1. GMRP City of Yellowknife Socio-Economic Strategy
October 23, 2017

2. Drivers for Developing a GMRP Socio-Economic (S-E) Strategy
Stakeholders
Key issue for local and Aboriginal stakeholders
Strong interest in S-E benefits in EA process
Commitments
Government policies and Land Claims
GMRP policies and commitments
Efficiency
Southern workers add ~13% to the cost of labour
AOC* drives S-E benefits while remaining a non-critical factor in awarding contracts
A strong AOC component is associated with high overall contract scores
*Aboriginal Opportunity Considerations (AOCs) are point-rated contract criteria that include factors like Aboriginal training, employment and sub-contracting.

3. Key Findings: GMRP and the External Context
Important context for GMRP’s socio-economic impacts and benefits
Canada NWT Diamond Mines Aboriginal Communities Yellowknife
Federal departments and agencies (e.g. ESDC, HC, CanNor) involved in a range of social and economic development initiatives
Economic conditions across the country (e.g oil sands in AB) influence availability and movement of workers
Taking national/provincial socio-economic trends into account and coordinating with federal partners
Issues: post-diamond mine economy, maintaining population
Responsibilities include community wellness programs, training and education
Economic Opportunities Strategy
Partnering in training, education, and community wellness
Precedent of over 10 years of Northern and Aboriginal jobs and procurement, engagement, and community development support ($$)
Safety record
Decline post-2020
Meeting the expectations set by the diamond mines
Capacity to plan for, manage participation in, and benefit from local projects
Legacy issues and distrust
Building a positive legacy for the project: jobs and restoration of the land
Centre for mining and construction business
Housing challenges
Mining town vs government city and expectations regarding development
Smart Growth Plan
Integrating workers into the city – permanent residents and no work camps
Our external assessment looked at socio-economic conditions in Yellowknife and in NWT more broadly, some of the key actors in shaping these conditions, and implications for the GMRP.
This slide provides a snapshot of some of the issues related to industry (namely the diamond mines), First Nations, the City of Yellowknife, and NWT.
Key context for the socio-economic strategy of the GMRP is the diamond mines. They define the recent economic success of the territory and the state of the art around the management of socio-economic impacts and benefits (as well as environmental) in NWT – not to say there aren’t challenges.
They set a certain bar in terms of the proportion of jobs and the types of jobs available to Northerners, safety performance, community development initiatives, and training and education partnerships with government and others
There are concerns about the future
FNs – history of impacts and distrust
City –
NWT – partner in opportunities and impacts.
Employment
Initial predicted total mine employment was 1,826 workers
In 2013, total diamond mine employment was 3,109 workers
Northern employment in 2013 was 1,430, exceeding initial predictions of 1,138 by 26%
Of the 1,430 northern workforce in 2013, 752 or 53% were Aboriginal
Total employment since 1996 is just under 44,000 person-years of which 50% is northern, and half of the northern is Aboriginal
Training and education investment
The diamond mines and other industry partners supported Mine Training Society programs with $16.7 million in cash and in-kind investments between 2004 and 2014
The Mine Training Society assessed 2,796 people for training between 2004 and 2014, with 2,149 of those receiving training or other support
In 2013, the three mines employed 69 apprentices
Nearly $464,000 in scholarships was awarded by the three mines in 2013
Business spending
Mines spent $943 million in 2013, with $621 million (66%) with northern businesses, and $248 million (26%) with Aboriginal business
Total spending to date to construct and operate the mines is $14.8 billion
Northern business spending to date is $10.6 billion (72%) of which $4.8 billion (32%) is with Aboriginal businesses
Community contributions
During 2012 and 2013, the three diamond mines provided approximately $23 million in contributions to communities
Safety
The diamond mines continue to set high standards for mine safety and their strong safety performance has made significant impacts on the safety culture not only within their organizations but also with many other businesses involved in their operations.
National Regional Local
GMRPcio-Economic Strategy

4. Key Barriers to Achieving Socio-Economic Benefits
1. Insufficient Northern and Aboriginal workforce capacity
A. Insufficient supply of Northern and Aboriginal workers
B. Lack of training, education, and experience in skills areas required by the GMRP
C. Recruitment and retention challenges
2. Insufficient Northern and Aboriginal business Capacity
A. Number and type of businesses
3. Socio-economic Impacts risk offsetting GMRP benefits
A. Vulnerability / resilience of affected communities (existing socio-economic challenges, social services and support capacity)
B. Infrastructure capacity (housing, roads, water, electricity)
POTENTIAL STRATEGIES TO ADDRESS BARRIERS
Insufficient supply of Northern and Aboriginal workers
Monitor projected regional labour demand
Consider scheduling options for work packages that ‘normalize’ the labour demand
Communicate project schedule and associated job opportunities and facilitate a smooth transition for workers from elsewhere
Coordinate with immigration programs aimed at attracting skilled immigrants
Lack of training, education, and experience in skills areas required by the GMRP
Engage early (communicate project requirements and training needs) and partner with education and training organizations and initiatives
Recruitment and Retention Challenges
Consider best practices from diamond mine and other projects to provide support and a positive workplace for Aboriginal workers
Identify and engage key internal stakeholders (e.g. engagement, acquisitions, project planning and management; all GMRP employees)
Develop plan for engaging and communicating throughout project
Position GMRP as an attractive place to work
Insufficient Northern and Aboriginal Business/ Contracting Capacity
Maximize engagement with northern and Aboriginal business community ahead of formal procurement processes
Establish a physical (storefront) office and/or a dedicated business development manager
Monitor regional business capacity
Provide incentives for contractor(s) to build capacity of local sub-contractors
Partner or facilitate connections with business capacity-building programs
Vulnerability / resilience of affected communities
Engage YKDFN on their community readiness results and lessons learned from other projects
Identify best practices from diamond mines and other projects to support Aboriginal workers and their families
Consider scheduling options for work packages that ‘normalize’ the labour demand and minimize associated community risks.

