De Beers commissioned EY to conduct an independent analysis of its economic contribution to the Canadian economy and to the regional economies in which it operates, notably through Gahcho Kué and Snap Lake in the Northwest Territories, and Victor in northern Ontario. In addition, EY has assessed the economic contribution of De Beers’ corporate office and exploration activities in Canada.
For each mine in this report, the economic impacts have been assessed on a national and regional basis. This provides an understanding of the scale of benefits accruing to the regions in which De Beers’ activities take place, as well as to Canada as a whole.
A range of economic measures have been reviewed which help to explain the contribution of De Beers’ activities. These include gross domestic product (GDP) and gross value added (GVA), exports, employment (measured in full-time equivalents, or FTEs), and payments to Government.7
The contextual analysis presented in this report is largely based upon national statistics data from Statistics Canada. Wider economic statistics have been collected from a range of sources, including Canadian provincial government databases. Where these have been used, they are clearly labelled and care has been taken to ensure consistency with other datasets and definitions.8
Benefits to the national and regional economies can be encapsulated in a number of ways, including: the total output generated through turnover, the direct value-added delivered to the economy (through profits and wages), revenues generated for Government (through direct and indirect payments to Government) and the employment opportunities provided.
The impact of the sector, however, is not limited to its own direct outputs. The economic activity it supports in its own supply chains, as well as the wider consumption in other sectors, should also be accounted for. These effects can be defined as:
In calculating the measures identified above, economic multipliers supplied by Statistics Canada have been used on a provincial and sector basis. These multipliers capture economic interdependencies within the sector’s supply chain and the wider economy, and thus enable an estimation of the indirect and induced impact on GVA and employment.
Taking into account the indirect and induced impacts, the following key metrics have been calculated:
7. See Glossary for definitions of key terms used within this report.
8. Sources as follows:
Driving change, defining our future: Tax and economic contribution report 2015, Anglo American, 2015
Facts & Figures of the Canadian Mining Industry, The Mining Association of Canada, 2015
Kimberley Process Certification Scheme (2015) annual statistics