Snap Lake Mine Socio-Economic Report

SOCIO-ECONOMIC REPORT
2012 Snap Lake Mine
Contents
Introduction from our CEO
Employment Report
Human Resources and Training
13 19 21 31
Scholarships
Health and Wellness
Social Investment and Culture
24
Business Policy
2012 Snap Lake Mine Socio-Economic Report
Introduction from the CEO
Tony Guthrie Chief Executive Ocer, Mining, Canada
Operating a diamond mine in the North is about more than just diamonds. It is about the relationships that are forged between our employees and the people who live close to our projects. These opening words from our 2006 Snap Lake Mine Socio-Economic Report remain as true today as they did then. Unchanged is De Beers commitment to working with the Government of the NWT, Aboriginal governments, communities and residents to maximize the benets that ow from our operation. We recognize that communities close by continue to be eager for jobs and business opportunities and their passion for protecting the land and water is unwavering. In 2012, we recovered 870,000 carats from 918,000 tonnes of ore, production built upon the pillars of safety and environmental protection.
Operating a diamond mine in the North is about more than just diamonds. It is about the relationships that are forged between our employees and the people who live close to our projects.
I am proud to report that at the end of 2012, employees at the Snap Lake Mine had worked 1.3 million hours without a Lost Time Injury. Throughout the year, we invested signicant resources, both personnel and nancial, to successfully manage water. We worked hard to reinforce an open, transparent relationship with communities and regulators. We will build upon this success through 2013 and over the life of the mine. The purpose of this report is to demonstrate how we are doing in terms of meeting commitments made in the Snap Lake Mine socio-economic agreement with the Government of the Northwest Territories: The number of NWT residents employed at Snap Lake is at an all-time high; The mine workforce included 21 trainees; Women working at the Snap Lake Mine fill a diverse range of occupations; 69% of the goods and services purchased for the mine in 2012 came from NWT companies and joint ventures; We celebrated the 10th anniversary of our Books in Homes program in 2012 and published a book of NWT writing with NorthWords NWT; 15 NWT students received scholarships under our new NWT scholarship program; and, Corporate Social Investment in education and training, sponsorships and cultural support surpassed $3.3 million.
A bolter operator installs bolts and screens to secure a section of the underground mine.
There continue to be challenges. The lack of skilled NWT residents needed to ll jobs at Snap Lake has not changed. We cannot address this gap alone and we remain a committed partner with the NWT Mine Training Society and other agencies. Global realities drive the critical business decisions needed to make Snap Lake a long-term success. Together, we will understand how devolution and resource revenue sharing can bring new benets to the NWT. As we move through 2013, we remain focused on strengthening relationships. We will accomplish this by being honest and transparent, willing partners to do what we can to support community aspirations. We hope that as you read this report, you will get to know us better, to join us in celebrating our success, and understand how the Snap Lake Mine is providing real and lasting social and economic value to the North
About the Snap Lake Mine

The Snap Lake Mine opened in 2008 and is located 220 km northeast of Yellowknife. It is De Beers rst mine outside of Africa. A completely underground operation, diamonds are recovered from a kimberlite dyke, or sheet, that averages 2.5 metres-3 metres in thickness and declines down beneath Snap Lake at approximately 12 degrees. In Canada, we also operate the Victor Mine in the James Bay lowlands of Northern Ontario. We are also the 51% joint venture partner with Mountain Province Diamonds in the proposed Gahcho Ku Project, 280 km northeast of Yellowknife. De Beers is committed to sustainable development in local communities. The Snap Lake Mine has signed four Impact Benet Agreements (IBA) including: Yellowknives Dene First Nation (November 2005); Tlicho Government (March 2006); North Slave Mtis Alliance (August 2006); and, Lutsel Ke and Kache Dene First Nation (April 2007). This report is designed to fulll reporting requirements as outlined in the Socio-Economic Monitoring Agreement signed between De Beers and the Government of the Northwest Territories in 2004. It includes a section on 2012 employment, recruitment initiatives, training, procurement, health and wellness initiatives, social investment and our support for cultural initiatives.
Snap Lake Mine Quick Facts

Capital cost Mine life Mine-site area Tonnes processed in 2012 Carats recovered in 2012 Production workforce Northern workforce Investment to date (December 2012) NWT spend to date (December 2012) Aboriginal spend to date (December 2012) Social investment in 2012 $975M 20+ years 500 ha 918,000 870,000 757 PY (2012) 275 PY (2012) $1.9B $1.3B $768M $3.3M
Employment Report
The workforce made up of De Beers and contractors at the Snap Lake Mine grew for the third year in a row in 2012. An additional 79 personyears worked brought the years overall employment to 757. This steady growth in employment over the past three years comes as a direct result of bringing production at the mine up to its capacity after the setback that occurred in 2009 as a result of the world economic recession.
2012 De Beers Canadas Snap Lake Job Vacancies & Recruitment Results
Number of Applications Hiring Results
NWT Aboriginal Residents Other NWT Residents Total NWT Residents Non-NWT Residents Total Received/Hired
514 598 1,112 2,795 3,907
13% 15% 28% 72% 100%
23 20 43 50 93
25% 21% 46% 54% 100%
Annual Employment at the Snap Lake Mine

(construction phase 2005 to 2007; operations phase 2008 to 2012) Number of person-years of employment
(based on 93 De Beers Canada job opportunities)
1,200 1,000 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 2012 NWT Residents
Southern Residents 72% NWT Residents 28% Aboriginal 13% Other 15%
2012 Number of Applicants for De Beers Canada Full -Time Positions
Non-NWT Residents
With the Snap Lake Mines workforce growing, we are inching closer and closer to our original target to employ 300 NWT residents full time. In 2012, there were 275 person-years of employment filled by NWT residents, which is a slight increase from the previous year and is the largest NWT resident workforce we have ever had working at the mine site since we began operations. Finding, training, and retaining NWT resident employees remains a challenge. This is illustrated by the results of our 2012 hiring campaign. Over the course of 2012, we held competitions for 93 full-time permanent jobs within De Beers workforce at the Snap Lake Mine. These competitions attracted 3,907 applications. Applicants residing in the NWT represented only 28 percent of the total. However, 46 percent of the jobs were lled by NWT residents. These results reect well on the use of hiring priorities.
2012 Number of New Hires for De Beers Canada Full -Time Positions
Southern Residents 54% NWT Residents 46% Aboriginal 25% Other 21%
Pat Decque, a Mine Operations Senior Supervisor, checks in with workers during a visit underground.
Trudy Beaulieu drives a haul truck underground at the Snap Lake Mine.
Hiring NWT residents is our top priority, and we are working to grow the number of NWT residents who are employed at the Snap Lake Mine. For that to happen, the labour supply will have to improve, especially the supply of labour with the skills to compete for semi-skilled and skilled jobs at the mine. It is in these two job categories that most of the mine site employment can be found. It is not helping matters that the territory lost 900 residents through out-migration over the 12 month period from July 2011 to July 2012. By the nal quarter of last year, the NWTs population was the lowest it had been since early 2007 at 43,313, having declined for ve consecutive quarters.
The reality for the NWT and its labour supply is that labour shortages in the mining sector exist throughout Canada and around the world. The 2009 survey of mine workers conducted by the NWT Bureau of Statistics on behalf of the Government of the Northwest Territories and the three NWT diamond mines revealed the high cost of living and distance from family and friends are important factors that inuence a persons residency decision. These factors have not changed since the survey was conducted and are not likely to change in the near future. Nevertheless, we remain committed to nding and developing new labour from within the NWT and are condent employment targets will be realized over the life of the Snap Lake Mine.1
NWT Population
(quarterly, 2005 to 2012)
44,400 44,200 44,000 43,800 43,600 43,400 43,200 43,000 42,800 42,600 42,400
Number of residents
Q4 2007
Q4 2006
Q4 2008
Q4 2009
Q4 2005
Q3 2007
Q4 2010
Q3 2009
Q3 2010
Q4 2011
Q2 2008
Q2 2007
Q3 2006
Q2 2009
Q2 2010
Q1 2008
Q1 2007
Q3 2005
Q2 2006
Q1 2009
Q2 2005
Q1 2006
Q1 2005
Source: NWT Bureau of Statistics, Population Estimates.
1
See Section 3.4.2 in the Snap Lake Socio-Economic Agreement. Achieving this 60 percent target is subject to the availability of persons in the priority groups with the required skills, training and experience.
Q3 2008
Q4 2012
Q3 2011
Q2 2012
Q3 2012
Q1 2010
Q2 2011
Q1 2011
Q1 2012
Employment by Hiring Priority Table 1 presents employment in person-years2 by hiring priority for the Snap Lake Mine from 2005 to 2012. The first three years, 2005 to 2007, represents the employment numbers during the mines construction phase. A total of 2,200 person-years of direct employment were created during this phase. The mine went into production in 2008, with total employment for the year equal to 728 person-years. By the end of that year, however, the world was falling into a severe recession that resulted in workforce reductions and a suspension of operations for six weeks in 2009. The year ended with an average monthly workforce 300 person-years below the previous year. By mid to late 2009, the worlds economy was inching out of its recession and a period of cautious growth began. The world economy remained fragile in 2012, with several European countries in deep recession and the United States economy growing slowly. At pace with the rebuilding world economy, we have been bringing the Mines production up to capacity. For 2012, employment totalled 757 person-years, which is an increase of 79 over last year and represents the highest operational workforce since the mine was commissioned in 2008. The year also saw the highest number of NWT Aboriginal resident employees equal to 149 person-years20 percent of the overall workforce. It is also noteworthy that De Beers and our Snap Lake contractors employed 275 NWT resident labour (Aboriginal and non-Aboriginal) which is the most ever and is just 25 shy of our commitment to employ 300 NWT residents at the Snap Lake Mine.3 The continued need to go outside the territory to nd new employees remains disappointing. Individuals residing outside the NWT lled 50 of the 93 full-time jobs that became available at De Beers Canada for the Snap Lake Mine in 2012. This is an area that will continue to receive attention. We regularly attend recruitment fairs and trade shows throughout the territory to promote employment at the mine and advertise all Snap Lake Mine job openings through NWT media and in communities.
Scoop operator Hank Pankratz has worked at the Snap Lake Mine for several years.
Table 1: Employment by Hiring Priority, to the end of 2012

