Cameco Community Relations Report (1998)

Cameco Community Relations

Date: November 16, 1998 Prepared For: Ms. Rita Mirwald Senior Vice President Human Resources and Corporate Affairs Cameco Corporaton Prepared By: Wayne Dunn & Associates Canada Tel: +1-250-743-7619 Fax: +1-250-743-7659

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Cameco Community Relations (electronic version) November 16, 1998

i ACKNOWLEDGMENTS The following report was prepared based on interviews conducted with senior executives and managers of Cameco Corporation. A full list of the interviewees and the time and place of the interviews is contained in Section 9. The recommendations developed in Section 8 are based on our professional assessment of the situation. Although many of the recommendations are generally consistent with the thoughts expressed in the interviews. Without exception, everyone we interviewed was very open in their comments and generous with their time. While everyone was extremely helpful and supportive, there were a number of individuals who provided the logistical support and information that facilitated our work and made the task much easier. We would like to extend a special thank you to; Mr. Jamie McIntyre, Manager, Human Resources who was the key facilitator for the entire process; to Ms. JoAnne Arnold, who was always ready to drop whatever she was doing and assist us; and, to Ms. Julia Ewing, Manager, Northern Affairs, who organized and facilitated an extremely productive process in La Ronge. And finally, we would like to thank Ms. Rita Mirwald, Senior Vice-President, Human Resources and Corporate Relations for giving our firm the opportunity to work with Cameco in this exciting area. Any comments on this report can be directed to the writer at: Wayne Dunn Wayne Dunn & Associates 2457 Bakerview Rd Mill Bay, BC V0R 2P0 CANADA Tel: 250-743-7619 Fax: 250-743-7659 Email: [email protected]

http://www.waynedunn.com/

mailto:[email protected]

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ii TABLE OF CONTENTS

i Acknowledgments ..................................................................................................... i

ii Table of Contents ..................................................................................................... ii

1 Executive Summary ................................................................................................ 1 1.1 NORTHERN SASKATCHEWAN COMMUNITY RELATIONS ................................................... 1 1.2 CORPORATE WIDE COMMUNITY RELATIONS ISSUES ........................................................ 2

2 Introduction and Background ................................................................................ 4 2.1 BACKGROUND – A SHORT GLOBAL PERSPECTIVE ON COMMUNITY RELATIONS ............. 4 2.2 TERMS OF REFERENCE ....................................................................................................... 5

3 Methodology ............................................................................................................. 5 3.1 RESEARCH METHODOLOGY ............................................................................................... 5 3.2 DEVELOPMENT TECHNOLOGY SYSTEM© .......................................................................... 6

3.2.1 Corporate Ethos ........................................................................................................ 6 3.3 CONSTRUCTIVE INTERACTIONS ......................................................................................... 7

3.3.1 Measuring, Monitoring and Reporting ...................................................................... 8

4 Community Relations Programs and Initiatives in Northern Saskatchewan .... 8 4.1 PROCUREMENT ................................................................................................................. 9

4.1.1 Northern Business Development ............................................................................... 9 4.2 EMPLOYMENT ................................................................................................................ 13

4.2.1 Northern/Native Employment .................................................................................. 14 4.2.2 Northern Summer Student Program ........................................................................ 18

4.3 CAPACITY DEVELOPMENT ............................................................................................ 19 4.3.1 Multi-party Training Plan (MPTP) ......................................................................... 19 4.3.2 Junior Achievement - The Economics of Staying in School .................................... 20 4.3.3 Cameco Access Program for Engineering and Science (CAPES) ........................... 21 4.3.4 Northern Scholarship Program ............................................................................... 22

4.4 TRAINING AND EDUCATION ........................................................................................... 23 4.4.1 Athabasca Education Awards .................................................................................. 23

4.5 LEVERAGING RELATIONSHIPS ...................................................................................... 24 4.5.1 Athabasca Working Group ...................................................................................... 24 4.5.2 Environmental Quality Committees (EQC) ............................................................. 26 4.5.3 Northern Liaison Committee ................................................................................... 27

4.6 GRANTS AND DONATIONS .............................................................................................. 28


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4.6.1 Educational School/Community Tours of Northern Operations ............................. 28 4.6.2 Corporate Donations and Sponsorship Program .................................................... 30

5 Summary of Internal Interviews .......................................................................... 31

6 Analysis of Programs and Initiatives in Northern Saskatchewan .................... 33 6.1 OVERALL ANALYSIS ........................................................................................................ 34 6.2 CORPORATE ETHOS ......................................................................................................... 34 6.3 CONSTRUCTIVE INTERACTIONS ....................................................................................... 36

6.3.1 Program Placement on the Interaction Continuum© ............................................... 36 6.4 MEASURING AND MONITORING ....................................................................................... 39

7 Observations .......................................................................................................... 39 7.1 ON COMMUNITY RELATIONS IN NORTHERN SASKATCHEWAN ....................................... 39 7.2 ON COMMUNITY RELATIONS GENERALLY ...................................................................... 40

8 Recommendations ................................................................................................. 41 8.1 RECOMMENDATIONS – NORTHERN SASKATCHEWAN PROGRAM .................................... 41 8.2 IMPLEMENTATION AND STRATEGIC STEPS ...................................................................... 43

9 List of Interviewees ............................................................................................... 44 9.1 CAMECO INTERVIEWEES .................................................................................................. 44 9.2 NON CAMECO INTERVIEWEES ......................................................................................... 45

List of Figures and Graphs DEVELOPMENT TECHNOLOGY MODEL ........................................................................... 6

INTERACTION CONTINUUM .............................................................................................. 7

CAMECO PURCHASES FROM NORTHERN SUPPLIERS – 1991-98 ................................... 12

ABORIGINAL EMPLOYMENT - PERCENTAGE OF WORKFORCE 1989-98 ....................... 16

NUMBER OF ABORIGINAL EMPLOYEES - 1989-98 ......................................................... 17

PLACEMENT OF PROGRAMS ALONG THE INTERACTION CONTINUUM ......................... 37


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1 EXECUTIVE SUMMARY Cameco contracted Wayne Dunn & Associates to undertake a review of its community relations programs and activities in Northern Saskatchewan. The purpose of the review was to assist Cameco to build from its Northern Saskatchewan experience and to more effectively manage community relations throughout the corporation. The project was conducted through interviews (internal and external) and through a review of relevant internal documents and information. The analysis was undertaken using the Development Technology System©1 developed by Wayne Dunn & Associates. Public and community relations is growing in importance for the mining industry. Communities are playing an increasingly important role in mineral exploration and development projects. Without a ‘local license2’ there is an increased risk that community opposition will add cost and complexity to projects (and even force abandonment in some instances). The international media and a growing number of non-Governmental Organizations are monitoring corporate/community relationships and are quick to bring problems and issues to public attention. This is especially significant for Cameco, as problems associated with Cameco activities anywhere in the world can increase international scrutiny of uranium mining activities in Northern Saskatchewan.

1 The Development Technology System is explained in detail in Section 3.2 2 This is a term coined by the International Finance Corporation to refer to the need for a level of community acceptance of a project.

The review and analysis concluded that, while Cameco is, essentially, doing a very effective job of managing community relations in Northern Saskatchewan, it does not appear to have a system to ensure that community relations are managed effectively in other areas where the company operates. As well, the analysis noted some specific opportunities to improve Cameco’s community relations program in Northern Saskatchewan through a more standardized approach to managing the process. The following two sub-sections briefly outline the analysis and recommendations for Cameco’s community relations efforts in Northern Saskatchewan and also those of a more corporate-wide nature.

1.1 Northern Saskatchewan Community Relations

While Cameco’s community relations program in Northern Saskatchewan is undoubtedly one of the most successful examples of mining/community relations anywhere in the world, there are opportunities to enhance it and make it easier for the company to build from the Saskatchewan experience and standardize community relations throughout worldwide operations. There is an inconsistent level of understanding of the importance and the scope of community relations. This can become divisive if the lack of understanding causes resentment towards the preferences given to Northern workers and suppliers. Cameco may wish to consider efforts to ‘socialize’ community relations throughout the organization through activities such as:


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• Communications Materials –

developing and using materials to effectively communicate what Cameco is attempting to accomplish in community relations and why it is important. This material should be aimed at both internal and external audiences;

• Orientation of Workers and Contractors – We suggest that information on Cameco’s commitment to Northern people and communities be a standard component of the briefing and orientation of all new workers and contractors, much the same as safety and environmental issues currently are;

• Focal Point for Community Relations – Cameco does not presently have an ‘organizational home’ for community relations. Although this is not currently a major problem, it will likely become more problematic as Cameco moves forward with standardizing community relations. If a focal point is established, it is important to ensure that community relations programs are still ‘owned’ by the responsible departments (i.e. Northern procurement with purchasing).

