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        2009
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Introduction
Welcome to our 2009 Socio-Economic Annual Report. This provides an update regarding our
contribution to the cultural, social and economic well being of the Northwest Territories. This
report is complimented by De Beers Canada’s second annual Report to Society.

The diamond industry, like so many industries in 2009, faced a global recession. For our
company, this was one of the most difficult years we had faced in the 120+ years we have been
in operations globally. The impact of the recession meant tough decisions had to be made at
Snap Lake to face these economic challenges head on, and to position our mine for long term
success.

Although we downsized, and cut capital and operation expenditures in 2009, we remained
committed to sustainable development. Apprenticeships and training continued and we have
now exceeded our commitments. Our efforts to support literacy remained strong. We know low
literacy is one of the biggest challenges we face in developing a skilled northern workforce.
Most importantly, we worked safely, ensuring the distractions of a weak economy did not affect
the ability of every worker to finish a shift without injury and go home safely to his or her family.

Many of our decisions impacted our employees, our contractors and our suppliers and they
stayed the course with us. I thank them for their understanding and contribution to our success
in 2009.

As we finalize this report, world diamond sales are coming back, allowing us to carefully ramp
up to full production over the next two years. In December 2009, we announced hiring of 175
additional workers in 2010. We put more capital spending on the books for 2010 with the
construction of important environmental infrastructure on surface and the new permanent
accommodations for our employees. While the world economy remains on a very precarious
balance, and we are watching it carefully, we believe that our experience from 2009 and our
commitment to careful growth have put Snap Lake Mine in the right place.

As I reflect on the year, one thing rings loud and clear. Our employees are a resilient, dedicated,
hardworking team of ordinary people and they have done the most extraordinary things in
2009. I am proud of their accomplishments and know you will enjoy reading about them.



                                                                                                        3

Brad Corrigan,

Snap Lake Mine General Manager



                                                                                                            1
                                                                     Senior Community liaison coordinator
                                                                     Sabet Biscaye leads a cross-cultural
                                                                     awareness course.




    Culture
    Building bridges of understanding
    Where can you learn to make your own dream catcher,              Her course was one of the most popular of the year, as
    duffle mittens or fish scale art? At De Beers Canada’s Snap      participants were able to create something of their own to
    Lake Mine, just head to the Cultural Centre.                     give as Christmas gifts.

    De Beers understands that Aboriginal arts and culture are        “What was most fun for me was getting to know the
    a rich tradition and deserve to be preserved. That’s why we      workers who would come in for the lessons. There are
    built the Cultural Centre, a unique way of showing respect       a lot of interesting people from all sorts of different
    and appreciation for the people, customs and lifestyles in       backgrounds. We would all spend time getting to know
    the north.                                                       each other and learning from each other,” she says. “We
                                                                     learned about each other’s cultures and traditions. We had
    De Beers regularly invites northern Aboriginal artisans to
                                                                     a lot of laughs, shared stories and even learned a few words
    the Snap Lake Mine to share their traditions and culture.
                                                                     in new languages.”
    Employees and artists have embraced the concept, with
                                                                     In order to convey a sense of warmth and hospitality,
    each course being offered attracting between 70-100
                                                                     the Centre itself is set up like a traditional home, and can
    participants. What makes it all so worthwhile is that they
                                                                     fit between 20-30 people at a time. It features a large
    aren’t just learning how to make mittens or a dream
                                                                     collection of arts and crafts on display and resource
    catcher. Aboriginal employees are able to stay connected
                                                                     material related to the north’s Aboriginal people.
    to their culture, while non-Aboriginals get a chance to learn
    about where they work and the people who have lived in
    the north for centuries. More importantly, it’s about learning
    and sharing with each other. It allows the employees to not
    only discover what makes them different from each other,
    but just how much they all have in common.

    Eva Beaverho was at Snap Lake just before Christmas 2009
    to teach mine employees how to make duffle mittens.

    “It was a very exciting opportunity for me,” says Beaverho,
    who grew up in Whati, but now lives in Yellowknife.
    “It’s always fun to go to a new place and teach people
    something you love to do. They all caught on pretty quickly.
    You wouldn’t think mine workers would be all that happy
    to be cutting fabric and sewing, but they were.”




        Eva Beaverho demonstrates
        braiding techniques at the cultural centre.



2   Snap Lake Mine Socio-Economic Report
Nurturing traditions
Aboriginal northerners cherish their long-held traditions
and cultures. And De Beers does, too.

That’s why we are committed to not only providing job
opportunities but also to promoting the social and cultural
well-being of First Nations and others living in communities
close to our Snap Lake Mine.

Our support for cultural traditions includes sponsoring
and attending annual assemblies for Tlicho and Akaitcho
First Nations, bringing First Nations elders and leaders to
the Snap Lake Mine, and supporting community events. All
employees are required to take a Cross Cultural Awareness
course and are encouraged to participate in events at the
Mine’s Cultural Centre.

“With De Beers’ support, we have been able to develop and
deliver many programs and services for the Tlicho region,”                In 2008 and 2009 managers from
says Tony Rabesca, Culture, Language and Communications
Director at the Tlicho Government.
                                                                          Snap Lake Mine participated in the
As a part of the Tlicho Youth Conference in August 2009,
                                                                          Trails of Our Ancestors Canoe Journey.
De Beers provided educational materials regarding healthy
life choices, addiction awareness, Tlicho spiritual healing
and the importance of developing support networks.

“That gives youth the tools they need to make positive
choices in their lives. It gives them something to work for,”
says Rabesca.

For the past two years, Snap Lake Mine management               “The hand games tournaments are a blast. They are such
employees have had the opportunity to take part in the          a great way to celebrate Aboriginal history, and they really
multi-day Trails of Our Ancestors Canoe Journey that ends       showcase our culture and how people can come together
in Whati and coincides with the Tlicho annual gathering.        from afar in a spirit of respect while having fun with each
                                                                other,” says Mackenzie.
“It’s a lot of hard work, very challenging and it’s such a
worthwhile event,” says Grace Mackenzie, Community              De Beers supports Métis traditions, sponsoring the North
Liaison Coordinator De Beers. “We hope to have more             Slave Métis Alliance’s annual Aboriginal Day Fish Fry.
employees participate in the future.”
                                                                Because 2009 marked Yellowknife’s 75th anniversary, the
Tlicho elders lead the journey and teach the participants       event drew a large crowd. Along with grilled whitefish,
– many of which are Tlicho youth about trapping, hunting        bannock and corn on the cob, participants were treated to
and fishing. They also share stories and traditional Tlicho     fiddling, reeling and jigging.
customs and beliefs.
                                                                “De Beers has gone above and beyond the call of duty in
“The elders are so knowledgeable and willing to teach.          regards to community support,” says Bill Enge, President
What is most impressive are the youth. They are all eager to    of the North Slave Métis Alliance. “The fish fry is a great
learn and work hard,” says Mackenzie.                           example. Thanks largely to the help of De Beers, this year
                                                                was our most successful yet.”
For De Beers, it’s a chance to gain a deeper appreciation
of the culture, which leads to closer connection to our         “We value these proud cultures and traditions, which is
Aboriginal employees.                                           why we try to help strengthen and promote them,” says
                                                                Mackenzie.
Another event De Beer sponsors is the men’s and youth’s
hand games tournaments, held in Behchoko in March. In           Other examples of support for culture include sponsorship
2009, teams from all over the Tlicho, the Sahtu, the Deh Cho    of the Northern Arts and Cultural Centre and the
and even Alberta competed.                                      Yellowknives Dene First Nation Youth Cultural Camp.




                                                                                                                               3
                                                                   John Rafacz checks a five point safety card.




    Workforce Development
    Training for national recognition
    When John Rafacz first started as a miner, he showed up at     “The idea was to give people training so they could work
    the gate, his employer gave him a hard hat and sent him        safely,” says Rafacz.
    underground.
                                                                   The program is recognized across Canada, but has never
    That was 42 years ago at a different mine, and thankfully,     been offered in another jurisdiction before. However,
    much has changed.                                              because De Beers has its head office in Toronto and Victor
                                                                   Mine in Northern Ontario, Snap Lake Mine was granted the
    “My dad was a miner. My grandfather was a miner. I learned
                                                                   opportunity to offer the course on site.
    about mining and safety on the job, watching the older
    miners. Now, when it comes to safety and training, there’s     “We are very fortunate to be able to provide this course
    no such thing as taking it too seriously,” says Rafacz, an     … because it adds a recognized standard to the value
    Underground Training Coordinator at Snap Lake Mine.            we place on safety,” says Rafacz. “When new employees
                                                                   arrive, the orientation portion introduces them to
    That’s why, when De Beers was able to complement its on-
                                                                   the environment, while the training emphasizes the
    site safety training with the Ontario Common Core (OCC) in
                                                                   importance we give to safety here.”
    2009 we jumped at the chance. De Beers began certifying
    our underground trainers to the OCC standard during the        “A student taking the course at an Ontario school would
    six-week summer production shutdown.                           have to pay between $6,000 to $10,000. Not many mines
                                                                   offer it any more because of the expense, so most miners
    “Our programs parallel each other,” says Rafacz. “We already
                                                                   have to take it upon themselves to get certified. But we give
    had a De Beers Hard Rock Common Core training program
                                                                   it as part of our on-site training,” says Rafacz.
    in place that mirrored the OCC. Now, our employees have
    nationally recognized certification, and they can take that    “We are going to put everyone through this program.
    training with them wherever they go.”                          Once the hiring program is finished, then we will bring on
                                                                   current employees, provide them with a refresher on safety
    The OCC is a provincial safety standard for surface and
                                                                   training, get them to do the test and get them certified as
    underground mining created by the Ontario Ministry of
                                                                   well,” says Rafacz.
    Training, Colleges and Universities in the late 1970s. It
    covers all the basics of surface and underground mining,       It’s all about giving employees the safest job environment
    including workplace inspection, scaling, staging, drilling     possible, and giving them safety training they can take with
    and blasting, among others.                                    them wherever they go.