2005 NWT Aboriginal Other NWT residents Subtotal NWT Residents Non-NWT Grand Total NWT Aboriginal Other NWT residents Subtotal NWT Residents Non-NWT Grand Total 39 56 95 137 231 17% 24% 41% 59% 100% 2006 93 130 223 614 838 11% 16% 27% 73% 100% 2007 126 143 269 875 1,144 11% 13% 24% 76% 100% 2008 Person-years 139 135 274 454 728 Percent of total 19% 19% 38% 62% 100% 21% 16% 38% 62% 100% 19% 17% 36% 64% 100% 21% 15% 37% 63% 100% 20% 17% 36% 64% 100% 17% 16% 33% 67% 100% 17% 17% 35% 65% 100% 92 71 163 269 431 123 106 229 406 635 145 104 249 429 678 149 126 275 482 757 906 871 1,777 3,666 5,443 113 109 222 458 680 2009 2010 2011 2012 Total Average
Note: Those that did not self identify in the survey are recorded as non-Aboriginal. NWT Aboriginal employees who were identied as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table. Figures may not add up due to rounding error.
In 2012, 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. n employment target of 300 person-years for NWT residents was established for the Snap Lake Diamond Mine during its environmental assessment, which was 60% of the 500 full-time equivalent jobs predicted A for the operations phase of the mine. De Beers continues to grow NWT resident involvement.
Table 2 provides information on the employment record of De Beers and our contractors for 2012. Our employees provided 466 personyears of labour to the Snap Lake Mine, 34 percent of which came from NWT residents. NWT Aboriginal labour provided 82 person-years of the employment, while other NWT residents contributed 79 personyears of labour. Another 45 person-years of employment came from Aboriginal labour residing outside the territory.4 In all cases, these gures represent increases from 2011, however, the contribution of each group relative to the overall workforce is essentially unchanged from last year. Snap Lake Mine contractors provided 291 person-years of labour to the Projectan increase of 33 over last year. NWT residents supplied 40 percent of this labour. De Beers contractors employ a higher percentage of NWT Aboriginal labour than NWT non-Aboriginal labour.
Table 2: Employment by Hiring Priority, 2012

De Beers Contractor Person-years NWT Aboriginal Other NWT residents Subtotal NWT Residents Non-NWT Aboriginal Other Non-NWT Residents Subtotal Non-NWT Residents Total NWT Aboriginal Other NWT residents Subtotal NWT Residents Non-NWT Aboriginal Other Non-NWT Residents Subtotal NWT Residents Total 81.8 78.6 160.4 44.6 260.8 305.4 465.8 Percent of total 18% 17% 34% 10% 56% 66% 100% 23% 16% 40% 5% 56% 60% 100% 20% 17% 36% 8% 56% 64% 100% 67.3 47.8 115.1 14.3 161.9 176.2 291.3 149.1 126.4 275.5 59.0 422.7 481.7 757.1 Total
Note: Those that did not self identify in the survey are recorded as non-Aboriginal. NWT Aboriginal employees who were identied as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table. Figures may not add up due to rounding error.
Snap Lake Employment by Priority Hiring Group (De Beers and contractors)
NWT Residents 36% Non-NWT Residents 64%
Peter Evanglok drives a haul truck on surface at the Snap Lake Mine.
4
The Employment Statistical Information (ESI) Form used for the Snap Lake Mine results in data that require some explanation and interpretation. Aboriginal employees can record their status in one of three categories within the survey: Impact Benefit Agreement (IBA) Group, NWT Aboriginal or Other Aboriginal. An Aboriginal person who is a member of the North Slave Mtis Alliance, Yellowknives Dene First Nation, Lutsel Ke and Kache Dene First Nation or Tlicho Nation can identify themselves as representatives of their IBA group, regardless of where they live. NWT Aboriginal is defined in the survey as Any Indian, Inuit or Mtis individual who originated in the NWT or is a descendant of an Aboriginal person originating in the NWT. De Beers assumes that this will capture every employee who represents any other Aboriginal group in the NWT regardless of their residency. Finally, De Beers assumes that Other Aboriginal captures all other Aboriginal people. It is important to note that someone who identifies himself or herself as part of an IBA group or another NWT Aboriginal group might not reside in the NWT. Also, a number of individuals choose not to self-identify themselves by their heritage or location. These individuals are recorded as non-Aboriginal, non-NWT residents.
Employment by Hiring Priority and Job Classification Tables 3a and 3b contain employment results by hiring priority and job classication. These results highlight the skills gap that exists in the NWT and its labour supply. The largest percentage of NWT resident labour is employed in unskilled jobs, lling 89 percent of the 103 available positions. A far greater number of jobs at the mine (81%) are classified as semi-skilled and skilled jobs, 293 and 315 respectively. These positions require additional education and/or work experience. NWT residents fill 30 percent of the semi-skilled jobs and 25 percent of the skilled jobs. In the case of professional jobs, such as the mine engineers and geologists, NWT residents ll 10 of the 31 jobs. In 2012, 58 percent of the mines management staff were NWT residents.
Table 3b reorganizes the data to highlight the number of Aboriginal employees working at the Snap Lake Mine. The table presents some interesting results. First, the number of Aboriginal employees who reside outside the NWT is growing faster than the number of Aboriginal employees who reside in the NWT. It is also interesting to see that almost all of the Aboriginal employees who reside outside the NWT are working in semi-skilled or skilled positions.
Table 3(a): Employment by Hiring Priority and Job Classification, 2012

NWT Aboriginal Other NWT Residents Subtotal NWT Residents Non-NWT Residents Grand Total Person-years
Management Professional Skilled Subtotal* Semi-Skilled Unskilled Subtotal* Total* Management Professional Skilled Subtotal* Semi-Skilled Unskilled Subtotal* Total* Management Professional Skilled Subtotal* Semi-Skilled Unskilled Subtotal* Total*
1.5 0.7 28.2 30.5 52.9 65.7 118.6 149.1 11% 2% 9% 8% 18% 64% 30% 20% 1% 0% 19% 20% 35% 44% 80% 100%
6.7 9.5 49.3 65.5 35.0 25.9 60.9 126.4 Percent of total by job classification 47% 30% 16% 18% 12% 25% 15% 17% Percent of total by hiring priority 5% 8% 39% 52% 28% 20% 48% 100%
8.3 10.3 77.5 96.0 87.8 91.6 179.4 275.5 58% 33% 25% 27% 30% 89% 45% 36% 3% 4% 28% 35% 32% 33% 65% 100%
6.1 21.0 237.7 264.8 205.0 11.8 216.8 481.7 42% 67% 75% 73% 70% 11% 55% 64% 1% 4% 49% 55% 43% 2% 45% 100%
14.4 31.3 315.2 360.9 292.9 103.4 396.3 757.1 100% 100% 100% 100% 100% 100% 100% 100% 2% 4% 42% 48% 39% 14% 52% 100%
Note: Those that did not self identify in the survey are recorded as non-Aboriginal. NWT Aboriginal employees who were identied as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table. * Figures may not add up due to rounding error.
Corey Courtermanche prepares to tag in to go underground at the Snap Lake Mine.
Table 3(b): Employment by Hiring Priority and Job Classification, 2012

NWT Aboriginal Non-NWT Aboriginal Total Aboriginal Person-years Other NWT Residents Other Non-NWT Residents Grand Total
Management Professional Skilled Subtotal* Semi-Skilled Unskilled Subtotal* Total* Management Professional Skilled Subtotal* Semi-Skilled Unskilled Subtotal* Total* Management Professional Skilled Subtotal* Semi-Skilled Unskilled Subtotal* Total*
1.5 0.7 28.2 30.5 52.9 65.7 118.6 149.1 11% 2% 9% 8% 18% 64% 30% 20% 1% 0% 19% 20% 35% 44% 80% 100%
0.3 0.4 21.2 21.9 24.6 0.3 24.9 46.7 2% 1% 7% 6% 8% 0% 6% 6% 1% 1% 45% 47% 53% 1% 53% 100%
1.8 1.1 49.4 52.4 77.4 66.0 143.4 195.8 13% 4% 16% 15% 26% 64% 36% 26% 1% 1% 25% 27% 40% 34% 73% 100%
6.7 9.5 49.3 65.5 35.0 25.9 60.9 126.4 47% 30% 16% 18% 12% 25% 15% 17% 5% 8% 39% 52% 28% 20% 48% 100%
5.8 20.7 216.5 243.0 180.5 11.5 192.0 434.9 40% 66% 69% 67% 62% 11% 48% 57% 1% 5% 50% 56% 41% 3% 44% 100%
14.4 31.3 315.2 360.9 292.9 103.4 396.3 757.1 100% 100% 100% 100% 100% 100% 100% 100% 2% 4% 42% 48% 39% 14% 52% 100%
Percent of total by job classification
Percent of total by hiring priority
Note: Those that did not self identify in the survey are recorded as non-Aboriginal. NWT Aboriginal employees who were identied as residing outside the NWT are recorded as Non-NWT Aboriginal Residents in this table. * Figures may not add up due to rounding error.
Snap Lake Employment by Job Classification and Hiring Priority

