mine in 2013, representing 14 per cent of the overall workforce . Women provided the mine with 33 6. person years of employment in jobs classified as management, professional, or skilled, which represents an 18 per cent improvement from 2012 . Women are most represented in unskilled positions, filling 37 4. full-time equivalent jobs in that category, but also contribute 36 .8 person years to semi-skilled jobs and 26 person years to skilled positions . The relative contribution of men to the overall workforce is unchanged from 2012 at 86 per cent .

Table 8: Employment by Job Classification and Gender

MEN WOMEN TOTAL (PERSON YEARS) (PER CENT) (PERSON YEARS) (PER CENT) (PERSON YEARS) (PER CENT) MANAGEMENT 18.5 90% 2.2 10% 20.7 100% PROFESSIONAL 29.0 84% 5.4 16% 34.4 100% SKILLED 316.0 92% 26.0 8% 342.0 100% SUBTOTAL 363.5 92% 33.6 8% 397.1 100% SEMI-SKILLED 246.1 87% 36.8 13% 282.8 100% UNSKILLED 58.5 61% 37.4 39% 95.9 100% SUBTOTAL 304.6 80% 74.1 20% 378.7 100% GRAND TOTAL 668.1 86% 107.7 14% 775.8 100%

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

Table 9: Employment by Job Classification for Women Distribution of Women by Job Classification

(PERSON YEARS) (PER CENT) UNSKILLED MANAGEMENT 2.2 2% 34% PROFESSIONAL 5.4 5% SEMI-SKILLED SKILLED 26.0 24% SKILLED SUBTOTAL 33.6 31% 24% 35% PROFESSIONAL SEMI-SKILLED 36.8 34% MANAGEMENT UNSKILLED 37.4 35% SUBTOTAL 74.1 69% GRAND TOTAL 107.7 100% 5% 2% Note: Figures may not add up due to rounding error .

68 SEAT REPORT 2013

APPENDIX 2 GLOSSARY AND CONTACT DETAILS

Distribution of Women by Job Classification

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GLOSSARY OF KEY TERMS AND ABBREVIATIONS

CEO: abbreviation for Chief Executive Officer . types of intrusion occur, such as dikes or sills . COI: see Community of interest . LKDFN: abbreviation for Lutsel K’e Dene First Nation . COO: abbreviation for Chief Operating Officer Mgr: abbreviation for Manager . Community of interest: collective term used to refer to any MPiT: abbreviation for Mining Professional in Training . community, individual or organisation, including NSMA: abbreviation for North Slave Métis Alliance . government, either directly or indirectly affected by our activities or interested in them . OHSAS: abbreviation for Occupational Health & Safety Advisory Services . DBCI: abbreviation for De Beers Canada Inc . PSO: abbreviation for Protective Services Official . Dike: term used to refer to a tabular igneous intrusion that cuts across the bedding and foliation (i e. . the “layers”) of the Q1, Q2, Q3, Q4: respectively, the first, second third or surrounding rock . A dike may dip steeply or at a shallow fourth calendar quarter of the year . angle . SEAT: abbreviation for Socio-Economic Assessment Tool Box . EMC: abbreviation for Environmental Management SEA: abbreviation for Socio-Economic Agreement . Committee . Sightholder: term used for a customer of De Beers Global FUPA: abbreviation for Follow-Up Program Agreement . Sightholder Sales (DBGSS), who through a selection process GDP: abbreviation for Gross Domestic Product . has qualified to purchase rough diamonds from DBGSS . DBGSS is part of the De Beers Group, the largest producer GM: abbreviation for General Manager . of rough diamonds in the world by value . GNWT: abbreviation for Government of the Northwest Sill: term used to refer to a tabular igneous intrusion that Territories . parallels the bedding or foliation (i e. . the “layers”) of the HR: Human Resources department . surrounding sedimentary or metamorphic rock respectively . IBA: acronym for Impact Benefit Agreement, the most YKDFN: Yellowknives Dene First Nation . widely used agreements made with Aboriginal communities yr: abbreviation for year . to lay out the benefits provided from a project and engagement agreed to . ISO: abbreviation for the International Standards Organization . Kimberlite: volcanic rock originating deep in the earth that is the main primary source for diamonds . Most kimberlites occur as cone-shaped bodies called ‘pipes’, although other

70 SEAT REPORT 2013

CONTACT DETAILS

De Beers Canada Inc . Snap Lake Mine Suite 300 5120 49th Street Yellowknife NT X1A 1P8 Attention: Terry Kruger

T: 867-766-7300 F: 867-766-7347 E: terry .kruger@debeersgroup com.

De Beers Canada Inc . 250 Ferrand Drive, Suite 900 Toronto, Ontario, M3C 5G8

T: 416 - 645 -1710 F: 416-429-2462 E: info .canada@debeersgroup .com

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