President`s welcome 02 Underground ventilation 03 Diavik mine

Diavik Dialogue
Volume 15
2nd quarter 2012
President’s welcome
02
Underground ventilation
03
Diavik mine rescue team wins
04
Donation to Kimberlite Centre 05
Mid-year socio-economics
06
Lean info centres
07
Community support
08
President’s welcome
Welcome to Dialogue, our quarterly newsletter.
We are continuing work to complete our transition to an all
underground mine. I am pleased to report that we expect
this transition to be safely and successfully completed this
summer.
A key part of the transition has been the planned gradual
increase in underground ore production, highlighted by our
one million tonnes of underground ore milestone achieved
during the second quarter.
To produce this volume required approximately two years
work and we are confident that the next million tonnes will
be produced in approximately half that time.
Over the past several months, we have been very successful in
our efforts to ramp up production, and we remain on track for
full production from the underground mine in 2013.
I would also like to take this opportunity to congratulate our
mine rescue team on winning the annual mine rescue team
competition held in Yellowknife.
This annual event presents an opportunity for members of our
mine site emergency response team to compete and test their
skills against other northern mines.
To learn more about these and our other initiatives, I invite
you to review the pages that follow or visit diavik.ca.
Niels Kristensen
President and Chief Operating Officer
One million tonne milestone
Diavik’s underground mine teams have
surpassed one million tonnes of ore
from our underground mine.
The milestone was achieved April
23 and demonstrates the successful
future that awaits Diavik as an all
underground mine, said Diavik
President and Chief Operating Officer
Niels Kristensen.
“These are exciting times at Diavik
and this is an accomplishment shared
by our workforce and partners. Most
importantly, we can celebrate reaching
this milestone in a manner that has
always put safety first.”
The transition to a fully underground
operation is scheduled to be completed
in mid-2012 and will sustain Diavik
production well past 2020.
demonstrates both joint venture
partners’ confidence in Diavik’s future
as a significant supplier of high-end
white diamonds.
To prepare for underground mining
at Diavik, several years of design and
engineering feasibility work were
conducted and over $800 million of
funding was invested by Rio Tinto and
its 40 per cent joint venture partner in
Diavik, Harry Winston. This investment
and transition to underground mining
According to Niels Kristensen, “The
diamonds unearthed at Diavik are
amongst the best white gem diamonds
produced in the world today. We have
seen, and continue to see, strong
demand for Diavik diamonds in both
established and emerging markets.”
Production from Diavik’s underground
mine commenced in early 2010, in
parallel with open-pit operations,
which began in late 2002. While the
first million tonnes of underground ore
took two years, the next million tonnes
will only take approximately one year.
A Diavik underground mine haul truck unloads
the mine’s millionth underground tonne.
Background is the portal entry to the mine,
which currently includes about 30 kilometres
of underground tunnels.
02
Cover: Lower left, in Diavik’s A154 open pit is the A154 South kimberlite ore body. Barely visible in its 150-metre diameter are open sections of sublevel retreat mining. These darker sections of the pipe are in fact mined out areas where ore has been drawn down into underground ore passes.
The ore is then hauled to surface for processing.
Underground mine ventilation
system switches to net positive
All underground mines require
ventilation systems to provide fresh air
and to vent exhaust and fumes created
by heavy equipment and blasting.
The ventilation system can be net
positive or net negative. Put another
way, air is either pushed into, or pulled
out of, the mine’s tunnels, creating
positive or negative pressure.
At Diavik, we require a net positive
ventilation system because we
are using sub-level retreat (SLR)
underground mining. SLR has now
opened the underground mine to
surface in the A154 open pit and with
positive pressure we keep most of
winter’s freezing air out.
Frigid winter air would adversely
affect working conditions for people
and equipment. Of note is the fact
that we pump up to 500 litres/second
of water from underground to surface
and, as such, we want to avoid freezing
temperatures.
Changing to a net positive system is
also beneficial as it is more energy
efficient for this particular mine layout.
Making the switch meant adding
additional fans on surface. These
Fans, located on surface between Diavik’s two
open pits, force fresh air down vertical tunnels
into the underground mine tunnels.
fans are located at the tops of vertical
shafts known as raises. The fans force
fresh air down four metre diameter
holes drilled over 300 metres to the
underground mine. In colder months,
the air is heated.
Overall, this system provides the
freshest air possible throughout all areas
of the underground workings and, as
production increases and the tunnels
are lengthened, this system is designed
to be able to expand as needed.