(residency)
350 300
Number of FTE jobs
250 200 150 100 50

Management Professional Skilled Semi-Skilled Unskilled
Non-NWT Residents
NWT Residents
Employment by NWT Community The employment data by NWT community is presented in Table 4. This table reects the NWT communities where our employees and contractors, who are NWT residents, are choosing to live. These statistics are recorded as the number of person-years of employment as of December 31, 2012. Snap Lake Socio-Economic Agreement establishes priority groups within the NWT, which guides De Beers hiring practices.5
In an effort to increase the number of NWT resident employees, we have expanded the number of NWT community pick-up points to include Fort Smith, Fort Simpson, Norman Wells, and Inuvik.6 In addition, we provide a travel allowance to employees living in any other NWT community to assist them with travel costs to our pick-up points. Despite these efforts, attracting and retaining labour from outside the North and South Slave regions of the NWT has been a challenge. Residents of the Sahtu, Gwichin, and Inuvialuit regions combined to register a total of 10 person-years of employment in 2012. Overall, 15 communities were represented in the workforce. Most of these workers resided in Yellowknife, accounting for 68 percent of NWT workforce with 187 person-years of employment. The Town of Hay River contributed 36 person-years (13%), while Behchoko added another 18 person-years (7%) of employment to the Project.
Table 4: Employment by NWT Community

Person Years Aklavik Behchoko Colville Lake Deline Enterprise Fort Good Hope Fort Liard Fort McPherson Fort Providence Fort Resolution Fort Simpson Fort Smith Gamt Hay River Inuvik Jean Marie River Kakisa Lutsel K'e Nahanni Butte Norman Wells Paulatuk Sachs Harbour Trout Lake Tsiigehtchic Tuktoyaktuk Tulita Ulukhaktok Wekwet What Wrigley Yellowknife (incl. Dettah/ Ndilo) Total NWT* 0 18 0 5 1 2 0 1 5 1 0 7 3 36 0 0 0 0 0 1 0 0 0 0 0 1 0 2 4 0 187 275 % of NWT Employment 0% 7% 0% 2% 0% 1% 0% 0% 2% 1% 0% 3% 1% 13% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 1% 1% 0% 68% 100%
* Note: Figures may not add up due to rounding error.
Darryl Chocolate is an Operator Trainee in the process plant at the Snap Lake Mine.
5 6
See Section 3.2 in the Snap Lake Socio-Economic Agreement. De Beers continues to pick up employees in all Tlicho communities, Yellowknife (including Ndilo and Dettah), Lutsel Ke, and Hay River.
New Hires by Residency Table 5 presents the number of new hires by residency separated between employees of De Beers and our contractors. The data in this table is not in person-years, but rather number of individuals hired. 7 Over the course of 2012, 169 employees were hired to work at the Snap Lake Mine; 51 of whom were long-time residents (having resided in the NWT for more than 6 months) and 7 of whom were recent arrivals (having lived in the NWT for less than 6 months). The majority of new employees, 111, live outside the territory.
Mine contractors were much more active in hiring new employees.8 The total number of new hires by contractors was 309. Similar to De Beers, a majority (63%) of these new employees were hired from outside the territory. Of the 113 new hires that do live in the NWT, 75 are long-time residents. Tli Cho Logistics was the most active employer of all contractors. It hired 99 people throughout the year, 70 of whom reside in the NWT. Bouwa Whee Catering hired 40 new people in 2012, 37 of whom are NWT residents. As noted on page 3, 93 of the new hires for De Beers were into permanent, full-time jobs. The balance reects temporary or seasonal work contract hires.
Table 5: New Hires by Residency

> 6 Months De Beers Canada Inc. Contractors Total De Beers Canada Inc. Contractors Total 51 75 126 Percent of Total 30% 24% 26% 4% 12% 9% 34% 37% 36% 66% 63% 64% 100% 100% 100% < 6 Months 7 38 45 NWT 58 113 171 Non-NWT 111 196 307 Total 169 309 478 Number of New Employees
Employment by Gender and Job Classification We support and encourage the participation of women in all aspects of work related to the Snap Lake Mine and encourage similar commitments from contractors.9 Table 6 and Table 7 provide evidence of our record in this area. Men dominate the overall workforce at 86 percent, virtually unchanged from one year ago. There were 109
women employed at the Snap Lake Mine in 2012, representing 14 percent of the workforce. Women are most represented in unskilled positions lling 42 percent of jobs in that category. Women are least represented skilled positions at seven percent. Women provided the mine with 28.4 person-years of employment in jobs classied as management, professional, or skilled.
Table 6: Employment by Job Classification and Gender

Men Person-years Management Professional Skilled Subtotal* Semi-Skilled Unskilled Subtotal* Grand Total*
Women Person-years 1.5 4.4 22.5 28.4 36.9 43.5 80.4 108.9 Percent 11% 14% 7% 8% 13% 42% 20% 14% Person-years 14.4 31.3 314.9 360.6 292.6 102.8 395.4 756.0
Total Percent 100% 100% 100% 100% 100% 100% 100% 100%
Percent 89% 86% 93% 92% 87% 58% 80% 86%
12.8 26.9 292.4 332.1 255.7 59.3 315.0 647.1
Table 7: Employment by Job Classification for Women

Person-years Management Professional Skilled Subtotal* Semi-Skilled Unskilled Subtotal* Grand Total* 1.5 4.4 22.5 28.4 36.9 43.5 80.4 108.9 Percent 1% 4% 21% 26% 34% 40% 74% 100%
Distribution of Women by Job Classification
Unskilled 40% Semi-Skilled 34% Skilled 21% Professional 4% Management 1%
he gures representing hiring will appear inated or would otherwise suggest excessive turn-over. This is not the case, however. It is not uncommon for someone to accept several short-term positions with T different contractors throughout the year. Depending on the duration of their work term, which could be as short as two weeks (a single work rotation), it is possible for the same person to be entered into the system as a new hire multiple times each year. The system also counts the movement of an individual from one job to another between contractors and De Beers as a new hire. 8 Bearing in mind the issue with over reporting. 9 See Section 4.10 in the Snap Lake Socio-Economic Agreement.
7
10
Women in Mining
When it comes to building a mining workforce, women are a relatively untapped potential source of skilled employees. We recognize this and are committed to encouraging women to consider mining careers. In 2012, 109 full-time jobs were held by women at the Snap Lake Mine, the highest number since we started operations in 2008. While this is good news, women continue to be most represented in unskilled positions at the mine. Our aim
in promoting opportunities for women at the mine is focussed on encouraging women to consider opportunities in the skilled, professional and management positions. We have done this in a number of ways. For example, we targeted 50% of our new NWT Post-Secondary Scholarships to support educational advancement of qualied female applicants and eight of the 15 scholarships in 2012 were awarded to women in the study areas of Commerce, Human Resources, Mining Engineering, Aquatic Resources, Accounting, Earth and Ocean Sciences, Science and Engineering. We have also
worked with Skills Canada to provide female role models to those considering careers in the trades through both nancial support of Skills Canada in the NWT and by providing female role models in the Power-Up Youth Conferences. We have also promoted opportunities for jobs as part of our annual visits to schools during our Books in Homes Program, ensuring female role models are actively participating We have women miners, apprentices, process plant operators, human resources professionals, senior managers and more. In this section we prole just a few of the women who work at Snap Lake.
Environmental Technician Andrea Hrynkiw at the Snap Lake Mine
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Adventure isnt usually the word that comes to mind when most people think of geology. But thats exactly how Aaliya sees it. She discovered the field halfway through university and fell in love with the lifestyle that came with it. I see the mine as a mini-adventure, she says. I commute on a plane and get to work in a remote area before going back home at the end of the week. She loves not knowing what each day will bring. She could be in the office, underground or outdoors, working on a range of projects. This is definitely for me, she says. I cant ever go back to a Monday to Friday job.
Aaliya Adam Yellowknife, NT Mine Geologist
They say that landing a job is about who you know. When youre from a small community, it helps that you already know everyone in town. Three years ago, the coordinator at the learning centre in Wekwet called Calinda out of the blue to let her know that the Mine Training Society was offering an underground mining course in the community. Calinda signed up and in just a few months she was working underground at Snap Lake. She has a messy job: keeping fluids like fuel and oil topped up in the heavy equipment. But she loves it. Its been an amazing learning experience over the past three years, she says. And it helps that everyone I work with is so nice, outgoing and fun to be around.
Calinda Football Wekwet, NT Field Truck Operator
Deanna hadnt planned to become a mechanical engineer. But a summer job helped her find her calling. While on a break from the University of Saskatchewan she took a job at a pulp and paper mill. Among the noise and the equipment, she discovered she enjoyed the mechanical side of science and math. After finishing her degree, she was attracted to the adventure of working in the North and working in a mine posed unique challenges she was ready to embrace. Keeping everything running smoothly can be especially tough. As Deanna notes, Crushing rock tends to be a little hard on equipment.
Deanna Astill Whitecourt, AB Maintenance Engineer
Some people take a while to find what they want to do in life. Others know from the start. Growing up in a family where caring for the environment was important, and loving the outdoors, Guylaine was drawn to the environmental sciences. And being a lifelong northerner, she was exposed to mining all her life and knew she wanted to work in the industry. She applied for a summer job at De Beers while on a break from university. More than three years later, shes still at Snap Lake and loving it. Shes even finishing her degree while working at the mine. Its great working here - weather permitting, she says with a chuckle. I work outside a lot, so it can get cold. Its a lifestyle that requires adaptation, but I love the job, the accommodations and the people.
Guylaine Gueguen Yellowknife, NT Environmental Technician
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Human Resources and Training

