diavik diamond mine

2015 sustainable development report

Diavik Diamond Mine

101

Cover: Labrador Tea blankets the tundra around the Diavik Diamond Mine.Cover photo, and numerous images throughout this report, by Dave Brosha.

ContentsIntroductionPresident’s welcome ................................................................. 02Sustainable development ........................................................ 03Rio Tinto .................................................................................... 03Dominion Diamond Corporation ........................................... 04Rio Tinto Diamonds ................................................................. 04Diavik’s northern commitments ............................................. 05Diavik at a glance ..................................................................... 06

OperationsA21 on schedule and on budget ............................................. 07Mining and production ........................................................... 09Diavik produces one of Canada’s largest diamonds ............. 09Proven and probable reserves ................................................. 10Reserves added ......................................................................... 11Mine life .................................................................................... 11Winter ice road ......................................................................... 11

Economic prosperityEmployment ............................................................................. 12Operations employment ......................................................... 12Employment by gender ........................................................... 12PKC construction completed ................................................... 13PKC fact file............................................................................... 13PKC hires ................................................................................... 13A21 employment ...................................................................... 14A21 construction team ............................................................ 14Underground mine production team ..................................... 15Employment history (individuals) .......................................... 15Spending ................................................................................... 16Operations spending ............................................................... 16Total cumulative spending ..................................................... 17Annual spending ...................................................................... 17Spending by category and priority group .............................. 18

TrainingNWT Mine Training Society ................................................... 19Mining Industry Human Resources Council ........................ 20Skilled trades ............................................................................ 20Eight new journeypersons ...................................................... 21Top marks .................................................................................. 21Apprenticeship training .......................................................... 22Site-based training ................................................................... 23Workplace learning centre ...................................................... 23Northern leadership development program ......................... 23

Social well-beingCommunity contributions ...................................................... 24Scholarships surpass $3 million ............................................. 25Community investment .......................................................... 25Northerners awarded Diavik scholarships ............................ 25Community volunteering ........................................................ 25Employee-driven donations.................................................... 25

Health, safety, and environmentWater licence renewed ............................................................ 26Water usage .............................................................................. 27Mines complete grizzly bear DNA study ................................ 28Emergency response team ...................................................... 29Key performance indicator ...................................................... 30Wind farm reducing reliance on diesel ................................. 30Wind farm results .................................................................... 30Fuel consumption .................................................................... 31Traditional knowledge panel update ..................................... 32Award for innovative waste rock research ............................ 33Traditional knowledge study .................................................. 34Turbidity barrier deployed for A21 dike construction ......... 35Regulatory exceedance – silty water ...................................... 35Water monitoring ..................................................................... 35Wildlife monitoring ................................................................. 35Caribou monitoring ................................................................. 36Closure planning ...................................................................... 36Environmental compliance ..................................................... 36Inspection and enforcement ................................................... 37Environmental management system ..................................... 37Environmental Monitoring Advisory Board .......................... 38Verification activities ............................................................... 38Environmental monitoring programs .................................... 39

AppendixEmployment data .............................................................. 40-53

02

Proud of our legacy to the North

Introduction

President’s WelcomeWelcome to our 2015 sustainable development report. Along with its introduction and operations update, this report includes information on our work in the areas of economic prosperity, training, social well-being, and health, safety, and environment.

In all we do, every member of our team of over 1,100 people strives to work safely, to ensure the safety of their co-workers, and to bring safety home to their families and their communities.

In terms of operations, 2015 was a challenging year for Diavik. We, like producers of other commodities, saw a significant decline in the pricing of our product. Fortunately, the work done by our team over the previous several years, positioned Diavik to remain profitable during market volatility and downward pricing.

But, it was also a year of successes. Our A21 construction team kept the expansion project on schedule and on budget. Development of the A21 ore body represents a major expansion for us. Our team is managing this US $350 million project and adding to our sustainability. And, unlike many in the resource sector, we’re hiring, thanks to this project.

Besides A21, our geology team added to our reserves, and in so doing, we can aim for consistent production past 2023. This is excellent news for all our team, and indeed for all our partners, including communities, businesses, and governments. The Diavik Foxfire – our largest gem-quality rough diamond ever – was also an exciting discovery, in 2015.

In terms of our work to protect the environment, our water licence was renewed, which was a major accomplishment. As well, our environment team received national recognitions for wildlife and waste rock research.

Our partnerships with local communities remain strong. Through our community contributions, we continue our support for northerners and for local organizations whose vision, like ours, is a stronger, healthier north. I am very proud of the donations and sponsorships we make and equally proud of the donations generated by employee-driven initiatives. We also recognize the value of education as the building block for strong communities, and last year, our cumulative contribution to scholarships surpassed $3 million.

Time and again Diavik is proving itself as a leader in sustainable development. To learn more, I encourage you to review the pages that follow, and connect with us through Facebook and Twitter.

Above all, thanks to every member of our team for ensuring we operate safely, efficiently, and respectfully.

Marc CameronPresident and Chief Operating OfficerDiavik Diamond Mines (2012) Inc.

03


Introduction

Sustainable development

At Diavik, sustainable development is integrated into everything we do. Our operations provide benefits and opportunities for local communities, businesses, and governments. We work with all our stakeholders to deliver substantial and lasting benefits.

Through a responsible approach to mineral development, we ensure we maintain our licence to operate. This also creates the opportunity to plan, implement, and deliver sustainable contributions to social well-being, environmental stewardship, and economic prosperity, within strong governance systems.

By continually engaging with communities, governments, employees, customers, and businesses, we continue to ensure our business is safe, healthy, and strong.

Rio TintoRio Tinto is a leading global mining group that focuses on finding, mining, and processing the Earth’s mineral resources. Supporting world-class assets is a world-class workforce of 55,000 people working in over 40 countries. Their safety is always the first concern.

Rio Tinto fosters a culture of innovation, where people are proud to achieve and are always learning. With headquarters in the UK, the Group comprises Rio Tinto plc – a London and New York Stock Exchange listed company, and Rio Tinto Limited – which is listed on the Australian Securities Exchange. Rio Tinto is strongly represented in Australia and North America, and also has significant businesses in Asia, Europe, Africa, and South America.

Businesses include open-pit and underground mines, mills, refineries, smelters and power stations, research and service facilities, railways, ports, and ships.

Major products are aluminium, copper, diamonds, gold, industrial minerals (borates, titanium dioxide, and salt), iron ore, thermal and metallurgical coal, and uranium.

For more than 140 years, Rio Tinto has been unlocking the wealth held in the Earth’s mineral resources. Some of its mines have been in operation and generating value for more than a century.

Our vision is to be a company that is admired and respected for delivering superior value, as the industry’s most trusted partner. We work with local communities to create benefits.

As a global resource industry leader, we are always looking for new answers to the complex global and local challenges, including resource scarcity, climate change, community employment, and regional economic development.

04


Introduction

Dominion Diamond CorporationDominion Diamond Corporation is the world’s third largest producer of rough diamonds by value and is listed on both the Toronto and New York stock exchanges. Both of its production assets are located in the low political risk environment of the Northwest Territories in Canada where the company also has its head office.

Dominion operates the Ekati Diamond Mine, through its 88.9 per cent ownership, as well as a 65.3 per cent ownership in the surrounding areas containing additional reserves and resources, and also owns 40 per cent of the Diavik Diamond Mine. Between the two mining operations, diamonds are currently produced from a number of separate kimberlite pipes, providing a diversity of diamond supply as well as reduced operational risk. It supplies premium rough diamond assortments to the global market through its sorting and selling operations in Canada, Belgium, and India.

The company maximizes the sales value of its rough stones from the Ekati and Diavik mines, and maintains a preferred position as a supplier of rough diamonds to the world’s diamond manufacturers (cutters and polishers) by dealing directly with them and tailoring rough diamond parcels to the client’s particular needs.

Rio Tinto DiamondsThrough its 60 per cent of the Diavik mine and 100 per cent of the Argyle mine, Rio Tinto Diamonds is one of the world’s major diamond producers. Rio Tinto Diamonds’ share of the production from these mines are sorted and prepared for sale at its sales and marketing headquarters in Antwerp, Belgium.

Rio Tinto Diamonds’ sales and marketing group aims to differentiate itself by:• Providing the right customer with the right assortment of

diamonds;• Tailoring its approach to serve each customer;• Creating long-term, mutually beneficial business

relationships; and• Retaining the flexibility to respond to market

opportunities.

It maintains an extensive industry intelligence network and a high level of customer and product support, and also believes in supporting consumer confidence in its diamonds and plays an active role in addressing key industry issues around product integrity and sustainable development.

