Diamonds are Forever Our Mines are Not

1. Diamonds are ForeverOur Mines are Not Recommendations to improve and sustain the diamond mining industry

2. 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

3. Rising Costs • Fuel costs • Transition to underground mining • Decreased market prices • Strong Canadian dollar • High taxes • Shorter winter road seasons • Climate change

4. 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

5. 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

6. 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

7. 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

8. Hiring Contractors • Contractors are an important part of Northern presence at the mines • Play an important part of the Northern presence at the mine

9. 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

10. Apprenticeships and training opportunities