    When the OCC was established, the Ontario Government
    was concerned with the number of mine-related fatalities.
    The government established a commission which tried to
    find the best way to reduce those fatalities.

    In response, Ontario created a common core standard and
    implemented it across the province.




4   Snap Lake Mine Socio-Economic Report
Learning Centre leads the way
No company can succeed without a skilled workforce,             Thanks to the learning centre, and the support from the
especially in the mining industry. So what do you do when       trainers, supervisors, coworkers and his community, Guild
there simply aren’t enough qualified workers available? For     is on his way to becoming an apprentice heavy duty
De Beers, the answer lies partly in providing training at the   mechanic.
worksite.
                                                                Guild was introduced to mining in 2007, when he took part
“We are in unique situation because we are the third            in the mineral processing operator training course offered
mine in the NWT. When we started looking for skilled and        through the NWT Mine Training Society and Aurora College.
qualified workers, most were already employed at the
                                                                He finished the program and went to work in the mine
other mines. If we wanted to achieve our hiring targets, we
                                                                process plant. Following the February 2009 workforce
needed to find unique ways to support training and find
                                                                reduction, Guild went to work as a waste management
new ways of providing training,” says Gaeleen MacPherson,
                                                                assistant.
Human Resources Superintendent for the Snap Lake Mine.
                                                                But he wanted more, and De Beers saw that commitment
That unique training includes an on site learning centre,
                                                                and helped him pursue his goals.
where employees not only take mandatory training,
like safety and orientation, but can also upgrade their         “He had never written a trades entrance exam. He worked
education, for example work toward obtaining their              closely with Bruce Spencer, Training Coordinator at
General Equivalency Diploma (GED) or study for trades           the Snap Lake Mine, who tutored him. He went to the
entrance exams. Through a work release program, we offer        learning centre in his community. He is very committed to
employees an hour off work to study in the learning centre      advancing his career,” says MacPherson.
for each hour they study on their own time.
                                                                For De Beers, getting employees to upgrade their training
The centre is equipped to provide courses such as First         or education is a win-win scenario.
Aid, Confined Space Entry and Fall Protection. It can even
                                                                “We benefit from having a more capable and loyal
arrange training on how to operate industrial equipment
                                                                workforce and the employees gain the confidence and new
like forklifts, zoom booms and bobcats. The centre also
                                                                skills that come from having an education. We feel that as
develops new courses as required.
                                                                more employees take advantage of these opportunities
Since 2007, staff at the Learning Centre have trained           and achieve success, others will follow,” says Spencer.
approximately 1,400 individuals. In 2009, the centre led
5,452 courses totaling 12,135.33 hours of instruction.

De Beers also encourages and helps employees attend
NAIT in Edmonton for a variety of courses, including master
instructor. With Learning Centre staff assistance, other
employees have accessed courses from the Kimberlite
Career and Technical Centre run by Yellowknife Catholic
Schools and Aurora College in Yellowknife.

For Travis Guild, the training offered through De Beers has
allowed him to set his sights on a new career.




        In 2009, Snap Lake Mine employees attended 12,135 hours of instruction.




                                                                                                                             5
    Training and development
    When De Beers began mining for diamonds in the NWT, it              In addition to providing onsite training, De Beers has
    made a commitment that northerners would benefit from               established partnerships with agencies to develop the
    De Beers’ success. That included providing employment and           skilled workforce needed at Snap Lake Mine.
    training opportunities for northerners. De Beers committed
                                                                        This includes working with the NWT Mine Training Society
    to create 40 training positions by 2010, including 10 trades
                                                                        and Aurora College – regularly taking students from
    training positions, 10 apprenticeship positions and 20
                                                                        Underground Mine Training or Mineral Processing Operator
    underground miner positions.
                                                                        Trainee programs into the mine for fully-paid work
    De Beers is fulfilling that commitment.                             placements.

    “Our training program aims to address the shortage of               The programs are starting to bear fruit. Of the 16 who
    tradespeople in the NWT, a gap that is also a skill gap in          have so far embarked on the underground miner training,
    Canada,” says Kelly Arychuk, Manager Human Resources                10 have progressed to higher levels and are no longer
    and administrator at the at Snap Lake Mine.                         considered trainees or have transferred to other positions
                                                                        on site.
    By investing in training, De Beers is filling its need for
    employees, but is also developing a northern-skill base that        On the apprenticeship side, seven of the eight current
    will benefit the NWT long into the future.                          apprentices are Aboriginal workers, training as millwrights,
                                                                        heavy equipment mechanics and electricians.
    “The trainees build their skills, increase their confidence
    and contribute to their community’s economy. But more               In fact, one of those apprentices, Wade Bohnet, is expected
    importantly, they act as role models for others in their            to receive his journeyman electrician ticket in 2010, the first
    community. They are an example to others that says ‘if I can        De Beers trained apprentice to reach that milestone.
    do it, you can too,’” says Arychuk.
                                                                        (See article, page 7).
    De Beers is proud of its apprenticeship program. The
    company covers education costs and pays apprentices their
    regular salary when they are away from the mine attending
    mandatory classroom work. This allows them to focus on
    their studies without having to worry about things like how
    they will pay their family’s grocery bill.


    Training program numbers as of December 2009

    Training         2010 trainee     Trainees since      Graduates
                           target          inception
    Trades                     10                 17                3
    Apprentice                 10                  8                0
    Underground                20                 16               10
    Total	                     40	               41	               13




    Apprentice Adrian Gherghe.




6   Snap Lake Mine Socio-Economic Report
“De Beers was always very supportive and accommodating…” – Wade Bonnet.




First of many, more to come
There are two things Wade Bohnet found at Snap Lake            “De Beers was always supportive and accommodating
Mine – a career path and his fiancée.                          when it came to my getting my education,” he says.

Meeting his fiancée, Stephanie Smutylo who works in camp       Bohnet, who was born in Fort Smith but moved to
maintenance, was mostly a matter of luck. Working toward       Yellowknife in Grade 6, first discovered his interest
his journeyman ticket as an electrical apprentice was a        in electricity working as a labourer for a company in
matter of hard work and following his dreams.                  Behchoko.

Bohnet may not be the first to meet his future spouse          “To me, there is something very exciting about electricity.”
on the job but sometime during the spring of 2010, he
                                                               And working at the mine, whether it’s underground or
is expected to become the first apprentice to earn his
                                                               above ground, provides him with different challenges and a
journeyman ticket at the Snap Lake Mine.
                                                               variety of opportunities for learning.
His four-year journey began with a Snap Lake contractor
                                                               “The work here is never stale,” he says. “When I’m
in 2006. He started his apprenticeship with that contractor,
                                                               underground, because the mine keeps getting bigger, more
but wanted something more permanent.
                                                               power is constantly required. I’m always hooking up fans
“Getting on with De Beers was great for me,” says Bohnet.      and ventilation systems and working on pumps and the
“Contracting work can be very inconsistent. De Beers has       underground communications systems. When I’m working
always been steady.”                                           above ground, it’s making sure everything around camp is
                                                               running as it should.”
He had already completed his first year of apprenticeship,
but hadn’t been able to take time off for school to take the   His schedule – two weeks on, two weeks off – allows him
next step in the apprenticeship process.                       to spend more time doing what he loves most: spending
                                                               time with family, reading, traveling and being outdoors as
“He had a lot of hours built up, and we saw a lot of
                                                               much as he can. And when he’s feeling more adventurous,
potential in him, so we brought him on and supported
                                                               parasailing.
him throughout his apprenticeship training,” says Gaeleen
MacPherson, Human Resources Superintendent for Snap            With the finish line in sight for his apprenticeship, Bohnet
Lake Mine.                                                     sees a bright future with endless possibilities for him and
                                                               his future wife. “I feel prepared for anything,” he says.
Over the next two-and-a-half years, Wade completed all
the in-school requirements of his apprenticeship, spending
time at NAIT in Edmonton as well as at Aurora College in
Fort Smith.



                                                                                                                              7
    Sharon Alanuk’s life changed in 2008 when she walked into the Mine Training Society’s office
    in Yellowknife and enrolled in the Underground Miner Training Program.