The analysis also indicated that Cameco has developed a comprehensive set of actions that interact directly with Northern communities and people. While the various programs were developed from an ad-hoc

approach, they have evolved to the point where they now form an inter-related system, with programs such as pre-employment training and the multi-party training program being crucial to the success of the Northern/native employment program. Several of the programs, most notably the Northern/native employment program and the Northern business development program, have measuring and monitoring processes that are well structured and are integrated into Cameco’s management evaluation program. Many of the other programs are not systematically reported on or monitored. As well, there is not an overall measuring and monitoring process in place to evaluate the overall community relations effort. Failure to effectively measure and monitor community relations programs, and the community relations effort as a whole, may reduce the effectiveness of Cameco’s investments in this area. Therefore, Cameco may wish to consider implementing a systematic method for measuring and reporting on all individual community relations programs and for the entire set of community relations efforts.

1.2 Corporate Wide Community Relations Issues

Senior executives and managers throughout Cameco share an understanding of the importance of community relations to Cameco’s ongoing operations. Recent events at the Kumtor operation have helped to illustrate the need for effective community relations throughout Cameco’s operations.


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While various departments are impacted in different ways, all identified direct impacts that could or did result from community relations problems. Potential problems that were cited included:

• Difficulties with lenders; • Difficulties with shareholders; • Erosion of management credibility (external perception); • Difficulty accessing exploration opportunities; • Decreased staff morale; • Long term loss of goodwill; and, • Problems in certain markets (Sweden, Finland, Japan);

The bottom line result of these problems could be:

• Depressed share prices; • Increased risk profile difficulties accessing capital higher cost of capital; • Reduction in productivity increased operating costs; • Increased exploration cost; and, • Potential to lose some key markets

There was a consensus that strong steps should be taken to minimize the potential for future community and public relations problems such as what occurred at Kumtor. While the community relations program in Northern Saskatchewan is world class, there is no structure or standard in place to ensure that it is replicated elsewhere in Cameco’s operations. Every executive we interviewed strongly supported the standardization of community relations across Cameco’s operations. Public and community relations will become increasingly important for the mining industry. Local communities and activist Non-Governmental Organizations

(NGO) play an increasingly powerful role in the resource development process. This is especially true for Cameco, a uranium-mining company that will be operating in the shadow of the Kumtor spill for years to come. We recommend that Cameco consider the following strategic steps now to position the company as a leading edge international mining company and to recover from the impact of the Kumtor spill. Standardize community relations – It was the consensus of those interviewed that this is simply too important an area to be without a corporate-wide standardized approach to guide individuals, departments and operations. As a starting point, it may be worthwhile to consider establishing a department/office that is a focal point for community relations and other sustainability issues such as environmental stewardship, social responsibility and corporate ethics. Strategic Collaboration – many national and international institutions (World Bank, CIDA, United Nations agencies, etc.) are potential collaborators in community relations efforts in various areas where Cameco operates. As well, Cameco can build on its experience in working with NGOs in Northern Saskatchewan to establish linkages into the international NGO community. Collaboration with these institutions and NGOs leverages and increases the return on Cameco’s direct community relations investment. Additionally, it can help to prevent the type of solitary exposure that occurred in Kyrgyzstan and help to provide the effective communications networks that are necessary for an international company.


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Communication and Relationship Building – the profile that recent events have given Cameco, can help to effectively communicate the new steps Cameco is taking to manage community relations and sustainability issues. Cameco may wish to consider making a series of presentations at institutions such as the World Bank, International Finance Corporation (IFC) and United Nations Development Program (UNDP) to highlight internal actions (i.e. standardizing community relations, dealing with other sustainability issues, community relations successes in Northern Saskatchewan, etc.). This would help to increase confidence in Cameco and begin building relationships that are necessary for an international mining company operating in today’s climate. Ongoing Information and Networking – It is important for Cameco to have regular information flow from an ever-expanding international network in the area of sustainable development.

2 INTRODUCTION AND BACKGROUND

2.1 Background – A Short Global Perspective on Community Relations

The mining industry is entering a new era, one in which public and community relations will become increasingly important. Trade and investment liberalization has opened many new countries and areas to mineral exploration and development – often-remote areas that have never before been explored with modern technology and that are populated

with economically marginalized people. At the same time, environmental and regulatory frameworks and licensing/permitting procedures, combined with the ubiquity of the global media and the growth of the Internet, are focusing increased attention on the interface between local communities and mining and exploration activities. This gives local communities and activist NGOs an increasingly powerful role in the resource development process. This influence will likely intensify with the next upswing in mineral prices. As prices rise, a large volume of projects in the newly explored areas will become economically viable and will begin gearing up to enter production – all under increasing scrutiny of the global media, anti-mining activists and the very influential NGO community. The volume of projects under development will result in numerous instances of environmental and community problems arising. These issues will be quickly brought to the attention of the world. It is likely that the number of problematic situations, coupled with an increasing global focus on environmental and social/community issues, will heighten public concern over the mining industry as a whole. This will focus increased attention on the industry and on environmental and social problems at various project sites. A critical skill for resource companies in this new environment will be the ability to interact effectively with local communities and the international community. Without this skill, companies will experience rising costs and falling profits as local hostility creates delays and adds complexity to their operations. The ability of communities and media to quickly bring local issues to international attention will increase the risk


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of local problems impacting Cameco’s activities worldwide. Conversely, companies that are known for their ability to develop projects in ways that value and benefit communities will become desirable partners as communities begin to play a role in determining who will be allowed to develop local resources. Despite current difficulties, Cameco is well positioned to thrive in this new environment. The Northern Saskatchewan operations are arguably the best in the world at collaborating with local communities to leverage exploration and mining activities for creating meaningful and sustainable local benefits. The recent developments at Kumtor have created an internal awareness of the importance of community and public relations that can be used to Cameco’s benefit. Unfortunately, Cameco’s profile after the Kumtor spill, coupled with its position as a leading uranium producer, has also increased the potential damage that could accrue from future environmental and social problems. Prior to the Kumtor spill Ms. Rita Mirwald (Senior Vice-President, Human Resources and Corporate Relations) and Mr. Jamie McIntyre (Manager – Human Resources) contracted Wayne Dunn & Associates to undertake an analysis and assessment of Cameco’s community relations efforts in Northern Saskatchewan.

2.2 Terms of Reference The terms of reference for the project were:

(a) Review and analyze Cameco's community relations programs in Northern Saskatchewan.

(b) Prepare a report detailing the results of the analysis of Cameco’s community relations programs in Northern Saskatchewan.

(c) With a focus on international projects, comment on the potential for Cameco to make strategic use of community collaboration to enhance opportunity acquisition activities.

The original contract start date of May 1998 was postponed due to issues arising at Cameco’s Kumtor operation in Kyrgyzstan. The community relations problems at the Kumtor mine resulted in an expansion of the terms of reference to include recommendations on how Cameco should approach the issue of community relations on a global basis.

3 METHODOLOGY

3.1 Research Methodology Research was conducted during three visits to Cameco’s operations in Saskatoon (July, August and September) and two visits to La Ronge. Executives, managers and a Board Member from Cameco were interviewed. As well, a number of government officials from Northern Saskatchewan were interviewed. (See section 9 for details) Corporate documentation pertaining to community relations was also reviewed. Cameco managers responsible for community relations programs in Northern Saskatchewan completed the Development Technology Analysis Sheet for Community Relations Programs and Initiatives for


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individual community relations programs. The individual program sheets were then reviewed with Mr. Jamie McIntyre and amended to include additional information as necessary. Cameco’s community relations activities in Northern Saskatchewan were then analyzed using the Development Technology System© (See below for details on this system). The results of this analysis are contained in Section 6. The analysis produced a number of specific recommendations which are contained in section 8. Based on information gathered from internal interviews with Cameco executives

(See section 5 for details) and building from Cameco’s and Wayne Dunn & Associate’s experience and knowledge on community relations, a strategic action plan was developed for a corporate approach to effectively managing community relations (See section 8 for details).