Recruiting and Retaining NWT Talent With strong competition for a small skilled labour pool, weve had to nd unique approaches to develop northern workers. We talk one-on-one with potential employees, bring students to site so that they can see what mining is like, and work hard to make the Snap Lake Mine as attractive as possible. Competitive pay and benets, a safe work environment as well as our commitment to communities close by and to minimizing our impact on the environment are important selling points in attracting and retaining skilled workers. Job satisfaction, along with training and development opportunities and, for some, opportunities for advancement are key elements for retention. Career Fairs and Events Career fairs and related events have proven good opportunities to speak with potential employees directly. They provide an opportunity for our staff to talk about our mine and the opportunities there, as well as about our bigger group of companies and the opportunities these present. Last year we worked with the Lutsel Ke Dene First Nation and the Yellowknives Dene First Nation to plan our participation in their community career fairs. We also attended Skills Canada competitions in Fort Smith and Yellowknife, promoting the job opportunities and skills required for jobs at our Canadian operations. Our Books in Homes events in nine NWT communities were also used as opportunities to promote careers and the education and skills required for the various jobs available at our mines. Opportunities for Students Some northerners have already decided on a career in mining. Showing them that a career with De Beers is an excellent choice means we have to show them what we have to offer. In 2012 we updated our career opportunities booklet so that students considering their own futures could see the breadth and depth of jobs available at our Canadian mines and what skills and education these jobs require. We work with Aurora College and the Mine Training Society to bring students in mining-related training courses to Snap Lake. In 2012 students enrolled in the Mineral Processing Operator Training Program (MPOT) at Aurora College were hosted at the Snap Lake Mine for an overview of the opportunities at the mine. The mine site visit allowed them to meet other northerners who have come through the same training and who have advanced in their careers with us. We also offer summer job opportunities to students to help them build their experience. Last summer, for example, two Aurora College Business Administration students worked in our Yellowknife oce, learning oce procedures and putting some of their training to the test. Coaching and performance feedback from our supervisors in the Yellowknife oce contributed to the growth of these young students.
Nicole Harris, Sr. Human Resources Coordinator, sits with youth attending a career fair in Lutsel Ke
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Strategic Job Postings Its hard to nd workers if those workers dont know where the jobs are. We make sure that all of our job postings are highly visible throughout the North. All opportunities are published in NWT News/North and posted online at jobsnorth.ca and on the De Beers Canada website. Our job opportunities are also provided to community career centres and regional employment oces. In 2012, our careers web page received 140,000 unique visitors, representing over one-third of the total trac on our website. In some of the smaller NWT communities, internet access and speed can be limited, so we dont just rely on our website. All job listings are sent to Aboriginal governments, community organizations, and community learning centres. To encourage applicants from our top hiring priorities, we send job ads directly to Impact Benet Agreement coordinators for posting and circulation in their communities. Training and Incentives At De Beers, we are promoting as many opportunities as possible for northerners who want to work or train with us. We believe in building capacity so that we get qualied, dedicated employees and the NWT has a trained workforce ready for the future. Thats why we provide training and incentives for northerners to learn and work at Snap Lake. We start with northern-focused apprenticeships and training programs in mining-related trades. We offer training and professional development to all of our employees so they can continue to improve their skills throughout their careers. You can read more about our training initiatives on page 15 of this report. In addition, we offer an attractive NWT allowance for all employees who are NWT residents. This helps offset some of the higher cost of living in the NWT. For employees hired from outside the NWT this NWT residency allowance is a tool we use to help them consider making the NWT their home. We believe that having local employees is an important way of contributing to the local economy and to building community. Challenges Although we use creative ways to recruit and retain NWT residents, we still face challenges with lling as many jobs with NWT residents as wed like. The Snap Lake Mine was the third diamond mine to start production in the NWT, and while there is unemployment in a number of NWT communities, a small population from which to draw on with limited skills often means we often have only a small number of qualied NWT applicants for our job opportunities. Where there are skilled workers in the NWT, we face stiff competition in hiring them as other mining companies, including southern companies are also looking north to recruit trained mine workers. In 2012, a number of companies were in the NWT recruiting skilled workers for jobs outside of the NWT. Even though we face these challenges, we understand that building the employment skills for NWT residents is a key to the long-term success of NWT communities. Thats why we continue to recruit, train and develop NWT residents for available career opportunities with us.
Mining Great Skills

Training Programs Training is an important investment we make at De Beers. Its how we create our next generation of employees, it helps us ensure the safety of our workforce and it helps us grow the skills of our workforce. Twenty-five training courses are offered regularly at Snap Lake and additional courses are hosted when required. More than 1,000 employees took training of some kind in 2012, adding up to nearly 25,000 hours, or almost 11.5 work years. Perhaps more importantly, we offer NWT residents a chance to learn mining trades from the ground up, through apprenticeships, and training programs for underground mining and other skilled trades. Training for NWT residents means increased capacity for local communities close to Snap Lake. This, in turn, creates better economic potential for the future as NWT residents are even better prepared to take on a wider variety of jobs. Just as well-qualied workers make for a stronger NWT, a well-qualied local workforce also makes us a stronger company. Having a great pool of northern talent means that we can more easily ll the roles that we have available. Training NWT Residents We made available 12 training opportunities in 2012 for NWT residents in Millwright Apprentice (x3), Summer Student positions (x3), Process Plant Operators Trainee (x5), and Maintenance Helper, promoting these opportunities through the De Beers Canada careers web page, News/North newspaper, jobsnorth.ca, and community contacts. In all, 109 applications were received for the Millwright Apprentice positions, including 33 from the NWT. All three apprenticeships were awarded to NWT Aboriginal residents. Our partnerships with the Mine Training Society, Aurora College, the Government of the NWT, contractors and communities are important in promoting the training opportunities, attracting new trainees and helping them succeed in meeting the requirements for training positions and ultimately placement at the mine.
Travis Guild, an apprentice at the Snap Lake Mine, works with a judge at Skills Canada NWT Territorial Competition in Yellowknife.
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Seven apprentices were working for De Beers at the Snap Lake Mine in 2012, all on track to become journeypersons. Two apprentices are female, including a millwright apprentice and an electrician apprentice. There were also nine trades trainees and ve underground mining trainees from the NWT. Since the mine opened, 39 northerners have graduated from these programs. Most of them have become full-time De Beers employees. To help apprentices succeed, De Beers has a very competitive package that includes providing nancial support for travel to their destination school, housing, and tuition while the apprentices are attending classes. While they are attending school, apprentices also remain on the De Beers payroll. Site-based contractors also employ apprentices and trainees, although these are not included in this report. Learning Centre Snap Lakes learning centre is a resource for all employees. Most of the sites classroom-based learning happens there. All new employees start their training at the centre, spending 3 5 days there for orientation to ensure they can work safely and that site and job specic procedures are understood. The learning centre is also a resource for employees who wish to learn on their own time. It has a large number of computers and is building a library of books and videos so employees can brush up on their literacy skills, look up building and electrical codes, or even learn more about engineering. The annual training budget for Snap Lake also includes funds to support employee professional development. This fund enables employees to enrol in professional development programs that can be either taken as web-based programs or off-site programs. A total of 27 employees were pursuing professional development opportunities with the companys nancial support in 2012. Of these, 20 are NWT Resident employees. We also offer our own program, called Facets of Leadership, aimed at improving the safety and leadership skills of De Beers and contractor managers and supervisors (see page 17). While we sometimes face challenges, we are committed to making our employees the best and brightest they can be, whether theyre current employees or NWT residents training to be our workers of the future.
Much of the training at the Snap Lake Mine Learning Centre is done on computer.
Training Trades Apprenticeship Underground TOTAL
Life of Mine Training Commitment 10 10 20 40
Actual 2012 Trainees 9 7 5 21
Cumulative Trainees to Date Cumulative Program Graduates 24 23 34 81 16 5 18 39
Safety and First Aid Training in Lutsel Ke