Rio Tinto Diamonds is a founding member of the Responsible Jewellery Council. Established in 2005, the council is a not-for-profit industry organization with a mandate to promote responsible, ethical, social, and environmental practices throughout the diamond and gold jewellery supply chain from mine to retail.

Additionally, Rio Tinto Diamonds has taken an active leadership role in the World Diamond Council, which represents the diamond industry in the Kimberley process.

More recently, Rio Tinto Diamonds has partnered with the Diamond Empowerment Fund – an international not-for-profit organization supporting education initiatives in diamond producing countries – on a number of programs aimed at raising awareness of the positive impact diamonds have around the world in the communities in which they are mined.

05


Introduction

Diavik’s northern commitmentsDiavik Diamond Mines (2012) Inc., located in Yellowknife, Northwest Territories, Canada, is committed to ensuring local communities benefit from the sustainable development of its mine. Commitments are formalized through individual participation agreements with the Tlicho Government, the Yellowknives Dene First Nation, the North Slave Metis Alliance, the Kitikmeot Inuit Association, and the Lutsel K’e Dene First Nation.

Diavik also has a socio-economic monitoring agreement with the Government of the Northwest Territories, which was signed by Aboriginal partners. Regulatory requirements and an environmental agreement between Diavik, Aboriginal partners, and federal and territorial governments formalize Diavik’s environmental protection commitment. The Environmental Monitoring Advisory Board, created under the environmental agreement and the socio-economic monitoring agreement, allow communities and governments to monitor Diavik’s environmental commitments.

06


Diavik at a glance • A21 kimberlite ore body development on schedule and on budget• Four ore bodies – A21, A154 South, A154 North, and A418• Spending (2000 to 2015) – C $6.8 billion ($4.9 billion northern,

of which $2.5 billion was Aboriginal)• Operations workforce (31 December 2015) – 1,134 (546 northern)• Total mine life – 16 to 22 years (currently in year 14)• 2015 rough diamond production –

6.4 million carats• Reserves – 18.7 million tonnes

at 2.8 carats per tonne (31 December 2015)

• Total rough diamond production – 97.5 million carats (2003-2015)

C A N A D A

NORTHWESTTERRITORIESYELLOWKNIFE Diavik Diamond Mine

NORTH

Satellite image 23 August 2014

Wind Farm

Waste Transfer Area

A21 Location

Northwest Territories

Nunavut

Contwoyto Lake

Arctic Circle

Bathurst Inlet

Umingmaktok

Kugluktuk

WekweetiGameti

Wha TiBehchoko

YellowknifeDettahN’dilo

Fort Resolution

Lutsel K’eFort Providence

Coppermine River

Ekati Diamond MineDominion Diamond Corporation

Winter Road

Mackay Lake

Lac de Gras

Great Slave Lake

Coronation Gulf

Jericho Diamond MineTahera (closed)

Diavik Diamond MineRio Tinto/Dominion Diamond Corporation

Snap Lake Diamond Mine De Beers (care and maintenance)

Gahcho KueDe Beers/Mountain Province

Hay River

A21 Access Road

07


Operations

A21 on schedule and on budget

Development of the A21 ore body is a major investment in Diavik. Ore from A21, due in late 2018, will ensure consistent production levels over the final several years of Diavik’s mine life.

In 2015, the first season of A21 rockfill dike construction, work was completed on schedule and on budget.

One of the biggest construction aspects of the US $350 million project is crushing rock. The A21 dike will require three million tonnes of crushed rock and, at year-end, Diavik was ahead of plan.

Other work done last year included building roads and laydown areas, dewatering/dredging pipeline construction, dredging, and north and south embankment construction.

Most importantly, the work was completed safely. A big focus for the A21 team, and its contractors, is working on the water and vehicle interactions.

A21 is being constructed with an integrated project team; one which has the A21 team working with many other Diavik departments, including fixed plant and health, safety, and environment.

In 2016, rock crushing, dredging, and dike construction will continue.

Dike enclosure will be the big milestone in 2016, a year which will also include the start of construction of the central cutoff wall.

08


Operations

09


Operations

Mining and productionFor the year, Diavik produced 6.4 million carats of world-class rough diamonds. The total was about 10 per cent below the previous year’s production.

The decline was primarily due to lower mining rates in A154 North pipe and lower grade in A418 pipe. It was also due to the mine’s process plant shutdown for three weeks over the last few months of the year. Total ore mined, 2.1 million tonnes, was as planned. At year-end, ore stockpiles were estimated to contain about 250,000 carats.

Diavik produces one of Canada’s largest diamondsWeighing 187.7 carats, it is Diavik’s largest gem-quality rough diamond and one of the largest ever discovered in Canada.

Known as the Diavik Foxfire, it was showcased during an exclusive preview at Kensington Palace in London in December.

The Diavik Foxfire also has an indigenous name: Noi eh Kwe (caribou crossing stone), which references the strong ties to the land and its legacy.

It is likely that the 187.7 carat rough diamond will yield at least one very large polished diamond destined for an exclusive heirloom piece of jewellery.

10


Operations

Proven and probable reserves 31 December 2015

PipeTonnes

(millions)Carats/ tonne

Carats (millions)

A21 3.7 2.7 10.0

A154S 1.5 3.3 5.1

A154N 8.8 2.4 20.8

A418 4.6 3.6 16.7

Stockpile 0.1 3.5 0.3

Total 18.7 2.8 52.8

Some numbers may not add due to rounding.

These reserves reflect the available technical information and are current at the time of publication of this report.

The information that relates to ore reserves is based on information compiled by Calvin Yip, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy and a full-time employee of Diavik. Calvin Yip is a Qualified Person within the meaning of NI 43-101.

11


Operations

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

A154 open-pit

A418 open-pit

A154/A418 underground

A21 open-pit

Mine schedule subject to market conditions, further resource evaluation, continued mine planning, etc.

Mine life

Reserves addedIn 2015, Diavik identified new reserves from within its A154 North ore body.

Some 2.8 million tonnes, identified through ongoing drilling and evaluation by the mine’s geology team, have been added to reserves, more than offsetting the 2.1 million tonnes mined in 2015.

The additional reserves include two million tonnes promoted from previously identified resource to reserve and several hundred thousand tonnes of new ore identified.

As Diavik’s underground mine goes deeper, geologists are able to complete even deeper delineation drilling.

The 2.8 million tonnes has implications for future years’ mine planning. Currently, Diavik mines about two million tonnes of ore annually.

At 2015 year end, Diavik ore reserves are 18.7 million tonnes, up nearly 600,000 tonnes year over year. Total carats are 52.8 million, down about 500,000 carats.

Prior to commercial production, which began in 2003, Diavik projected a 16 to 22 year mine life. Diavik’s life of mine plan is to have consistent production past 2023. Doing so would result in Diavik successfully achieving, and potentially exceeding, the high end of its projected mine life.

Winter ice roadConstructed annually for mine resupply, the Tibbitt to Contwoyto Winter Road is the world’s longest heavy haul ice road, extending 600 kilometres when built into Nunavut.

Eighty-five per cent of the road is constructed over frozen lakes connected by 65 land portages.

Open for approximately eight weeks each winter, the ice road is a joint venture managed by Diavik Diamond Mines (2012) Inc., Dominion Diamond Ekati Corporation, and De Beers Canada Inc. The road opens to light loads and full weight capacity when ice thickness reaches 0.71 metres and 1.04 metres respectively.

In 2015, Diavik trucked 2,795 loads (106,031 tonnes) of fuel, cement, explosives, equipment, and other materials over the winter road. Total northbound loads and tonnes for 2015 were 8,915 and 305,215. Total backhaul, all users, was 283 loads. The road opened February 1 and closed March 31.

12


Economic prosperity

Employment

Employment by genderMale 989 (87%)

Female 145 (13%)

Total (31 December 2015) 1,134

Diavik provides significant employment opportunities to the Northwest Territories and the West Kitikmeot region of Nunavut.

These opportunities include full-time operational employment as well as seasonal term employment across various projects, including the A21 dike construction, the processed kimberlite containment dam raise, and the winter road.

2015 Operations Employment (DDMI and Contractors)* Total 1,134 (31 December 2015)

46% southern non-Aboriginal (521)

* DDMI employed 722 direct employees in 2015, of which 54% were northern and 32% were Aboriginal.

19% northern Aboriginal (213)

6% southern Aboriginal (67)

29% northern non-Aboriginal (333)

13

Economic prosperity


Processed kimberlite containment construction completed Among Diavik’s key civil structures is its processed kimberlite containment facility, or PKC. A lined, engineered structure, and one which is encircled by a rockfill dam, it is the mine’s permanent safe storage area for waste rock generated by processing kimberlite.