3.2 Development Technology System©

The analysis of Cameco’s community relations efforts in Northern Saskatchewan was carried out using our Development Technology© methodology. The methodology focuses on three critical aspects of the management of corporate/community relations and enables a standardized evaluation of how a corporation manages the interface between its operations and local communities.

Fig. 1: Development Technology Model

There are three basic components to the Development Technology methodology:

(a) Corporate Ethos – reviewing the ability of a corporation to work effectively in diverse cultural settings.

(b) Constructive Interaction - the range, frequency and intensity of interactions between the corporation and the community.

(c) Measuring, monitoring and evaluating the impact of corporate/community interactions.

3.2.1 Corporate Ethos Effective community relations demands that the corporation, its personnel and sub-contractors have the capacity, the desire and the tools to bridge cultural and capacity gaps that often separate them from local communities. The ability to effectively communicate and interact across diverse

Corporate Ethos

Constructive Interaction

Measuring & Monitoring

Firm

Development Technology© A 360o System


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cultures is an essential skill set for both executives and front line technicians in a modern resource company. Without these skills, it is nearly impossible to establish a systematic process for creating and maintaining good community relations.

Evaluation of the corporate ethos includes an assessment of the firm’s current capacity in this area; existing programs, activities and resources that support this competency and any special issues pertaining to the where the operation(s) are located.

3.3 Constructive Interactions

Figure 2: Interaction Continuum

The interactions that occur between a corporation and local communities are the most crucial component of a community relations strategy. There is a series of potential interactions that can have varying impacts on the community and its relationship with the corporation. They range from a ‘beads ‘n trinkets’, paternalistic approach, with a strong emphasis on donor/recipient relations, through to more mutually beneficial interactions that facilitate the development of constructive and sustainable relationships. An effective and sustainable community relations program will have a comprehensive mix of inter-related initiatives at various points along the continuum. Often there are huge capacity gaps that must be transcended before local communities can become more constructively involved in resource projects. Programs at higher points on the continuum can be very dependent upon the impacts of programs at other levels (i.e. training and capacity development programs are often necessary to support

employment and procurement efforts). As well, there is often other development interests that are willing to assist financially and operationally in developing various interactions and programs. Cameco’s various community relations programs will be assessed and placed at appropriate locations along the Interaction Continuum. As well the integration of the programs (the use of one program to enhance the effectiveness of another) will be analyzed. It is expected that some programs will ‘fit’ into more than one grouping on the continuum.

Beads & Trinkets

Partnering

Employment

Leveraging Relationships

Grants & Donations

Training & Education

Capacity Development

Procurement

Fig. 2: Interaction Continuum©

Com

mun

icat

ion

& C

onsu

ltatio

n


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3.3.1 Measuring, Monitoring and

Reporting In order to maximize the effectiveness of community relations investments, it is important to implement a comprehensive measuring, monitoring and reporting program and to integrate it into existing management and contractor evaluation processes. The assessment will evaluate the extent to which Cameco systematically measures, monitors and evaluates community relations programs and activities.

4 COMMUNITY RELATIONS PROGRAMS AND INITIATIVES IN NORTHERN SASKATCHEWAN

Cameco’s community relations programs were analyzed using the Development Technology methodology discussed in the previous section. The programs were grouped in appropriate categories along the Interaction Continuum (see Section 6.3.1 Figure 6, p37). Many of the programs ‘fit’ into two or more groupings. The following descriptions of the individual programs are organized based on the order in which they were first placed on the Interaction Continuum. A complete listing3 of all programs is:

3 Programs that are associated with more than one grouping on the Interaction Continuum are only listed in the first grouping in which they were placed. For a complete listing of all programs in each grouping, see Section 6.3.1, Program Placement on the Interaction Continuum.

Procurement • Northern Business

Developmen

Employment • Northern/Native Employment • Northern Summer Student

Program

Capacity Development • Multi-party Training Plan

(MPTP) • Junior Achievement - The

Economics of Staying in School

• Cameco Access Program for Engineering and Science (CAPES)

• Northern Scholarship Program

Training and Education • Athabasca Education Awards

Leveraging Relationships • Athabasca Working Group • Environmental Quality

Committees (EQC) • Northern Liaison Committee

Grants and Donations • Educational

School/Community Tours of Northern Operations

• Corporate Donations and Sponsorship Program

Note: Pre-Employment Training, a

workforce preparation program, is not listed above because it is not a stand-alone program, but an integral component of both the Northern/Native Employment Program and the Multi-Party Training Plan.


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The following section presents detailed descriptions of the programs and initiatives

listed above.

4.1 Procurement 4.1.1 Northern Business Development

Description To select and develop Northern suppliers and contractors to provide goods and services to Cameco’s operations. Also the program is beginning to address assisting Northern suppliers to lessen their dependence on Cameco.

Objective To facilitate the establishment and development of successful Northern businesses and to familiarise Northern businesses with the Purchasing and Transportation department at Cameco

Responsibility • The Purchasing and Transportation Department

• Northern Affairs Department

History The focus on Northern business development was present prior to the creation of Cameco in 1988. It was driven by a number of factors including the surface land use agreement, the need for local support in the permitting and regulatory process and by Cameco executives and managers who recognised its importance.

The focus on developing Northern suppliers has matured over time. Initially it was quite easy to qualify and many early attempts at partnerships between a southern contractor and a Northern partner did not produce the Northern benefits that were hoped for.

There has been an increasing emphasis on developing Northern businesses that benefit Northerners, measuring and monitoring Northern employment and benefits that are provided by Northern businesses (and other suppliers as well).

Also, there is a growing sophistication to the Northern business development program, a full time position has recently been created and the objectives of the program are fully incorporated into the strategic planning process and into CAMECO’s Performance Management Program.

Originally it was coordinated through Northern affairs and purchasing departments. As the volume increased and the complexity of the requirements increased it demanded a more strategic control of the program and the Superintendent of Northern Purchasing and Transportation position was developed. Currently this position has first line responsibility for this function.

Budget It is difficult to determine the overall budget for this program. There is a new staff position, Superintendent of Northern Business Development and Transportation that is dedicated to the program. Also, the program has


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mindshare from other managers such as the Director of Purchasing, who reports on the program at monthly management committee meetings. As well, it is recognized that there are additional costs to developing Northern suppliers, especially in the initial years as they develop the capacity and expertise to compete on a cost basis with more experienced southern suppliers.

Success Indicators Measuring and Monitoring

There is a well-developed measuring and monitoring process for this program. It is fully incorporated into the MAP process with annual dollar targets established and progress reported on monthly. Key success indicators are:

• Dollar value of Northern purchasing

• Northern/native employees working for contractors

• Number of Northern and native suppliers

A committed focus on Northern procurement has produced some impressive results.

The current target is to procure 35% of total purchases in support of Northern mining operations from Northern suppliers Northern purchasing has steadily surpassed target levels. In 1991 the target was $10 million and the actual procurement was $10.6 million. In 1998 the target for the entire year is $67 million and, as of August 31 Northern purchasing has already reached $62.2 million. During this time the number of Aboriginal suppliers has risen from 6 in 1991 to 26 in 1998. The chart on the following page provides additional detail.

Northern purchasing has a direct impact on Northern employment. In August 1998 of the 554 contract employees reporting to Cameco sites (this doesn’t include NRT and other off site) 321 were Northerners and 275 are aboriginal

In addition to measuring the dollar value of Northern procurement, the program also tracks Northern employment and other Northern benefits that flow from this initiative.

Community Benefits

Communities benefit directly from this program. Local businesses are supported (and often created) as a direct result of the program. Northern suppliers are required to employ local Northern people, thus supporting the local economy. Cameco’s focus on Northern suppliers puts salary and profit into the economies of Northern communities and helps increase Northern business’ capacity to capture other opportunities.

There is an important psychological benefit for communities when they have the competent, highly visible entrepreneurs (community capacity)


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Other Comments and Information

Cameco has actively facilitated the creation of joint ventures between Northern contractors and traditional suppliers of goods and services. This approach, originally developed with the Kitsaki/Trimac joint venture to form NRT Trucking, has proven to be a successful method of enabling Northern suppliers to bridge capacity gaps that prevent them from moving into some business opportunities. Cameco has used this approach to develop Northern suppliers for underground mining services, catering, sophisticated engineering and construction and other services that the Northern business community did not have the capacity to develop on its own.