     Women in mining
     More opportunities, more time for family
     At 4’9” Sharon Alanak might just be the smallest person at
           ,                                                         “But then, on my last day, I was told I was hired at De
     the Snap Lake Mine.                                             Beers,” she says. “That was the greatest moment. Not just
                                                                     because of the job, but because of the congratulatory
     But she carries herself like she’s six feet tall. And when
                                                                     hugs and handshakes from the guys in my class. They were
     she’s on the job with Mine Operations, she’s busting rocks,
                                                                     giving me their approval to be a part of their group, and I’ve
     literally. Alanak started as a rock breaker, but in just over
                                                                     felt part of the team ever since. At De Beers we’re like a big
     a year, was promoted to crusher operator – working 263
                                                                     family.”
     metres underground.
                                                                     And for Alanak, that’s the biggest compliment she can give.
     “I love it. I’d always wanted to work in the mines, but was
                                                                     When she’s at home with her family, she misses her work
     never able to because I had a young child to care for,” she
                                                                     family, and when she’s at work, she misses home.
     says.
                                                                     “The best part of my job is being a part of this unique
     As her child grew older, Alanak, who grew up in Ulukhaktok
                                                                     family – we all watch out for one another.”
     but now lives in Yellowknife, knew she wanted to give her
     child more opportunities, but also more family time.            Her story shows that at Snap Lake, women are welcome in
                                                                     any role, providing they can do the job.
     “Working as an office manager five days a week actually
     left me with little time for my family. Now, with De Beers, I   In 2009, about 60 women representing about 14 per cent
     spend half the year with my family,” she says. “And living in   of the total mine workforce were employed at Snap Lake
     Yellowknife means there are better opportunities to travel      Mine, including three in management positions. Of the rest
     farther south, and it’s cheaper to live here.”                  about one-quarter of women were in unskilled positions,
                                                                     and 66 per cent in semi-skilled or skilled jobs.
     Her life changed in 2008 when she walked into the Mine
     Training Society’s office in Yellowknife and enrolled in the    De Beers also continued to participate in the Women
     Underground Miner Training Program.                             in Mining Oil and Gas research program. Results of the
                                                                     research will be released in 2010.
     “I needed a change of career, and mining offered so many
     opportunities,” she says.

     Sharon completed her three-month training, knowing the
     opportunities were there, but without the assurance of a
     job upon completion.


8    Snap Lake Mine Socio-Economic Report
Profiles
Len Graf                                                         Mike Penkala
General	Foreman	of	Site	Maintenance                              Underground		Mine	Trainer




For about three years, Len has been responsible for all          For the past two years, Mike has been training underground
maintenance at Snap Lake Mine – whether it’s the electrical      miners at De Beers.
wiring underground or plumbing on the surface.
                                                                 Mike, who has almost 40 years of mining experience,
What Len finds fascinating at the mine site is the mix of        came to De Beers after working with Procon, one of the
people from across the Canada and the north.                     company’s contractors. “I was looking for more stability,” he
                                                                 says.
“Working together with different philosophies and cultures
on a daily basis makes it challenging. You get someone           For Mike, the best part of his time at work comes from the
from Toronto, who is used to a very rushed, high-speed           “aha” moments of training.
environment, working with someone from a small
                                                                 “We sit down with a trainee, and even an experienced
community, who is more laid back and patient. It’s interesting
                                                                 miner, and go over SUPA (See, Understand, Plan, Act) for
to see those two contrasting styles come together and learn
                                                                 pretty much everything. The part I like is once they’ve done
from one another,” he says. “Of course, sometimes I have to
                                                                 the job and they say, ‘that was awful easy’, like they’d never
coach on the need to slow down or pick up the pace, but I try
                                                                 thought of doing it that way. You can see it click. You know
to understand each individual from his or her point and view,
                                                                 they understand and they have gained something valuable
understanding where each is coming from.”
                                                                 that will stay with them,” he says.

Kevin Stroeder                                                   Mike, who’s from Yellowknife, and his fellow underground
                                                                 mine trainers – John Rafacz and Kevin Oberkirsch – were
Site	Service	Supervisor                                          recipients of the 2009 De Beers Canada CEO Award for
                                                                 Safety, Health and Environment. They organized a safety
                                                                                                 ,
                                                                 campaign, “Why we work safely” that daily reminds miners
                                                                 that they need to work safely so they can go home after
                                                                 each shift to their families.




For nearly three years, Yellowknife resident Kevin Stroeder
has enjoyed working at the mine. For him, the best part
about his job is the opportunity to be where he enjoys being
the most – outside. He says there’s always something new
to see and learn at De Beers, and he enjoys seeing the new
faces and training new people.

“There’s always something going on,” he says. “I enjoy my
whole job.”

With new and different challenges facing him every day,
Stroeder couldn’t be happier because he not only gets to
work with colleagues, but also his friends.
                                                                                                                                  9
     Marjorie Black                                                   Jeff Nystrom
     Waste	Management	Assistant	                                      Materials	Management	Coordinator	




     Now in her third year at Snap Lake Mine, Marjorie Black          When you’re 220 kilometres from the nearest store, let
     puts some of her family’s values into work each shift as a       alone a steel manufacturer, it’s not always easy to get the
     Waste Management Assistant.                                      supplies you need. Throw in a road that’s only open six
                                                                      weeks of the year, a river that can’t be crossed a couple of
     “My grandfather used to tell me that if you keep a messy         times a year, and it makes it even more challenging.
     house, visitors will judge you by the way you keep your
     house,” she says. “Housekeeping is important.”                   Thank goodness you can get Jeff to do your shopping for
                                                                      you.
     Marjorie started at the mine as a trainee in the process
     plant, but transferred to site services. It’s a job she loves    Jeff, who joined De Beers at the beginning of 2009,
     and one that wins her regular accolades from peers and           processes purchasing orders, finds a vendor and works with
     supervisors alike.                                               airport and logistics staff to get orders from vendors to the
                                                                      right place on site.
     She and her cross-shift have been instrumental in
     organizing the mine’s waste management area, ensuring            For Jeff, who lives in Fort Smith, the highlight of 2009
     everything’s properly labeled and put in the right place.        was getting the new camp modules for permanent
     That means recyclables like pop cans can be sent out, waste      accommodations up to site. It wasn’t just the work involved
     is segregated into the right landfill and used oil is put to     in organizing the shipment, or even figuring out where and
     use to heat the camp, reducing costs for the mine.               how to store them, that was exciting.

     “Nothing goes into the waste management area without a           “What was really exciting was the buzz that this created.
     label,” says Marjorie. “In order to have pride in your job you   We’ve been staying in a construction camp, which has its
     have to love what you do.”                                       limits in terms of activities. But we’re getting something
                                                                      more permanent that we can call home while we’re here,”
     That love of keeping the mine tidy was honoured in 2009          he says.
     as she was one of 11 individuals or work crews nominated
     for De Beers Canada’s CEO Award for Safety, Health and           The excitement was such that a recreation committee was
     Environment.                                                     formed to plan new activities and events.

     From Behchoko, she’s mother of four, including a daughter        “I can’t wait to see what’s going to happen once we
     who is an apprentice at Snap Lake Mine. In her off time,         settle in.”
     Marjorie likes to make the most of her time with her family .    The camp is scheduled to open in October 2010.
     She also enjoys doing beadwork.




10   Snap Lake Mine Socio-Economic Report
Scholarships
Thanks to De Beers, Laurie-Ann Lines can concentrate on her schoolwork.




Scholarship gives Ndilo student peace of mind
Laurie-Ann Lines, who was born and raised in Ndilo, is            Lines hopes to give back to her community by returning
studying physiology at the University of Saskatchewan in          to work in the field of science. She also wants to encourage
Saskatoon. She was the recipient of a $1,500 scholarship          others in her community to pursue a post-secondary
from De Beers and the Yellowknives Dene First Nation. This        education.
allows her to concentrate on school, rather than worry
                                                                  “I have a lot of support from my community, which is
about how she’s going to pay for it.
                                                                  encouraging because I’m so far away from home” she,
“I couldn’t imagine doing as well as I have and working at        says. “It’s really encouraged me in my studies and I hope
the same time,” says Lines.                                       to continue my education. I don’t just want to stop at a
                                                                  degree.”
Post-secondary education can be expensive, and for Lines,
the cost of rent and food are not the only things she             A range of scholarships are offered to Yellowknives Dene
worries about. “I use the money for school stuff, like printing   First Nation students each year through De Beers Impact
and books. I also bought a miniature filing cabinet to keep       Benefit Agreement. Cash awards are available for two
my receipts and bills in order.”                                  students in each of Grade 10, 11 and 12, two awards for
                                                                  Adult Basic Education/GED students and six scholarships
Since she is required to write many essays and reports, just
                                                                  for students attending post-secondary education.
the cost of printing paper can become a burden.
                                                                  As well, De Beers funds five scholarships for North Slave
“I just printed out a 28-page paper and I think I’ve printed
                                                                  Métis Alliance members attending post-secondary
and photocopied about 1,000 pages this year. That’s not
                                                                  education. In 2010, De Beers will introduce its scholarship
even including what I’ve printed off on my own printer.” At
                                                                  program for NWT residents.
10 to 35 cents a page, the cost of handing in homework can
quickly add up.

The 22-year-old says she’s thankful for the community
support she’s been given, along with the scholarship.

“The scholarship is something that has really helped in my
education,” she says.

                                                                                                                                 11
                                                                       Keith Wellin with Tli Cho Logistics,
                                                                       operates a zoom-boom at the Snap Lake Mine.




     Business Development
     Snap Lake weathers the storm
     Patience, persistence and optimism. That’s what De Beers          Contractors, like Tli Cho Landtran, Tli Cho Logistics, Ek’Ati
     Canada needed in 2009 as the world was rocked by the              Services and Sandvik, and suppliers were affected as well.
     economic downturn.
                                                                       “A lot of our suppliers are dependant on us – they have
     The Snap Lake Diamond Mine had officially begun                   positioned themselves to provide service at a certain level
     operations in 2008, staff morale was high and a long, bright      of activity, but we couldn’t provide that in 2009. There
     future was in sight. However, 2009 put that optimism to the       was disappointment among our contractors and our
     test.                                                             employees, but there was a sense of understanding. This
                                                                       took everyone by surprise. Everyone was affected,” he says.
     The first signs of an economic downturn appeared in late
     2008, when the U.S. credit and housing market hit bottom.         For Tli Cho Landtran, which provides transportation
     By early 2009, the whole world was affected.                      support year round, the downturn meant a considerable
                                                                       drop in the number of shipments to Snap Lake from
     The economy is much like a faucet. When the economy is
                                                                       previous years.
     good, the tap flows strong; when it’s bad, the flow slows
     to a drip. People stop buying goods, and diamonds, a              “We had to streamline our operations, lay off some of our
     luxury item, are one of the first off the shopping list. Of the   employees and run pretty lean for a while. But our company
     top three diamond consumers in the world, only China              is financially stable and we were able to ride out the rough
     increased its diamond consumption. The top consumer,              year. We’re a fairly strong company, and besides, we’re in it
     the U.S., saw a 49 per cent decrease in sales, while Japan’s      for the long haul,” says Ron Near, regional manager for Tli
     consumption fell 24%.                                             Cho Landtran.