03
Diavik mine rescue team
wins underground competition
Congratulations to our Diavik mine
rescue team on their win at the
55th annual Workers’ Safety and
Compensation Commission’s Mine
Rescue Competition held June 15 and
16 in Yellowknife.
Our team, including Captain Kelsey
Loessl, Vice-Captain Nathan Pitre, Brent
Karstad, James Venera, Brad Rogers,
Justin Grandjambe, Coach John Arnold,
Assistant Coach Tom Cheveldave, and
Coordinator Alex Clinton, captured top
spot in the underground competition.
This was a very challenging
competition and a great opportunity
for our team, which is drawn from our
larger mine site emergency response
team, to test its skills against teams
from the North’s diamond mines. In
total, the underground competition
included seven events, of which Diavik
won three.
With the win, our team qualifies for
the 11th Biennial National Regional
Mine Rescue Competition to be held
in Fernie, BC, in 2013. Diavik’s mine
rescue team has won this event’s overall
underground competition twice in a
row.
The team’s next challenge will be this
September when they travel to the
Ukraine to compete in the International
Mines Rescue Competition. This will
be the first time our team competes
internationally.
Each year, Diavik’s mine rescue team competes in the Northwest Territories Workers’ Safety and
Compensation Commission’s Mine Rescue Competition held in Yellowknife. The two-day event,
which includes numerous events, concludes with an awards ceremony.
15 year service
recognitions
Congratulations to Diavik
Diamond Mines Inc. employees
Doreen Sangris, Bea Rodh, and
Liz MacPherson (left to right)
for achieving 15 years’ service
milestones. All joined Diavik in
1997 – six years before we produced
our first diamonds.
04
G&G Expediting – a big part of Diavik’s success
G&G Expediting, the company that
moves everything Diavik needs, was
started nearly 20 years ago by a few
entrepreneurs from Nova Scotia.
Before starting the company, owners
Glenn MacCara and Greg Works had
both worked for other expediting
companies in Yellowknife.
The company’s first vehicle was
MaCara’s father’s pickup truck.
Located on Berry Street at the
Yellowknife Airport, G&G ensures all
passenger flights and freight and ice
road materials make it to and from our
remote mine site.
“Everyone at G&G spends countless
hours behind the scenes working for
us. Their dedication to our operations
and values ensures we are able to
operate successfully,” said Diavik
Manager Logistics and Support
Services Rob Brough.
An example was back in 2006. After
an abbreviated ice road season, Diavik
airlifted a huge amount of materials
to the mine; all of which went through
G&G.
When Diavik has a flight on hold due
to weather – and often it may be hours
before the weather clears – they’ll get
all passengers’ contact numbers and
call them when the weather has cleared
and the flight is ready, Brough noted.
Pictured are G&G Expediting’s Paul Jackson, Irwin Olson, Brad Good, Bob Weatherby, Mike
Thompson, Ray Brazeau (left to right, standing). Front row are Diavik Vice President Operations
Marc Cameron (left) and Diavik Manager Logistics and Support Services Rob Brough (right), and
Glenn MacCara, Brad Dunlop, Perry Styan, Greg Works, and Anthony Pace. Missing from picture
are Sarah Comrie, Cheryl Eggenburger, and George Farrell.
G&G has been with Diavik since
the beginning. Their first contract
associated with what would become
the Diavik Diamond Mine was in
1994 when they built Aber Resources’
original exploration camp. Aber
Resources is now Harry Winston
Diamond Corporation, Diavik’s 40
per cent joint venture partner.
“We are very proud of what we have
accomplished and the obstacles that we
had to overcome over the years. To have
been involved with Diavik, from the first
discovery to what it has become today,
has been an experience like no other,”
said G&G co-owner Glenn MacCara.
“We are equally very proud of our
employees. They are a great bunch of
caring and conscientious individuals
who share our goal of providing a very
safe and efficient service for Diavik and
its workforce.”
Since 1994, G&G has transported over
225,000 passengers, coordinated over
30,000 flights, and shipped over 90
million kilograms of freight to Diavik –
all without a single lost time injury.
Diavik donates to Kimberlite Career and Technical Centre
In June, Diavik demonstrated its
continuing support of the Kimberlite
Career and Technical Centre (KCTC) in
Yellowknife by presenting a $20,000
donation.
Diavik’s support of KCTC, which dates
back to 2004, totals nearly $220,000.
