cameco’s approach to relationships with local communities
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Cameco’s Approach to Relationships with Local Communities. Jamie Dickson Legal Advisor, Corporate Responsibility Cameco Corporation October 28 th (Calgary), November 5 th (Toronto), 2013. Agenda. Background Unique Legal Context in Northern SK Uranium Industry - PowerPoint PPT PresentationTRANSCRIPT
Jamie DicksonLegal Advisor, Corporate Responsibility Cameco CorporationOctober 28th (Calgary), November 5th (Toronto), 2013
Cameco’s Approach to Relationships with Local Communities
Building Value: Cameco”s CR ModelBuilding Value: Cameco”s CR Model
Agenda
● Background
● Unique Legal Context in Northern SK Uranium Industry
● Cameco’s “Five Pillar” Approach to its Relationships with Local Communities
● Notable Successes
● Cameco’s Recent Experience with Community/ Industry Agreements
Building Value: Cameco’s CR Model
About Cameco
● Corporate head office in Saskatoon, SK
● Major operations in Northern SK
● One of the world’s largest uranium producers
– Account for ~16% of total global uranium production
● Canada’s #1 industrial employer of Aboriginal people
– Approximately 750 direct and 1500 indirect
Building Value: Cameco’s CR Model
Major Uranium Regions in Canada
Athabasca BasinAthabasca Basin
Labrador Labrador
Central BeltCentral Belt
Otish BasinOtish Basin
Hornby BasinHornby Basin
Thelon BasinThelon Basin
Building Value: Cameco’s CR Model
The Heartbeat of Cameco: Northern SK
Black Lake FNBlack Lake FNBlack Lake FNBlack Lake FN
Hatchet Lake FNHatchet Lake FNHatchet Lake FNHatchet Lake FN
Fond du Lac FNFond du Lac FNFond du Lac FNFond du Lac FN
English River First NationEnglish River First Nation English River First NationEnglish River First Nation
Pinehouse MetisPinehouse MetisPinehouse MetisPinehouse Metis
Lac La Ronge Indian BandLac La Ronge Indian BandLac La Ronge Indian BandLac La Ronge Indian Band
Building Value: Cameco”s CR ModelBuilding Value: Cameco”s CR Model
Unique Legal Context in Northern SK Uranium Industry
● Cameco’s 4 major operations all undertaken on leased lands
● Surface Lease Agreements
– Explicitly delegate responsibilities to companies in relation to local community involvement
– Express targets mandated
67% northern employment
35% procurement of goods/services from northern companies
– Companies mandated to enter agreements with effected land users
– Companies mandated to designate “Priority Recruitment Communities” for each operation
– Companies mandated to work with 40+ northern communities generally
Building Value: Cameco”s CR ModelBuilding Value: Cameco”s CR Model
Motivation
7
● Community Realities
● High poverty
● Young populations
● Increased activism
● Alignment with Business
● Competitive advantage re hiring/retaining northern employees
● Strong track record as value-adding asset
● Proactive vs Reactive
● Regulatory delays ($$$)
Building Value: Cameco’s CR Model
Cameco’sCameco’s
Workforce
Development Business
DevelopmentCommunity
Engagement
Community
InvestmentEnvironmental
Stewardship
strategy strategy five-pillar five-pillar
Building Value: Cameco’s CR Model
Workforce Development
9
Target: SLA target - 67% RSN
Result: 50% RSN
Action:
●Northern Career Quest (NCQ)
●Northern Skills Assessment
●Northern Summer Student Program
●Underground Mining Program
●Mine Engineer Technician Program
●Career Compass
●Week In / Week Out Schedule
Building Value: Cameco’s CR Model
Business Development
10
Target: SLA target – 35% northern procurement
Result: ~ 70%
Action:
Northern Preferred Supplier Program
Northern Business Directory
Mentoring
Building Value: Cameco’s CR Model
Community Investment
11
• $15+ million in northern donations since 2004 all focused on:
• Education
• Health and wellness
• Sports and recreation
• Shifting to community-managed community investment programs
Building Value: Cameco’s CR Model
Community Engagement/Environmental Stewardship
12 The Cameco StoryThe Cameco Story
Many Spokes on our Engagement/Consultation Wheel
●Community Liaisons/Satellite Offices
●Northern Tours/Roundtables
●Northern SK Environmental Quality Committees
●Project-Specific Engagement/Consultation
●Mine Site Elders
●Traditional Knowledge Collection
●Involvement of northerners in environmental monitoring and country foods studies
●www.cameco.com/northernsk
Building Value: Cameco’s CR Model
Notable Successes 70% goods and services procured from
majority-northern-owned businesses
$2 billion + since 2004
50% northern SK employees (most are First
Nation or Metis)
760 employees from northern SK
$73M in northern salaries (2012)
additional 880 contractor employees
25% of trades are northern
100% of apprentices northern
Canada’s #1 industrial employer of
Aboriginal people
$15M+ in targeted investment since 2004
Recent Polling - 78% Support for Uranium
Industry in Northern SK
Building Value: Cameco”s CR ModelBuilding Value: Cameco”s CR Model
Cameco’s Approach to Community Agreements
● Overview
– Impact Management Agreement – 1990s
– Collaboration Agreements – 2012 onwards
Second generation agreements
Jointly with AREVA Resources Canada Inc.
Managing higher community expectations/risks
Two signed so far
– Pinehouse Metis in Dec, 2012 (est. value – 200M)
– English River First Nation in May, 2013 (est. value – 600M)
Other agreements being negotiated
– Australian Experience
Building Value: Cameco’s CR Model
Collaboration Agreements● Second Generation
Agreements
– Agreements codify/package existing programming
– Focus on improvement
● Largely Focused on “Brownfield” Operations
● Partnership Model
– Companies agree to increase or “lock in” benefits
– Communities agree to continue to provide support
Building Value: Cameco’s CR Model
Collaboration Agreements
16
Benefits Highlights
●Annual payments tied to production levels (not revenues)
– Step-scale model: the more we produce, the greater the payment
– Communities make their own investment decisions
– Signing/Milestone payments
●Primary focus still on jobs and contracts
●“Evergreen” contracts introduced
●Satellite offices
Building Value: Cameco’s CR Model
Collaboration AgreementsGreater certainty/ predictability for company
–Conditional community support pledged in agreements for existing and proposed activity
–Clarity on:
– types of activities that compel consultation
– which operations potentially impact which communities based on known info
–Sub-committees set up to standardize things like community engagement/ consultation generally
–Future operations may be folded in later by agreement
Building Value: Cameco’s CR Model
Cameco in Australia
The Kintyre Story
●Acquired project based on strong track record in working with local/indigenous communities
●Northerners from SK were our best ambassadors in agreement negotiations
– Martu Peoples trip to northern SK
●“Indigenous Land-Use Agreement” signed in late 2012
Building Value: Cameco’s CR Model
Cameco’s Approach to Relationships with Local Communities
● Thank you
● Questions?
● www.cameco/northernsk