Located in a valley created by glaciation, it initially included two dams, which have ultimately been connected to form a structure with a circumference of 5.6 kilometres.

In November 2015, the PKC construction team completed a multi-year, five metre dam raise. Known as phase 6, this included rock placement, embankment sloping, heat-welded liner installation, and bedding material placement.

The PKC dam varies between 18 and 48 metres in height. It holds 25.7 million tonnes of processed kimberlite and will be modified to store a total of 45.2 million tonnes.

For the construction work, Diavik focused on hiring northern workers. Overall, 84 northerners gained seasonal employment. Over the past three years, total hiring was 63 per cent northern, of which 43 per cent was northern Aboriginal.

As the mine continues to process ore from the A154 and A418 ore bodies, and with A21 ore due in 2018, there is one more raise planned for the PKC.

Throughout operations, geotechnical monitoring includes collecting data on water levels, seepage, and quality.

• Thermistors at 45 locations to monitor ground temperature (design includes frozen foundation).

• Slope inclinometers at four locations to monitor lateral deformation in the dam embankments.

• Piezometers at 25 locations to monitor upstream and embankment pressure.

PKC fact file

PKC hires 2013 2014 2015 Total

Northern Aboriginal 16 (52%) 27 (54%) 15 (28%) 58 (43%)

Other northern 6 (19%) 11 (22%) 9 (17%) 26 (19%)

Total northern 22 (71%) 38 (76%) 24 (45%) 84 (63%)

Southern 9 (29%) 12 (24%) 29 (55%) 50 (37%)

Total 31 50 53 134

14


Economic prosperity

Underground mine production teamNorthern Aboriginal 49 (26%)

Other northern 52 (27%)

Total northern 101 (53%)

Southern 89 (47%)

Total (31 December 2015) 190

A21 construction employment2014 2015

Northern Aboriginal 8 (50%) 24 (25%)

Other northern 6 (20%) 19 (19%)

Total northern 14 (47%) 43 (44%)

Southern 16 (53%) 54 (56%)

Overall total 30 97

A21 employmentConstruction of the A21 rockfill dike is creating many seasonal employment opportunities. It will take four years to build the US $350 million dike.

Initial hiring began in late 2014 and, in 2015, Diavik hired 97 people for the A21 construction project. Of the total, 43 were northern. Of the northerners, 24 were Aboriginal.

Hiring for A21 construction will continue in 2016 and in subsequent years. Several hundred people, working for Diavik and its contractors, will be required to construct the A21 dike. Once A21 construction is complete, Diavik will require about 80 people to open-pit mine the A21 ore body. These would be new full-time roles.

Throughout 2016, Diavik staff will continue to focus on hiring northern by providing local communities with information about employment opportunities.

15

Employment history (individuals)2012 2013 2014 2015

Northern Aboriginal 206 (19%) 202 (20%) 194 (20%) 213 (19%)

Other northern 302 (28%) 283 (28%) 254 (27%) 333 (29%)

Total northern 508 (47%) 485 (49%) 448 (47%) 546 (48%)

Southern 563 (53%) 512 (51%) 500 (53%) 588 (52%)

Total 1,071 997 948 1,134


Economic prosperity

16

Economic prosperity


2015 Operations Spending

$109.8 million 28% northern Aboriginal

$149.4 million 39% other northern

$126.9 million 33% southern

SpendingIn 2015, Diavik continued to focus on northern businesses and, in so doing, ensured major benefits flowed to local firms, many of which are Aboriginal.

Two-thirds of spending, $259.2 million, was with local businesses, an increase over the $250.9 million spent with northern companies in 2014.

Of the 2015 northern spend, $109.8 million was with Aboriginal businesses.

Since 2000, Diavik has spent $4.9 billion with local businesses, or 71 per cent of the total business spend of $6.8 billion. Of the $4.9 billion in northern spend, $2.5 billion has been spent with northern Aboriginal businesses and their joint ventures.

17


Economic prosperity

Total Cumulative Spending

MIL

LIO

NS

OF

DO

LL

AR

S

2000-2002(Capital)

(Operations)

2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 20152011

Other CanadianOther NorthernNorthern Aboriginal

0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$310

$270

$604

$135

$178

$125

$143

$180

$116

$146

$101

$110

$141

$81

$115

$105

$147

$113

$144

$143

$145

$215

$256

$254

$206

$245

$276

$108

$155

$224

$101

$112

$197

$76

$84

$71

$58

$120

$66

$110

$149

$127

0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

$7,000M

ILL

ION

S O

F D

OL

LA

RS

2000-2015

Other CanadianOther NorthernNorthern Aboriginal

Total northernspend $4,852

$2,526

$1,910

$2,326

Annual Spending

18

Economic prosperity


Spending by category and priority group*

CategoryNorthern

AboriginalOther northern Total northern Southern Total

Freight, cargo, transport $14.8 $28.0 $42.7 $1.2 $43.9

Outsourced labour $61.1 $5.5 $66.6 $30.3 $96.9

Human resources $0.1 $1.6 $1.7 $2.2 $3.8

Passenger transport $7.6 $0.3 $7.9 $0.0 $7.9

Fuel, lubricants $0.0 $0.0 $0.0 $0.0 $0.0

Community relations $0.2 $0.3 $0.5 $0.1 $0.6

Consumables $14.0 $91.9 $42.1 $59.7 $164.8

Construction $0.9 $7.4 $8.3 $4.0 $12.3

Professional services $5.6 $2.8 $8.4 $7.9 $16.3

Telecommunications $0.0 $1.0 $1.0 $5.2 $6.3

Financial $4.9 $11.2 $16.1 $15.6 $31.7

Other $0.6 $0.6 $1.2 $0.3 $1.5

Total spend $109.8 $149.4 $259.2 $126.9 $386.1

* $ millions

Some totals may not add due to rounding.

19


Training

NWT Mine Training Society

Diavik has a long standing relationship with the NWT Mine Training Society. A founding member in 1998, Diavik has continued its support for this partnership-based not-for-profit organization.

Diavik is a strong supporter of the traineeships for graduates of the underground miner program and mineral process operator technician.

Since 2014, Diavik provided traineeships for eight underground candidates (all northern Aboriginal), who were offered six-month training positions. Of these eight, four were offered and will transition to full-time positions, and the other four will complete their practicums in 2015. In addition, three candidates were offered traineeships in mineral processing and are expected to complete them by March 2016.

As a sponsor of the NWT Mining Leadership Award, Diavik was extremely happy to support the award being granted to Shelby Nadli of Fort Providence, NT.

Members of Diavik’s Health, Safety, and Environment team worked very closely with the Society to develop an industrial safety training boot camp, which is now recognized by all three diamond mines, as well as advanced mineral exploration projects in the Northwest Territories. It is also recognized by the Workers’ Safety and Compensation Commission.

To date, 109 candidates have been certified for safety leadership and have obtained their tickets in lock out/tag out procedures, working at heights, confined space, standard first aid, CPR and AED, WHMIS, and radio operators certificate (aeronautical).

The society has been working with employers, like Diavik, to place over 1,100 people in long-term employment. This represents five per cent of the entire labour force in the NWT.

20


Training

In the spring of 2015, Diavik donated an MHT436 haul truck to the society to assist with the delivery of the underground miner program. This donation results in $300,000 in annual savings for the society, as it no longer rents the equipment.

The society has received an extension of its funding to 30 September 2016 and looks forward to working with its partners on submitting a long-term training plan, which will include surface mining, underground mining, mineral processing, safety training, and diamond drilling.

Mining Industry Human Resources Council CertificationIn 2015, Diavik continued its participation in the Mining Industry Human Resources Council’s (MiHR) national certification programs for underground miners and mineral processors. Through these programs, individuals who achieve certifications demonstrate they have the skills that meet national standards, which have been developed by MiHR and the mining industry.

Diavik has supported the MiHR certification, a national standardized certification program, since inception in 2011.

Diavik’s underground miners were the first in Canada to be certified under this program.

Skilled tradesDiavik has committed to train between eight and 18 apprentices annually. Diavik’s apprenticeship program increases skills and provides opportunities for employees.

At year end, Diavik supported 29 apprentices, with 21 being northerners; of the 21 northerners, eight are northern Aboriginal. The socio-economic monitoring agreement apprenticeship commitment is eight to 18.

Since 2003, 53 apprentices have successfully completed their apprenticeships at Diavik and achieved journeyperson certifications from the Government of the Northwest Territories.