Cameco is beginning to take a proactive role in supporting Northern businesses beyond simply assisting them to supply goods and services to Cameco’s operations. One issue that is looming is the slowdown in Northern procurement that will occur when the current construction phase winds down. There is currently some internal thinking to address the issue proactively by bringing major Northern industrial interests (Weyerhaeuser, Sask. Power, Sask. Tel, other mines, Sask. Highways, etc.) together in a Northern procurement committee. This committee could then share information about opportunities and about supplier capacity.

Other issues that have been identified include the need for closer linkages between the Northern business development program and other groups that support Northern business development. As well, there is interest in promoting increased internal involvement in the program and in facilitating training support for Northern suppliers.

Partners The managers of the program work closely with other mining interests in the region. As well, they are establishing linkages with other associations and agencies such as the Inter-provincial Association on Native Employment, the Northern Labour Market Committee and various organisations that support Northern and Aboriginal businesses (Sask. Northern Affairs, Aboriginal Business Canada, Sask. Power Northern Enterprise Fund, etc.)

Business and employment reporting is now part of the surface lease agreements. It is necessary to report Northern business and employment statistics and to forecast business opportunities. Northern procurement and hiring is part of the basis of a partnership with governments, assisting them to allocate Northern development resources in a more targeted and focused way.

As noted previously, the program managers are considering spearheading the establishment of a Northern industrial procurement committee.


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Figure 3: Cameco Purchases From Northern Suppliers – 1991-98

Cameco Purchases from Northern Suppliers

$60

$80 $90

$100

Pur

chas

es (

mill

ions

)

Projected Value

Aboriginal Suppliers

(millions)

$- $10

$20 $30

$40 $50

$70

$10.0 $12.5 $20.0 $25.0 $30.0 $36.6 $58.0 $67.0 Actual Value $10.6 $16.7 $22.8 $27.9 $44.5 $44.1 $74.5 $93.3

6 8 10 12 15 20 21 26

1991 1992 1993 1994 1995 1996 1997 1998

The above chart displays the growth in Cameco’s purchases of goods and services from Northern Saskatchewan suppliers and demonstrates that there has been a steady growth in the number of northern suppliers. As well, it illustrates how Cameco has exceeded Northern procurement targets in every year since 1991.


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4.2 Employment


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Northern/Native Employment


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Description A comprehensive set of inter-related initiatives to increase Northern and native employment in Cameco’s operations

Objective To increase the total number of Northern and Native people employed at Cameco’s operations and to increase the percentage of Northern and Native people employed in supervisory and technical positions.

Responsibility Responsibility is dispersed throughout the Human Resources and Operations Management departments. Individual managers and supervisors have responsibility for meeting objectives and targets integrated into their overall objectives and evaluations.

History Northern and Native employment objectives were included in the recommendations of the Bayda report, which supported the development of Key Lake and the Northern Saskatchewan Uranium industry. Initial efforts at meeting Northern employment targets were largely unsuccessful due to low Northern literacy rates, lack of Northern capacity and industry’s lack of expertise in developing the Northern workforce. Employment quotas were removed from Surface Leases on the condition that companies would enthusiastically endorse ‘best efforts’ to increase Northern and native employment. This proved to be a key turning point. A number of ad-hoc programs and initiatives by Cameco and others in the industry attempted to increase Northern employment. While there was some initial success the real turning point came with the introduction of the multi-party training program (see separate description). This plan systematically addressed capacity development and collaboration in a way that enabled both an increase in the number of Northern/native employees and an increase in the supervisory and technical level positions filled by Northern and native personnel. It should also be noted that an early attempt at collaboration, the Northern Mine Co-ordinators group brought together industry, government and some community interests on an informal basis. This group met quarterly, shared information and helped to spearhead some initiatives such as the initial underground mining training program.

Budget There is no direct budget for Northern/native employment. The initiative is completely integrated into Cameco’s human resource management processes.


The key success indicators are the number of Northern and native people employed at Cameco’s operations and the growth in occupational groupings as Northern and native people increase their representation in technical, trade and managerial occupations.

Community Benefits

• Salaries earned by local employees • Increased focus on education (many employees are upgrading their own

educational levels and this helps to develop a family/community culture supporting increased education)


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• Increased community education levels (through on the job training and development) increase the overall capacity of the community


• The 7 in 7 out work schedule and aircraft commuting system has enabled Northern and native employees to maintain employment and retain time for traditional hunting, and other traditional activities

• The Northern employment database helps with screening and targeted recruitment. Cameco collaborates with Cogema on the database

• Cameco is beyond reacting to the Northern labour force – now managing it. Human Resource management has moved to external focus

• Employees from over 20 Northern communities • Employment increases through hiring and also through purchasing (see

Northern business development program) • Northern/native employment has gone from a legal obligation dictated

by the surface land use agreements to a corporate mission that is even reflected in vision and values statement and in corporate policies

• Cameco’s payroll to Aboriginal employees is over $20 million per year. • There is a strong focus on the need to move beyond entry level positions

(workplace literacy) • There are supervisory development programs to identify and develop

aboriginal supervisors • Cameco has been able to secure union co-operation – every second

apprenticeship to Northerner of aboriginal descent. • The development of pre Employment training programs significantly

enhanced the ability to recruit and retain Northern/native employees. • Strong collaboration with others in industry, with federal, provincial and

local governments and other stakeholders to get major initiatives in place. Collaboration is so strong that Cameco has even trained employees specifically for competitors

• Northern employment conditions have been written into contracts with suppliers

Partners Partners and collaborators include; • Federal, provincial and local government departments • Aboriginal organisations • Unions • Other mining companies

Figure 4: Aboriginal Employment - Percentage of Workforce 1989-98


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Figure 5: Number of Aboriginal Employees - 1989-98

The above graph demonstrates the effectiveness of Cameco’s efforts to increase the percentage of Aboriginal people employed in the company’s operations.

Cameco Aboriginal Employment(includes permanent contractor workforce)

29% 30%

34%

37% 37%39%

42% 42% 43% 44%

20%

25%

30%

35%

40%

45%

50%

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

The graph to the left portrays the success of Cameco’s efforts in increase the number of Aboriginal employees in the workforce. The dramatic increase in employees between 1996 and 1997 is due to the beginning of construction at McArthur River.

Aboriginal Employees at Cameco(includes permanent contractor workforce)

166 178204

231 251 274299 319

492

557

0

100

200

300

400

500

600

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Num

ber o

f Em

ploy

ees


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4.2.1 Northern Summer Student Program Description A select group of students are employed for the summer at one of Cameco’s

Northern mines. Special (but not exclusive) consideration will be given to students interested in pursuing careers related to the mining industry.

Objective Cameco can utilize this opportunity to educate students about the mining and uranium industry and perhaps encourage students to pursue a career in mining.

Cameco’s summer employment program is designed to: • Educate students about the mining and uranium industry. • Enable the corporation to undertake special projects which can be done

by students. • Provide relief coverage when regular employees take their holidays

throughout the summer. • Assist students to gain experience in their chosen field of study. • Provide students with job related experience and assists them financially

so that they may continue to finance their education. Responsibility Cameco’s Northern Affairs Officer

History This program has been in place since Cameco’s inception in 1988.

Budget Each Dept/Site is responsible for their summer student program i.e. salaries, medicals, accommodation, etc.


Success indicators include: • Number of applicants • Program participants who work with Cameco upon graduation

Community Benefits

• Provides summer employment for students • Provides students with

- On the job education - Employment - Experience.


Students will be limited to 2 terms (summers) of employment with Cameco to ensure that a greater number of students are provided the opportunity to gain experience directly related to their area of study. The exception will be students who are in non-traditional areas of study and have been targeted as future full time employees by a site or a department, particularly in an advanced professional occupation.

To qualify, students must: • be 18 years of age • be in good physical health (a pre-employment medical is required). • have been a resident of Saskatchewan’s North for at least five years


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prior to applying (northern residents attending school in the south still qualify).

• Submit a verification of enrolment in school. • Submit a verification of anticipated enrolment for the following

school year.

4.3 Capacity Development 4.3.1 Multi-party Training Plan (MPTP)

Description The goals are to: • enhance the potential for economic development of the communities of

Saskatchewan’s North • maximize the employment and economic opportunities for people of the

communities of Saskatchewan’s North deriving from the activities of the mineral industry in the North.

