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: De Beers 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 Yellowknife . 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 Northwest Territories, 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, Anglo American plc, 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: Wekweeti, Gameti, Whati, Behchokò¸ Lutsel K’e, Délîne Dettah, 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 Great Slave 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 .