Building capacity in communities is about more than just job training. There are a huge number of other skills that can help individuals and communitieswhether on the land, on the job or in everyday life. The Lutsel Ke Dene First Nation offers plenty of training in such skills every year. In 2012, De Beers contributed $15,000 to co-sponsor classes on rst aid, rearms safety, and boat and water safety. Proper safety skills help communities stay strong and healthy. We make safety a top priority at our mines, so were proud to support community-based safety training as well.
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I wouldnt be able to do this without De Beers, he says. Their support package for apprentices is one of the best. If I was trying to do it on my own, theres no way Id be going back to school.
Learning the Trade
When he was nine years old, Austin helped his dad take the good parts from two old SUVs and make them into one working vehicle. Thats when he caught the bug. I didnt know what I was doing at the time, he says, but I liked the end result: being able to cruise around town with my dad in a big Suburban. Being a mechanic seems to be in his blood. He has already trained to be a journeyperson heavy equipment technician at the Snap Lake Mine, his father is a mechanic, and his brother is a 3rd year heavy equipment technician apprentice. With the help and encouragement of his father, he learned that he could walk into a career development centre, write his trade entrance exam on the spot and see if he would qualify. He did and he qualied for his rst apprenticeship. Now, nearly three years after nishing his rst one, hes going back for more.
Austins progression as an apprentice at Snap Lake was with three different companies, including De Beers. Hes been with De Beers as a journeyperson since 2010. But recently, hes become an apprentice again to switch from heavy equipment to passenger vehicles, gaining new skills. Last year they needed someone in an automotive role. I guess they liked my work and they asked me. That good work has shown itself in other places, too. In 2010, Austin won a gold medal in the NWT Skills Canada competition for apprentices. Life as an apprentice was a little easier the rst time around. He didnt have many responsibilities, so he could go to school and be away from home as long as he wanted. Now hes a dad with a three-year-old daughter to take care of. I nd the work/home balance pretty easy for now. When I go home for two weeks, my daughter has nothing but my time. When I go back to school, though, Ill have to set up child care and be away from her. He wont be completely away from family, though. His brother is due to go back to school around the same time, and they would like to go together.
Luckily, he wont have as much schooling this time around. Because he is already a licensed heavy equipment technician, he has been given credit for the rst two years of his automotive apprenticeship. That means that he will only have to go back to school for two sessions of technical training. I wouldnt be able to do this without De Beers, he says. Their support package for apprentices is one of the best. If I was trying to do it on my own, theres no way Id be going back to school. You know, overall, working at the mine has been great, he says. I really love the fact that I can go home for two weeks and my daughter gets my full attention. She is young enough I can take her travelling or camping and not have to worry about getting back in time for work or school the next day. I guess Ive just been fortunate. Austin Larocque Hay River, NT, Automotive Technician Apprentice
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Building Better Leaders

The Facets of Leadership Program De Beers puts safety rst. When managers and supervisors at the Snap Lake Mine identied the importance of growing its leadersincreasing their leadership in safety and generally just building better leaders overallan action plan was put in place.
We developed a series of two-day courses covering areas like health and safety, team building, communication and conict resolution. The program, called Facets of Leadership: Living up to Diamonds, is spread out over a year. This accommodates shift rotations and lets people use what they have learned before taking the next course.
To help the managers and supervisors who take the course remember what they have learned, cheat sheet cards and a reference website were developed. Seventy-ve managers and supervisors from the Snap Lake Mine, including 29 NWT residents, took Facets of Leadership courses in 2012 and the program is continuing in 2013. This is proof that we are committed to building stronger leaders every day.
Facilitator Ray Busheld leads a Facets of Leadership training session.
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Your Money Matters online nancial training is used during a workshop in Dettah.
More than Numbers

Increasing Financial Literacy in the NWT For people whose traditions havent involved a wage economy, money management can be as foreign as caribou hunting might be to a person who has never spent time on the land. We recognize the importance of nancial literacy in building strong communities and capable employees. In 2011 we introduced Your Money Matters, an online course that teaches the basics of money management. It was available at the Snap Lake Mine, and at Aurora College community learning centres in Behchoko, What, Wekwet, Gamt, Lutsel Ke and in Ndilo/Dettah. In 2012, the program was accessed 215 times. While Your Money Matters was well-received, it will be replaced by Financial Literacy, a program developed by the GNWTs Department of Education, Culture and Employment in cooperation with De Beers and other mining companies.
Yellowknives Dene First Nation Food Safety Training

At De Beers, providing training opportunities for northerners can go beyond our Snap Lake Mine employees. Food safety is a growing concern everywhere. So when youre responsible for keeping hundreds of workers healthy and well-fed, like Bouwa Whee Catering is at Snap Lake, food safety training is a must. In December, we co-sponsored a Food Safety Level 1 course for Yellowknives Dene members at the Aurora College Community Learning Centre in Ndilo. Twenty community members completed the training and received their certicates. Bouwa Whee is a Yellowknives Dene-owned company. However, it is just one of many employment options open to community members who have food safety training.
2012 Your Money Matters Users

Site Snap Lake Mine Lutsel Ke What Ndilo/Dettah Wekwet Gamt Behchoko De Beers oce Yellowknife Total Logins 32 4 56 15 6 55 27 20 215
Your Money Matters is an online program. The table shows the number of times the program was accessed from each community/location.
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Scholarships
Investing in Education
De Beers Scholarship Programs Post-secondary education is expensive for any student, but for students in the NWT, who must leave home and the support of family close by in order to attend school, every little bit of nancial help makes a measurable difference. Since 2006, we have provided scholarships to NWT students through our Impact Benet Agreements, however in 2012 we expanded our scholarship program, providing more opportunities to NWT students. To train the next generation of northern mining leaders, we introduced NWT Post-Secondary Scholarships, a territory-wide program open to all NWT residents enrolled or accepted to a post-secondary institution in one of the following courses of study: Mining Engineering Geology Finance and Accounting (Commerce) Human Resources (Commerce) Occupational Health and Safety Environmental Sciences Metallurgy and Chemical Engineering Mechanical and Electrical Engineering This new program is designed to attract more NWT residents to professional roles at De Beers in the professions where we have had the most diculty nding skills in the NWT. This program reects our commitment to nd new ways to increase the involvement of NWT Residents in our workforce. The scholarships are worth $2,000 each, adding up to $30,000 a year. With our existing programs, our scholarship fund is now $50,000 annually. Since 2006, we have invested $180,000 in nancial support for NWT students. We are also looking to expand the program in 2013. Our new scholarship program is aimed at building NWT capacity and future leaders, says Cathie Bolstad, Director of External and Corporate Affairs. We had many excellent applicants and while we couldnt select every applicant for a scholarship, the process of reviewing the applications enabled us to see what NWT students are studying, where they are in their programs and it gave us an opportunity to promote the mine and the opportunities it can present to NWT students who would like to consider a career with us.
Aimee Gauthier, a mining engineering student at Queens University, received a new De Beers Post-Secondary Scholarship.
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Underground haul truck driver Candy Champagne waits for her work assignment.
In 2013, we will add tertiary scholarships to our program creating links for permanent employment to nancial sponsorship of students in key study areas. Cathie is proof that northern tertiary scholarship programs work. In the early 1990s she completed two university degrees with the help of another northern company that she was employed with at that time. Today she remains in the North, with a successful career and as an active community contributor. 2012 NWT Scholarship Recipients Agamani Chakrabarty Bachelor of Commerce (Finance) Pamela Norwegian Business Administration (Human Resources) Aimee Gauthier Bachelor of Science (Mining Engineering) Michael Canam Chemical Engineering Lindsay Vician Science (Aquatic Resources) Melanie Joan Desjarlais Business (Accounting) Tyler Bell Engineering Keelan Mooney Chemical Engineering Wesley Lines Engineering Aaron G. Doan Earth Science Kaitlyn Menard Earth and Ocean Sciences Alexander Hunt Engineering Nicole Labine Science Ashley Mulders - Engineering Jordan Bryan Geology, Engineering
IBA Scholarships
Since 2006, we have funded scholarships for NWT students through our Impact Benet Agreements for the Snap Lake Mine. Each year, approximately $20,000 in scholarships are awarded to students through IBA agreements to help them fund their education. In some cases, communities have provided scholarships to encourage the completion of Grade 12 or its equivalent for mature students. To date, IBA Scholarships awarded by the Snap Lake Mine total $150,000. In 2012, the following individuals were recipients of scholarships from De Beers through Impact Benet Agreements. 2012 Yellowknives Dene First Nation Scholarship Recipients Laurie-Ann Lines Wesley Lines Roseanna Sangris Jessie Mackenzie David Staples Ashley Chapple-Sangris Eileen Liske Cindy Allen Mary T. Black Kirsten Sangris Lila Lines Brandon Etsemba-Sangris Bobbie-Jo Black Eric Tsetta Jonathan Goulet Stacey Sundberg Garrett Tsetta 2012 North Slave Mtis Alliance Scholarship Recipients Stefany Bulmer Deborah-Ann Clunie Thomsen DHont Lauren Mercredi Chloe Smith
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Health and Wellness at Snap Lake Mine