Objective To assist Northerners in upgrading their skills to meet the requirements of the mining industry and gain employment in the industry

Responsibility The Mineral Sector Steering Committee co-ordinates the implementation of the MPTP.

History Multi-party Training Plan I (1993-1998) Multi-party Training Plan II (1998-2003)

Budget • Plan I - $10.5 million • Plan II - $13.0 million Cameco’s total contribution to this program has been $2.5 million. Contributions for recent years are: • April 1995 to March 1996 - $418,698 • April 1996 to March 1997 - $334,985 • April 1997 to March 1998 - $424,440

A small portion of these costs were direct cash expenses. The remainder were indirect costs such as flights to and from minesites, supervision, supernumerary positions and training expenses.


A key success indicator is the increase in the number of Northern residents of Saskatchewan holding technical and supervisory positions in the mining industry. The program has elaborate measuring and monitoring processes that enable tracking of students and impacts. Additionally, a comprehensive review of the program was conducted in 1998. The Department of Indian and Northern Affairs has noted that this program created a 4-500% higher rate of Aboriginal participation in the industry than other plans/initiatives

Community Benefits

More Northerners are able to gain employment in the mining industry; not only in entry-level positions but in technical, trade, supervisory and professional positions. The training helps to minimize many of the barriers preventing full participation of Northerners.


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Courses include: • Radiation/Environmental Tech • Workplace Ed/Literacy • Adult 12/Pre-Technologies • Geophysics • Ecological Technician • Chemical Technician • Instrumentation Technician • Underground Mining • Truck Driver Training • Apprenticeship Training • Work placements An evaluation titled Summative Evaluation of the Multi-party Training Plan 1993-1998 was completed in April 1998 by the Business Advisory Services from the College of Commerce at the University of Saskatchewan.

Partners Training Program partners include:: • The Province of Saskatchewan • The Government of Canada • The Prince Albert Grand Council • The Meadow Lake Tribal Council • The Metis Nation Training and Education Authorities • The Northern Mining Industry (Cameco, Cogema, and Cigar Lake)

4.3.2 Junior Achievement - The Economics of Staying in School Description A series of four classroom activities designed to help students understand

the importance of an education and the personal and economic costs of dropping out of school.

Objective To encourage students to examine their future and to understand the connection between education and future economic opportunities.

Responsibility Larry Chrispen and the Northern Affairs Department

History Started in ‘97-’98 with four schools in the North as a pilot project

Budget For ‘98-‘99 the cost was $35,000 shared between Cameco and Cogema. Success Indicators Measuring and Monitoring

Yearly suggestions from student participants, educator/volunteer participants, Northern development co-ordinator and JA president on program successes and how the program could be improved.

Community Benefits

Encourages students to remain in school, increasing the overall education level of the community.


The program was specially developed for delivery to Aboriginal students in Saskatchewan’s north. It is expanding in ‘98-‘99 to include delivery of the program to 10 Northern schools


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Partners • Junior Achievement Organization • Various School Divisions • Cogema

4.3.3 Cameco Access Program for Engineering and Science (CAPES)

Description An agreement between Cameco and the University of Saskatchewan Objective • increase awareness and knowledge in the general areas of science,

technology and engineering among elementary and secondary students in remote centres of Saskatchewan

• supporting the pre-entrance training needs of rural and, in particular, Northern aboriginal students

• consulting with elders, community leaders, K-12 and post-secondary educators in Northern Saskatchewan

• collaborating with other institutions, engineering colleges, and multimedia and distance education centres to develop a comprehensive assessment of teaching materials and methodologies

• providing academic, cultural and social support for students at the U of S that includes individual counselling and tutoring

• providing teaching support to the instructors involved with the program Responsibility • Jamie McIntyre and Roger Francis (Internal)

• Harold Schultz, Cameco advisor to the CAPES board • CAPES advisory board

History An agreement between Cameco and The University of Saskatchewan which came into effect June 1, 1997. A program organized under the umbrella of the College of Engineering’s Innovative Teaching and Learning Centre.

Budget • $1,000,000 over 5 years - 1997/98 approved expenditures - $291,972 - 1998/99 approved commitments - $57,329


Success will be an increase in the number of students enrolling in and completing science and math post-secondary training. Ultimately, success will be a pool of Northern Saskatchewan expertise in science and engineering.

Community Benefits

• Sci-Fi Camps • university math/science/engineering classes offered in Northern Sask. • more emphasis in K-12 on science and math


• Development of computer based foundations course in mathematics and math readiness course

• Have held two Northern conferences on math/science education Partners • Cameco,

• College of Engineering, • NORTEP/NORPAC, • Northlands College, • Post-Secondary Education and Skills Training


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• Ile a la Crosse School Division • University of Saskatchewan – College of Engineering/Extension

Division • Northern Lights School Division

4.3.4 Northern Scholarship Program Description Cameco recognizes the value of a post-secondary education and supports

Northern Saskatchewan students in their efforts. Winners are selected based on academic standing, residency and career interest. Special (but not exclusive) consideration will be given to applicants pursuing careers related to some aspect of the mining industry.

Objective To enhance post-secondary education opportunities for students of Saskatchewan’s north, by providing financial assistance in the form of scholarships.

Responsibility Cameco’s Northern Affairs Officer is in charge of the program, however, applications are also reviewed by a selection committee of members from Cameco, Saskatchewan Education - Northern Division, Northern Lights School Division, and Prince Albert Grand Council.

History This program has been in existence since Cameco’s inception in 1988.

Budget • Scholarships of up to $5,000 each are awarded to select qualified applicants enrolling in a university degree program

• Cameco awards scholarships of up to $3,000 each to select applicants who are entering trades or technical training at a recognized technical institute.


• Increases in the number of Northern students enrolling in math and science related courses and in technical and professional.

Community Benefits

• Recognising the academic achievements of Northern students at the post-secondary level on an annual basis provides incentive to Northern students.

• Increasing the education level of Northern residents

• Increasing the academic performance of Northern students.


• Applicants must have lived in Saskatchewan’s north for at least five years immediately prior to applying. Students who normally reside in this region but are attending school in the south are also eligible.

• Recipients of other scholarships are eligible, but in such cases Cameco’s scholarship is reduced by the amount that the other award exceeds $1,000.

• Applicants must meet the entrance requirements of, and plan to attend, a


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university or technical institute in Saskatchewan, unless the desired program of study is not available in this province.

• Those applying for renewal must maintain at least a 75% academic average and be eligible to progress to the next year of a program which is acceptable to the selection committee.

Partners N/A

4.4 Training and Education The CAPES Program and the Northern Scholarship Program are both training and education programs and capacity development programs. They are described in detail in the previous section. 4.4.1 Athabasca Education Awards

Description Approximately forty Northern Students are recognized annually for their combined achievements in the following areas: • Academic performance • Traditional cultural skills • School attendance • Athletics • Community service • Second language ability • Special talents and skills

Objective • To promote student achievement and academic success and to encourage students to graduate from Grade 12.

• To identify the wide rage of student achievement in the Athabasca region.

• To promote and reflect the unique cultural fabric of the Athabasca region.

Responsibility Cameco’s Northern Affairs Officer and a representative from Cigar Lake Mining Corporation and Cogema Resources.

History Originally started in 1989 by Cameco and Cigar Lake Mining Corporation, Cogema Resources joined the program in 1994.

Budget 1. In addition to monetary awards, the corporate sponsors (Cameco, Cigar Lake Mining and Cogema Resources) also provides each award winner with a non-monetary award to symbolise the students’ achievement.

2. Value of the Awards is as follows: • Grade 7 $100.00 • Grade 8 $150.00 • Grade 9 $200.00 • Grade 10 $250.00


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• Grade 11 $300.00 • Grade 12 $500.00

The awards must be used in a fashion that is most beneficial and suited to the recipients to further their education or individual interests such as sports, leisure activities or hobbies. Local education authorities will be responsible for ensuring that the recipients are guided by this principle.


The success of the Athabasca Awards Program are evaluated according to the following criteria: • Increased levels of academic achievement; • Increased student attendance rates and lower school drop out rates; • Evaluation data provided by participating schools.

Community Benefits

• Since the start of the Program in 1989, 382 recipients have received the Awards.

• It’s a stay-in-school initiative. • Lower dropout rate. • Recognizing the academic achievements of Northern students. • Recognizing and promoting traditional cultural skills.