Diavik’s contributions have been used
to purchase and maintain equipment
and buy materials, primarily for the
centre’s welding shop.
Through its programming, KCTC,
provides students with opportunities to
learn about technical and trades career
options. Currently, over 450 students
are enrolled in KCTC courses, which
include construction carpentry, small
engine repair, robotics, hairstyling,
and welding. Students entering
apprenticeships can use KCTC course
hours towards their apprenticeship.
In addition to supporting students, the
KCTC, in partnership with the Northern
Alberta Institute of Technology,
has offered the Becoming a Master
Instructor program to nine Diavik
underground mining trainers.
“Individuals with trades and technical
skills are very much in demand in our
industry and we support the centre’s
efforts to provide students with an
opportunity to explore these very
rewarding career options,” said Diavik
President and Chief Operating Officer
Niels Kristensen.
“The success of our programs is directly
related to the contribution that Diavik
Diamond Mines Inc. has made to
our facility, especially the welding
lab. The quality and availability of
industry pertinent equipment in our
welding lab generates excitement and
enthusiasm among the students and
better prepares them for the world of
work. Yellowknife Catholic Schools
is very thankful of our partnership
with Diavik,” said Claudia Parker,
Superintendent, Yellowknife Catholic
Schools.
To learn more about the Yellowknife
Catholic Schools’ Kimberlite Career
and Technical Centre, visit their
www.ycskctc.nt.ca/ web site.
05
Mid-year socio-economics
Among our many goals is to ensure
local communities continue to receive
significant benefits from our mine.
This commitment is one which began
in the mid-1990s when Diavik was first
envisioned and will continue through
all phases of our operations.
$146.7 million, or 62 per cent of total
spending.
For more on our latest and historic
socio-economic contributions to the
2012 mid-year operations spending
Total $237.6 million
North, we invite you to review our 2012
mid-year socio-economic monitoring
report in the reports and publications
section of our diavik.ca web site.
2012 mid-year operations employment
Total 1,165 people
During the first half of 2012, Diavik
employed an average of 1,165 workers.
Of the total, 642 are northern and of
the northerners, 291 are Aboriginal.
At mid-year Diavik and its contractors
employed 36 apprentices (our
commitment is eight to 18 apprentices),
of whom all are northerners and 21 are
Aboriginal.
During the first half of 2012, our
spending with local business was
38% southern
($90.9 million)
62% northern
($146.7 million)
45% southern
(523)
55% northern
(642)
New incinerator commissioned
06
A new refuse incinerator is the latest
surface works commissioned at the Diavik
Diamond Mine. The enclosed facility, which
includes two Westland units, bottom right,
replaces the exterior units. Contractors for
the building were Nahanni Construction
and NCV Industrial. Top left, Laurance
Hamilton, Coordinator Waste Management,
Brad Rogers, Leadhand Support Services,
and Mike Emde, Superintendent Support
Services, review the commissioning.
Lean info centres – getting the
business on the same page
Over the past several months, our
Diavik teams started the roll-out of
Lean information centres across our
mine site and at our corporate office
in Yellowknife.
Lean information centres display a
wide range of materials, including
safety results, key performance
indicators, goals, targets and metrics,
and concerns and successes.
“Lean information centres show at a
glance where we need to focus our
improvement effort, where we are on
track and performing well, and our
accomplishments,” said Diavik Vice
President Operations Marc Cameron.
“The centres have been fundamental
in 2012 in enabling us to improve
by visualizing our value stream, by
identifying and capturing concerns,
and by encouraging problem solving at
all levels,” he added.
As part of the initiative, teams meet
regularly at their respective boards. The
meetings, which include a structured
agenda, take 15 to 30 minutes.
“Ideas are shared and problems are
addressed and solved. Workers take
the lead by discussing their respective
projects,” said Diavik Superintendent
Electrical and Instrument Chris Bertoli.
“Tasks and operational goals for the
week or day are clear and transparent,”
he added.
Diavik’s Lean information centre
system includes:
• Level 1 boards for supervisors meeting
with the front-line employees
• Level 2 boards for superintendents
and supervisors
• Level 3 boards for managers and
their superintendents
• Level 4 boards for vice presidents
and managers
• Level 5 boards for senior executives
Our Lean information centre strategy
includes the cascading of our overall
business goals from the higher level
boards through to the level 1 boards.
As well, it includes an auditing process
to ensure we meet quality criteria.
