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THE ECONOMIC CONTRIBUTION OF DE BEERS IN CANADA
- VICTOR

Victor was the second De Beers mine to open in Canada, and is Ontario’s first diamond mine. Construction Began in February 2006, and Victor was officially opened two years later, in July 2008. The mine remains in its production phase, which is currently expected to run until 2018.

C$1.3 BILLION INVESTMENT SUPPORTS VICTOR

> Between 2006 and 2015, De Beers invested substantially to support operations at Victor.

> This investment underpins the C$3.7 billion in GVA that Victor has contributed to the Ontario economy over the past decade, with an additional C$150 million accruing to the rest of Canada.

> This is equivalent to approximately five per cent of the GVA of the extractive industries within Ontario over the same period, providing support to the less developed northern areas of Ontario.25

> From 2016 to 2024, the mine is expected to generate a GVA contribution of C$0.8 billion within Ontario, with a further C$40 million accruing to the rest of Canada.26,27

PROVIDING EMPLOYMENT OPPORTUNITIES FOR MORE THAN 1, 400 PEOPLE

> Between 2006 and 2015, Victor directly supported 360 jobs on average annually, across Canada as a whole. In addition, the mine indirectly supported 730 jobs on average annually through its supply chain, as well as an induced impact of an additional 400 jobs across Canada.

> On average, 1,360 FTE jobs were supported annually within Ontario alone.

>  Total employment supported by the site (including contractors) in 2015 was 1,300 FTEs within Ontario, with a further 130 FTEs elsewhere in Canada. Of these, 410 FTEs were directly employed by De Beers and 250 were onsite contractors.

CONTRIBUTING ALMOST C$200 MILLION IN PAYMENTS TO GOVERNMENT

> Between 2006 and 2015, the site generated C$195 million in payments to Government. The largest share of these payments (47 per cent) resulted from employee income taxes. IBA support to First Nations accounted for C$41 million of the total amount (21 per cent).

GENERATING C$2.8 BILLION IN EXPORT EARNINGS

> In total, Victor has contributed C$2.8 billion in Canadian gross exports since 2006.

> In 2015, Victor contributed 16 per cent of Canada’s diamond exports by value.28

> Including 2016, a further 1.5 million carats are expected to be removed from the mine before production is planned to cease in 2018.29

De Beers’ operations in Canada involve building strong connections with the communities situated close to each mining site. These connections are characterised by the significant emphasis placed on enhancing the social and economic opportunities available to these local populations. Victor, in particular, located approximately 90km west of the First Nation community of Attawapiskat, has played an active role throughout its life in supporting five local communities: Attawapiskat, Fort Albany, Kashechewan, Moose Factory and Moosonee.

De Beers’ support has covered a broad range of activities across four main pillars of economic development: Infrastructure, Community, Skills and Local Business, all of which offer a variety of long-term benefits.

Since 2008, De Beers has invested C$105 million in building the annual ice road leading to Victor.

The 400km road leading to the mine is built each year and remains operational for around six weeks, providing a secure access route through the region for local communities.

The road provides an essential route for supplying Victor, but also offers vital support for local communities, which benefit from this secure access route through the region. To reflect its importance, De Beers’ use of the road follows a transportation schedule designed to accommodate peak times for local communities and other road users.

Local communities also stand to benefit from the employment opportunities offered to local contractors and suppliers throughout the planning and construction of the road. With De Beers’ investment in the road averaging C$12 million each year, this represents a sizeable undertaking, which depends significantly on local expertise.

Beyond the ice road, De Beers has focused its community engagement and investment across four pillars.

VICTOR SOCIAL INVESTMENT INITIATIVES 2011-2015

* These figures have not been adjusted for inflation.
** Average direct beneficiaries are based on data from 2011 to 2013.


25. Comparison against Statistics Canada data.
26. The impacts from 2018 onwards represent those supported through the decommissioning phase.
27, 29. These indicative projections are based on De Beers’ currently planned activities, which are dependent upon a number of factors, including the prevailing and expected price of diamonds. For further information, refer to the Anglo American Ore Reserves and Mineral Resources Report 2015, angloamerican.com/investors/annual-reporting. Note, however, that Snap Lake has been placed on Care and Maintenance since its publication.
28. Kimberley Process Certification Scheme (2015) annual statistics.

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