Apprenticeship training by priority groupNorthern non-Aboriginal 13

Northern Aboriginal 8

Northern subtotal 21

Southern subtotal 8

Total 29

21


TrainingEight new journeypersons

Top marks

Since Diavik began operations in 2003, 53 apprentices have completed their apprenticeships to become Government the Northwest Territories certified journeypersons. Of the 53, eight completed their apprenticeship in 2015, including: • Darren Tuccaro, heavy duty equipment technician• Scott King, electrician

In 2015, six Diavik apprentices achieved top mark awards for the 2014/15 school year, including:• Patrick Imbeault – level 1 electrician• Nickolus Minde – level 4 machinist

• Kyle Ollerhead, electrician• Jen Kaytor, parts technician• Scott Metcalfe, millwright• Heather MacKenzie, instrument technician• Valerie Plamondon, instrument technician• Michael Sibbald, instrument technician

• Brent Doverspike – level 1 instrument technician • Morgan Hall – level 1 millwright• Michael Sibbald – level 4 instrument technician• Tristan Campbell – level 2 millwright

22


Training

Apprenticeship training by community, contractor* and area of study (individuals)**Yellowknife Hay River Fort Smith Southern

Parts technician 1 2 0 0

Millwright 6 1 0 2

Automotive service technician 1 0 0 0

Heavy duty equipment technician 2 0 0 0

Electrician 2 1 1 0

Instrument technician 3 1 0 3

Welder 0 0 0 3

Total 15 5 1 8

* All are Diavik Diamond Mines Inc. apprentices.** 31 December 2015

23


Training

Site-based trainingFor all employees and contractors, Diavik provides extensive health and safety training, including:• Job hazard analysis• Workplace hazardous materials information system• Transportation of dangerous goods• Fire extinguisher• Work area orientations• Isolation and arc flash• Fall protection• Confined space• Overhead cranes• Rigging and hand signals

Diavik also provides training for safe operation of 200 pieces of equipment, including underground haul trucks and scoops, surface haul trucks, graders, dozers, loaders, and excavators.

All employees and contractors complete work-related training. Often, this totals over 40 hours per person each year.

Workplace learning centreDiavik maintains a workplace learning centre at the mine site. The centre is intended to help employees build their skills in tasks directly related to their daily work role as well as assist employees in upgrading education through General Education Development preparation and exam invigilation.

Employees writing exams for other courses can do so at the mine site under supervision in the learning centre.

A training adviser is available to provide learning support to apprentices preparing to attend technical training.

The learning centre is the first point of contact for new employees and contractors.

Northern leadership development programTo help increase the number of qualified Aboriginal peoples at the supervisory and management level, Diavik developed an Aboriginal development program in partnership with SAIT Polytechnic and Aurora College. The program includes Diavik and contractors.

As well as covering the customized curriculum, which is based on Rio Tinto leadership competencies, participants are matched with a Diavik supervisor for mentoring.

Since 2005, 76 individuals have completed the program.

All graduates receive a certificate from SAIT recognizing their achievement. In 2010, Diavik expanded the program and made it available to De Beers Canada. In 2011, the program transitioned to Aurora College. In 2015, four Diavik employees participated in the college program.

24

Social w

ell-beingProud of our legacy to the N

orth

Community contributions

Diavik continues to support the North through its community contribution program, which includes grants for community champions, community safety, and healthy school programs, and diamond donations.

The community contributions initiative builds upon existing programs, all of which are focused on improving the quality of life for local residents.

Scholarship programs – Diavik supports three different scholarship programs – provide financial assistance for

northerners pursuing their education goals. The diamond donations go to community organizations that leverage the value of the donation to raise funds for local programs. In partnership with Crossworks Manufacturing, polished Diavik diamonds were donated to the Yellowknife Community Foundation, the Yellowknife Seniors’ Society and Sport North’s KidSport NWT. Through these donations, these organizations generated funds for local communities and northerners.

Diavik also contributes to local communities through in-kind volunteering and with community investments to the five local participation agreement groups.

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Social w

ell-beingProud of our legacy to the N

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Community investmentCommunity contributions program

NWT Track and Field $27,000

Healthy school grant (Lutsel K’e Dene School) $25,000

Diavik Super Soccer $12,500

Stanton Territorial Hospital Foundation $15,000

Kugluktuk square dance competition $5,000

Yellowknife Community Foundation gala $5,000

City of Yellowknife bike rodeo $5,000

North Slave Metis Alliance fish fry $5,000

Relay for Life $5,000

Safety grant (Sir John Franklin High School) $5,000

Food First Foundation $3,000

YWCA Girl Space $2,000

YKDFN Wellness Program $2,000

Helmets for Hardy $2,000

Gameti women’s sewing group $2,000

Yamozha Kue Society young artisan program $2,000

Kugluktuk junior rangers sewing program $2,000

Foster Family Coalition of the NWT $2,000

Kugluktuk girls hockey team $2,000

Grants and sponsorships total $128,500

Scholarships

Participation agreement administered $155,419

DDMI employee dependents $36,000

Diavik Communities Scholarship Fund $25,000

Scholarships total $216,419

Diamond donations (replacement values)

Yellowknife Seniors’ Society $15,000

Yellowknife Community Foundation $15,000

KidSport NWT $10,000

Diamond donations total $40,000

Northerners awarded Diavik Communities ScholarshipsIn 2015, Stephen Gioveanetto and Jessica Norris were the recipients of the Diavik Communities Scholarships. To date, seven northerners have received scholarships from this fund.

By adding to the fund annually, which is administered by the Yellowknife Community Foundation, Diavik continues to improve its sustainability. Creating this longer-term legacy will allow the Foundation to award more scholarships to young northerners. The Diavik Communities Scholarship Fund was announced in 2013 and Diavik’s contributions to this fund total $162,900.

Community volunteering Diavik staff volunteered at various community events in 2015, including North Slave Metis Alliance fish fry, NWT and Nunavut Chamber of Mines miners picnic, City of Yellowknife bike rodeo (Diavik distributed bicycle helmets), and Food First healthy breakfast during Diavik Super Soccer.

Scholarships surpass $3 million

Employee-driven donations

Diavik is a strong supporter of northerners striving for career development through increased education. To demonstrate its commitment, the company invests in northerners through scholarships.

Since 1997, Diavik has donated $3.3 million for scholarships.

This includes funding for scholarship programs administered by local participation agreement communities, Diavik employee dependents scholarships and contributions to the Diavik Communities Scholarship program, as well as numerous other donations such as bursaries for Aurora College and Indspire.

Diavik staff presented $15,000 to the YWCA Yellowknife and $5,286 to the local Salvation Army. These donations were the result of employee coordinated activities at the mine site and at the Yellowknife offices. Additionally, at the Relay for Life, Diavik staff raised $5,491. This national event raises funds to fight cancer. Many staff volunteered their time to participate and raise these funds.

26

Health, safety, and environm

entProud of our legacy to the N

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Water licence renewed

In October 2015, Diavik’s water licence was renewed for an eight-year term. The renewal comes after the Wek’eezhii Land and Water Board recommended the renewal approval to the Government of the Northwest Territories.

The licence reconfirmed existing environmental limits and adds engineering conditions, new to the NWT.

Overall, the licence sets out the conditions and requirements for Diavik to continue to successfully protect the environment in which it operates and ensures it meets the highest standards.

Diavik’s commitment to a safe and successful closure started before construction of the mine and it has been undertaking closure planning, consultation, research, and progressive closure activities throughout operations.

In 2023, Diavik will require a renewed water licence, which will include the closure and post-closure phases.

27



orthWater usage (m3)*

2013 2014 2015

Fresh water used

Fresh water for plant 400,961 428,018 404,206

Potable water 67,774 72,175 73,988

Dust management 39,365 50,494 47,512

Fresh water, other 0 0 50,826**

Total 508,100 550,687 576,532

Underground dewatering

11,838,632 11,737,313 11,617,635

Effluent discharged to Lac de Gras

Collection ponds to Lac de Gras (clean water) 0 0 0

North Inlet to Lac de Gras (water treated through north inlet water treatment plant)

12,616,049 11,438,537 11,903,811

Total 12,616,049 11,438,537 11,903,811

Recycled/reused water within plant

Recycled processed kimberlite containment water 1,806,263 1,259,135 1,118,940

Recycled north inlet water** 275,730 1,190,855 1,124,851

Treated sewage effluent 66,064 70,945 71,261

Collection ponds to processed kimberlite containment (silty water) 894,330 201,558 288,817

Total 3,042,387 2,722,493 2,603,869

* 1 m3 = 1,000 litres** drills

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Mines complete North’s largest grizzly bear DNA study With its remote location in the tundra of Canada’s subarctic, Diavik Diamond Mine operates in one of the most challenging environments in the world – an environment it shares with grizzly bears.

