Sustainable Development Report Introduction .................................... 3 Economic Prosperity .................... 15 Social Well-being ........................ 25 Our Vision ......................................... 3 Investing in Diavik’s Future .................. 15 Community Participation Agreements .... 26 Our Values and Principles .................... 3 Diavik Will Become Neighbouring Aboriginal Groups ........ 26 President’s Message ............................ 4 an Underground Mine .................... 16 Communities Advisory Board .............. 26 Other Northern Communities .............. 26 Our Ownership and Management ......... 5 Underground Feasibility ..................... 16 Rio Tinto ........................................... 5 A21 Bulk Sampling ........................... 17 Community Contributions ................... 27 Aber Diamond Corporation .................. 5 Reserves ......................................... 17 Scholarships .................................... 27 Our Northern Commitments .................. 5 Proven and Probable Reserves ............ 17 Bailey House ................................... 28 Aboriginal Gold Designation Recertified . 5 A418 Dike Construction .................... 18 Apprenticeships ................................ 29 Location ............................................ 7 Exploration ...................................... 19 Site-based Training ........................... 29 Diavik at a Glance ............................. 7 Haul Trucks Adapted Aboriginal Leadership Program ........... 29 Diavik Sustainable Development Policy ... 8 to Arctic Environment ...................... 19 Aboriginal Skills and Employment Sustainable Development Commitments .. 8 Employment ..................................... 20 Partnership (ASEP) ......................... 30 Diavik’s Workplace Centre ................. 30 Mine Operations ................................ 9 Northern Business Participation ........... 21 Occupational Health Key Performance Indicators ................ 10 Silent Auction and Safety Policy .......................... 30 Winter Road Program ....................... 11 Raises Funds for Charities ............... 21 Substance Abuse Policy ..................... 31 Expenditures .................................... 22 2006 Resupply goes from Ice to Air ..... 12 Employee and Family Assistance ......... 31 Six Sigma Programs Continue ............. 22 2007 Winter Road Program Safety Performance ........................... 31 Marketing and Diamond Sales ............ 22 Opens on Schedule ....................... 13 Safety Philosophy ............................. 31 Product Stewardship ......................... 22 Safety Initiatives ............................... 31 Rio Tinto’s Statement Operations Safety Performance ........... 31 of Business Practice ....................... 22 Aboriginal Business Surpasses Safety Training System ....................... 32 $1 Billion .................................... 22 Take 5 ............................................ 32 Job Hazard Analysis ......................... 32 Code of Conduct ............................. 23 Safety Interactions ............................. 32 Kimberley Process ............................. 23 Emergency Response......................... 32 Towards Sustainable Mining ............... 23 Cutting and Polishing ........................ 23 Mine Rescue Team ............................ 33 Responsible Jewellery Council ............. 23 Contents Environmental Stewardship ...... 35 Water Management ......................... 40 Closure Security ............................... 45 Commitments ................................... 36 Water Treatment Plant ....................... 40 Spills .............................................. 45 Governance .................................... 36 Sewage Treatment Plant ..................... 40 Fuel ............................................... 45 Environmental Compliance ................. 36 Water Monitoring ............................. 40 Energy ........................................... 46 Inspection and Enforcement ................ 37 Managing Acid Rock Drainage ........... 41 Greenhouse Gas Reduction Studies ..... 46 Environmental Management System ..... 37 Constructing Fish Habitat ................... 42 Fuel Efficiency Initiative Recognized ..... 46 ISO Certification .............................. 37 Water Licence Renewal ..................... 42 Electricity ........................................ 47 Wildlife .......................................... 37 Environmental Monitoring Heating .......................................... 47 Wildlife Monitoring .......................... 37 Advisory Board ............................. 43 Waste ............................................ 47 Caribou Monitoring .......................... 37 Community-based Monitoring Camp .... 43 Environmental Monitoring Programs ..... 48 Water ............................................ 38 Water Quality Workshop ................... 43 Verification Activities .......................... 50 Lac de Gras .................................... 38 Dust Monitoring Workshop ................. 43 Reporting Activities ........................... 50 Water Balance ................................ 38 Fish Palatability and Texture Study ........ 44 Inspection Items ................................ 51 Water Usage................................... 39 Closure Planning .............................. 44 Performance .................................... 52 DIAVIK SUSTAINABLE DEVELOPMENT REPORT 2006 using resources wisely DIAVIK SUSTAINABLE DEVELOPMENT REPORT 2006 Diavik Diamond Mine – Using Resources Wisely. Introduction Our Vision Our vision is to be Canada’s premier diamond producer, creating a legacy of responsible safety, environmental and employee development practice, and enduring community benefit. Our Values and Principles • We treat ourselves and all those with whom we meet and work with dignity, consideration, and respect. • We are committed to active partnership with local communities, businesses, governments, and non-governmental organizations. • We are dedicated to meeting the needs of our customers and to contributing long-term value to our investors and to the North. • We strive for excellence in all we do. hoto by Jiri Hermann P INTRODUCTION President’s Message Let me invite you to read this, our 7th Annual Sustainable Development Report since we began construction of the Diavik mine. At Diavik, we continue to balance the three tenets of sustainable development as we work to create economic prosperity and social well-being while protecting the environment. Conducted under our banner of using resources wisely, this was especially true in 2006 as our workers safely combined a major airlift to recover from a record warm winter with the largest construction program since mine opening, all the while keeping day-to-day operations going strong. I thank everyone involved for meeting these challenges with enthusiasm, hard work, and innovation. Let me provide a few highlights of Diavik’s accomplishments. In 2006, we: • improved our safety record by more than 30 per cent, including one year of underground development work without an accident; • brought diamond production to 9.8 million carats; • expended $492 million, the largest since mine construction, with 77 per cent, or $379 million, spent with local businesses; • surpassed $1 billion in business with Aboriginal firms, and recertified to Gold Level under the Canadian Council of Aboriginal Business’ Progressive Aboriginal Relations program; • graduated eight new tradespersons, several at the top of their classes, and completed our second Aboriginal Leadership Development Program; and • complied with all environmental permits and licences, maintaining requirements associated with an Environmental Management System ISO 14001 certification. In the following pages, you will find more information on these and many other activities that we have undertaken this past year, that collectively contribute to sustainable development and our wise use of resources. Mark Anderson President, Diavik Diamond Mines Inc. DIAVIK SUSTAINABLE DEVELOPMENT REPORT 2006 Our Ownership and Management The company has a variety of programs Our Northern Commitments The Diavik Diamond Mine is an whose underlying goal is the betterment of Diavik has formally committed to providing unincorporated joint venture between health, safety, environment, and community. significant socio-economic opportunities Diavik Diamond Mines Inc. (60 per cent) to the Northwest Territories and Nunavut’s Rio Tinto sells its diamonds through its and Aber Diamond Limited Partnership West Kitikmeot region. This includes marketing arm, Rio Tinto Diamonds, in (40 per cent). Both are Canadian the Diavik Socio-Economic Monitoring line with a strict chain of custody process, companies headquartered in Yellowknife, Agreement, signed in 1999 with the allowing the sale of diamonds according Northwest Territories, Canada. Diavik Government of the Northwest Territories to their mine source in order to gain the Diamond Mines Inc. is a wholly-owned and ratified by the five Aboriginal groups, benefits of origin. subsidiary of Rio Tinto plc of London, individual Participation Agreements with England, and Aber Diamond Limited To learn more, visit riotinto.com and the Tlicho Government, the Yellowknives Partnership is a wholly-owned subsidiary riotintodiamonds.com Dene First Nation, the North Slave Metis of Aber Diamond Corporation