     With slowing demand for diamonds, the Snap Lake Mine              There was always confidence and optimism at the mine
     was unable to build on the early 2008 momentum.                   that things would rebound. And they are. As the economy
                                                                       stabilizes, diamond prices are improving. De Beers expects
     As a result, De Beers looked inward, searching for solutions
                                                                       to return to full production by the end of 2012, and its ramp
     that would allow it to protect its investment in Snap Lake,
                                                                       up is a careful and controlled growth plan.
     and build a solid foundation for the mine’s 20-plus year
     lifespan.                                                         The downturn offered Snap Lake Mine – indeed all of
                                                                       De Beers Family of Companies around the world – the
     “We cut services and supplies first, but it wasn’t enough to
                                                                       opportunity to retool processes, making them more
     conserve our cash position to get us through the year,” says
                                                                       efficient.
     Ken Smith, Superintendent, Business Development and
     Materials Management for De Beers Snap Lake Mine. “The            “Prior to downturn, we were more aggressive in supplying
     downturn happened so quickly. We needed to take quick,            the mine, using the ice road for the majority of our supply
     decisive action. In order to be able to survive the downturn,     needs. Now, we focus on getting things to the mine when
     our management team made some very tough decisions.”              we need them,” says Smith.

     Two mine shutdowns were planned in 2009, six weeks                One way De Beers has done that is through warehouse
     during the summer and four weeks in December, although            supply contracts.
     the second shutdown was eventually cancelled as the
     economy improved.




12   Snap Lake Mine Socio-Economic Report
Northern Spending
2009	Operations	&	Capital	Expenditures

                      Expenditure	            Percentage	of	
                        in	2009                Expenditure
Total Spend            $155,953,429
NWT Portion of         $116,206,871              74.51%
Total Spend                                  of Total Spend
Aboriginal Portion      $58,967,035              50.74%
of NWT Spend                                of NWT Spend

Total	Expenditure	Including	Construction
                     Total	Expenditure	      Percentage	of	
                      to	end	of	2009          Expenditure
Total Spend           $1,390,997,118
NWT Portion            $977,537,416              70.28%
of Total Spend                               of Total Spend
Aboriginal Portion     $630,388,456              64.49%
of NWT Spend                                 of NWT Spend
Note: These numbers are based on a calendar year and thus
are slightly different than those numbers presented in the
De Beers Canada Report to Society, which are based on
De Beers Canada’s Fiscal year. In 2010, an adjustment will be
made to bring this reporting into alignment.                             Dan Kipling, De Beers Warehouse
                                                                         coordinator works at keeping the
De Beers identified products and equipment that it uses
continuously, but doesn’t need huge quantities of on site.
                                                                         warehouse efficient.
That includes things like safety gear, paint, nuts and bolts,
shovels, gloves, pipe, drill bits, couplings, underground
equipment, electrical supplies, and so on.

“We enter into long-term purchasing contracts with
suppliers, and provide a local supplier with a guaranteed
level of demand,” he says.

Also, De Beers reviewed its inventory, identified overstock     In 2009, nine NWT businesses either entered or modified
and looked at getting some returns. It also went through        their profiles in our NWT Business Registry and by the end
the construction equipment still on site and backhauled         of the year, 163 Businesses were registered.
that. With the help of Tli Cho Landtran, De Beers auctioned
                                                                Another way De Beers is generating partnerships is
off the equipment.
                                                                through its Business Opportunities Breakfast, held each
“It’s these little things that we are now more cautious of,”    year in November.
says Smith.
                                                                Begun in 2007, the breakfast is a venue where businesses
While the economy has improved, business pressure still         can learn about upcoming opportunities and De Beers
exists. The marketplace is more competitive and companies       can strengthen existing relationships with businesses and
have shifted their way of thinking and broadened their          foster new ones. It’s also an opportunity for businesses
horizons.                                                       to sit together and talk, which could lead to their own
                                                                partnerships and service to Snap Lake Mine.
“The services we need from contractors are always there,
and we still help them ensure they meet our needs. But          In addition, De Beers publishes an annual Northern
now, we’re focusing more on partnerships,” says Smith.          Business Opportunities Profile, which outlines our Northern
                                                                Business Agreements and Commitments, lists items to
One way De Beers encourages northern and Aboriginal
                                                                be purchased for the following year’s winter road supply
involvement is with its NWT Business Registry. Businesses
                                                                and provides Snap Lake Mine Materials Management
can submit their profiles and access information about
                                                                department contacts, among other information.
goods and services required at Snap Lake Mine.
                                                                                                                              13
                                                                                                   Ron Near, left, is
                                                                                                   regional manager of
                                                                                                   Tli Cho Landtran
                                                                                                   which hauls freight
                                                                                                   to and from the
                                                                                                   Snap Lake Mine.




     Tli Cho Landtran–in it for the long haul
     You can’t mine diamonds by yourself. Especially when               One of the most successful solutions was organizing and
     you’re 220 km from the nearest city; when for 10 months            holding an auction of surplus material.
     of the year, you are inaccessible except by plane. De Beers
                                                                        “They played a big role in helping us divest surplus
     Canada knows that, and that’s why we have built strong
                                                                        equipment. They suggested we auction the material off.
     partnerships with northern contractors who know how to
                                                                        They backhauled and stored the material at their quarry,
     work effectively in challenging northern conditions.
                                                                        and then helped us hold the auction. They work in our
     One such contractor is Tli Cho Landtran, the joint venture         best interest and provide valuable advice,” says Ken Smith,
     between the economic development arm of the Tlicho                 Superintendent, Business Development and Materials
     Government and international transportation giant                  Management for De Beers Snap Lake Mine. “We are proud
     Landtran Group of Companies.                                       of the tremendous job they do for us.”

     Tli Cho Landtran hauls freight to and from the Snap Lake           Another example of this working partnership was the
     site. It is also responsible for on- and offloading the freight,   support Tli Cho Landtran provided for the new camp
     building and maintaining the spur road between the ice             modules at the site. Tli Cho not only transported the
     road and the Snap Lake mine site, and providing year-long          modules up, but organized the shipments and offloading to
     logistical support.                                                ensure that everything was catalogued properly, ensuring
                                                                        that the set up would go smoothly.
     “De Beers sees our relationship as a partnership. We have
     worked closely together, and communicate almost daily,             Near says they wouldn’t do it any other way.
     which is one of the reasons for our success,” says Ron Near,
                                                                        “On the business side, yes, De Beers is a very large client
     regional manager of Tli Cho Landtran.
                                                                        and they’ve helped us grow to where we are now. But on
     Another reason for the successful partnership is the               the personal side, we truly appreciate working with
     creativity Tli Cho Landtran provides its client. Not only does     De Beers. It’s been rewarding to see the mine grow to what
     it ensure the freight going up to the mine site is properly        it is today,” says Near.
     handled, it also plans the winter trucking season so that
                                                                        “We both understand that we don’t have control over world
     every truck coming back from the site is carrying material.
                                                                        economics. Our relationship is able to withstand the bad
     That means working with De Beers to assess all equipment
                                                                        times and enjoy the good times. We look at the partnership
     and supplies on site and then organizing them for the
                                                                        we have with De Beers and we know the good times will
     backhaul.
                                                                        come back. “
     With the economic downturn digging in its heels in 2009,
     Tli Cho Landtran knew it was going to be a tough year.

     “We identified early that 2009 was going to be slow, so we
     looked outside for new businesses. With De Beers, we came
     up with some solutions that were beneficial to both of us,”
     says Near.


14   Snap Lake Mine Socio-Economic Report
Contractor makes security investment pay off
Foresight and an initial investment can lead to great things.      “We patrol the road to ensure the safety of all users as well
Just ask Patrick Doyle, the president of Det’on Cho Scarlet        as to protect the integrity of the ice,” says Doyle.
Security, a company hired by De Beers to provide training
                                                                   They monitor speed limits and ensure proper spacing
for its Snap Lake Mine spur road staff.
                                                                   between trucks. They can also issue infraction tickets.
A few years ago, Doyle and his partners at Scarlet’s parent
                                                                   Scarlet has a strong focus on training, health and safety
company Alarand Ltd. identified a new growth market –
                                                                   and hazard management. Most of the officers working with
providing security to remote, industrial sites in the north.
                                                                   Scarlet have extensive backgrounds in law enforcement.
“In business, successful companies need to look toward
                                                                   For De Beers, hiring Scarlet made sense. It was also
the future. A few years ago, there really was only one player
                                                                   important to ensure workers from all members of the
occupying that niche market,” says Doyle.
                                                                   Winter Road Joint Venture had the same level of training.
“That’s when we started exploring a joint venture with
                                                                   ‘They are very good at what they do. They provide great
Det’on Cho Corporation, the economic development arm of
                                                                   service, and their staff are all trained professionals,” says
the Yellowknives Dene First Nation. There was no urgency
                                                                   Tom Raine, Manager Protective Services.
so we took our time, talked and fostered the relationship
before putting a deal in place,” says Doyle.                       “Scarlet is a great northern story. The company had great
                                                                   foresight in terms of preparing to get the ice road security
Scarlet’s first job, prior to the joint venture with Det’on Cho,
                                                                   contract. The owners invested in their business and now
was providing fly-in, fly-out security at the Baffinland Iron
                                                                   they are seeing the benefits,” says Raine, “That’s a lesson
Mines Corp. project on Baffin Island in Nunavut.
                                                                   other businesses can learn from. If you invest in your
That led to a contract with the Tibbitt-to-Contwoyto Ice           company, and talk to us, show us how you can help and we
Road Joint Venture, which includes De Beers. Scarlet was           can benefit, we can make it work.”
tasked to provide all security on the ice road, which meant
12 officers, two dispatchers, a supervisor and a coordinator
were needed.