We invest in our employees in many ways. While most of our investments help build skills and ensure safe work, helping our employees maintain good health is also important. Our focus on health and wellness at Snap Lake in 2012 included offering heart-smart meal options, providing mandatory drug and alcohol training for employees and other initiatives such as those that are highlighted below. Fitness Centre We have three tness rooms at the Snap Lake mine site: a weight room with free weights, machines and contact equipment like heavy bags; a cardio room with equipment like stationary bikes and treadmills; and a room where people can do pilates and yoga. Some of the equipment that was originally installed when the accommodations facility opened in late 2010 was used more than we expected and it was starting to show. So, being enthusiastic about our employees dedication to personal fitness, we spent $25,000 upgrading our exercise equipment in 2012. In addition, with the advent of spring, and the desire for our employees to enjoy the outdoors, we promoted use of a safe seasonal hiking trail along the shore of Snap Lake and we held a number of weekend softball games during the summer. During the winter, a large warehouse was put to use for indoor oor hockey games. Medical Initiatives All Snap Lake employees need to complete a medical exam before beginning work at the mine. These exams ensure that employees are t to perform their duties and avoid injuries. They also help our employees become aware of any underlying conditions that can cause problems later in life. If they are aware, then they can get the help they need for those conditions or concerns. We also offer flu shots on site, and while these are optional for employees, nearly 100 employees took advantage of this service. We believe that healthy employees are happier employees. Investing in their healthwhether through a tness centre, medical initiatives or workplace safetyis just one way that we try to create the best employees in the North.
Employees work out in the cardio tness centre at the Snap Lake Mine.
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The apron at the Snap Lake Mine airstrip doubles as a ball eld for a summer activity at the Snap Lake Mine.
Hay River Charity Golf Classic

Since 2007, we have sponsored the annual De Beers Charity Classic Golf Tournament in Hay River, helping to raise money for the local Hospital Foundation, while also providing some support to Hay River Junior Golf. We contribute to the success of this charity fundraiser by organizing the tournament and covering the costs so all entry fees and contributing sponsorships from our business partners go directly to charity. The tournament raised more than $60,000 last year, and over its ve year life has contributed $200,000. Most of that money goes to the Hospital Foundation for things like new equipment, such as the medication dispensing system purchased in 2012. Its equipment like this that has helped Hay Rivers HH Williams Memorial Hospital earn Exemplary Status from Accreditation Canadaits highest honourin 2012. Its the only hospital in the North to earn the designation. In order to achieve Exemplary Status it needed the new medication dispensing system, which was purchased with proceeds from our charity golf tournament. De Beers has played a huge part in helping us get this equipment, says Heather Coakwell, Chair of the Hay River Hospital Foundation. Without them we wouldnt be close to reaching our fundraising goals. In 2012, we also sponsored Rocking the Caribbean rae, which raised $50,000 for the Stanton Territorial Hospital Foundation, going toward a new chemotherapy/IV treatment suite at Stanton Territorial Hospital.
Supporting NWT Community Wellness

Substance abuse can take a toll on any community, but its been especially serious in the North. Its an issue that some northerners believe is at the centre of many of the NWTs social issues. The issue is considered so important that the territorial government struck the Ministers Forum on Addictions and Community Wellness, to make recommendations on how the government can address addictions issues following a series of community meetings to be held in 2013. As part of our commitment to community wellness, we are proud to support activities that lead to better community living, like raising awareness of drug and alcohol abuse and options for treatment. Last year, we contributed funds to health and community wellness initiatives initiated by communities, including support of National Addictions Awareness Week activities in Behchoko and in Lutsel Ke. In Behchoko, we provided funds for the community to hold a series of workshops. The goal of the workshops was to teach people how alcohol and drugs negatively affect the mind, body, and spirit. Funding was also used to support evening activities, like youth hand games and a family barbecue. Alcohol abuse is a destructive inuence, says Tony Rabesca, language, culture and communications director for the Tlicho Government. Its important to have events that bring people together to support one another. In Lutsel Ke, we donated funds to support events and activities like the sobriety walk to raise awareness about addictions. Other activities in the community helped inform people about available services. One event was an open house luncheon to share information about the addictions treatment program. According to Hanna Catholique, community co-ordinator at the Lutsel Ke Health Centre, our donation helped to make the week a success. Addictions affect us all, says Hanna, who helped organize events and activities throughout the week. Having a week to put a spotlight on the issue and addressing it as a community is important.
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Social Investment and Culture
Supporting Healthy, Vibrant Communities

Social Investment Investing isnt only about business. When companies like De Beers invest in the social fabric of communities close to our operations, it helps us all live richer, fuller lives. Weve made a commitment to strengthen NWT socially, not just economically, and we stand by that commitment. Social investment means supporting those initiatives and organizations that make our communities great by strengthening things like education, health and culture. Last year, we invested $3.37 million in social initiatives in the Northwest Territories. Most of this focused on education, training and youth. The rest was spent on health, the environment, community development, arts and culture, small business development, sports and other areas (see graph below). In 2012, we were proud to support 90 different activities and community partners such as: Hay River Hospital Foundation Jean Wetrade Gamt School Tree of Peace Friendship Centre Skills Canada NWT NorthWords NWT NWT SPCA Behchoko Handgames Committee Aboriginal Sports Circle Mine Training Society
Our focus on education, training and youth is about building capacity in the NWT. Developing literacy, nancial skills and job skills all help create the workers of today and tomorrow. De Beers benets from skilled workers for our mine, and northerners benet because they develop skills that will help them succeed in jobs today and in the future. Because investment in building employment skills is challenged without strong, healthy, vibrant communities in which to live, we invest in communities too. Contributing to health and wellness, arts and culture initiatives that are the priorities for communities for example, helps nurture community culture that makes the North unique. De Beers knows that strong communities are an important ingredient in successfully operating in the North. They also play an important role in our ability to retain the skilled northern workforce that we have developed. Northern communities, and the people who live there, play an important role in how we do business. Thats why we want to leave a legacy. We want to leave communities better off after us, than before us.
2012 Corporate Social Investment

100%
80%
60%
40%
20%
0%
Health: 1.59% Education and Youth (Literacy): 83.73% Environment: 7.41% Arts, Culture and Heritage: 2.04% Small Business Development/ General Community Development: 4.63% Sports/Other: 0.60%
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Snap Lake Recycling Program

Every few months, crates of recyclables that are collected at Snap Lake Mine are sent to Yellowknife. De Beers donates the bottle recycling funds to local organizations. During 2012 more than $6,000 was raised for three groups: the Polar Bear Swim Club, the NWT SPCA and the Aurora Fiddle Society. Our recycling program also helped support a De Beers employees participation in the Relay for Life, a fundraising event of the Canadian Cancer Society.
Investing in Culture
The NWT has a rich cultural heritage. Today, many Aboriginal northerners still speak their language, practice traditional ways and keep close ties to the land. We are proud to honour and uphold northern culture as part of our commitment to social investment. At the Snap Lake Mine, we have a culture centre where non-Aboriginal employees can learn about Aboriginal culture and build a cultural understanding. Last year we held scrapbooking and carving workshops there, among other classes. We also support initiatives throughout the territory. Much of our nancial support for arts, culture and history in the NWT was spent supporting Aboriginal cultural activities such as hand games tournaments and annual gatherings and assemblies. Promoting northern culture and heritage and supporting activities that celebrate culture, history and tradition is important. It strengthens community bonds, builds bridges across generations and upholds values that are important to communities. We think thats an investment worth making and are proud to contribute.
Rae-Edzo Friendship Centre Youth Hockey Clinics

Since the Sportsplex in Behchoko closed several years ago, youth in the community have not had the chance to participate in organized hockey programs. But in 2012, the Rae-Edzo Friendship Centre, in partnership with NWT Hockey, organized nine skating and hockey skill sessions at the Yellowknife Multiplex for Tlicho and North Slave area youth. De Beers provided funds to help these youth increase their skills, improve their tness and make new friends.
Yellowknives Dene First Nation Lateral Violence Presentations

Throughout the years, Aboriginal people have been affected by changes in lifestyle. When the social programs in their communities were not prepared for these changes, lateral violence could be one of the results. Lateral violence happens when violence or other damaging behaviours are directed at ones own people. This can come from unresolved feelings of frustration, anger or helplessness that arise from change. These actions can harm communities, and the underlying issues must be dealt with in positive ways. In the fall of 2012, the Yellowknives Dene First Nation held community presentations to bring awareness of lateral violence to its members and encourage positive change. We contributed funds to help this important wellness initiative to happen.
A youth drums during a Christmas season hand games tournament held in Dettah by the Yellowknives Dene First Nation.
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Randy Sibbeston, of Fort Simpson, works on his sculpture at the rst annual De Beers Inspired Ice NWT Ice Carving Championship.
Hand Games Tournaments in Behchoko

Hand games are an important part of Dene culture. Not only are they a long-held tradition that provides fun, friendly competition, but they also serve as a way to bring communities and generations together. They are a way for one generation to pass on traditional culture to the next, as adults teach youth how to play. Last winter, the community of Behchoko hosted both a major youth tournament and the Canadian Aboriginal Hand Games Championship for men with our help. Sixteen youth teams and 40 adult teams came from all over the NWT to celebrate a part of their culture, and to meet new friends as the community opened its doors to visitors.
De Beers Inspired Ice - NWT Ice Carving Championship

After a long cold winter, a spring festival plays an important role in bringing people in the community together outside to enjoy the sunshine and each other. In Yellowknife, a new festival was born in 2012 and the cornerstone activity of the festival was made possible with our nancial contribution and in-kind support. The De Beers Inspired Ice - NWT Ice Carving Championship was created as part of the inaugural Long John Jamboree in Yellowknife. We donated staff time to help Jamboree organizers get the event off the ground and provided a solid nancial contribution to the festival enabling them to establish their rst carving event as one that was internationally sanctioned. Seven teams took part: six from the NWT and one from Indiana. The ice carvings were the delight of the community, and they provided something for everyone to come out and enjoy. We share a dream with the festival organizers who hope to build this event into an internationally acclaimed event so that more people can experience the culture of the North.
North Slave Mtis Alliance Heritage Research Project