Two awards are provided in Grade 7 through 12 in each community: • one award is provided to the students achieving the top academic

average in each class, Grade 7 through 12 in each school in the Athabasca Region. This award is called the Academic Award.

• one award is also provided to the student judged to be the top overall student in each class, (Grade 7 through 12) in each school in the Athabasca Region. This award is called the Athabasca Award.

• School principals are responsible for administering the program at the school level and for establishing a recipient selection process. Principals are requested to review program criteria with staff, students and community. The recipient selection process should include staff, administration and community members.

• A student is only eligible to receive one award - either the Academic or the Athabasca Award - per school year.

Partners • Cigar Lake Mining Corporation • Cogema Resources.

4.5 Leveraging Relationships The Multi-Party Training Plan, which was described in detail in Section 4.3 also classifies as a program in the Leveraging Relationships category. 4.5.1 Athabasca Working Group


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Description An agreement between the uranium mining companies and the Athabasca communities with respect to:

• Environmental protection, compensation and indemnification in the event of losses caused by emissions • Employment, training and business development opportunities; and • Benefit sharing

Related to the uranium mining projects of Rabbit Lake, McArthur River, Cigar Lake, Mclean Lake and Midwest Lake

Objective To negotiate conditions with respect to the three key issues noted above and to conclude with an Impact Management Agreement (IMA) signed between the Companies and the Communities

Responsibility The Athabasca Working Group (AWG) consists of members from the respective Companies and from communities in the Athabasca region.

History An Agreement-in-Principle was signed May 30, 1994. It is anticipated that the Impact Management Agreement will be signed in 1998.

Budget The cost of transporting, meals and accommodation of AWG members is divided equally between Cameco, Cogema and Cigar Lake. Industry’s total investment in the program to date is in excess of $200,000. (the costs were much higher prior to 1996 during the hearing process). Cameco’s share of costs in the past two years has been • 1996 - $14,670 • 1997 - $32,081


A variety of parameters including: • number of employees at the mine sites from the Athabasca region; • quality of the relationships with the communities • acceptance by elders in the communities • acceptance by participating companies • successful negotiation of an Impact Management Agreement • donation and sponsorship dollars invested in the Communities

Community Benefits

• strategy in place if environmental damage occurs • preferential employment, training and business development

opportunities; and • benefit sharing by enhancing the education, training, health, cultural

recreational and economic development of the Region Other Comments and Information

The IMA may not be signed until at least the fall of ‘98 however, the terms of the agreement are currently being implemented.

Partners The project is based on collaboration between Industry and Communities. Participants include; • Cameco, • Cigar Lake Mining Corporation, • Cogema, • Hatchet Lake Band, • Black Lake Band • Fond du Lac Band,


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• Wollaston Lake (hamlet) • Stony Rapids • Uranium City • Camsell Portage

4.5.2 Environmental Quality Committees (EQC)

Description The committees, which are formed by government, are composed of individuals nominated by his/her community. The EQC serves as a bridge between Northerners, government and the uranium mining industry. The committee is a bridge built upon a solid foundation of mutual trust and respect.

Objective To assure people from Saskatchewan’s north that the uranium mines are operating in compliance with all applicable Provincial and Federal regulations and the Northern economic benefits are being maximized through appropriate hiring practises and policies related to the enhanced capture of business opportunities.

Responsibility Northern Mines Monitoring Secretariat (NMMS)

History In the Government’s Position on Proposed Uranium Mining Developments in Northern Saskatchewan (December, 1993), Saskatchewan committed to the establishment of a central support agency responsible for collecting and communicating government’s monitoring efforts (the NMMS) and for providing support to regionally based committees composed of representatives from impact communities (the EQCs).

Budget Operational costs for the EQCs are paid by the Province of Saskatchewan and Cameco pays direct costs associated with minesite visits and other direct interactions. Also, Cameco makes professional expertise available to assist the Committees to understand technical material and issues.


Increased awareness and understanding of Northerners regarding monitoring activities surrounding the uranium industry, and the role of government and industry in protecting the environment, ensuring the health and safety of workers and the public, and improving the distribution of benefits amongst Northern residents.

Community Benefits

• Providing a direct link between the community and the EQC and NMMS

• Liaisoning with community residents in order to convey to the EQC any concerns on issues related to uranium industry activities or requests for information, meetings or activities


There are three EQCs – one in each of the regions. Each of the three visit the operation(s) in their region at least once per year. This is generally done around re-licensing time to allow input into the re-licensing process. The


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tours are paid for and hosted by the companies.

Cameco has set an objective of attending a minimum of one meeting per year in each region to discuss issues related to social and economic development, respond to other questions and issues and to provide up to date industry information. It is Cameco’s intention that the EQCs will become the primary liaison mechanism.

The mining companies on occasion attend the EQCs to provide up to date industry information and answer any questions.

Partners Northern Mines Monitoring Secretariat, Environmental Quality Committees, communities and mining companies

4.5.3 Northern Liaison Committee Description A forum to facilitate dialogue and interaction with local communities4. The

Committee planned to meet four times per year. Membership on the original committee was made up of four selected Northern Chiefs and two selected Northern Mayors. Each person was expected to represent additional communities beyond the one where they were an elected official (i.e. the Beauval Mayor was also the representative for Meadow Lake, Green Lake and Pinehouse). As well, several representatives from Cameco participated in the meetings.

Objective The Committee was established by Cameco in order to provide a forum for dialogue between the corporation and elected Northern leaders, chosen to ensure effective regional representation throughout Northern Saskatchewan. The committee’s mandate includes: • Open frank discussion of any issues of concern to the regional

representatives, relative to Cameco’s operation, with particular emphasis on economic, environmental and employment matters.

• Opportunities of Cameco to obtain first-hand reactions to Company operations and initiatives in the north

• Advice to Cameco from the regional representatives on how best to proceed in dealing with Northern concerns.

Responsibility When it was operating previously the program was the responsibility of the Corporate Affairs and Northern Affairs Department.

History The Committee held its first meeting in July 1990 and its last meeting in 1997. The Committee was expected to: • Improve community relations in the north • Facilitate communication with Northern leaders • Identify opportunities for improved operations • Identify issues and to explain circumstances which affect Cameco and

4 The program is not currently operational in northern Saskatchewan, but consideration is being given to reviving it in the near future. The information is based on prior operation of the program.


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its Northern neighbours. Membership evolved to include senior company officials (executive management, operations, environment, safety, corporate, human resources and northern affairs. Community membership evolved to include direct representation by up to 15 Northern mayors and Chiefs. The committee met a minimum of three times per year. It is expected that the committee will resume operation in 1999.

Budget Total costs were about $35,000/year (including flight costs) Community representatives receive a $250 honorarium per meeting


Although there was not an explicit listing of success indicators nor a formal measuring and monitoring process, success indicators for the project included: • Level and effectiveness of communication with Northern communities • Ability of representatives to bring appropriate community concerns to

the attention of the Committee • Community support for Cameco’s operations and activities • Improved communication between Cameco and Northern communities.

Community Benefits

• Improved understanding of Cameco’s operations • Mechanism for bringing community concerns to the attention of

appropriate officials in Cameco Other Comments and Information

There seems to be some overlap between the EQCs and the Liaison Committees. A similar program has been recommended for the Kumtor operation.

Partners Cameco operated the committees directly without involvement from government or from others in the mining industry.

4.6 Grants and Donations A number of programs, which have been described previously, are also classified as Grants and Donations programs. These are; Junior Achievement, CAPES and the Athabasca Education Awards. 4.6.1 Educational School/Community Tours of Northern Operations

Description Cameco will, subject to operational constraints, accommodate requests to visit operating locations, from representatives of groups or individuals whose improved knowledge of Cameco’s operations will enhance the achievement of the company’s business objectives.

Objective To provide opportunities for various public and customer representatives to visit Cameco’s operating locations.

Responsibility Any division/department of Cameco may sponsor a site visit, for reasons


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that pertain to that division or department’s mandate. Two Tour Co-ordinators have been appointed, one for Saskatchewan and the other for Ontario.

History Despite the expense of touring a remote mining operation, Cameco has maintained this program, which began in the early 1980s. It has provided an excellent means of allowing Northerners to see Cameco’s operations and better understand what Cameco is doing.

Budget Every site visit must have a sponsoring department which is responsible for all administrative and travel arrangements, and bears the direct costs of the visit. (i.e. transportation to the site, meals and accommodation during the visit).