         “In business, successful companies need to look toward the future.” – Patrick Doyle




                                                                                                                                   15
                                                                              Heart healthy meals are offered
                                                                              to all workers.
                Chris O’Neil, Ek’Ati Services, is a chef at Snap Lake Mine.




     Well Being
     Six week shutdown helps recharge workers
     Unintended benefits can spring up when you least expect                  Employees took advantage of the situation to re-energize
     them.                                                                    and do things they’ve always wanted to do but never had
                                                                              the time.
     So when De Beers announced it would shut down for
     six weeks over the summer of 2009, there was some                        For Trevor, those six weeks gave him the opportunity to
     apprehension, and many questions.                                        pursue a dream.

     Questions like: What does it mean? Will I still have a job?              “I always wanted to be a cowboy,” he says.
     Will the mine re-open?
                                                                              Following a visit to the Yukon and Alaska, Mogg found his
     Those questions were quickly answered, and apprehension                  way to Homeplace Ranch in Kananaskis country, just south
     turned to enthusiasm.                                                    of Calgary, for a two-week stay.

     “I think at first, we were all quite shocked that we were                The guest ranch gives visitors a chance to ride horses
     forced to shut down. But when we explained that we                       along mountain trails, live in rustic cabins and enjoy a real
     wanted to make sure we remain a viable business, and this                western experience.
     was the way to do, it turned into a positive thing. People
                                                                              Mogg wasn’t just there to have fun and enjoy the scenery.
     started seeing it as a six-week holiday,” says Brad Corrigan,
                                                                              For one week, he spent the time working as a trail guide
     Mine General Manager.
                                                                              and ranch hand.
     Ask almost any employee – they returned to work refreshed
                                                                              The owner was so impressed with his work that he even
     and re-invigorated.
                                                                              offered him a job; an offer Trevor couldn’t refuse.
     “We were all pretty optimistic about the shutdown. It was
                                                                              “I just fell in love with it,” he says. So, when he’s not at Snap
     really an opportunity rather than a hardship. De Beers
                                                                              Lake Mine, he’s at the ranch having the time of his life.
     made it clear that we were all going to keep our jobs and
     we understood this was the best thing for the company,”                  “I’m kind of living out of a suitcase now, but it’s a good time
     says Trevor Mogg, a drill geologist who has been with                    and a lot of fun.”
     De Beers for 10 years. “And besides, who wouldn’t want six
     weeks off in the summer?”




      “We understood this was the
      best thing for the company.”
      – Trevor Mogg,
      Drill Geologist




16   Snap Lake Mine Socio-Economic Report
To help employees be able to enjoy adventures like Mogg’s
or even spend relaxing time at home, De Beers took a
proactive approach.

“Prior to the shutdown, we gave employees as much
information as possible, and told them why we needed
to do this. We then met one-on-one with them to discuss
options and how we could assist them,” says Gaeleen
MacPherson, Superintendent Human Resources.

Some employees had enough vacation to cover the whole
six weeks. Those who had less were offered choices so they
didn’t end up with a month of unpaid leave. We provided
money management plan and information on how to
access Employment Insurance benefits, if that was a choice
employees felt fit.

Ensuring employees could manage money through the
closure, the company offered a savings plans to help
                                                                     Amanda Soldat keeps active working out
employees set funds aside for when they were off work                on a treadmill.
More than 90 per cent of workers participated in the
savings plan option.

In addition, De Beers worked with our contractors ensuring
they had time and information to set up similar money
management programs for their staff.

The somewhat unexpected benefits of the shutdown             A Joint Consultative Committee meets monthly, where
aside, the company works hard on a variety of health and     employees and managers discuss issues and address any
wellness initiatives, at the mine and in the community.      concerns from around the mine site and the Yellowknife
                                                             office. At Snap Lake, new fitness equipment was installed in
Through the Employee and Family Assistance Program           2009 and there’s mandatory drug and alcohol training for
(EFAP), employees and their family members can access        workers.
a variety of services from Shepell-fgi. This includes
counselling services and other programming, as well as a     A significant investment in 2009 was a partnership
monthly newsletter distributed to all workers.               between De Beers and the Yellowknives Dene First Nation
                                                             (YKDFN). We worked together to inventory health and
                                                             wellness programs available to YKDFN members. This will
                                                             allow us to work together in 2010 to identify gaps in service
                                                             that De Beers can work to fill.




                                                                                                                             17
     Social
     Investment
     Books in Homes a valuable
     literacy tool
     Youth in eight schools think Christmas takes place twice a
     year: when Santa comes to town, and when De Beers brings
     its Books in Homes program.

     Since 2003, De Beers has been handing out three books
     a year to every youth in Behchoko, Wekweeti, Whati,
     Gameti, Ndilo, Dettah and Lutsel K’e. In that time, De Beers
     has invested $420,000 and distributed 21,000 books, the
                                                                              Mine General Manager, Brad Corrigan,
     equivalent of six books for every man, woman and child in                and Grace Mackenzie, De Beers
     those communities. In fact, for those youth who have taken
     part in the program since the beginning, they would have
                                                                              Community Liaison Coordinator share
     received 21 books each.                                                  the joy of reading with students at
     Books in Homes was begun as a way for De Beers to have a                 Lutsel K’e Dene School
     lasting, meaningful impact on the literacy challenge facing
     the Northwest Territories. By building home libraries, the
     company hopes the importance of reading and literacy
     is embraced by children and parents. Over the years, the        Part of the program is bringing reading role models into
     kinds of books being chosen by youth has changed as they        the community. De Beers encourages its staff to participate,
     pick material that tests their improving reading skills and     especially those who come from those communities. In
     matches their interests.                                        addition, MLAs representing the communities are invited to
     “It’s a great program that the kids love. Kids look forward     take part.
     to when we come into their community,” says Grace               “It was a great experience, encouraging youth to read.” says
     Mackenzie. “And we look forward to it too. It’s wonderful to    Jessica Abel, who is from Dettah. “I was able to show them
     share the joy of reading, and to reconnect with youth you       that they can get good jobs like mine if they stay in school.”
     met the last time around.
                                                                     The experience is only going to get better. Fort Resolution,
     The program has made such an impact that in 2009,               new to the Books in Homes program, is coming on board
     De Beers Canada received an NWT Ministerial Literacy            for 2010.
     Award for its commitment to literacy, for supporting
     Northern people to lead fulfilled lives, and for contributing
     to a strong and prosperous society.                             Passionate about literacy
     De Beers has partnered with the Yellowknife Book Cellar to      Literacy is the first step in empowering people to shape
     provide and distribute the books.                               their own future and is a key to ensuring individual
     “We chose a northern company as part of our commitment          opportunities, community development and economic
     to support northern business,” says Mackenzie. “They            success. In 2009, De Beers supported the following literacy
     are a wonderful business to work with, and they help us         activities:
     tremendously in selecting books and setting up the book            • northWords Writers Festival (Premier Sponsor)
     display.”                                                          • NWT Literacy Council, donation from Business
                                                                          Opportunities Breakfast
                                                                        • Kaw Tay Whee School – Dogrib Video Project
                                                                        • Gumboots 19th annual concert – celebrating
                                                                          northern stories in song

18   Snap Lake Mine Socio-Economic Report
Social Investment
Helping hands for communities
Our support for communities is more than dollars.              Some of the highlights of our community contributions
Employees give helping hands, because there’s no more          include:
rewarding way to have an impact than to roll up your
                                                                  • Yellowknives Dene First Nation Christmas festival/
sleeves and get to work.
                                                                    Youth Cultural Camp
At De Beers Canada, we see our social investments as more         • Lutsel K’e Spring Carnival
than just cheques and prizes. Wherever possible, we like to       • Exercise equipment for Jean Wetrade Gameti School
get involved and encourage our employees to take part in          • YWCA Taiga Adventure Camp for girls
the things we sponsor.                                            • Tree of Peace Friendship Centre – Talent Show and
                                                                    Elders Christmas Feast
Whether it’s cooking up burgers and hotdogs at the Miners’
                                                                  • NWT Council of Persons with Disabilities
Picnic, belting out a tune at the Tree of Peace Talent Show,
                                                                  • Northern Arts and Cultural Centre
or working with youth through Skills Canada, the smiles of
                                                                  • NWT Aboriginal Business Conference
our employees who take part in community events shine as
                                                                  • Tlicho Handgames Tournament
brightly as our diamonds.
                                                                  • NWT Mining Heritage Society
In 2009, a total of $1.69 million was spent on social             • Stanton Territorial Hospital Foundation
investment and to support efforts to build capacity in            • Kaw Tay Whee School
communities. While the amount was less than 2008, we              • Northern Student Education Initiative
focused our efforts on projects we believed would have the        • Prince of Wales Northern Heritage Centre
most lasting impact.                                              • Astronomy North (Legendary Sky Diamond)
                                                                  • NWT Special Olympics
Once again in 2009, the majority of our social investment
                                                                  • John Howard Society
dollars went to Education, Literacy and Training – totaling
more than $1.2 million. We recognize the need to continue
to invest training and apprenticeships, support youth, and
work with training partners and communities to build a
solid, sustainable future.