During the summer months, grizzly bears are often seen in the mine area. Diavik monitors their location with the intent to protect them and staff.

While up to 20,000 grizzly bears remain in Canada, the country’s Committee on the Status of Endangered Wildlife lists the animal as a species of special concern because of its sensitivity to human activities and natural events.

The Canadian Barren Lands, named for the region’s lack of trees, are the most northern and eastern limits of the continental grizzly bear range.

The research project, conducted in partnership with neighbouring Ekati Diamond Mine, aimed to determine

whether mining-related activity has influenced the number and distribution of grizzly bears over time. This was the largest grizzly bear study ever completed in Canada’s Northwest Territories.

Following a successful pilot, environmental teams from Diavik and Ekati began a two-year study, in 2012, to collect baseline data about bear populations.

Using traditional knowledge from community elders, the teams designed and placed 112 bear posts across 16,000 square kilometres of tundra, collecting 4,709 grizzly bear hair samples for DNA analysis. Results show the local bear population is stable or even increasing. In 2013, the study detected approximately ten grizzlies in a 1,000 km2 area, three times the number detected in the 1990s.

In May, the two mines were presented with the 2015 Mining Association of Canada’s Towards Sustainable Mining Environmental Excellence Award for the grizzly bear research.

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Emergency response teamThe Diavik Diamond Mine emergency response team includes over 60 volunteers from across all site departments. The team trains year-round and competes locally, regionally, and internationally to maintain its skills. Diavik’s mine rescue team has won three western regional mine rescue competitions (North America’s largest) and, in 2012, placed third at the 8th Annual International Mine Rescue Competition held in Donetsk, Ukraine.

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Key performance indicator 2013 2014 2015

Lost time injuries 3 3 4

Lost time injury frequency rate* 0.24 0.28 0.32

Medical treatments 7 3 5

All incident frequency rate** 0.81 0.55 0.73

Significant potential incidents 7 3 4

Health and safety regulatory non-compliances 0 0 0

Environmental regulatory non-compliances 1 1*** 1****

Significant environmental incidents 0 0 0

Environmental management system Maintained ISO 14001 Maintained ISO 14001 Maintained ISO 14001

Greenhouse gas emissions (+CO2 equivalent) 192,544 182,427 192,843

Closure security***** $159.0 million $150.7 million $150.4 million

* Lost time injury frequency rate (injuries x 200,000 hours ÷ total hours worked).** All incident frequency rate (lost time injuries + medical treatments x 200,000 hours ÷ by hours worked).*** A single sample from the north inlet water treatment plant exceeded grease/oil limits; investigation was unable to determine the cause.**** During A21 dike construction, total suspended solids one-time event limit of 25 milligrams per litre exceeded; see turbidity barrier and regulatory

exceedance text on page 35 for more detail.***** Under the Diavik environmental agreement, a security deposit for the performance of the joint venture’s reclamation obligations is required. 2015 changes

included $1.5 million added under department of fisheries authorization for the A21 dike and $1.8 million was deducted under the water licence due to updated closure plans. Diavik practices progressive reclamation, which results in the lowering of the amount.

With its award-winning wind farm, the Diavik Diamond Mine is the global leader in delivering cold climate renewable energy.

In 2015, the mine’s four turbine, 9.2 megawatt wind farm diesel fuel offset was 5.2 million litres, reducing its CO

2e by 14,404 tonnes (6.5 per cent offset).

Over the year, the facility generated 20.8 gigawatt hours, with an operational availability of 98 per cent.

The payback for the $31 million construction cost is now estimated at seven years. In feasibility, the payback was originally estimated at eight years.

In 2015, renewable energy provided 11 per cent of the mine’s power needs.

Peak power levels, achieved for brief periods, have surpassed 50 per cent – enough wind energy to power Diavik’s underground mine.

Wind farm reducing reliance on diesel

2015 wind farm resultsEnergy produced 20.8 gigawatt hours

Availability 98.0%

Diesel offset 5.2 million litres

CO2e offset 14,404 tonnes

Fuel savings ~$6 million

Power penetration 11.2%

Results since start up*Energy produced 59.3 gigawatt hours

Availability 97.3%

Diesel offset 14.8 million litres

CO2e offset 41,771

Fuel savings ~$18 million

* October 2012 to December 2015

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orthM

ILL

ION

S O

F L

ITR

ES

2009 2010 2012 2013 2014 201520110

56

58

60

62

64

66

68

70

Fuel Consumption

Fuel consumption (litres) 2010 2011 2012 2013 2014 2015

Mining 24,035,288 17,568,558 13,023,945 8,405,605 9,861,181 12,756,585

Boiler 10,158,733 12,574,541 9,853,483 16,338,517 13,562,993 12,908.277

Electricity 33,314,930 38,416,210 41,401,957 41,813,068 40,802,087 40,912,665

Construction 1,489,797 872,250 333,436 441,981 466,804 911,838

Total 68,998,748 69,431,559 64,612,821 66,999,171 64,693,06 67,489,365

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Traditional knowledge panel updateThe traditional knowledge panel was established to facilitate appropriate and meaningful accommodation of traditional knowledge in environmental management and monitoring, most notably as it relates to mine closure planning.

The eighth session brought together elders and youth, selected by their community organizations, to focus on Diavik’s closure plans in relation to water monitoring and the dike, which included reef construction and shoreline design options.

The panel applied their knowledge of fish and water, as well as observations made during previous site visits and the 2015 aquatic effects camp, to identify concepts, values, understandings, and complexities to be considered for these areas during the closure planning process.

The panel noted 33 specific recommendations relating to reefs and water monitoring at closure, and identified the following themes:• It is important to continually monitor water quality and

quantity after closure, using both traditional knowledge and western science.

• With slight modifications, the current aquatic effects monitoring program traditional knowledge study is strongly supported and should continue (and be held at the same location until at least 2018).

• Fish need to be respected and have different habitat considerations for different life stages.

• Youth need to be involved, both now and in the future.• Diavik and the panel is a model for collaboration between

western science and traditional knowledge.• The future is uncertain and efforts to increase energy

efficiency and monitor for climate change are important.

This session’s report, titled Focus on Reefs and Monitoring Water, summarizes the discussion held and considerations identified by panel members for each theme.

To date, the panel has provided a total of 130 detailed recommendations for consideration by Diavik and other parties. Each panel report and a tracking table that captures all recommendations, as well as Diavik’s response to each, are submitted to the Wek’eezhii Land and Water Board as part of Diavik’s annual closure and reclamation plan updates.

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Award for innovative waste rock researchIn February, Diavik’s waste rock research project, designed to protect fragile northern environments, received a Synergy Award for Innovation from the Natural Sciences and Engineering Research Council of Canada.

Diavik site services and mine operations teams assisted in constructing the large-scale test pile, while the environmental team provided monitoring.

More than 100 people were involved in the study, including seven principal investigators, three Diavik staff, 18 research technicians, six doctoral fellows, more than 60 students, and a research council program officer.

The ten-year, active, on-site research project was completed without a single safety incident. Diavik collaborated with researchers and scientists from Waterloo, Alberta, British Columbia, and Carleton universities, and the study resulted in a better understanding of acid rock drainage, with improved methods developed to predict its chemistry and manage its environmental effects. It will also help other mining companies worldwide to better understand waste rock behaviour and develop mitigation strategies to better protect the environment.

The research employed synchrotron X-ray spectroscopy and advanced numerical models to study both biological and geochemical processes.

Waste rock contains sulphide minerals that, when exposed to air and water, can result in poor quality drainage. If not managed properly, this can harm fish and aquatic life long after the mine has closed.

At Diavik, waste rock is tested for sulphur, with higher sulphur rock segregated and placed strategically within the mine’s waste rock pile. A cover system for this rock has been developed that takes advantage of the permafrost environment to limit low-quality drainage.

David Johnston, Governor General of Canada, presented the award at Rideau Hall in Ottawa to the project team which included Diavik’s Principal Adviser, Sustainable Development, Gord Macdonald.

The research has been critical to verifying Diavik’s long-term closure plan and in reducing its closure liability bond by about C $40 million. The research benefits Diavik’s closure planning and the knowledge gained is applicable to all mine sites, particularly mines in northern environments.

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As part of the Aquatic Effects Monitoring Program, a traditional knowledge study was conducted in August 2015.