• Public opinion surveys are used to monitor the impacts. (Cameco commissions an annual public opinion survey in Saskatchewan and oversamples the north to ensure accurate data on Northern issues/concerns)

• Recognition of the quality of the site operations by the visitors (elected leaders, school children, etc.)

Community Benefits

Visitors such as teachers, high school students, community groups, members of employee families, etc. have a greater understanding of Cameco’s operations and the uranium industry.


• The sponsoring department must advise the Tour Coordinator of the names and titles of all tour participants at least two days in advance of the scheduled tour date.

• On-Site Procedures – Upon arrival at the site, the tour group will be met by the Tour Host who will be responsible for conducting the on-site tour. These responsibilities include:

- Greeting the tour - On-site transportation - Site orientation and information presentations(s) - Issuance of required safety equipment - Safety briefing instructions

Partners Joint venture partners may also sponsor visits to sites in which they participate and/or have contracts.


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4.6.2 Corporate Donations and Sponsorship Program

Description Donation and sponsorship program with community organizations and agencies in Northern Saskatchewan. Typically the value of donations is $500 or less. The 1998 Program focuses on Youth in 5 areas: • Community and Civic • Training and Education • Health and Welfare • Culture • Recreation and Sport

Objective As part of its vision, Cameco is committed to earning the respect of the communities in which it operates. The program aims to earn the respect of the community in which the company interacts and has three main objectives: • To contribute to the prosperity and quality of life in communities where

Cameco works. • To support specific corporate needs such as the development of a skilled

and well-educated workforce. • To promote innovative educational business partnerships that build

economic opportunities for communities. Responsibility The administration of the annual donations and sponsorship budget is

divided between the Northern Affairs Department, which manages the Northern portion, and the community relations area of the investors and corporate relations department.

History The program was incorporated when Cameco was formed in 1988 and has been operated ever since.

Budget Cameco provides an annual budget for donations and sponsorships equal to one half of one percent of the forecasted annual net earnings. The budget allocation is divided between the geographic locations where Cameco has active operations; Ontario, Northern Saskatchewan, and southern Saskatchewan.


• Corporate giving demonstrates to audiences outside the organization that Cameco is a responsive, concerned corporate citizen.

• It demonstrates to community leaders that Cameco is a committed and active participant in the well being of communities located in the vicinity of its operations.

• It returns tangible benefits to, and raises the quality of life in, the communities where many of Cameco’s employees live and work.

• It is a source of pride for employees and demonstrates Cameco’s commitment to them both on and off the job.

Community Benefits

Corporate giving supports Cameco’s interests in developing educational programs that fulfil the requirements of the uranium industry and supports the economic development of the north. • It helps open doors to education and knowledge within the communities.


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• It adds value to other human resources and training and development initiatives.

• Investing in communities demonstrates that Cameco is: • Available and accessible to the community • Active in forming alliances with other businesses and organizations for

the betterment of the community. Other Comments and Information

A brochure and guidelines for the program are published and distributed throughout the north.

Partners More than 100 organizations and agencies in Northern Saskatchewan benefit from or are involved in this program. Cameco co-operates with Cigar Lake and Cogema to increase the efficiency and effectiveness of the Northern donations and sponsorship programs.

5 SUMMARY OF INTERNAL INTERVIEWS

The following information has been derived from interviews with senior officials at Cameco Corporation during July and August 1998. A complete list of the interviewees is contained in Section 9. Community relations is important to all aspects of Cameco’s operations and should be systematically managed throughout the corporation. This is the overriding message that came out in every interview.

A number of people openly acknowledged that the recent problems at the Kumtor operation had changed their views on the importance of community relations. Each official interviewed identified community relations as being important to their particular interest and to the corporation as a whole. The executives interviewed identified a number of specific ways that community relations problems could impact their departments and interests at Cameco (Many of these actually occurred as a result of the Kumtor incident). These include:

• Difficulties with lenders Increased Risk Potentially higher cost of

capital and more difficulty accessing capital. The Kumtor incident created direct problems with lenders. Lenders, guarantors and other financial institutions are demonstrating a growing interest in the risk posed by ineffective community relations. This is similar to the interest they developed in environmental stewardship as it developed into an important risk area.


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• Difficulties with shareholders Increased Risk Depressed share prices and the

potential for increased investor relations costs. Community relations is becoming a key stress point in investor relations. Community relations problems create a significant potential for the erosion of investor confidence and market capitalization leading to the breaking of covenants and impairing the ability to raise financing in the capital markets.

• Erosion of Management Credibility

Higher cost of capital and depressed share prices. After the fact, community relations problems are generally seen as preventable (management should have seen and addressed the problem). The fact that they weren’t prevented begins to erode investor confidence in management, impacting capital and share price.

• Difficulty accessing opportunities Increased exploration costs and more difficulty accessing opportunities. Cameco’s community relations success in Northern Saskatchewan was a key factor in securing the Kumtor project and is used by exploration to help smooth relationships in other parts of the world (Australia, Nunavut, etc.). Community relations problems (anywhere in Cameco’s operations) will undermine the company’s reputation and erode the advantage that is currently enjoyed in opportunity acquisition.

• Long Term Loss of Goodwill The problems at Kumtor will be associated with Cameco for several years to come. This, coupled with the fact that Cameco is a uranium producer, will substantially increase the potential damage from any future environmental or community relations problems. This significantly increases the risk that the corporate reputation will be damaged, impacting relationships with much of the key stakeholder group. Also, this could place all of the company’s operations, including Northern Saskatchewan, under increased scrutiny from NGOs and other outside interests.


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• Problems in certain markets Cameco’s community relations success in Northern

Saskatchewan is useful in marketing to Sweden, Finland and Japan in particular. In Japan it is seen as a long-term approach that helps ensure security of supply. In Sweden and Finland it is used to help combat those attempting to eliminate the use of nuclear power. Other clients are also beginning to show interest in Cameco’s community relations programs (an Arizona client recently requested information on Cameco’s ability to work successfully with Northern Saskatchewan’s Aboriginal population)

• Decreased staff morale Increased production cost (decreased production per employee, increased turnover, etc.) There are no facts to substantiate this conclusion, just observation and extrapolation. Elsewhere studies have shown the employees working with a company they are proud of have higher production and decreased turnover. Conversely, those working with a firm they are not as proud of and whose values they do not share have lower production and increased staff turnover.

There is a strong sense of ‘ownership’ of Cameco in Northern Saskatchewan. Communities and employees take pride in Cameco and its accomplishments Community relations problems in Kumtor and elsewhere can erode the goodwill that Cameco has built in Northern Saskatchewan.

“We cannot afford another Kumtor” was a common sentiment throughout the interviews. The potential damage from future environmental and/or community relations problems will be compounded due to the Kumtor incident and Cameco’s position as a leading Uranium producer.

6 ANALYSIS OF PROGRAMS AND INITIATIVES IN NORTHERN SASKATCHEWAN

The following section discusses the results of the analysis of Cameco’s community relations programs in Northern Saskatchewan. Specific recommendations to address the issues identified in the analysis are developed in Section 8.


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6.1 Overall Analysis When Cameco’s community relations programs in Northern Saskatchewan are analyzed using the Development Technology system, it is apparent that there is an overall systematic approach to developing mutually beneficial relationships with local communities. The systematic approach operating today was never designed per se. It developed through trial and error over many years as Cameco, and the industry as a whole, struggled to find constructive ways to involve Northern people in the industry. Cameco’s community relationships in Northern Saskatchewan are unique. They developed to the state they are in for a variety of reasons. Initially they were propelled by the Northern participation/benefits component of the surface land use agreements and by the need to deal with strong provincial opposition to uranium mining. Strong leadership and vision at Cameco, the Lac La Ronge Indian Band and at other community/band based organizations, coupled with innovative strategies to bridge capacity gaps (NRT Joint Venture, Multi-Party Training Agreement, etc.) and several other factors have all contributed to create this unique, world-class community relations situation. There are gaps in Cameco’s community relations system5 in Northern Saskatchewan and opportunities for improvement to ensure it continues to function well. These

5 While it was not designed as a ‘system’ the combined effect of Cameco’s community relations efforts in northern Saskatchewan have resulted in a systematic approach to the issue.

will be discussed in detail in the following sections.