Approximately $200,000 went to sponsor community
events and initiatives while the rest was divided among arts
and culture, business development, sports and health.




The late Maurice Lockhart of Lutsel K’e fiddles at the 2009 Tree of Peace Talent Show held each
spring in Yellowknife. For the past several years, the event as been sponsored by De Beers Canada.



                                                                                                                         19
     “The handgames are great for everyone. It’s a great way for the community to get together,
     celebrate our heritage and watch the youth have fun.” – Bobby Drygeese



     Celebrating with our communities
     Tradition is a great way to bring communities together. So     In addition to the handgames tournament, the week
     when a group of volunteers belonging to the Yellowknives       consisted of a number of activities, all designed to give the
     Dene First Nation came up with the idea to hold a variety of   youth a fun and productive way to spend their break from
     Christmas celebrations, De Beers Canada was quick to jump      school. There was a pancake breakfast, a craft and bake
     on board.                                                      sale, a large Christmas tree was set up in N’dilo and a drum
                                                                    dance held on Christmas night.
     The $5,000 donation wasn’t a lot of money, but it went a
     long way to bringing people living in Dettah and Ndilo         “They sponsored the games. They helped with the food and
     closer together.                                               preparations. The people from De Beers were wonderful,”
                                                                    says Drygeese.
     One of the highlight events during the week was a
     handgames tournament for youth, won by an exuberant            As well as a lot of fun, the week was educational.
     team of pre-teen boys, aged between nine and 12 years of       Community elders shared their knowledge, traditions and
     age.                                                           culture with the young people whenever they could. They
                                                                    took them out on the land, showing them how to set rabbit
     The surprising results created a lot of buzz and excitement,
                                                                    snares and live off the land. Everything the youth caught
     and got the week’s activities off to a fun-filled start.
                                                                    was brought back to the community and shared with the
     “The handgames are great for everyone,” says Bobby             elders, which gave the youngsters a great sense of pride
     Drygeese, band councillor for the Yellowknives Dene First      and accomplishment.
     Nation and one of the volunteers who helped bring the
                                                                    “With the Dene people, the youth and elders spend
     celebration together. “It’s a great way for the community to
                                                                    as much time together as possible. The kids learn a lot
     get together, celebrate our heritage and watch the youth
                                                                    from the elders, who have a lifetime of knowledge,” says
     have fun.”
                                                                    Drygeese.
     Elizabeth (Sabet) Biscaye, De Beers Canada Senior
                                                                    “We are so proud to be a part of the memories made, and
     Community Liaison Coordinator, wasn’t content to just
                                                                    we can’t wait to do it all again,” says Biscaye.
     hand over the money and watch from the sidelines. She
     rolled up her sleeves, helping cook a pancake breakfast and
     much more, volunteering her personal time to help the
     Yellowknives Dene community celebrate Christmas.

     “We’ve developed a solid relationship with the Yellowknives
     Dene First Nation. They are so committed to the well-being
     of their people, and we want to support that,” says Biscaye.




20   Snap Lake Mine Socio-Economic Report
2009 Employment Data
The past year has been a difficult one for economies            This announcement will bring growth to the Territory’s job
throughout the world, and indeed, throughout Canada.            market in 2010, but will not change the results from 2009.
The recession that began to surface midway through 2008         The employment data from 2009 speaks to what was a very
quickly drained economies around the world of billions of       difficult period for our employees and contractors working
dollars in wealth. Job losses in North American, European       at the Snap Lake Mine. The overall workforce, measured in
and Asian markets reached epic proportions, individual          terms of full-time equivalence also described as person-
and corporate financial security vanished and consumer          years of employment, was 431 in 2009. It was 728 in 2008.
confidence sank to historic lows. World demand for luxury
                                                                The economic difficulties in 2009 have not altered
items, which is so critical to the NWT economy, and our
                                                                De Beers’ commitment to employing NWT residents. Efforts
business, plummeted.
                                                                to increase the share of resident workers to 60 per cent
By December of 2008, we had announced the first of what         of the total labour force continued throughout the year
would become two rounds of downsizing at our Snap Lake          despite the setbacks. The commitment to hire residents
Diamond Mine in an effort to slow production to a pace          extends to our contractors and their sub-contractors.
in line with the shrinking world demand for diamonds. In
                                                                Based on the projected labour requirements established
the first round, 105 people lost their jobs, all of whom were
                                                                in the Project’s Environmental Assessment Statement, the 60
working for a KeTe Whii Procon providing underground
                                                                per cent NWT Residency target equates to 300 full-time
mining services. The majority of these employees were non-
                                                                equivalent jobs based on employment of 500. In absolute
NWT residents. A second round of downsizing followed
                                                                terms, the number of NWT residents working at the Snap
two months later. This round of cutbacks affected 128
                                                                Lake Mine finished the year at 162 person-years which
of our own employees with another 90 contractor jobs
                                                                represents 38 per cent of the year’s workforce. Of these
being lost as contracts were suspended indefinitely. Many
                                                                workers, 69 (43 per cent) were in management, professional
of the people who lost their jobs at that time were NWT
                                                                or skilled positions.
residents. Finally, De Beers initiated a six-week shutdown of
its operations beginning in July that affected all remaining    De Beers is confident that over the life of the project,
production staff. A small workforce carried out care and        our employment commitments will be realised.1 The
maintenance procedures at the mine site during that time,       NWT labour market softened over the course of the year
ensuring we kept our environment commitments.                   with setbacks coming at other mining operations and in
                                                                mineral exploration. This should provide an opportunity
“The world economy remained on shaky ground for the
                                                                for increased NWT resident hiring in 2010. Unfortunately,
remainder of 2009, and even in early 2010 economic
                                                                the economic downturn did not help the Territory’s efforts
growth has been slow, “ said Brad Corrigan, Mine General
                                                                to limit out migration. By the end of the third quarter of
Manager. “The good news is that as we write this report,
                                                                2009, the NWT had lost 587 people through migration.
there are signs of recovery. Jobs, capital markets, and
                                                                The consistency in which the Territory loses residents to
consumer confidence are trending upwards.”
                                                                other regions of the country hinders any real growth in
These improving conditions have given us the confidence         the resident labour pool. Also impacting the labour market
to increase production to a level near full production at our   are increased employment plans elsewhere in the NWT
Snap Lake Mine and this ramp up is occurring over the next      economy, with Rio Tinto announcing a hiring campaign
two years. In December 2009, we announced we would be           similar in size to that of De Beers for 2010. This adds to
hiring 175 people beginning in January 2010. This hiring is     De Beers’ challenges to hire locally, but should be
now underway.                                                   considered a very positive development for NWT’s labour
                                                                market and the economy as a whole.


                                                                1
                                                                 . 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.

                                                                                                                                        21
     Employment by hiring priority
     Table 1 presents employment in person-years2 by hiring                   were greater, with employment falling by 65. The largest
     priority from 2005 to 2009 for the Snap Lake Mine. The                   employment losses in both absolute and relative terms
     initial three years of data represent the employment                     were felt by non-NWT residents who saw their participation
     performance during the construction phase of the project.                at the mine site fall by 185 person-years, equal to a
     Operations began in 2008. Employment for that year                       41 per cent decline.
     totalled 728 person-years. Two rounds of cutbacks that
                                                                              Combined, NWT residents provided 162 person-years
     totalled 323 employees coupled with a six-week shutdown
                                                                              of employment to the project. This falls short of the
     through the summer lowered the number of person-years
                                                                              original target of 300 which is based on operating at
     of employment for 2009 to 431. This is the first time in the
                                                                              full production. One can also see from the table that the
     five-year history of the project that the number of NWT
                                                                              relative contribution of NWT residents did not change
     resident workers has declined.
                                                                              from one year earlier. Despite the economic challenges of
     The contribution of Aboriginal residents to the labour                   2009, the company remains committed to reaching its NWT
     requirements of the project fell by 47 in 2009 from its peak             employment targets in the operations phase of the project.
     in 2008 of 139. Cutbacks to other NWT resident employees

     Table 1: Employment by Hiring Priority to the end of 2009
                                                2005	          2006	              2007	      2008	           2009	        Total	    Average
                                                                                       (person-years)
     NWT Aboriginal                              38.8           93.4              126.0      139.0            92.0        489.2           97.8
     Other NWT Residents                         55.9          130.0              143.0       135.0           70.5        534.4         106.9
     Subtotal NWT Residents	                     94.7	        223.4	              269.0	     274.0	         162.5	      1023.6	         204.7
     Non-NWT                                    136.7          614.3              875.0       454.0          268.7       2348.7         469.7
     Grand Total	                              231.4	         837.7	           1144.0	       728.0	         431.2	      3372.3	         674.5
                                                                                      (person-years)
     NWT Aboriginal                              17%            11%                11%      19%               21%           15%           15%
     Other NWT Residents                         24%            16%                13%         19%            16%           16%           16%
     Subtotal NWT Residents	                    41%	            27%	               24%	        38%	          38%	          30%	          30%
     Non-NWT                                     59%            73%                76%         62%            62%           70%           70%
     Grand Total	                              100%	          100%	               100%	      100%	          100%	         100%	         100%
     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.