“The level 2 boards bring together
the key individuals in the plant
every day and it is a great tool for
ensuring open communication and
increased cooperation,” said Diavik
Superintendent Backfill Plant Jamen
Oliver. This system lends itself well to
our mining environment, which includes
two rosters, each with two rotations.
“Individuals can review how their
department is performing. With our
Lean boards, rotations and shifts get
a visual update and can transition
more efficiently,” said Diavik Business
Improvement Specialist Winter Haley.
Of note is the fact that level 1 boards
are for front-line teams. These boards
are ultimately the main focus of
the overall system because the goal
is to use Lean tools to develop and
enhance a business environment where
individuals in management roles give
front-line workers the support they
need to be successful and, by doing so,
make Diavik successful.
The roll-out plan, led by Diavik’s
Business Improvement department,
commenced this year with level 5, 4, 3,
and 2 boards. This is to ensure that key
focus areas are addressed at the right
level of the organization, and that there
is line of sight between your metrics and
the level above and below you. 2013 will
be dedicated to the level 1 deployment,
which is our biggest effort and most
important level of Lean boards.
Top, one of our many Lean information
centres at the mine site. Diavik Vice President
Operations Marc Cameron, centre, updates
a Lean information centre. Above, a team
conducts a Lean meeting.
First diamonds from Bunder
Destined to become part of the
inaugural collection of Bunder
diamond jewellery, the first diamonds
from this Rio Tinto operation have
now been provided to Indian cutting
and polishing firms.
The rough diamonds will first
undergo a series of detailed cutting
and polishing tests, with the aim
to understand the nature of the
product and its potential for future
commercial production.
Diamonds from Rio Tinto’s Bunder project
in India.
From here, the gems will be
designed and manufactured into
the first collection of Bunder
diamond jewellery, to be showcased
at the Indian International Jewellery
Show in Mumbai in August.
07
Supporting local events and organizations
2011 sustainable development report
Annual SD
report released
Diavik is pleased to release
its 2011 annual sustainable
development report. In addition
to background information about
Diavik, the report highlights our
many initiatives towards economic
prosperity, social well-being, and
environmental protection – the
three key pillars of sustainable
development. The full report can
be found at diavik.ca in the reports
and publications section.
Diavik Diamond Mines Inc.
5007-50th Avenue
P.O. Box 2498
Yellowknife, NT X1A 2P8
Canada
T (867) 669 6500
F (867) 669 9058
E [email protected]
www.diavik.ca
Document #: CCOM-094-0812 R0
SPCA donation
Diavik employees coordinated an
employee fundraising campaign for the
Northwest Territories SPCA northern
animal shelter campaign. Employee
donations were matched by Diavik
Diamond Mines Inc. and, together,
generated $10,000 for the shelter. This
amount will allow Diavik to sponsor
one kennel in the new facility. Thanks
to Ashley Rivers, Melisa Connors,
David Wells, Shannon Damaskine,
Hayley McLean, Kenna Snow, and Ray
Halwas for collecting donations and
spearheading this campaign.
NWT Disabilities Council
diamond draw
Each year, through our donations
committee, Diavik donates polished
diamonds to local groups who commit
to significantly increase the gem’s
value through a fundraising initiative.
The NWT Disabilities Council was one
of the organizations which received
a diamond in 2012 and successfully
raised $20,000 through its diamond
raffle. The draw was held June 6, prior
to the council’s Disability Awareness
Week event.
Yard sale raises funds
$1,200 was raised at the recent
Diavik yard sale and donated to
the Yellowknife Association for
Community Living. Matco graciously
donated space and manpower for the
sale. Items not sold were donated to
the Alison McAteer House and the
Society of St. Vincent de Paul. Thanks
to Marlene Hnatiw from our Human
Resources Department for coordinating
the event, and Martin Tanguay, Robin
Wise, Belinda Beck, Iris Hamlyn,
Brenda Roberts, and Mona Morrow,
who volunteered their time and helped
at the sale.
Miner’s picnic
Each year, Diavik volunteers get
grilling at the annual NWT and
Nunavut Chamber of Mine’s miners’
picnic. Thanks to German Villegas
(pictured right), Peter Lazar (pictured
centre), and Kenna Snow, David
Wells, Doug Ashbury, Ronna Kingsley,
Charlotte Larocque and her son
Timothy, Jon Brennan, Deborah
Langelier, Tina Nasholm, Richard
LeBreton, Dayna Meredith, and Linna
O’Hara for volunteering at this great
community event.