5. GMRP Procurement Objectives
Procurement activity is conducted in a manner that is compliant with Government of Canada (GOC) Contracting Policy and processes, that is transparent and accountable,
Meets the principle of Best Value to the Crown; National and International Trade Agreements; Comprehensive Land Claim Agreements; Aboriginal/local socio-economic objectives.
Promote, incorporate, and where possible maximize social and economic opportunities for Aboriginal and Northern community, business, and individual participation, through Giant’s procurement strategies and mechanisms.
***GOC Tools= Aboriginal Opportunities Considerations (AOC) and Procurement Set Aside for Aboriginal Business (PSAB)

6. Main Construction Management
The Remediation of the Giant Mine site will be carried out through a Main Construction Manager Contract (MCM).
The total value for this work is estimated at approximately $600M.
The MCM will manage the entire remediation of the Site and tender subcontracts accordingly for remediation work, which is estimated to begin in 2020.

7. Schedule MCM Posted January 2017
RFP Phase 1 prequalification tender early 2017
RFP Phase 2 tender summer 2017
Target MCM award authority December 2017
MCM orientation period early 2018

8. CM Contract Term 1 (2017-2022) Term 2 (2022~2030) Advisory
Small core team to advise/manage and all work is tendered in packages to subcontractors.
Term 1 ( )
Advisory
Site Control/Mine Manager
Risk mitigation and remediation planning
Term 2 (2022~2030)
General Contractor
Implementation of Remediation Project (each work package to include AOC criteria)

9. Core Team Mine Manager Senior Project Manager General Superintendent
Environmental Manager
Health and Safety Manager
Security Manager
Community Economic Development Office

10. Community Economic Development Officer
Assist with developing Socio-Economic Strategy
Responsible for facilitating, promoting and ensuring community and eco development
Responsible for developing and overseeing implementation of Aboriginal Benefits Plan
Manages and coordinates the Labour Capacity Studies
Develop Economic profiles of Region and Communities via Capacity Assessment
Collaborates with MCM Team and Giant to determine work packages and adjusting AOC criteria to best align with labour capacity
Based in MCM Yellowknife Office
Collaborates with respective organizations to provide outreach to local, indigenous and northern residents to discuss work and training opportunities.

11. Overall accountability for Project
INAC
Contracting authority and
oversight of Construction Manager
PSPC
PSPC Contract Authority
Manages execution of work;
earns a % of every
contract tendered
Construction Manager
Term 1
Prime Contractor and Mine Manager (Health and Safety)
Care and Maintenance –U/G, Water Treatment, etc.
Monitoring –Regulatory Compliance, Air, Medical
Advisory services during design:
Constructability
Structure of work packages
Construction schedule
Cost estimate
Socio-economic activities
Risk mitigation activities
Site preparation activities
Term 2
Implementation
Tendering and delivering work packages
Prime Contractor and Mine Manager
Care and Maintenance
Monitoring:
Regulatory compliance
Air quality
Medical
Ongoing Industry Capacity Assessments
Core Team
1)Mine Manager
2) Senior Project Manager
3) General Superintendent
4) Underground Superintendent
5) Environmental Manager
6) Health and Safety Manager
7) Security Manager
8) Medical Manager
9) Aboriginal and Community Engagement Liaison
Sub Contracts
Sub Contracts
Sub Contracts
Sub Contracts
Sub Contracts
Majority of Aboriginal Opportunities exist in sub-contracts

12. Project Timeline and Jobs Created
Peak of Remediation Activity
Under the current regulatory scenario, securing a Water License in 2020 will lead to a peak of activity and labour intensive work from
Over the next 20 years, GMRP has the opportunity to employ hundreds of Northern and Aboriginal employees and provide hundreds of millions in local contracts – potentially helping to offset diamond mine closures
Current studies estimate need for up to 350 employees in the 3 peak years of remediation ( ), which is equivalent to approximately 35% of the current Diavik or Ekati workforce
Anticipated Types and Numbers of Positions for Northerners and Aboriginals

13. Labour Study Outcomes- Existing Skills
There is Northern Aboriginal capacity for entry-level and semi-skilled occupational needs
Some skilled occupational needs (e.g. trades, technicians, blasting drilling, and environmental monitoring)
There is potential local labour supply for some skilled occupational needs (e.g. trades, technicians, supervisors, underground miner)
Limited or no local labour supply for skilled and professional occupational needs

14. Next Steps
Next Steps
The 2016 Labour Study is currently being revised.
Build on federal, territorial and municipal programs.
Potentially form a working group to identify and align Northern opportunities with interested departments.
Look for opportunities to maximize Northern opportunities through new initiatives.
Play a coordination role with partners and delivery agents in moving forward on capacity building.
Capacity Building Programs
An assessment of the various capacity building programs in the NWT has been undertaken:
Education and Employment Supports
Skills and Post-secondary Education
Recruitment and Retention Programs
An analysis was carried out to determine the relevance of the GMRP to those various programs, and how might GMRP and/or the MCM engage with them.
The following should be considered in order to move forward on capacity building:
Coordination
Timing
Partners
Demand