                                                                              2
                                                                               . In 2009, 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.

22   Snap Lake Mine Socio-Economic Report
Additional details on the employment results from 2009                        employed 144 people in person-year terms of which 63
are provided in Table 2. Specifically, these data reveal                      reside in the NWT. The table also shows that the majority
the employment record of De Beers and its contractors                         of workers are non-NWT residents at 62 per cent. The
with respect to hiring priority. De Beers’ employees now                      total Aboriginal contribution to the project’s labour force
outnumber that of contractors with 67 per cent of the                         equalled 29 per cent, of which 21 per cent represent a First
workforce being De Beers’ payroll. De Beers’ contractors                      Nation or Aboriginal group from within the NWT. 3




Table 2: Employment by Hiring Priority, 2009

                                      De	Beers	           Contractor	                         Total
                                                                    	                (person-years)
NWT Aboriginal                              44.8                47.2                           92.0
Other NWT Residents                         54.3                  16.2                           70.5
Subtotal	NWT	Residents	                    99.0	                  63.4	                        162.5
Non-NWT Aboriginal                          25.6                    7.8                          33.4
Other Non-NWT Residents                   162.7                   72.6                         235.4
Subtotal	Non-NWT	Residents	               188.3	                  80.5	                        268.7
Total	                                    287.3	                143.9	                         431.2
                                                                          	       (per	cent	of	total)
NWT Aboriginal                              16%                   33%                            21%
Other NWT Residents                         19%                   11%                            16%
Subtotal	NWT	Residents	                    34%	                   44%	                           38%
Non-NWT Aboriginal                           9%                     5%                            8%
Other Non-NWT Residents                     57%                   50%                            55%
Subtotal	NWT	Residents	                    66%	                   56%	                           62%
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.




                                                                                                                                             23
     Employee breakdown – 2009
     NWT Resident and Non – Resident



             Non-NWT                                NWT Residents
             Residents                              38%
             62%




     Employment by hiring priority and job classification
     Table 3 presents employment results from 2009 by hiring                  This is an improvement over last year in each category.
     priority and job classification. The highest paying positions            NWT residents as a whole made up 82 per cent of the
     within the Project are the jobs classified as management,                30 unskilled jobs and 40 per cent of the 173 semi-skilled
     professional and skilled. Eight of the 17 management                     jobs. Increasing the number and percentage of resident
     positions, 8 of the 20 professional positions, and 53 of the             managers, professionals and skilled employees through
     191 skilled positions were filled by NWT residents –                     promotion and resident hires remains an important
     49 per cent, 37 per cent, and 28 per cent respectively.                  objective for De Beers.



     Table 3 (a): Employment by Hiring Priority and Job Classification, 2009

                                          NWT		           Other	      Subtotal	NWT	           Non-NWT	               Grand	
                                     Aboriginal	 	NWT	Residents	           Residents	         Residents	              Total
                                                                	    (person-years)
     Management                             1.6             6.9                    8.5                8.7              17.1
     Professional                           0.9             6.7                    7.5               12.8              20.3
     Skilled                               20.8            32.3                   53.1              138.1             191.2
     Subtotal	                             23.3	           45.9	                  69.1	            159.5	             228.6
     Semi-Skilled                          47.5            21.5                   69.0              103.9             172.9
     Unskilled                             21.3             3.1                   24.4                5.3              29.7
     Subtotal	                             68.7	           24.6	                  93.3	            109.1	             202.6
     Total	                                92.0	           70.5	                162.5	             268.7	             431.2
                                                                Per cent of total by job classification
     Management                             9%             40%                    49%                51%             100%
     Professional                           4%             33%                    37%                63%             100%
     Skilled                               11%             17%                    28%                72%             100%
     Subtotal	                            10%	             20%	                   30%	               70%	            100%
     Semi-Skilled                          27%             12%                    40%                60%             100%
     Unskilled                             72%             11%                    82%                18%             100%
     Subtotal	                            34%	             12%	                   46%	               54%	            100%
     Total	                               21%	             16%	                   38%	               62%	            100%
                                                                Per cent of total by hiring priority
     Management                             2%             10%                     5%                 3%               4%
     Professional                           1%              9%                     5%                 5%               5%
     Skilled                               23%             46%                    33%                51%              44%
     Subtotal	                            25%	             65%	                   43%	               59%	             53%
     Semi-Skilled                          52%             31%                    42%                39%              40%
     Unskilled                             23%              4%                    15%                 2%               7%
     Subtotal	                            75%	             35%	                   57%	               41%	             47%
     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.



24   Snap Lake Mine Socio-Economic Report
NWT Residency Employment by Job Category                                                                               Aboriginal Employment by Job Category
(Person Years)                                                                                                         (Person Years)
                                200                                                                                                                    200

                                175                                                                                                                    175
                                                                                               NWT Residents                                                                                                        Aboriginal
                                150                                                                                                                    150
                                                                                               Non-NWT Residents                                                                                                    Other
                                125                                                                                                                    125



           Number of FTE jobs




                                                                                                                                  Number of FTE jobs
                                100                                                                                                                    100

                                75                                                                                                                     75

                                50                                                                                                                     50

                                25                                                                                                                     25

                                 0                                                                                                                      0
                                                                              ed                                                                                      t
                                           t
                                       emen Professional Skilled   Semi-Skill      Unskilled                                                                 Manag
                                                                                                                                                                  emen        ional Skilled mi-Skilled Unskill
                                                                                                                                                                                                               ed
                                  Manag                                                                                                                               Profess              Se




   Table 3(b): Aboriginal Employment by Hiring Priority and Job Classification, 2009

                                                                    NWT		                        Non-NWT	                 Total	    Other	NWT	 Other	Non-NWT	                                                          Grand			
                                                               Aboriginal	                     	Aboriginal	        Aboriginal	       Residents	            Residents		                                                  Total
                                                                                                           	 (person-years)
   Management                                                                  1.6                     0.9                  2.4               6.9                 7.8                                                    17.1
   Professional                                                                0.9                     0.0                  0.9               6.7                12.8                                                    20.3
   Skilled                                                                    20.8                     6.6                 27.4              32.3               131.5                                                   191.2
   Subtotal	                                                                  23.3	                    7.4	                30.7	            45.9	              152.1	                                                   228.6
   Semi-Skilled                                                               47.5                    16.5                 63.9              21.5                87.4                                                   172.9
   Unskilled                                                                  21.3                     3.2                 24.5               3.1                 2.1                                                    29.7
   Subtotal	                                                                  68.7	                   19.7	                88.4	            24.6	                89.6	                                                  202.6
   Total	                                                                     92.0	                   27.1	              119.1	             70.5	              241.7	                                                   431.2
                                                                                                          Classification and Hiring Priority (Aboriginal Status)
   Management                                                                 9%                       5%                  14%              40%                  46%                                                    100%
   Professional                                                               4%                       0%                   4%              33%                  63%                                                    100%
   Skilled                                                                   11%                       3%                  14%              17%                  69%                                                    100%
   Subtotal	                                                                 10%	                      3%	                13%	              20%	                 67%	                                                   100%
   Semi-Skilled                                                              27%                      10%                  37%              12%                  51%                                                    100%
   Unskilled                                                                 72%                      11%                  82%              11%                   7%                                                    100%
   Subtotal	                                                                 34%	                    10%	                 44%	              12%	                 44%	                                                   100%
   Total	                                                                    21%	                      6%	                28%	              16%	                 56%	                                                   100%
                                                                                                          Per cent of total by hiring priority
   Management                                                               2%                         3%                   2%              10%                   3%                                                      4%
   Professional                                                             1%                         0%                   1%                9%                  5%                                                      5%
   Skilled                                                                 23%                        24%                  23%              46%                  54%                                                     44%
   Subtotal	                                                               25%	                      27%	                 26%	              65%	                 63%	                                                    53%
   Semi-Skilled                                                            52%                        61%                  54%              31%                  36%                                                     40%
   Unskilled                                                               23%                        12%                  21%                4%                  1%                                                      7%
   Subtotal	                                                               75%	                      73%	                 74%	              35%	                 37%	                                                    47%
   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.