The study was conducted at a camp on the south shore of Lac de Gras and included elder and youth participants from the Kitikmeot Inuit Association, the Lutselk’e Dene First Nation, the North Slave Metis Alliance, the Tlicho Government, and the Yellowknives Dene First Nation.

The primary objective was to exchange information, resources, and knowledge between traditional knowledge holders and scientists. The focus was Lac de Gras fish and water health. Another objective was to meet the regulatory requirements for monitoring aquatic health.

Elders, youth, and scientists collaborated to set nets, inspect overall fish health, capture scientific data, and collected traditional knowledge observations for each fish. Elders then tasted a total of four fish that they baked, boiled, fried, and grilled.

Similarly, camp participants used indicators grounded in traditional knowledge to evaluate water quality. From this perspective, camp participants deduced that water quality is good by virtue of observing the health of surrounding

Traditional knowledge study focuses on fish, water qualityor submerged vegetation and animals, presence/absence of surface foam and/or vegetation, clarity, movement, temperature, and taste. Water samples taken from Lac de Gras were boiled into tea to evaluate for taste.

Results from scientific analysis of fish health and water quality support observations made by traditional knowledge holders that the present status of the fish and water in Lac de Gras is good.

Participants acknowledged that Diavik is working hard to keep the fish and water healthy, and indicated the study embodies a new relationship model for industry and communities.

To document the program, a report entitled Feeling the Spirit Together: Monitoring our Land, Water, Fish and Air will be posted on the Wek’eezhii Land and Water Board web site in 2016 and a video documentary, We Fish Today, for Fish Tomorrow, will be posted on the diavik.ca web site.

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Turbidity barrier deployed for A21 dike constructionDuring construction of the A21 dike, Diavik deploys a turbidity barrier, or silt curtain, into the waters of Lac de Gras. This is the same technology that was used during construction of the A154 and A418 dikes.

The silt curtain, which surrounds the work area, extends from the lake surface to just above the lakebed. It redirects silty water generated during dike construction to the lakebed.

Silty water can be generated during dredging of the dike footprint and lakebed, placement of crushed rock for the dike, and from placement of the filter blanket (the lakebed layer of rock at the base of the dike).

As part of its regulatory requirements, Diavik’s environment team conducts water quality monitoring. This includes daily sampling to measure total suspended solids. Samples are collected at a background location on the lake and at three stations outside the turbidity barrier. These samples are taken throughout the water column and are studied daily in Diavik’s on-site water quality lab.

The total suspended solid level is a measure of how much silt is in the water. Diavik has one regulatory limit for total suspended solids, which is a one-time level of 25 milligrams per litre over background level of two milligrams per litre. In addition to sampling for total suspended solids, Diavik has two turbidity buoys located outside the silt curtain.

Turbidity is a measure of the amount of light which passes through water. The buoys collect data and if turbidity increases, the buoys send data to Diavik’s security department which notifies the environment department. The data is monitored and analyzed and if needed, the mine’s trigger action response plan is activated to lower turbidity.

Regulatory exceedance – silty waterOn 8 August 2015, silt levels exceeded the one-time event of 25 milligrams per litre above background levels.

Weather conditions at that time included sustained high winds. The resulting wave action caused air to accumulate under the curtain which ultimately raised the bottom of the curtain off the lakebed.

The exceedance was identified and corrective action was taken; specifically, extra anchor weights were attached to the curtain to return it to vertical positioning. In a matter of hours, silt levels returned to below the regulatory limit. As of 2015, this was the only exceedance (includes A154 and A418 dike construction).

Water monitoringDiavik’s water quality monitoring system includes a surveillance network program for monitoring water in and around the mine site, and an aquatic effects monitoring program which measures changes in the Lac de Gras aquatic environment. Results from water quality monitoring programs are collated and reviewed to identify the need for any follow-up action.

Wildlife monitoringDiavik monitors the potential effects of the mine on wildlife and wildlife habitat. Monitoring is done to help Diavik determine if the predictions made in its environmental assessment are accurate and to help assess the effectiveness of mitigation strategies. Currently, Diavik conducts caribou, raptor, wolverine, grizzly bear, and other wildlife monitoring programs.

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Caribou monitoringCaribou are a key indicator species because of their cultural and economic value to northern residents as well as being of ecological importance. Diavik conducts low impact behavioural surveys of caribou at varying distances from the mine.

Closure planningAs a requirement of Diavik’s Type A water licence, environmental agreement, and land leases, a report is prepared annually to report on progress, research results, and ongoing alterations or changes to the interim closure and reclamation plan. The progress report is externally reviewed and approved.

Environmental complianceAs part of its commitment to the environment, Diavik is a signatory to an environmental agreement with local Aboriginal groups, and the federal and territorial governments. Finalized in March 2000, the agreement formalizes Diavik’s environmental protection commitments, establishes reclamation security requirements, and provides transparency and oversight to local communities.

Regulatory requirements are governed by a variety of environmental acts and regulations that set specific conditions through various permits, licences, and authorizations as well as the environmental agreement. For example, the water licence establishes effluent criteria for waste water discharge to protect the water.

Fish and fish habitat are protected, monitored, and managed in accordance with the requirements of fisheries authorizations.

Land leases outline the requirements for responsible land management practices, including provisions for infrastructure, and waste and hazardous materials management.

The public can view these various documents at a public library in the Environmental Monitoring Advisory Board’s office in Yellowknife and/or through the Wek’eezhii Land and Water Board public registry (online and library).

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Inspection and enforcementGovernment inspections provide assurances that Diavik remains in environmental compliance. In 2015, regular inspections were conducted by the territorial Department of Lands, which holds primary responsibility for enforcement and inspection of the legal provisions of permits and licences related to land and water use and waste management. Fourteen inspections were conducted by the Aboriginal Affairs and Northern Development Canada/Government of the Northwest Territories inspector in 2015.

Inspection reports are included in the Wek’eezhii Land and Water Board online registry, which can be sourced from its web site (wlwb.ca).

Environmental management systemTo manage its environmental protection commitments, Diavik has implemented an internationally certified Environmental Management System (EMS) that:• Identifies and priorities environmental risks;• Identifies activities to protect the environment;• Ensures employees are properly trained;• Anticipates and avoids environmental problems;• Ensures regulatory compliance and due diligence; and• Ensures consistency with corporate environmental policy.

Certified under the internationally acknowledged ISO14001 standard, Diavik’s EMS is designed to be simple, understandable, easy to implement, and adaptable.

Diavik’s EMS includes protection for wildlife, water, and fish habitat – issues of particular concern raised by local communities.

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Environmental Monitoring Advisory BoardIn March 2000, the environmental agreement was signed by Diavik, the Tlicho Government, the Yellowknives Dene First Nation, the Lutsel K’e Dene First Nation, the Kitikmeot Inuit Association, the North Slave Metis Alliance, the Government of the Northwest Territories, and the Department of Indian Affairs and Northern Development.

Verification activitiesArea External Rio Tinto Internal

Environment Environmental Monitoring Advisory Board

Inspections by government regulators and inspectors

Facility inspections

Independent technical audits, plus Rio Tinto environmental standards review

Environmental management system audits

Facility inspections

Through the agreement, the Environmental Monitoring Advisory Board was established as a not-for-profit organization that works independently and at arm’s length from Diavik and the other parties to the agreement. The Board’s mandate is to assist with the implementation of the environmental agreement. It also serves as an external reviewer of Diavik’s environmental performance.

39



orthEnvironmental monitoring programs

Purpose of monitoring Key activities

Dust monitoring Determine if environmental assessment predictions are accurate.

• Ongoing notification to operations for dust suppression

• Summer and winter dust sampling to determine extent of dust dispersion related to operations activities

• Dust suppressant used on airport apron, taxi-way, helipad, and parking lot

• Air quality monitoring

Meteorological Measure/detect meteorological trends. Determine influences on site water balance.

Provide design and construction information to operations.

Measured:• Horizontal wind speed and direction, and standard

deviation of horizontal wind direction• Ambient temperature• Relative humidity• Precipitation – rain and snow• Incoming solar radiation• Evaporation rates

Water quality Measure levels, limits, and sources of water use, as established in water licence.

• All water used for consumption and operations is metered

• PKC facility levels monitored

• All make-up water measured

• Annual update to water balance

Water quality compliance Monitor effluent limits as required by water licence.

• Samples collected and analyzed in compliance with the water licence at required SNP locations

Aquatic effects Collection of information to determine the short and long-term effects in the aquatic environment resulting from the project.

• Samples collected at AEMP sites for water quality, phytoplankton, zooplankton, benthic invertebrates, sediment chemistry, and fish health

Wildlife Determine if predictions in environmental assessment are accurate.

