Mining Benefits in Northern Saskatchewan. saskatchewan.ca

Transcription

1 erners tour Cigar Lake Operation, as part of the ern Saskatchewan Environmental Quality Committee. Saskatchewan uses the mineral surface lease agreement to ensure that residents of Saskatchewan s benefit from mine operations in their region. After 30 years, the outcome is: an increase in local skilled workers; competitive local suppliers; and better informed communities. Mining Benefits in ern Saskatchewan The northern half of Saskatchewan is a land of lakes, forests, mineral resources, and natural beauty. It is home to about 40,000 people. Cree, Dené, and Métis cultures are strong in the region. Mining is the major private industry, employing over 2,800 people. In 2016, six mines/mills operated in the region. Uranium operations included the McArthur River mine/key Lake mill, Cigar Lake mine/mcclean Lake mill and the Rabbit Lake mine and mill. The Seabee operation mined and milled gold. Six more operations are proposed, not operating, or being reclaimed: Midwest Project, La Ronge Gold Project, Cluff Lake, Beaverlodge, Konuto, and Parks Lake. The owners of these 12 operations have entered into two agreements with the province for each site. These are the mineral surface lease agreement and the human resource development agreement. One intent of these agreements is to help residents realize their goals and improve their standard of living. The Ministries of Environment and Government Relations work together to administer the mineral surface lease agreements. The main purpose of this agreement is longterm rental of Crown land in northern Saskatchewan. It also encompasses commitments for environmental protection, occupational health and safety, and socioeconomic benefits for residents of Saskatchewan s. In addition, the Ministry of the Economy administers the human resource development agreements that are required under the terms of each lease agreement. These focus specifically on opportunities for northern training and employment. Each year the mine operations are required to report to the province on their best efforts in meeting their commitments under these two agreements. This is a summary of the partners initiatives government and the northern mining industry during 2016.

2 2 Twelve Agreements in ern Saskatchewan Administration District Agreements with projects in operating stage or on hold: Cigar Lake (Cameco, AREVA, Idemitsu, TEPCO) Key Lake (Cameco, AREVA) McArthur River (Cameco, AREVA) McClean Lake (AREVA, Denison Mines, OURD) Midwest Project (part of McClean Lake) (AREVA, Denison Mines, OURD) Rabbit Lake (Cameco) Seabee (Claude Resources/Silver Standard) Agreements with projects in care and maintenance or decommissioning and reclamation stages: La Ronge Gold Project (Procon Resources) Beaverlodge (Cameco) Cluff Lake (AREVA) Konuto (Hudbay Minerals) Parks Lake (part of Rabbit Lake) (Cameco) 1) Employment All mining operations commit to work with the province, other mine operators, and other agencies to use their best efforts to maximize northern employment. Uranium companies make an additional commitment to work towards a long-term goal of 67 per cent northern participation. In 2016, the mining industry in northern Saskatchewan: Gave preferential consideration in all job openings to northerners, particularly those from priority recruitment communities located nearest to the mine/mill sites. Focused on contracting with service suppliers who employed northerners. Maintained seven offices and satellite offices in six northern communities La Ronge, Pinehouse, English River, Black Lake, Hatchet Lake, and Fond du Lac. Employed three liaison staff in the Athabasca Basin to be a link to the seven Athabasca communities and to oversee recruitment, training, community investment, and engagement. Provided air transportation for workers to mine sites from 12 northern communities as well as Prince Albert and Saskatoon. Advertised jobs broadly on company websites, social media, radio stations, provincial papers, northern papers, and television scrolls. Helped northern and other workers move up by recruiting from within the company for some jobs and assisting with applications and interviews. Maintained union agreements that give preference to northern and Indigenous workers in jobs, apprenticeships, recalls, and retention during workforce reductions. Definition of a Resident of Saskatchewan s Commitments and Initiatives Under the terms of each mineral surface lease agreement, all mining companies commit to use their best efforts to maximize opportunities for residents of Saskatchewan s in employment, training, and business and to provide compensation to previous permit or lease holders. Uranium mining companies make four additional commitments for employee services, education promotion, community vitality monitoring, and public involvement. For recruitment purposes, a Resident of Saskatchewan s is defined as: A person who has resided in Saskatchewan's for a period of 10 years or one-half his or her age, whichever is less. A person retains northern status if he or she: o needed to relocate outside of Saskatchewan s for post-secondary education; o resided outside of Saskatchewan s for less than five years; or o moved back to the. Or A northerner who is transferred to another mine or reemployed by a mine within the year and met the above criteria at the time of recruitment.