We provided funds to the North Slave Mtis Alliance for its Indigenous North Slave Mtis Community Heritage Project. Through this project, historical records are being reviewed and used to document and dene the Indigenous Mtis community in the Great Slave Lake area of the NWT.
Stephan and Mike Koch, from Indiana, pose with their winning piece from the rst annual De Beers Inspired Ice NWT Ice Carving Championship.
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LIteraCy DeVelOpMeNt 10 Years Of BOOKs IN HOMes
Nicole Harris, Sr. Human Resources Coordinator, reads to youth during a Books in Homes visit to Lutsel Ke Dene School.
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De Beers believes that literacy is the rst step in empowering people to shape their own future. It is a key to individual opportunities, community development and economic success. Thats why we started Books in Homes in 2003. Every year we give three books to every student at nine schools close to our operations. The program started in 2003 with students from Kindergarten to Grade 8 picking books from an order form. Today, the company uses a ying bookstore, setting up a book fair in each community. Students from preschool to Grade 12, as well as teachers and school staff, can visit De Beers book fair and make their book choices right there. We partnered with the Yellowknife Book Cellar in 2007 to create this ying bookstore approach. In addition to getting books into the hands of eager readers more quickly, it lets us buy northern. More importantly, an established bookstore has the knowledge to provide the titles that people want, and the staff at the Yellowknife Book Cellar work with the teachers and principals at the schools to make sure the reading levels match the students abilities and interests. The students get excited about this when it comes to town, says Blair Hagman, principal of Mezi Community School in What. Because its been going for so long, people have grown up with it and theyve built libraries at home. Having books to take home and call their own helps motivate the kids to read. To celebrate the 10th anniversary of the program, every student signed a banner that was displayed at the Snap Lake site so mine staff could be reminded of the impact that this program makes. Birthday cupcakes were also provided for the students at each school The program has been a huge success, as Book Cellar staff have discovered. Kids visiting Yellowknife from the communities now come in to the store with lists of booksboth to buy and to request for the next Books in Homes visit.
By the Numbers 1,200: number of NWT students reached annually 9: schools visited each year (Dettah, Ndilo, Lutsel Ke, Behchoko, Edzo, Gamt, Wekwet, What, Fort Resolution) 775: distance, in metres, that would be covered if all books given away in 2012 were placed end-to-end (thats longer than 70 school buses!) 3 1,000: estimated number of books distributed by the end of 2012 (enough to ll the libraries of 11 average NWT community schools) $71,000: amount spent in 2012 $640,000: investment in the program to date 391: students in largest school (Chief Jimmy Bruneau School in Behchoko) 32: students in smallest school (Alexis Arrowmaker School in Wekwet) Books in Homes History 2003: program founded 2004: program expands to include Preschool to Grade 12 students 2007: ying bookstore approach adopted; all books purchased through the Yellowknife Book Cellar 2009: De Beers Canada receives NWT Ministerial Award for Literacy for Books in Homes 2010: Deninu School in Fort Resolution added to the program; representatives from Student Financial Assistance (SFA) program begin travelling with De Beers to explain the territorial governments post-secondary nancial assistance program to high school students in remote communities 2011: Your Money Matters, online personal nancial training, made available in communities as part of the Books in Homes tour and De Beers commitment to growing nancial literacy 2012: Books in Homes celebrates 10th anniversary
Young students at Lutsel Ke Dene School read their new books during Books in Homes visit to their school.
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Drummers play a beat as Snap Lake Mine employees play hand games during a workshop held at the mine.
Snap Lake Hand Games Workshop

Culture is not learned so much as it is lived. As a business operating in the NWT, we look for ways to help promote and uphold the unique culture of the communities close to our operations. Thats why we like to create opportunities for Aboriginal employees to enjoy their culture at work and showcase and share things they are proud of with their non-Aboriginal workmates. Last spring, we asked Bobby Drygeese, a member of the Yellowknives Dene First Nation to come to Snap Lake to run hand games workshops for our employees, teaching non-Aboriginal people how to play. Bobby is well-known in the hand games scene, and spends a lot of time organizing tournaments and teaching hand games to youth and adults in Ndilo and Yellowknife. He was a natural choice as an instructor for our employees. The workshops were held over three days, and while employees who were unfamiliar with the games were shy at rst, that changed with the sound of the drums. Only about ve or six people signed up at rst, says Bobby, but every day, more and more people would hear the drums and come by to check it out. Then theyd start playing too. In the end, people were learning the strategy of hand games and taking turns on the drums. The whole experience was eye-opening, says John Morrison, a training coordinator at the mine. To take part in a different cultural activity like that was something I havent experienced before. I was surprised how much effort it took, from the complexity of the hand motions, to the drumming to staying on your knees for that long. But I hope it happens again and I get to take part.
Lutsel Ke Community Summer Radio Programming

Keeping Aboriginal languages alive can sometimes be a struggle. So the community of Lutsel Ke wanted to provide community summer radio programming in both Chipewyan and English. The goal was to promote the language and words of the elders, while increasing the exposure to the language, especially among young adults. We provided funds to help make this goal a reality and look forward to hearing of the projects success.
Folk on the Rocks

Folk on the Rocks is the NWTs largest music festival. For the second year in a row, we sponsored the Cultural Stage. The stage is a venue for Aboriginal and other northern performers to showcase their culture. To encourage as many people as possible to see northerners perform, we also sponsored ticket giveaways and radio broadcasts from the site.
29
Coming Home
Stories from the Northwest Territories For years, NorthWords dreamed of publishing a collection of stories by NWT writers to showcase the talent in this vast territory. But they didnt have the resources to fund the project. Because we work to encourage northern literacy and writers as much as NorthWords, we were happy to get on board. Our contribution turned the dream into a reality. From 94 submissions, 17 stories were chosen by an independent panel to show the diversity of life and of the writers in the NWT. There are tales of life on the land, going to jail for breaking a dog bylaw, the experience of coming north for the rst time, of growing up in small communities and so much more. Coming Home: Stories from the Northwest Territories is a rst of its kind. Its the rst collection produced in the NWT, about the NWT, by NWT writers. And many of the authors have been published for the rst time. The book was released in November 2012 and is available for purchase at the Yellowknife Book Cellar, online at Amazon, Chapters and Great Plains Publications, and at select book stores across Canada. NorthWords is a non-prot organization that supports northern and Aboriginal writers. It promotes a culture of reading and writing in the North. De Beers has been the premier sponsor since 2006, and is proud to support the annual NorthWords Festival, the NorthWords Prize and the Great Northern Canada Writing Contest.
Christine Raves reads from her story published in Coming Home
Finding Common Ground

Cross-Cultural Training at Snap Lake Mine Cross-cultural understanding is important in a place like the Snap Lake Mine where people from northern Aboriginal communities, Southern Canada, and all across the world work side by side. To help build that understanding, the company holds cross-cultural orientation workshops, usually once or twice a month. Offering a course like this is just a good way to do business, especially in a multicultural environment, says Sabet Biscaye, Superintendent of Community Relations. If you understand each others culture, it really helps form a good working relationship. In the workshops, students learn about Aboriginal history, community and family values, and issues around resource development in the North. They are also encouraged to share personal values and beliefs as a way to connect with and learn about one another. Due to employee turnover, about 36 percent of current employees have taken the course. In 2012, 32 new employees took the workshop. To foster cultural understanding as much as possible, we make the course available to some of our contractors employees who are based in Yellowknife. We have even invited some community members to sit in and hear what is being discussed when they have expressed interest in the course.
30
Business Policy
Committed to the NWT Economy
NWT Business Policy When northern businesses are competitive and succeed, its good for De Beers and good for the NWT. Thats why our NWT Business Policy is an important foundation in how we approach doing business. It underpins the way we tender and contract opportunities at the Snap Lake Mine, and the choices we make when purchasing the goods and services we need. At the end of December 2012, De Beers has spent $1.89 billion dollars on the construction and operation of the Snap Lake Mine since commencing construction in 2005. Of that expenditure, $1.3 billion (69% of total expenditure) has been with NWT and Aboriginal businesses. Over this time period, 58% of expenditure with NWT businesses was spent with Aboriginal businesses. For the Operations phase of the Snap Lake Mine, our commitment is to purchase seventy percent (70%) of our goods and services from NWT businesses. In 2012, we spent $194.9 million dollars in the procurement of goods and services for the Snap Lake Mine. Of that expenditure, $134.1 million was spent with NWT businesses, which is just over 69% of our expenditure and $52 million was spent with Aboriginal businesses, which is 37% of our NWT expenditure. While we aim to purchase as much as possible from NWT businesses, our partnerships with Aboriginal and NWT businesses are also aimed at contributing to their long term success. Long term success for any business means remaining competitive and ecient while growing skills that build business capacity to seize existing and new opportunities. For both De Beers and its business partners, these are important ingredients to our collective success. This means that we are in conversation with our business partners regarding what capabilities already exist, how their capacity can be further developed, and what we and they can do to match our needs with their northern business capabilities and capacities. Approaching relationships this way better positions our business partners to provide services not just for us, but to other mines and other clients as well. Thats where Tim Harris, De Beers Manager of Business Development, comes in. Tim works with Aboriginal and NWT companies in a number of ways to support the success of NWT businesses, including: Maintaining a business registry where NWT businesses can keep us informed regarding their businesses, the goods and services they provide and the qualications they have; Providing advance notification to Aboriginal and NWT companies regarding upcoming business opportunities, so they can prepare for and provide competitive bids; and Whenever possible, adapting the scope and size of our contracts with our materials management staff to match our opportunities to the capacities of businesses that already exist in the NWT.
Ocials from Sandvik Mining Americas and De Beers celebrate Sandviks ve years without a Lost Time Injury at the Snap Lake Mine.
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In November, we hosted business opportunities briengs as part of our participation in the Yellowknife Geoscience Forum. There, nearly 100 business people met with our Manager of Business Development, attending his presentations to hear about our plans and upcoming opportunities for both the Snap Lake Mine and the Gahcho Ku Project in 2013.
Our business registry was upgraded in 2012. In the year ahead, our plans include promoting the business registry so NWT businesses can register or update their information such as the goods and services they provide; the size of project they can handle; how they con contribute to our socio-economic commitments; and their safety, health and environmental track records. The updated registry information will be used by De Beers to match qualied businesses, including NWT businesses, with contracting opportunities across Canada. This way, we can invite companies that have the capabilities we need to bid on all of our projects.
Snap Lake Mine Expenditures 2012