Assess the effectiveness of mitigation strategies.

• Caribou monitoring for:1. Numbers on island2. Mitigation effectiveness3. Zone of influence

• Raptor and waterfowl monitoring

• Wolverine track survey for presence

• Grizzly bear hair snagging survey to determine population density

• Track incidental sightings of most species at the mine site

Wildlife habitat (vegetation loss)

Determine if environmental assessment predictions (linked to wildlife program) are accurate.

Determine extent of vegetation/ habitat loss.

• Survey extent of mine footprint related to vegetation loss

• Vegetation plots are surveyed every three years for changes in plant species population and density

• Survey dust deposition on lichen at site and control areas

Fisheries Fisheries authorization requirements.

Initiate long-term monitoring programs.

• Slimy sculpin studies to determine metal concentrations in fish tissue

Reclamation research

Re-vegetation test plots

Country rock test piles

To establish research programs related to reclamation research.

Information gathered from these programs will be used for closure.

• Continue to assess additional closure research needs

• The test piles research monitoring and maintenance continued in 2015

• Phase III of revegetation research program continued in 2015

40

This report combines the Diavik sustainable development report, required by Rio Tinto, and the Diavik socio-economic monitoring agreement report, required by the Government of the Northwest Territories and northern Aboriginal groups. Employment data contained in this report is provided at 31 December 2015. Information on annual training, employment, business benefits, and community initiatives is included on preceding pages. The detailed tables in this appendix, required under the socio-economic monitoring agreement, provide Diavik employee and contractor data. Throughout the report, some figures may not add due to rounding.

Employment by priority group (individuals)Tlicho First Nation 66 5.8%

Yellowknives Dene First Nation 31 2.7%

North Slave Metis Alliance 12 1.1%

Lutsel K’e Dene First Nation 10 0.9%

Kitikmeot Inuit Association 5 0.4%

Aboriginal participation agreement group 124 10.9%

Other northern Aboriginal 89 7.8%

Total northern Aboriginal* 213 18.8%

Other Canadian Aboriginal, residing in the North 23 2.0%

Canadian non-Aboriginal, residing in the North 269 23.7%

Other nationality, residing in the North 19 1.7%

Unknown status, residing in the North** 22 1.9%

Other northern 333 29.4%

Total northern 546 48.1%

Other Canadian Aboriginal, not residing in the North 44 3.9%

Canadian non-Aboriginal, not residing in the North 438 38.6%

Other nationality, not residing in the North 18 1.6%

Unknown status, not residing in the North** 88 7.8%

Total non-northern 588 51.9%

Total workforce 1,134

Aboriginal employmentAboriginal participation agreement group 124 10.9%

Other northern Aboriginal 89 7.8%

Other Canadian Aboriginal 67 5.9%

Total Aboriginal employment 280 24.7%

* Under the socio-economic monitoring agreement, northern Aboriginal is defined as First Nations peoples born in the Northwest Territories or West Kitikmeot region, or a descendant of an Aboriginal person born in the Northwest Territories or West Kitikmeot region.

** Declaration is voluntary. At year-end 2015, ethnicity of 110 people was not known.

Socio-economic monitoring agreement employment data


Appendix

41

DDMI employment by community, priority group, job category (person years*)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Behchoko 0.0 4.2 4.1 0.0 0.0 8.3

Other northern Aboriginal 0.0 0.0 2.0 0.0 0.0 2.0

Tlicho 0.0 4.2 2.0 0.0 0.0 6.2

Deline 0.0 1.0 0.0 0.0 0.0 1.0


Dettah 0.0 0.6 0.5 0.0 0.0 1.1

Yellowknives Dene 0.0 0.6 0.5 0.0 0.0 1.1

Fort Providence 0.0 2.0 0.8 0.0 0.0 2.8


Fort Resolution 0.0 1.0 0.9 0.0 0.0 1.9


Fort Simpson 0.9 0.0 1.8 0.0 0.0 2.8

Other Canadian Aboriginal 0.0 0.0 1.2 0.0 0.0 1.2


Fort Smith 0.0 2.4 9.2 0.9 0.0 12.5

Canadian non-Aboriginal 0.0 0.0 1.7 0.9 0.0 2.6



Gameti 0.0 0.0 0.7 0.0 0.0 0.7

Tlicho 0.0 0.0 0.7 0.0 0.0 0.7

Hay River 1.0 9.2 25.2 1.6 0.0 37.0


North Slave Metis 0.0 2.0 2.2 0.0 0.0 4.2



Tlicho 0.0 0.8 0.0 0.0 0.0 0.8


Inuvik 0.0 0.0 0.9 0.0 0.0 0.9


Lutsel K’e 0.0 0.9 0.6 0.0 0.0 1.4

Lutsel K’e Dene 0.0 0.9 0.6 0.0 0.0 1.4

Ndilo 0.0 0.0 0.9 0.0 0.0 0.9


Wha Ti 0.0 0.0 0.9 0.0 0.0 0.9

Tlicho 0.0 0.0 0.9 0.0 0.0 0.9

Continued next page


Appendix

42

DDMI employment by community, priority group, job category (individuals)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Behchoko 1 5 4 0 0 10

Other northern Aboriginal 0 0 2 0 0 2

Tlicho 1 5 2 0 0 8

Deline 1 0 0 1 0 2


Dettah 0 0 0 1 1 2

Yellowknives Dene 0 0 0 1 1 2

Fort Providence 0 0 0 2 1 3


Fort Resolution 0 0 0 1 1 2


Fort Simpson 1 0 0 0 2 3

Other Canadian Aboriginal 0 0 0 0 1 1


Yellowknife 8.0 58.7 108.9 38.2 13.6 227.4


Kitikmeot Inuit 0.2 0.0 0.0 0.0 0.0 0.2

Lutsel K’e Dene 0.2 1.0 1.1 0.0 0.0 2.4



Other nationality 0.0 0.7 2.3 2.3 4.5 9.8


Tlicho 1.1 6.9 8.0 0.0 0.0 16.0


Do not wish to declare n/a n/a n/a n/a n/a 7.3

Northern total 10.9 82.9 158.4 40.7 13.6 306.5

Southern employment Entry level Semi-skilled Skilled Professional Management Total








Southern total 0.7 16.3 196.9 24.6 0.1 238.5

* 1 person year equals 2,184 hours (based on a two weeks on two weeks off rotation, which equals 12 hours/day x 14 day/rotation x 13 rotations/year).

Continued next page

Continued from previous page


Appendix

43

Fort Smith 0 3 11 1 0 15

Canadian non-Aboriginal 0 0 2 1 0 3



Gameti 0 0 1 0 0 1

Tlicho 0 0 1 0 0 1

Hay River 1 12 30 2 0 45


North Slave Metis 0 2 2 0 0 4



Tlicho 0 1 0 0 0 1


Inuvik 0 0 0 0 1 1


Lutsel K’e 0 0 0 1 1 2

Lutsel K’e Dene 0 0 0 1 1 2

Ndilo 0 0 0 0 1 1


Wha Ti 0 0 0 0 1 1

Tlicho 0 0 0 0 1 1

Yellowknife 16 80 130 47 17 290


Kitikmeot Inuit 1 0 0 0 0 1




Other nationality 0 2 4 5 6 17


Tlicho 3 7 9 0 0 19


Do not wish to declare n/a n/a n/a n/a n/a 10

Northern total 21 17 50 111 189 388









Southern total 1 22 242 29 1 334

Continued from previous page


Appendix

44

Tlicho Logistics employment by community, priority group, job category (person years)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Behchoko 1.2 5.7 3.1 0.0 0.0 10.0

Tlicho 1.2 5.7 3.1 0.0 0.0 10.0

Fort Providence 0.0 0.0 0.9 0.0 0.0 0.9


Fort Resolution 0.0 0.0 0.9 0.0 0.0 0.9


Fort Smith 0.0 0.9 0.0 0.0 0.0 0.9


Hay River 0.0 3.5 4.5 0.0 0.0 8.0


Kitikmeot Inuit 0.0 0.9 0.0 0.0 0.0 0.9



Tlicho 0.0 0.0 0.9 0.0 0.0 0.9

Kugluktuk 0.0 0.8 0.0 0.0 0.0 0.8

Kitikmeot Inuit 0.0 0.8 0.0 0.0 0.0 0.8

Wekweeti 0.0 0.9 0.8 0.0 0.0 1.7

Tlicho 0.0 0.9 0.8 0.0 0.0 1.7

Wha Ti 0.0 1.7 0.9 0.0 0.0 2.6

Tlicho 0.0 1.7 0.9 0.0 0.0 2.6

Yellowknife 1.9 4.7 14.5 0.5 0.0 21.5


Lutsel K’e Dene 0.0 0.0 0.8 0.0 0.0 0.8



Tlicho 1.7 0.9 5.8 0.5 0.0 8.9


Northern total 3.0 18.2 25.6 0.5 0.0 47.2





Tlicho 0.0 0.0 0.7 0.0 0.0 0.7

Southern total 0.0 3.0 25.9 1.4 0.0 31.9


Appendix

45

Tlicho Logistics employment by community, priority group, job category (individuals)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Behchoko 2 7 4 0 0 13