3 3 4,000 3,000 2,000 1,000 0 ern Employment Trend at Mines in ern Saskatchewan to Dec ,364 northern residents employed at northern mine sites - 48% of the total workforce ern Contractors Other Contract Employees ern Mine Employees Other Mine Employees Employment Statistics The northern workforce has grown in numbers and in abilities over the years an outcome of the mining industry s commitment to maximize northern employment and advancement opportunities. As of December 31, 2016, the industry: Employed 2,866 people at northern mine sites including mine employees and contract workers. Maintained a high northern participation rate 48 per cent of the 2,866 workers. Companies employed 923 northerners, and their long-term contractors employed 441 (in catering, janitorial, security, construction, and underground mining). Was one of the largest employers of Indigenous peoples in Canada: 41 per cent of workers on site were Indigenous. 67 per cent of northern workers continue to reside in the northern region. Job Forecast for 2017 Employment opportunities at the northern mine operations will be limited in 2017 because of continued weak markets. There are no new jobs forecast at Rabbit Lake mine as it was placed into care and maintenance mid-2016, eliminating about 500 positions. At Cigar Lake, Key Lake, and McArthur River, employment will be downsized by about 10 per cent or about 120 jobs. Some contractor jobs at these sites will be affected as well. At other mine/mill sites, the operators will maintain their current employment levels. Although job opportunities will be fewer, the operations forecast that they will have 49 new and turnover replacement jobs in In addition, they will have about 32 summer student jobs lower than previous years due to downsizing and planned shutdowns this summer of six to eight weeks for vacations and maintenance. Job Recruitment Forecast for 2017 Supervisory Technical/Professional Mill Shift Supervisor Environmental Technician Trainee Safety Officer Entry Level/Operations General Maintenance Operator Housekeeping Kitchen Mill Utility Person Site Services Labourer Underground Miner & Equipment Operator Trades Apprentice Electrician Apprentice Industrial Mechanic Heavy Duty Mechanic Plumber Where were the 1,364 northern mine employees and contract workers hired from? Athabasc a, 247, 18% east, 118, 9% Central, 505, 37% Other Areas, 28, 2% wes t 466, 34% And where do they live now as of Dec. 31, 2016? Athabasca, 157, 11% east, 72, 5% Central, 350, 26% west, 341, 25% Other Areas, 444, 33%

4 4 2) Employee Education and Training Commitment All mining operations commit to use their best efforts to maximize training and job advancement opportunities for northerners. External Partnerships As partners in multi-party initiatives in 2016, mining companies helped build a trained labour force in the north from which the mining companies and other businesses can recruit skilled workers. Companies: Provided 28 work placements for students from four post-secondary training institutes. Students were training as security guards, welders, process operation technicians, heavy equipment truck and transport technicians, and mine engineering technicians. Recruited 48 summer students (about 50 per cent from the north) to gain experience working at a mine in engineering, geology, lab, and metallurgy roles. Partnered in the final year of ern Career Quest (NCQ) Phase 2 in a Mill Operator Training Program. NCQ provided training funds while McClean Lake Operation provided in-kind contributions, trainers, and site facilities for 16 northern students in two intakes. Since the start of the Mill Operator Training Program in 2012, seven intakes have been completed. To date, McClean Lake Operation has hired 63 of the 76 trainees who completed the program. In-House Employee Development Training Trained 29 apprentices 80 per cent of them northerners as electricians, heavy-duty mechanics, industrial mechanics, welders, plumbers, pipefitter/steamfitters, carpenters, and scaffolders. Provided certified training to 34 employees in partnership with NCQ and training institutions to help them advance within the company. Training included power engineering, business administration, external certification, career development, and skill training on the job. Ensured safe workplaces by delivery of respectful workplace training, WHMIS, fall protection, first aid, radiation basics, control of hazardous materials, mine rescue, confined space entry, spill protection and reporting, and emergency response training. Delivered thousands of hours of skill advancement training for employees and contractors in underground mining, mobile equipment operations, Class 1 driver s license, supervisory skills, and process operations. Supported northerners in higher skill jobs in management/supervision, professional, technical, and trades categories. These 437 northern employees and contract workers made up 32 per cent of all workers in the higher skill levels. (Operations jobs include mill, equipment, and mining positions. Support jobs include labourers, helpers, janitorial, and kitchen workers.) What Jobs do the 1,364 ern Employees of Mine Operations and Contractors do at the Mines? As of Dec. 31, Management/ Supervisory Professional Technical Administration Support Trades Operations Support Services Provincial Initiatives in As a partner with mines in their surface lease agreements and human resource development agreements, the Government of Saskatchewan also was active in 2016 to help build a sustainable resource sector and a better quality of life for northern residents. In training, the province: Provided $465,000 for additional training in La Loche including Adult Basic Education and the ABE/Tri Trades program in heavy equipment, truck and transport, and automotive mechanics. Collaborated in a new Dené Teacher Education Program in La Loche with the ern Lights School Division, Clearwater River Dené Nation, and First Nations University of Canada. The program will train up to 30 local people to teach in local schools. Supported the International Minerals Innovation Institute (IMII) with Saskatchewan s mining industry by jointly funding and directing it. With IMII funds, lands College completed construction and renovations of its new mine school. University of Saskatchewan graduated its first students from the IMII-funded mining engineering option courses % % 61 66% % 78% total Non- total 30% 72%

