Transcript Diamonds are Forever Our Mines are Not

Diamonds are Forever
Our Mines are Not
Recommendations to improve
and sustain the diamond
mining industry
The Industry, Then and Now
• Much has changed since opening of Ekati
in 1998
• NWT was experiencing an economic
slump and resource development was
welcomed
• In 2007, Western Canadian economy is
soaring, competition is fierce for skilled
workers
Rising Costs
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Fuel costs
Transition to underground mining
Decreased market prices
Strong Canadian dollar
High taxes
Shorter winter road seasons
Climate change
Economic benefits
• Ekati and Diavik in production
• Debeers commencing full production in
2008
• In 2006, diamond mining contributed to
50% of NWT Real GDP
• Two existing mines have found incredible
wealth in high-grade kimberlite pipes
Exceeding targets
• Mines are producing in excess of
predicted tonnage
• Unrestricted production
• Extracting all higher grade ore first
• Will result in reduction of mine life
Employment Boom
• Three mines will produce 2,000 new jobs
over next few years
• SEMAs are “unenforceable” and “have no
teeth”
• Contracted workers count towards SEMA
commitments
• SEMAs do not guarantee skilled worker
positions for Northerners
Economic Obstacles
• High cost of living
• High percentage of mine workers living in
the south
• Mine employees falsely claiming Northern
addresses accessing NWT medical
coverage, increasing costs to taxpayers
• GNWT losing per capita grant allotment,
approximately $20,000 per year
Hiring Contractors
• Contractors are an important part of
Northern presence at the mines
• Play an important part of the Northern
presence at the mine
Concern with contracting
• Contractors who provide camp services
pay low wages and offer poor benefits
packages
• Lack of opportunities for training and
advencement
• Contracted employees are passed over for
permanent positions with the mining
companies
Apprenticeships and training
opportunities