Sample title page. Voisey s Bay, Newfoundland & Labrador, Canada

Transcription

1 Voisey s Bay, Newfoundland & Labrador, Canada Sample title page Tom Paddon, General Manager Subhead line goes here Presenter s name Vale Inco Newfoundland & Labrador Limited

2 Voisey s Bay Project Context Greenfield site development in remote area with access to shipping Overlapping and unsettled land claims - Innu Nation; Labrador Inuit Association (now known as Nunatsiavut Government) Multi-party environmental assessment Canada, Newfoundland, Innu Nation, Labrador Inuit Association (Nunatsiavut Government) Project promotion resulted in high expectations among local inhabitants and politicians Possible application of hydrometallurgical process technology (as opposed to pyrometallurgical technology)

3 Project Location Voisey s Bay Thompson Voisey s Bay Sudbury

4 Voisey s Bay Development Configuration Two sites separated by 1,200 km The mine & concentrator has been established at Voisey s Bay, Labrador. The nickel processing plant is under construction at Long Harbour. These sites require development of extensive infrastructure such as port facilities, power supply, water supply & roads. Argentia The Voisey s Bay site also includes an airport and accommodation complex.

5 Development Timeline Voisey s Bay Development Timeline - Phases Phase I Infrastructure R&D, Concentrate Handling Facilities Construction of the mine & concentrator Hydromet R&D Phase II Apr Feb 2013 Construction of the processing plant

6 Project Capacity 6,000 tonne-per-day mine and concentrator Annual production 50,000 tonnes nickel-in-concentrate, containing 2,300 tonnes cobalt and up to 6,800 tonnes copper 32,000 tonnes copper-in-concentrate

7 Construction Camp, 2002

8 Plant Site, 2008

9 Our challenges come from our geography Fly in fly out site, continuity issues due to rotations, ice breaking, indigenous people s rights and politics, extra personnel to support site needs, air services, extreme weather, wildlife encounters, aboriginal relationships and IBA s, environmental sensitivity, retention, supply line costs, additional inventory, isolation employee morale.

10 Section Impacts divider and Benefits goes here Agreements set in 50 with pt. Labrador Innu and Inuit

11 Project Setting Voisey s Bay is in the traditional territory of the Labrador Innu and Labrador Inuit Deposit situated in what was an area of intense aboriginal harvesting 35 kilometers from the nearest (Inuit) community, Nain. 70 kilometers from Natuashish Discovered before the rights of the Innu and Inuit with respect to their traditional lands were clarified Canadian courts have held that aboriginal peoples in Canada possess special rights to traditional aboriginal lands Those rights can include requiring resource developers to enter into Impacts and Benefits Agreements (IBAs)

12 Impacts and Benefits Agreements (IBAs) A tool which Built relationships with aboriginal communities Became a mechanism for the Company to provide benefits from the project Embodied the aboriginal collectives consent to the project by way of referenda (aged 15 and up) Formally recognized the relationships and each party s commitments Took 7 years to negotiate

13 IBA Chapters Education & Training Employment Workplace conditions Business Opportunities Environmental Protection Harvesting Compensation Access & Use by Inuit and Innu of Infrastructure & Facilities Financial Implementation Dispute Resolution General Project Shipping

14 Aboriginal Training, Employment & Business Opportunities

15 Challenges Human Resources Managing union jurisdictions Trade skill availability Incentive to train vs. incentive to earn HOW TO MAXIMIZE ABORIGINAL EMPLOYMENT AND BE SAFE AND EFFICIENT?