5 5 3) Employee Services Commitment Uranium mining operations commit to provide their employees with on-site services and counseling programs and to consider employee suggestions to enhance these services. Uranium operations are leaders in supportive and inclusive workplaces. For example, in 2016, Cameco s initiatives earned the company several prestigious awards including being named among Canada s Top 100 Employers, Canada s Best Diversity Employers, Canada's Top Employers for Young People, and Saskatchewan's Top Employers. Employee Services and Programs in 2016 Employment equity, diversity, and respectful workplace policies and training sessions Employee share ownership plans and bonus programs Elder advisors at sites and community relations staff in communities to translate and share information and provide guidance Employee, family, and financial assistance counseling and resources Healthy living initiatives to provide guidance in nutrition, diabetes, mental health, and fitness programs Health, dental, and wellness plans, disability management, and retirement programs Recreation clubs and facilities including fitness centres, fishing boats, bicycles, libraries, movies, and high speed internet Employee involvement in process improvements and innovation 4) Education Promotion Commitment (Stay in School Program) Uranium mining operations commit to work with other companies, government, and northern schools to plan and implement programs that encourage northern students to complete high school, pursue higher levels of education, and consider professional careers related to the mining industry. In 2016, the mining industry: Awarded or funded a variety of scholarships totaling $109,000 to 35 northern students in technical and university programs including mine engineering technology, mining related programs, environmental management, business, nursing, plumbing, automotive mechanics, and education. Sponsored the Athabasca Education Awards Program, which aims to promote achievement and academic success among students in Saskatchewan s far north. They presented monetary and gift awards totaling $25,150 to 84 students in Grades 7 to 12. Shared career information with students during 25 school presentations and workshops. Hosted five educational tours of mine/mill sites for students from Pinehouse, Clearwater Dené Nation, Patuanak, and Cumberland House. Supported the Science Ambassador Program. It paired senior university students in science, engineering, and health sciences with school students in Black Lake, Stony Rapids, Wollaston Lake, Fond du Lac, Pinehouse, Buffalo Narrows, Ile a la Crosse, Beauval, Green Lake, and Cumberland House. Students joined in creative and culturally relevant science activities. These activities, delivered over four to six weeks, aimed to promote post-secondary math and science careers. Focused community tours and visits on learning and achievements. Activities included school awards, Roughrider guests, science-based interactive labs, antibullying messages, treaty day celebrations, and culture days. Provincial Initiatives in 2016 In education, the province: Funded $1.55 million for the Following Their Voices initiative at Pinehouse and 16 other schools in This initiative aims to improve educational achievement and graduation rates of First Nations and Métis students in the province. Awarded $30,050 to 95 northern school students through the Lieutenant Governor's Awards of Excellence and the ern Saskatchewan Student Achievement Awards. These awards complement the Athabasca Education Awards delivered by uranium companies. In business support, the province: Co-hosted the 47th annual Saskatchewan Geological Open House in Saskatoon. Government presented the results of its minerals-related geoscience research from the past year, enhancements to the Geological Atlas of Saskatchewan, and ongoing work to complete the scanning of historic mineral assessment files. Maintained competitive tax regimes, efficient permitting procedures and certainty surrounding environmental regulations and land-claims. Because of these actions, the Fraser Institute named Saskatchewan as the most attractive jurisdiction in the world for mining investment in Made amendments to the province s Apprenticeship and Trade Certification Regulations, 2003, as part of the province s commitment to improving access to apprenticeship in the province, reducing red tape, and reducing inter-provincial barriers to employment.