2012 Total Expenditures NWT Portion Aboriginal Portion $194,943,053 $134,132,171 (69% of total) $52,050,822 (37% of NWT expenditure) Total (since 2005)* $1,893,410,418 $1,322,019,874 $768,013,863
* NOTE: In preparing the 2012 Socio-Economic Report, an error in the 2011 cumulative spend report was identied. The 2011 cumulative expenditures were overstated. This has been corrected in reporting the 2012 cumulative expenditures.
Moving More on the Winter Road

Winter roads are lifelines for mines in the North and we moved even more goods over the winter road in 2012, doubling the amount spent on inventory. By improving warehouse facilities at the mine, we are able to stockpile more consumable items brought to Snap Lake on the winter road and reduce air freight costs. Proper planning also helps reduce waste. We didnt just bring in more. We brought in only what we need. We analyzed data from the past and spoke with our managers and supervisors about their plans for the future to nd out exactly what we will use at the site over the next year.
We also had an extensive backhaul program, shipping out the majority of units that made up our construction camp. Of the remaining units, some continue to be used as overow accommodations. Other units are to be sent to the proposed Gahcho Ku Project site in 2013. By the Numbers: 2012 Winter Road 894 loads of fuel (33.5 million litres) 589 loads of freight 265 backhauls
Trucks are unloaded at the Snap Lake Mine laydown yard during the annual winter road resupply.
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Better TOgether
Greg Crews, with Bouwa Whee Catering, prepares an omelette in the kitchen at the Snap Lake Mine.
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Nelson Football, left, passes a box to Logistics Lead Hand Ben Goulet as they unload a plane at the Snap Lake Mine.
De Beers Business Partners

It takes a lot of work to run a mine. While the De Beers name may be on the sign at Snap Lake, we cant do it alone. Contractors supply us with many of the goods and services we need to make the mine a success. But we arent happy to treat those contractors as simply suppliers. We work in partnership with the northern companies who do business with us. This helps contractors build their businesses, create jobs and build skills and abilities. It also helps us ensure that we will have contractors who can supply just the type of work we need, whether today or down the road. We have many contractors who help us at Snap Lake. These are just a few. Bouwa Whee Catering Bouwa Whee Catering is a wholly owned subsidiary of Deton Cho Corporation, owned by the Yellowknives Dene First Nation. It has been serving the Yellowknife area since 1988. Over the years, the company has grown to provide full-time catering, camp management, housekeeping, and janitorial services for remote mining camps including the Snap Lake Mine. Bouwa Whee shares De Beers commitment to hiring northern and Aboriginal people. More than 80 percent of Bouwa Whees employees come from the North and more than 40 percent of its employees are Aboriginal. Tli Cho Logistics Tli Cho Logistics (TCL) isnt happy to just do one thing. Instead, it offers a broad range of mining support services. The company helps De Beers with things like on-site labour, electrical work, ooading aircraft and site maintenance. It also transports fuel and other bulk liquids to site in partnership with Ventures West. TCL provides plenty of opportunities for northerners in all areas of its business. Seventy percent of its workforce is northern or Aboriginal. True to its roots, more than a third of its employees are Tlicho people, and other Aboriginal people make up 13 percent of the employees.
Dene-Emco Ltd. A partnership between Denesoline Corporation and Emco, Dene-Emco sells mining products in the Northwest Territories. Every year the company sends thousands of products to the Snap Lake Mine. The company is important to the Denesoline Corporation, which manages investments, partnerships and joint ventures to help create and maintain a sustainable economy for the community of Lutsel Ke and the Lutsel Ke Dene First Nation. North Slave Freighters Ltd. Since 2006, North Slave Freighters has been hauling goods over the winter road to the Snap Lake Mine. The company is a subsidiary of MTCOR Inc., the economic development arm of the North Slave Mtis Alliance. Most of North Slave Freighters trucks head to the mine loaded with shotcrete (a type of concrete designed to be sprayed onto surfaces). The shotcrete is manufactured by another MTCOR joint venture: Metcrete Services Ltd., which operates near Edmonton. These companies operate seasonally. And every year, when seasonal workers are needed, more than half of those workers come from the North Slave Mtis or other Aboriginal groups.
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FeedbaCK: We appreciate your feedback on this report or any other aspect of our performance. Please contact us at: External and Corporate Affairs 300-5120 49th Street Yellowknife, NT X1A 1P8 T: 867 766 7300 F: 867 766 7347 E-mail info@debeerscanada.com Feedback form www.debeersgroup.com/canada/Feedback Related LINKs: Mining, Canada | www.debeersgroup.com/canada Donations and sponsorship | www.debeersgroup.com/canada/Sustainability/Social-Investment/ Careers | www.debeersgroup.com/canada/Careers

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SOCIO-ECONOMIC REPORT

2012 Snap Lake Mine

Human Resources and Training

Health and Wellness

Social Investment and Culture

2012 Snap Lake Mine Socio-Economic Report

Introduction from the CEO

Tony Guthrie Chief Executive Ocer, Mining, Canada

2012 Snap Lake Mine Socio-Economic Report

About the Snap Lake Mine

Snap Lake Mine Quick Facts

2012 Snap Lake Mine Socio-Economic Report

514 598 1,112 2,795 3,907

13% 15% 28% 72% 100%

25% 21% 46% 54% 100%

Annual Employment at the Snap Lake Mine

(based on 93 De Beers Canada job opportunities)

2012 Number of Applicants for De Beers Canada Full -Time Positions

2012 Snap Lake Mine Socio-Economic Report

Source: NWT Bureau of Statistics, Population Estimates.

2012 Snap Lake Mine Socio-Economic Report

Table 1: Employment by Hiring Priority, to the end of 2012

2012 Snap Lake Mine Socio-Economic Report

Table 2: Employment by Hiring Priority, 2012

NWT Residents 36% Non-NWT Residents 64%

2012 Snap Lake Mine Socio-Economic Report

Table 3(a): Employment by Hiring Priority and Job Classification, 2012

Corey Courtermanche prepares to tag in to go underground at the Snap Lake Mine.

2012 Snap Lake Mine Socio-Economic Report

Table 3(b): Employment by Hiring Priority and Job Classification, 2012

Percent of total by job classification

Percent of total by hiring priority

Snap Lake Employment by Job Classification and Hiring Priority

250 200 150 100 50

2012 Snap Lake Mine Socio-Economic Report

Table 4: Employment by NWT Community

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

2012 Snap Lake Mine Socio-Economic Report

Table 5: New Hires by Residency

Table 6: Employment by Job Classification and Gender

Percent 89% 86% 93% 92% 87% 58% 80% 86%

12.8 26.9 292.4 332.1 255.7 59.3 315.0 647.1

Table 7: Employment by Job Classification for Women

Distribution of Women by Job Classification

Unskilled 40% Semi-Skilled 34% Skilled 21% Professional 4% Management 1%

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

2012 Snap Lake Mine Socio-Economic Report

Environmental Technician Andrea Hrynkiw at the Snap Lake Mine

2012 Snap Lake Mine Socio-Economic Report

2012 Snap Lake Mine Socio-Economic Report

Human Resources and Training

2012 Snap Lake Mine Socio-Economic Report

Mining Great Skills

2012 Snap Lake Mine Socio-Economic Report

Training Trades Apprenticeship Underground TOTAL

Life of Mine Training Commitment 10 10 20 40

Actual 2012 Trainees 9 7 5 21

Cumulative Trainees to Date Cumulative Program Graduates 24 23 34 81 16 5 18 39

Safety and First Aid Training in Lutsel Ke

2012 Snap Lake Mine Socio-Economic Report

Learning the Trade

2012 Snap Lake Mine Socio-Economic Report

Building Better Leaders

Facilitator Ray Busheld leads a Facets of Leadership training session.