Tlicho 2 7 4 0 0 13





Fort Smith 0 1 0 0 0 1


Hay River 0 4 5 0 0 9





Tlicho 0 0 1 0 0 1

Kugluktuk 0 1 0 0 0 1


Wekweeti 0 1 1 0 0 2

Tlicho 0 1 1 0 0 2

Wha Ti 0 2 1 0 0 3

Tlicho 0 2 1 0 0 3

Yellowknife 4 5 18 1 0 28





Tlicho 2 1 6 1 0 10



Northern total 6 22 32 1 0 61





Tlicho 0 0 1 0 0 1



Appendix

46

Bouwa Whee employment by community, priority group, job category (person years)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Fort Providence 1.0 0.00 0.0 0.0 0.0 1.0


Fort Resolution 0.6 0.0 0.0 0.0 0.0 0.6


Fort Smith 1.0 0.0 0.0 0.0 0.0 1.0

Tlicho 1.0 0.0 0.0 0.0 0.0 1.0

Hay River 4.7 0.9 0.9 0.0 0.0 6.2




Tlicho 0.0 0.9 0.0 0.0 0.0 0.9

Yellowknife 36.6 1.9 3.5 0.0 0.0 39.0


Kitikmeot Inuit 0.3 0.0 0.0 0.0 0.0 0.3

Lutsel K’e Dene 1.0 0.0 0.0 0.0 0.0 1.0





Tlicho 0.9 0.0 0.0 0.0 0.0 0.9



Northern total 44.9 3.7 4.4 0.0 0.0 53.1




Southern total 0.2 0.0 4.6 1.7 0.0 6.6


Appendix

47

Bouwa Whee employment by community, priority group, job category (individuals)Northern employment Entry level Semi-skilled Skilled Professional Management Total






Tlicho 1 0 0 0 0 1

Hay River 7 1 1 0 0 9




Tlicho 0 1 0 0 0 1









Tlicho 1 0 0 0 0 1









Appendix

48

Cementation employment by community, priority group, job category (person years)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Yellowknife 0.0 1.1 1.0 0.0 0.0 2.0


Tlicho 0.0 1.1 0.0 0.0 0.0 1.1

Northern total 0.0 1.1 1.0 0.0 0.0 2.0








Southern total 0.0 4.1 88.1 1.9 0.0 120.1

Cementation employment by community, priority group, job category (individuals)Northern employment Entry level Semi-skilled Skilled Professional Management Total



Tlicho 0 1 0 0 0 1











Appendix

49

Other contractors employment by priority group, job category (person years)Northern employment Entry level Semi-skilled Skilled Professional Management Total



Kitikmeot Inuit 0.1 0.0 0.0 0.0 0.0 0.1

Lutsel K’e Dene 0.8 0.0 0.0 0.0 0.0 0.8


Tlicho 1.0 0.0 0.0 0.0 0.0 1.0

Northern total 2.0 1.0 2.3 0.1 0.3 7.7



Do not wish to declare 0.0 0.0 12.8 1.1 0.0 13.9

Lutsel K’e Dene 0.0 0.0 1.0 0.0 0.0 1.0



Southern total 4.5 1.3 47.4 6.4 0.1 59.7

Other contractors employment by priority group, job category (individuals)Northern employment Entry level Semi-skilled Skilled Professional Management Total






Tlicho 2 0 0 0 0 2










Appendix

50

DDMI new hires* by community, priority group, job category (person years)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Behchoko 0.0 0.1 1.0 0.0 0.0 1.1

Tlicho 0.0 0.1 1.0 0.0 0.0 1.1

Deline 0.0 1.0 0.0 0.0 0.0 1.0


Dettah 0.0 0.6 0.5 0.0 0.0 1.1


Fort Providence 0.0 1.0 0.0 0.0 0.0 1.0


Fort Simpson 0.0 0.0 0.6 0.0 0.0 0.6


Fort Smith 0.0 1.6 1.4 0.0 0.0 3.0



Gameti 0.0 0.0 0.7 0.0 0.0 0.7

Tlicho 0.0 0.0 0.7 0.0 0.0 0.7

Hay River 0.0 1.7 7.6 0.0 0.0 9.3





Tlicho 0.0 0.8 0.0 0.0 0.0 0.8


Lutsel K’e 0.0 0.0 0.6 0.0 0.0 0.6

Lutsel K’e Dene 0.0 0.0 0.6 0.0 0.0 0.6

Yellowknife 4.2 15.7 14.6 2.0 2.2 38.7


Kitikmeot Inuit 0.2 0.0 0.0 0.0 0.0 0.2

Lutsel K’e Dene 0.2 0.0 0.0 0.0 0.0 0.2





Tlicho 1.1 1.6 0.0 0.0 0.0 2.7



Northern total 4.2 22.8 27.4 2.0 2.2 58.7







Southern total 0.7 7.4 30.3 5.4 0.0 46.6

* Northern resident more than six months at time of hire.


Appendix

51

DDMI new hires* by community, priority group, job category (individuals)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Behchoko 1 1 1 0 0 3

Tlicho 1 1 1 0 0 3

Deline 1 1 0 0 0 2


Dettah 0 1 1 0 0 2




Fort Simpson 0 0 1 0 0 1





Gameti 0 0 1 0 0 1

Tlicho 0 0 1 0 0 1

Hay River 0 4 11 0 0 15





Tlicho 0 1 0 0 0 1


Lutsel K’e 0 0 1 0 0 1










Tlicho 3 2 0 0 0 5













Appendix

52

Contractor new hires* by community, priority group, job category (person years)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Behchoko 0.2 0.2 2.3 0.0 0.0 2.7

Tlicho 0.2 0.2 2.3 0.0 0.0 2.7

Fort Providence 0.0 0.0 0.9 0.0 0.0 0.9


Fort Resolution 0.0 0.0 0.9 0.0 0.0 0.9


Fort Smith 0.0 0.9 0.0 0.0 0.0 0.9


Hay River 0.7 2.6 1.0 0.0 0.0 4.3


Kitikmeot Inuit 0.0 0.9 0.0 0.0 0.0 0.9



Kugluktuk 0.0 0.8 0.0 0.0 0.0 0.8

Kitikmeot Inuit 0.0 0.8 0.0 0.0 0.0 0.8

Yellowknife 8.9 1.3 4.8 0.0 0.0 15.0


Kitikmeot Inuit 0.4 0.0 0.0 0.0 0.0 0.4

Lutsel K’e Dene 0.8 0.0 0.8 0.0 0.0 1.5


Tlicho 0.9 0.0 2.9 0.0 0.0 3.8



Northern total 10.4 5.8 9.9 0.0 0.0 26.1






Tlicho 0.0 0.0 0.7 0.0 0.0 0.7

Southern total 0.3 1.3 19.1 3.1 0.1 24.3



Appendix

53

Contractor new hires* by community, priority group, job category (individuals)Northern employment Entry level Semi-skilled Skilled Professional Management Total

Behchoko 1 1 3 0 0 5

Tlicho 1 1 3 0 0 5







Hay River 3 3 1 0 0 7





Kugluktuk 0 1 0 0 0 1







Tlicho 2 0 3 0 0 5









Tlicho 0 0 1 0 0 1




Appendix

Rio Tinto plc6 St. James’s SquareLondon SWIY 4ADUnited Kingdomriotinto.com

T+44 (0)20 7781 2000

Production: Diavik Diamond Mines, Yellowknife, CanadaDesign: Inkit Ltd., Yellowknife, Canada

Document control #: CCOM-005-0216 R0 31 March 2016

Diavik Diamond Mines (2012) Inc.#300, 5201-50th AvenueNorthwest Tower 3rd FloorYellowknife, NTCanada X1A 2P8 diavik.ca

T 867 669 6500

Dominion Diamond CorporationCorporate head office#1102, 4920-52nd StreetYellowknife, NTCanada X1A 3T1ddcorp.ca

T 867 669 6100

diavik diamond mine

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