6 6 5) ern Business Participation Commitment All northern mining operations commit to use their best efforts to encourage northern businesses and joint ventures to supply goods and services. Uranium operations make an additional commitment to use their best efforts to achieve a goal of northern businesses annually supplying 35 per cent of the total goods and services to support their operations in northern Saskatchewan. As of December 31, 2016, the northern mining industry: Purchased 43 per cent of total goods and services from northern suppliers or joint ventures with northern ownership. The mining industry has exceeded the target of 35 per cent for the past 21 years. Maintained preferred supplier programs to maximize procurement from northern suppliers. Met with contractors and the public at community meetings to share information on current and future business opportunities. Employed staff specifically to liaise with northern businesses. Expenditure Statistics During the past 20 years, the number of northern suppliers has grown and the variety of their goods and services has expanded. Many of the main suppliers are businesses owned by Indigenous persons or communities. ern mine operations reported $734.1 million in total expenditures on goods and services in ern businesses and joint ventures supplied 43 per cent of the total goods and services $316.3 million. The chart shows the long-term growth in the value of northern goods and services supplied to the industry since The peaks depict years of major mine construction and upgrading projects. $700 $600 $500 $400 $300 $200 $100 $0 How Much did ern Businesses and Joint Ventures Supply to Mine Operators in Saskatchewan? In millions $316.3 million for goods and services in % of mines' total expenditures. $624.2 $388.0 $ Year Of the total goods purchased by the operations, 14.7 per cent was supplied by northern businesses and joint ventures. ern suppliers sold the highest dollar values of goods in the categories of: o Fuels; o Lubricants & Filters; o Office Supplies, Computers, Software; o Plumbing, Heating, Processing; and o Reagents & Chemicals. Of the total services purchased by the operations, 56.9 per cent was supplied by northern businesses and joint ventures. ern service suppliers earned the highest dollar values in the categories of: o Catering, Janitorial & Disposals; o Contractors/Consultants; o Environmental Services; o Exploration, Drilling, Explosives; o Flights, Charters & Travel; o Freighting & Expediting; and o Industrial & Maintenance Contractors. ern mine operations paid $102 million in wages to their northern employees (34 per cent of the total $297 million paid in wages). This is more than twice the amount paid in northern wages in (The amount excludes contract payroll, which is included in service supply expenditures.) $120 $100 $80 $60 $40 $20 $0 What did ern Employees Earn at ern Saskatchewan mines? In millions $12.5 $47.3 $ Year Since 1991, northern mine operations paid $7.1 billion to northern employees and northern goods and services suppliers.

7 7 Business Opportunities Forecast 2017 Gold and uranium mining operations anticipate production levels in 2017 will be similar to last year. Cigar Lake mine is expected to reach full production, offsetting the loss of production from the Rabbit Lake operation, which entered a state of care and maintenance in 2016 due to low uranium prices. The operations, however, anticipate significantly reduced business opportunities in This is because construction and upgrading projects are completed and contracts are finished. Rabbit Lake operation, now in care and maintenance, will require fewer goods and services. As well, workforce reductions and other operational changes will reduce opportunities for suppliers. ern suppliers could find opportunities in categories where they had low participation rates in Examples of these goods categories include lubricants and filters, medical and safety supplies, pumps, electrical and shop supplies, and computers and office supplies (see chart below). Where are the Opportunities for ern Suppliers? Per centage of category held by northern business in 2016 Goods Fuels Lubricants & Filters Reagents & Chemicals Office, Computers, Software Maintenance Equip & supplies Building Maintenance & Rentals Fees, Dues, Permits Medical & Safety Supplies Plumbing, Heating, Processing Electrical Equipment & Supplies Shop & Mining Equip & Supplies Mobile Equipment & Parts Utilities & Powerhouses Lab Supplies Goods subtotal Services Catering, Janitorial & Disposals Flights, Charters & Travel Industrial/Maintenance Environmental Services Freighting & Expediting Exploration, Drilling, Explosives Contractors/Consultants Professional Services Office & Computer Services Services subtotal total 34.7% 16.5% 3.1% 3.0% 2.5% 2.4% 2.2% 1.5% 0.9% 0.7% 0.1% 0.0% 0.0% 14.7% 0.0% 0.0% 69.7% 96.4% 89.6% 77.7% 70.1% 57.8% 45.2% 43.2% 56.9% 43.1% In service categories, northern businesses provided most of the freighting, flights, catering, janitorial, environmental, and industrial and maintenance services. Potential opportunities not yet fully filled by northerners include exploration and professional services in accounting, law, information technology, and environmental consulting. 6) Compensation Commitment - Loss of Income Each mining operation agrees to provide compensation for the loss of commercial income that resulted from their lease of the land. Payments are made to individuals who, immediately prior to the establishment of the mine s surface lease, held a lease or permit to use the lands to generate commercial income, such as from trapping. As of December 31, 2016, the northern mining industry: Honoured five compensation agreements; Contributed $40,000 in cash payments; Provided fuel valued at over $5,000; Provided security checks of trapper s property; and Enabled some trapping of the lease areas. Provincial Initiatives in 2016 In environmental protection and engagement, the province: Continued a contract with Saskatchewan Research Council (SRC) to manage remediation of old legacy uranium sites under Project CLEANS. SRC: o Completed final remediation work of seeding and applying fertilizer at the former Lorado mill site o Met with leadership and representatives from Athabasca Basin communities in April and August to share information o Hired Fond du Lac Nuna Joint Venture to undertake the remediation of the tailings areas at the Gunnar site from 2016 to They mobilized In October. o Completed the remediation of two satellite sites during the 2016 field season, bringing the total completed to eight of the 35 sites. Undertook the regular five-year review of the ern Saskatchewan Environmental Quality Committee to ensure the mandate continues to be relevant. Meetings, mine tours and communications were on hold in 2016 during the review. The purpose of the committee is to provide northerners with opportunities to address concerns and provide constructive input into decisions made by uranium companies and government regulators.

