SOMBA K'E/YELLOWKNIFE
The diamond mines are benefiting the North more than ever conceived, according to a report released last week by the NWT and Nunavut Chamber of Mines.
Collectively, Ekati, pictured above, Diavik, and the Snap Lake Mine provided 1,541 Northern jobs in 2011, 403 more jobs than were predicted during the mines' environmental assessments. - photo courtesy of BHP Billiton |
The report, titled Measuring Success: The Positive Impact of Diamond Mining in the Northwest Territories, includes figures compiled between 1998 and 2012, from BHP Billiton's Ekati, Rio Tinto's Diavik Diamond Mines Ltd., and De Beers' Snap Lake, on training, jobs, business spending, and social investment.
The diamond mines have surpassed projections made before operations started, with some of the figures related to Northern employment exceeding "what we had ever conceived," said Tom Hoefer, executive director of the chamber.
"When you dive into the actual reports, the examples to remind people of just how good that industry has been are quite varied and cover the waterfront from training success to employment success, to business success to social investment success, to safety to operating to the highest of standards. So these are world-class operations in all that they do," Hoefer said.
Collectively, Ekati, Diavik, and the Snap Lake Mine provided 1,541 Northern jobs in 2011 - 403 more jobs than were predicted during the mines' environmental assessments.
In some cases, the number of workers is higher but the projected percentage of Northern or aboriginal workers is lower than anticipated.
For example, Diavik recorded a Northern workforce of 642 in 2011, out of 1,137 workers, compared to the predicted Northern resident employment of 264 out of 400 during the diamond mine's operations phase.
Although this represents 378 more Northern resident workers than predicted, the 56 per cent of the workforce comprised of Northern workers was below the targeted 66 per cent in projections.
"In this case, the percentage is lower but the numbers are way higher than what they predicted so what do you call that, a good news or bad news story? I think (it's a good news story)," Hoefer said.
He added that the NWT diamond industry has been one of the most successful in the country for being able to create local benefits, in particular aboriginal benefits with the creation of aboriginal businesses.
"It's just been an explosion in growth of aboriginal companies, which bodes well for the future too," Hoefer said, listing the Tlicho Investment Corp. as the aboriginal company that has taken the most advantage out of the diamond mine opportunities.
Earlier this month, Det'on Cho Corp., the economic arm of the Yellowknives Dene First Nation, recognized two of the diamond mines for contributing to the growth of its companies, in its inaugural Prosperity Awards ceremony.
The higher-than-anticipated impacts of the diamond mines is the result of solid efforts and partnerships between industry, aboriginal groups, government, and the NWT Mine Training Society, which has received $11.4 million in cash and in-kind investments between 2004 and 2012, to provide training to 1,400 Northern residents, according to the report.
Even as the diamond mines mature, non-renewable resources will remain the strength of the North, Hoefer said.
"I think diamonds have really given us that first leg up," he said.
The NWT Chamber of Commerce will be showcasing the mining sector at its 2013 business conference and annual general meeting next month.
In a news release responding to the recent diamond mines report, president of the NWT Chamber of Commerce, Hughie Graham, called the mines the "backbone of our economy."
Highlights from measuring success report
Training: $11.4 million in cash and in-kind investments were invested with the NWT Mine Training Society between 2004 and 2012 to provide training to 1,400 Northern residents.
Jobs: In 2011, Ekati, Diavik, and Snap Lake provided 1,541 Northern jobs, or 403 more jobs than were predicted during the mines' environmental assessments.
Business spending: Combined, the three mines spent $12.8 billion from 1996-2011 to build and operate the mines. Of this amount, $9.25 billion (72 per cent) was with Northern companies, including more than $4 billion with aboriginal companies.
Social investment: More than $100 million was contributed for a variety of community initiatives.
Source: NWT and Nunavut Chamber of Mines