   3.
     The Employment Statistical Information (ESI) Form used to collect employee and contractor information on residency, heritage, gender and
   job category results in data which can 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. “NWT Aboriginal” is defined
   in the survey as Any Indian, Inuit or Metis 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 community in the NWT regardless of their
   residency. De Beers assumes that “Other Aboriginal” captures all other Aboriginal people. Finally, it is important to note that someone who
   identifies themselves as part of an IBA group or another NWT Aboriginal group may not always reside in the NWT. Heritage and residency
   are mutually exclusive. Those who self identify as a member of the North Slave Métis Alliance, Yellowknives Dene First Nation, Lutsel K’e and
   Kache Dene First Nation or Tlicho Nation and that also indicate they live outside of the NWT are still considered by De Beers to be within the
   first hiring priority. This is in accordance with terms within Impact Benefit Agreements, which supersede the hiring priorities of the Socio
   Economic Agreement. 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.
                                                                                                                                                                                                                                  25
     Employment by community
     The employment data by NWT community is presented                       2. Aboriginal people residing in the NWT;
     in Table 4. This data is recorded as the number of person-
                                                                             3. NWT residents who have been continuously resident in
     years of employment and as the average number of
                                                                                the NWT for at least six months;
     active employees. With the downsizing of the Snap Lake
     Mine’s workforce, De Beers’ focus was to limit to the extent            4. All others residing in or relocating to the NWT; and,
     possible laying off employees within priority groups
                                                                             5. Others (non-NWT residents).
     established in the Snap Lake Socio-Economic Agreement. 4
     The order of hiring priority is as follows:                             Over the course of 2009, 16 NWT communities were
                                                                             represented in the workforce at Snap Lake Mine. Most of
     1. Members of Aboriginal Authorities, including
                                                                             these workers resided in Yellowknife, accounting for
         a. Lutsel K’e and Kache Dene First Nation;                          26 per cent of the 431.2 person-years of total employment.
         b. North Slave Métis Alliance;                                      The Town of Hay River contributed 17.5 person-years
         c. Tlicho government,                                               (4 per cent of total employment), while Behchoko added
                                                                             another 14.2 person years (3 per cent of total employment)
         d. Yellowknives Dene First Nation.
                                                                             to the mine.
     Table 4: Employment by NWT Community

     Community	             Person	Years	                  Percentage	of		
                                                            Person	Years
     Behchoko                         14.2                          3%
     Deline                             0.6                         0%
     Enterprise                         1.1                         0%
     Fort McPherson                     0.7                         0%
     Fort Providence                    0.4                         0%
     Fort Resolution                    2.5                         1%
     Fort Simpson                       1.3                         0%
     Fort Smith                         8.1                         2%
     Gameti                             1.0                         0%
     Hay River                        17.5                          4%
     Inuvik                             0.7                         0%
     Lutsel K’e                         1.4                         0%
     Tulita                             1.1                         0%
     Wekweeti                           0.1                         0%
     Whati                              2.5                         1%
     Yellowknife                     110.2                         26%
     Other                           267.9                         62%
     Total	                         431.2	                       100%
     Note: figures may not add up due to rounding error.


                                                                                  4
                                                                                   .See Section 3.2 in the Snap Lake Socio-Economic Agreement.



26   Snap Lake Mine Socio-Economic Report
New hires by residency
Table 5 presents the number of new hires by residency               previous years were primarily driving construction and
separated between employees of De Beers and its                     commissioning where a variety of hiring takes place to
contractors. The data in this table is not in person-years,         bring in specialized skills. De Beers’ new hires totalled 51; of
but, rather, by number of individuals hired. During 2009,           that 41 per cent were NWT residents. De Beers’ contractors’
De Beers and its contractors hired 213 new workers.                 new hires totalled 162, of which 57 per cent were NWT
The number is much lower than previous years due to                 residents. The contractor doing the most hiring for the
the cutbacks in the first half of the year, and because             year was Tli Cho Logistics. It hired 121 employees over
                                                                    the course of the year. Ek’Ati Services Ltd. was another
                                                                    contractor that recruited several new hires in 2009 adding
                                                                    23 new employees.

Table 5: New Hires by Residency

                                 >	6	Months	      <	6	Months	       NWT	       Non-NWT	         Total
Number	of	New	Employees	
De Beers Canada Inc.                         9                12       21              30           51
Contractors                                53                 39       92              70         162
Total	                                     62	                51	     113	            100	        213

Per	cent	of	Total	
De Beers Canada Inc.                     18%              24%        41%             59%        100%
Contractors                              33%              24%        57%             43%        100%
Total	                                   29%	            24%	        53%	            47%	       100%




                                                                                                                                       27
     Employment by gender and job classification
     De Beers Canada Inc. supports and encourages the                         There were 60 women employed at the Snap Lake Mine
     participation of women in all aspects of work related to the             in 2009. In percentage terms, it is the unskilled positions
     Snap Lake Mine. De Beers encourages similar commitments                  where women are more significantly represented, holding
     from its contractors.5 Table 6 and Table 7 provide evidence              53 per cent of jobs in that category. In other categories,
     of De Beers’ record in this area. The overall workforce is               percentages of women is much lower. Women fill 8 per cent
     dominated by men at 86 per cent.                                         of management, professional, and skilled positions when
                                                                              combined and 14 per cent of semi-skilled positions.




     Table 6: Employment by Job Classification and Gender
                                             	Men	                           Women	                        Total
                             (person-years)	 (per	cent)	         (person-years)	(per	cent)	   (person-years)	(per	cent)
     Management                          14.1         83%                    3.0      17%               17.1       100%
     Professional                        18.7         92%                    1.7       8%               20.3       100%
     Skilled                            176.5         92%                  14.7        8%              191.2       100%
     Subtotal	                         209.3	        92%	                  19.3	       8%	             228.6	      100%
     Semi-Skilled                       148.0         86%                  24.9       14%              172.9       100%
     Unskilled                           14.0         47%                  15.7       53%               29.7       100%
     Subtotal	                         161.9	        80%	                  40.7	      20%	             202.6	      100%
     Grand	Total	                      371.2	        86%	                  60.0	      14%	             431.2	      100%
     Note: figures may not add up due to rounding error.




     Table 7: Employment by Job Classification
              for Women

                               (person-years)	              (per	cent)
     Management                              3.0                    5%
     Professional                            1.7                    3%
     Skilled                                14.7                   24%
     Subtotal	                             19.3	                  32%
     Semi-Skilled                           24.9                   42%
     Unskilled                              15.7                   26%
     Subtotal	                             40.7	                  68%
     Grand	Total	                          60.0	                 100%
     Note: figures may not add up due to rounding error.

     5.
          See Section 4.10 in the Snap Lake Socio-Economic Agreement.



28   Snap Lake Mine Socio-Economic Report
                                                                       Employment of Women by Job Classification

                                                                               Unskilled 26%


                                                                                                              Semi-Skilled 42%
                                                                           Professional 3%

                                                                           Management 5%




                                                                                               Skilled 24%




NWT survey of mine employees
The NWT Bureau of Statistics conducted a comprehensive                • with increased education comes greater mobility
survey of diamond mine employees in the spring of 2009                   and increased interest in the intrinsic benefits to
on behalf of De Beers Canada Inc., Rio Tinto, BHP Billiton               relocating such as recreational opportunities;
and the Government of the NWT. The survey was one of                  • those who lived in the NWT and have moved away
three initiatives undertaken by the three mines and the                  are more likely to return than those who have never
GNWT under an MOU to develop a northern work force.                      lived in the Territory;
It focused on things diamond mine employees like and                  • of those who are contemplating relocation to the
dislike about their current community of residence, factors              NWT,
they consider when thinking about relocation and barriers                   — most like that they would be closer to their
to moving to the Northwest Territories.6                                        work, but dislike what the move might mean for
                                                                                their financial position,
The results from those surveyed were separated into four
                                                                            — the most prominent concerns of these
categories according to their residency status—NWT
                                                                                potential residents include distance from family
residents who are from the NWT, NWT residents who
                                                                                and friends, cost of living, and employment
moved to the Territory, non-NWT residents who have
                                                                                opportunities for their spouse;
previously lived in the NWT, and non-NWT residents who
                                                                      • of those non-residents not considering relocation, the
have never lived in the Territory.
                                                                         main reasons cited included that they like their home
The results of this survey were very much in line with                   community and were concerned with the cost of
what De Beers has learned about its workforce through                    living in the NWT and the length of winters.
our efforts to attract people to our mine and the Territory       In addition to the overall results from the survey, De Beers
during the past five years of construction and operations.        was provided with the results from the Snap Lake Mine
Perhaps most interesting were the results that showed             workforce. There is little difference between this subset and
44.6 per cent of NWT resident mine workers (equal to 443          the overall survey results. A slight discrepancy exists in the
respondents) stated they were likely or very likely to leave      age profile of De Beers’ workforce when compared to that
the Territory in the next year should an opportunity to do        of the Ekati and Diavik diamond mines. The Snap Lake Mine
so arise. A majority (64.3 per cent) of these people cited the    employs a greater percentage of people under the age
cost of living as the number one factor. Other prominent          of 25 (8.8 per cent compared to 4.6 per cent at the other
considerations included wanting a change, the weather,            mines). Snap Lake Mine workers also have less experience
and a desire to be closer to family. Other important              working for a northern mine than those working at the
highlights from the survey are noted below:                       Ekati or Diavik diamond mines (19.8 per cent of Snap Lake’s
                                                                  workforce has 5 years experience or more compared to
    • NWT resident mine workers are, on average, younger
                                                                  58.2 per cent at the other mines). This seems logical given
      and more mobile than non-NWT resident workers;
                                                                  De Beers’ mine had been operating for less than 18 months
    • many of the differences and issues related to mobility
                                                                  at the time of the survey. Looking at the entire workforce
      between NWT and non-NWT resident mine workers
                                                                  at the Snap Lake Mine, their responses to questions about
      are a function of this age difference (for example,
                                                                  relocating in the next year were identical to the survey
      age is correlated with family conditions—younger
                                                                  average, however Snap Lake employees residing in the
      workers are more likely to be single, married without
                                                                  NWT were more likely to leave than other NWT residents
      children, or married with young children, they are also
                                                                  working at one of the other mines (53.8 per cent compared
      less likely to be tied down by financial obligations,
                                                                  to 44.1 per cent respectively). This deviation is likely
      and thus find it easier to move);
                                                                  the result of employing a higher percentage of young
    • closeness to family and friends is the most critical
                                                                  people and newcomers to the industry—both factors are
      factor in considering one’s residency, following by
                                                                  correlated with increased mobility.
      financial consideration such as cost of living, cost of
      housing, etc.;

6
 . NWT Bureau of Statistics, 2009 NWT Survey of Mine Employees:
Report to De Beers, August 2009.                                                                                                   29

				
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