8 8 7) Community Vitality Commitment Uranium mining operations commit to study the influence of operations on the vitality of communities in northern Saskatchewan. The Community Vitality Monitoring Partnership (CVMP), funded by industry, was established in Partners in CVMP work together to identify and track indicators that provide insight into community vitality. People can use that insight to maintain and improve their quality of life in northern Saskatchewan. The partners in the CVMP are government ministries, regional health authorities, and uranium mining companies. The companies fund pertinent professionals to undertake research and major studies. In 2016, the CVMP: Employed one staff to coordinate activities and share information with communities and other agencies; Maintained an information website at: Studied options for changes to the CVMP, including expansion of interest to all types of mining and exploration in northern Saskatchewan; Continued to promote recommendations from existing studies; and Collaborated with other organizations such as the International Centre for ern Governance and Development; University of Waterloo; and the ern Alcohol Strategy on projects, information sharing, and potential areas of study. Activities Forecast for 2017 The CVMP plans to: Deliver a workshop for CVMP stakeholders; and Examine options for further timely and relevant research projects. 8) Public Involvement Commitment Uranium mining operations commit to work with governments, regulatory agencies, and community leaders to consult with and inform northerners about their operations in northern Saskatchewan. In 2016, companies: Made 107 visits to northern communities, leaders, schools, cultural events, career fairs, and open houses regarding projects and employment opportunities. Hosted mine/mill site tours for 28 community members from Wollaston, Fond du Lac, Buffalo Narrows, Stony ern Participation by the numbers: 1,364 northerners work at sites 41 per cent of the total workforce is Indigenous northerners $316.3 million in northern purchases $102 million in northern wages $135,000 in school awards and scholarships 107 community visits Rapids, and Uranium City to increase knowledge about the industry. Surveyed public opinion in December 77 per cent of northerners and 81 per cent of residents in the province supported continuation of uranium mining. The level of support has been consistent since Donated to programs and initiatives that benefit northern communities and children such as the Six Rivers Trust Fund, the Children s Hospital in Saskatoon, school trips, school activities, and the High School Football Jamboree Program. Organized visits of northern leaders to key national and provincial decision-makers to establish relationships and identify opportunities for the north. Shared information on projects, health, safety, and environment with northerners and employees by websites, LinkedIn, YouTube, Facebook, Twitter, blogs, radio, , magazines, Opportunity, newspapers, brochures, and newsletters. Outside of the expectations under mines surface lease agreements, uranium operations signed an agreement in 2016 with seven nearby Athabasca Basin communities. Under the agreement, communities will benefit from employment and business opportunities, environmental stewardship, and communications. Mine/mill operators in the north now have five such benefit agreements in effect or under negotiation, benefiting 17 of their key communities. For more information, contact: Ministry of Government Relations, Municipal Relations and ern Engagement: northernengagement@gov.sk.ca Ministry of the Economy, Canada-Saskatchewan Labour Market Services: The Summary is available at by using the search box. Disclaimer: The information in this document is accurate as of December 31, 2016; however, the Government of Saskatchewan accepts no liability for any actions taken as a result of the information contained herein.