16 Employment Hiring preference Inuit/Innu employment coordinators School visits, resume assistance, employee counseling, aboriginal employee committee support and advocacy Utilized purpose built database during construction to find employees for site contractors Vale Inco and contractor hiring process Supervisory trainee positions Supernumerary positions in specific areas to broaden aboriginal skills inventory

17 Aboriginal Employment Effort Vale Inco established hiring and workforce development policies to leverage the construction phase of the project into opportunities for long term aboriginal participation Established a Labrador-based team to oversee and implement employment and training commitments Embedded employment and training commitments in all contracts with companies working at the construction site Negotiated a collective agreement with construction trade unions to accommodate hiring priority in line with IBA commitments and a Labrador adjacency policy Worked with LIA (Nunatsiavut Government), Innu Nation and Labrador Métis Nation to establish a comprehensive skills inventory of their members interested in employment at the Mine and Concentrator site Monitored contractor performance and regularly intervened to ensure commitments were met (i.e. first priority given to aboriginal candidates)

18 Training & Education Mill operator and millwright training in communities before start up On site computer based training, literacy and cultural diversity training, progression training Full-time training department with Mill, Heavy Equipment Operator and Literacy Trainers School visits to site Scholarships

19 Our construction phase effort has carried over into operations 52% of the operations workforce is made up of aboriginal people Pre- and post-employment training programs established Operations hiring criteria Safety, Productivity, Commitments, Availability Initial >6 month recruiting period Pay-for-knowledge progression plan drives multi-skilling

20 Business driven partnerships established to pursue construction opportunities were leveraged into operation phase contracts All major and most minor Operations service contracts have been awarded to aboriginal firms Catering and Camp Services Site Services Security Air Transport Medical Services Shipping Support Fixed Equipment Maintenance

21 Sounds nice.. Vale Inco has set a new Canadian standard for aboriginal employment and business participation in the mining sector Increasingly, site recruitment occurs at the entry level making higher rates of aboriginal employment likely Capacity development in the aboriginal business world means that companies created for the Voisey s Bay development are increasingly able to take advantage of new opportunities unrelated to Vale Inco but is it good business? Vale Inco is delivering on its commitments to the benefit of aboriginal people, but how has this effort benefited the Company?

22 Relative Performance Start Up

23 Our commitment to local participation has continued into operations 98% of mine and concentrator workforce are from Newfoundland and Labrador 52% are aboriginal people About 80% of procurement awards in Labrador and Argentia have been to NL businesses In 2007 we spent $100 Million with aboriginal businesses alone Result - In April our monthly production results were the best since start up, unplanned downtime was 1%, there were no injuries, achieving budget and our relationship with Labrador s Innu and Inuit people is excellent. That s good business.

24 Economic Activity Has Driven Education Adult Basic Education (ABE) at site, introduction to computers, financial planning in employee s homes with spouses, scholarships, EIT, goto/stay-in school programs, CBT blend of classroom and practical training Health Diabetes, nutrition, country food, sobriety, smoking cessation Capacity development capital acquisition, business/customer diversification Stronger communities skills transfer to communities, income stream for governments, trust funds for future, funds toward other break-even businesses for job creation, training supports, volunteer organization funding, long-term jobs in Northern Labrador, preserve culture and communities

25 Section Lessons divider Learned goes here set in 50 pt.

26 Lessons Learned There have to be benefits for all involved - all parties must actively want the project to proceed because it will meet an interest that is of importance to them. Empower the community - affected communities must feel that their voice has been heard and that what they have said has been taken into account. Build capacity and strong communities This is equally important for the Company who needs employees and businesses to take up opportunities Honesty There is no value in hiding bad news; you need to build a relationship based on openness and transparency Credibility - Can t be bought, takes time and usually pain to attain

27 Lessons Learned The operations group has to be the core delivery mechanism for practical delivery of benefits not primarily a corporate accountability Certainty and survivability what ever the political reality is critical relationship with the people not only the politicians, the people must value the project Our shareholders interests are tied to these relationships relationship capital is a commodity The price is not always financial environmental and social cost have a different currency Issues that are not in the companies bailiwick are often critical to project success and the Company needs to facilitate solutions

28 Lessons Learned Communications be open even when the message is unpopular. Be realistic. Time to develop good relations is critical the Voisey s Bay development is a better project today because of the delay in the late 1990 s Make success in aboriginal HR commitments critical to overall success redefine best

29 Thank you. Questions

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