6.2 Corporate Ethos The recent problems at the Kumtor project6 have created an internal awareness of the importance of ensuring that mining and exploration activities produce real and meaningful benefits for local people and communities. This awareness is crucial for developing the corporate ethos that is necessary to support a comprehensive community relations program. Analyzing the corporate ethos component of Cameco’s Northern Saskatchewan’s community relations program identified several areas that the company may wish to address. These are: Communications Materials – Community relations is a key strength of Cameco – without good community relationships it is

6 Executives and managers interviewed were unanimous in noting that the magnitude of the problems that developed around the Kumtor spill were directly related to the lack of a good working relationship with the community.

Corporate Ethos

Constructive Interaction

Measuring & Monitoring

Firm

Development Technology© A 360o System


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doubtful that Cameco could continue operating its properties in Northern Saskatchewan. However, there seems to be a lack of material that can be used to communicate what Cameco is attempting to accomplish through its community relations efforts and why they are essential. Employees, managers, communities and other stakeholders are some of the audience that should be addressed with communications materials in order to socialize the information throughout the company. Failure to support a broad level of understanding around the issue of community relations can lead to internal resentments and divisiveness as questions are raised about preferences for northern suppliers, employees and other interests. Orientation of workers and contractors – Briefings and orientation programs for new workers and new contractors do not contain information on Cameco’s community relations programs and initiatives. Unless it is part of their operational responsibility, new people are left to discover on their own what the community relations programs are and why they are important. Much of the interaction between Northern residents and Cameco occurs on-site and these on-site interactions are communicated back to Northern communities, helping to form an overall impression of Cameco. It is important that everyone, employees and contractors, understand why Cameco has the community programs that it does, and why Northerners receive preference on employment, training and business opportunities. Failure to do this will result in resentments and foster internal divisions between the Northern and non-northern workforce. Education of Existing Workforce – Based on our observations, Cameco appears to

lack an effective system to educate its existing workforce on the importance of community relations. To a large extent the front line operations have been sheltered. Community relations have traditionally been dealt with by people with the Human Resources and Corporate Affairs department. Operations management and workers have not traditionally been educated on the importance of community relations. Management has not been given the tools and support to handle the complaints and resentment about the preferential treatment of Northerners. (Steps are already being taken to address this issue. The Management Development Program held in September had a specific session on community relations and two other sessions that also dealt with the subject) Lack of a Focal Point for Community Relations – Currently, there is not an ‘organizational home’ for community relations within Cameco. While many of the programs are managed within the Human Resources and Corporate Affairs department, a key program – Northern Procurement – is managed by purchasing and reports through the Finance department. To date this has not presented a problem, largely due to the personal interest and involvement of Mr. Jamie McIntyre and Ms. Rita Mirwald in community relations. However, as Cameco moves forward with rationalizing and standardizing community relations, the lack of a focal point will likely become more problematic. If an internal focal point for community relations is established, Cameco should guard against the ghettoization of community relations programs. Even with a focal point, the implementation of various


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community relations programs must be ‘owned’ directly by those most able to implement them (i.e. purchasing must continue to be held accountable for local procurement, human resources for local employment, etc.) Lack of a Systematic Understanding – Even with the increased internal awareness of the importance of community relations, few executives and managers have an overall understanding of what community relations is or how it works. This contrasts sharply with other similar issues such as environmental management and safety. The lack of understanding makes it more difficult for community relations to be incorporated effectively into corporate planning and strategy. Exposure to Northern Saskatchewan – there is an uneven level of Executive and Board exposure to Northern Saskatchewan. Many board members, and some senior executives have had little or no direct exposure to the conditions in Northern Saskatchewan. This may detract from their ability to comprehend local conditions and the cultural and capacity gaps that must be overcome in order for Cameco to have a successful community relations program in Northern Saskatchewan.

6.3 Constructive Interactions Over the years Cameco has developed a number of community relations programs and initiatives to support its operations in Northern Saskatchewan. (Detailed information on the individual programs is contained in Section 4). The following section illustrates the interconnectedness of the programs. While the majority of the tangible benefits may be directly attributable to the procurement and

employment programs, the success of these programs is directly connected to the successful execution other programs. This is illustrated in the following section. 6.3.1 Program Placement on the

Interaction Continuum© Our analysis of the various programs and initiatives enabled us to group them along the Interaction Continuum7 (See Figure 6 p.37). Several of the programs correspond to more than one point on the interaction continuum and are listed accordingly. Pre-Employment Training, a workforce preparation program, is listed on the above continuum, but was not described as a separate program in the previous section because it is not a stand-alone program, but an integral component of both the Northern/Native Employment Program and the Multi-Party Training Plan. The benefits that accrue to Northern people and communities through programs at the higher end of the interaction continuum are supported directly by programs at other points. For example, the success of the Northern/Native Employment program is dependent upon a number of the other programs that put in place financial resources and develop the skills and capacity to enable Northern people to be constructively employed in Cameco’s operations. As well, the Grants and Donations and other goodwill generating activities help to create the climate where Northern people are enthused about working for/with Cameco. As noted earlier, the various programs and initiatives listed above have evolved on an

7 see Section 3.3 p8 for a description of the use of the continuum


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ad-hoc basis. Today they form an integrated system for enhancing the relationships between Cameco and Northern communities, but currently there is little internal understanding of how they are inter-related. This report may even be the first time the programs were even all listed together. The lack of understanding about the integrated and systematic nature of the comprehensive system that has been developed in Northern Saskatchewan has made it difficult to replicate it at other operations (i.e. Kumtor). There are opportunities to further enhance some of the programs through additional

leveraging of relationships. The Northern procurement program is currently examining ways of working with other institutions and agencies to support an overall increase in Northern industrial procurement. Stronger linkages between the Northern procurement program and government departments that support Aboriginal business development (Aboriginal Business Canada, Indian and Northern Affairs, Community Futures, etc.) could enhance the resources and support available for existing and potential Northern suppliers.


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Figure 6: Placement of Programs along the Interaction Continuum

⇒ Junior Achievement - The Economics of Staying in School ⇒ Cameco Access Program for Engineering and Science (CAPES) ⇒ Athabasca Education Awards ⇒ Educational School/Community Tours of Northern Operations ⇒ Corporate Donations and Sponsorship Program

⇒ Northern Liaison Committee ⇒ Multi-party Training Plan (MPTP) ⇒ Athabasca Working Group ⇒ Environmental Quality Committees (EQC)

⇒ Multi-party Training Plan (MPTP) ⇒ Cameco Access Program for Engineering and Science (CAPES) ⇒ Athabasca Education Awards ⇒ Pre-Employment Training Programs ⇒ Northern Scholarship Program

⇒ Multi-party Training Plan (MPTP) ⇒ Junior Achievement - The Economics of Staying in School ⇒ Cameco Access Program for Engineering and Science (CAPES) ⇒ Northern Scholarship Program

⇒ Northern/Native Employment ⇒ Northern Summer Student Program

⇒ Northern Business Development

Beads ‘n Trinkets

Partnering

Grants and Donations

Leveraging Relationships

Training and Education

Capacity Development

Employment

Procurement


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6.4 Measuring and Monitoring In order to effectively manage the interface between Cameco’s operations and local communities it is important to have an efficient and systematic process of measuring, monitoring and reporting on community relations programs. The Northern procurement and Northern/Native employment programs have a fairly well developed measuring and monitoring process that is incorporated directly into Cameco’s MAP program. The recent review of the Multi-Party training program provided valuable information and feedback on that program’s operation. However, there has been little in the way of systematic reporting on the other programs and initiatives and virtually nothing in terms of comprehensive reporting on community relations overall. Part of this problem may derive from community relations not having a formal focal point within Cameco’s organizational structure. Program reporting – From our analysis, there does not seem to be a systematic process to measure and monitor success on the majority of the programs (exceptions noted above), nor of setting measurable objectives for the programs. As well, there is nothing in terms of measuring and monitoring the overall community relations program.

7 OBSERVATIONS During the course of undertaking the research and analyzing the information the consultants made a number of observations

that are useful to note. The observations are not presented in any particular order. However, they are divided into two groups; those relating specifically to Northern Saskatchewan and those relating to Cameco generally.

7.1 On Community Relations in Northern Saskatchewan

⇒ It is recognized that Cameco conducts

community relations very well in Northern Saskatchewan, however there are difficulties in transferring this success due to the lack of a standardized, systematic approach. The current ad-hoc approach of trying to transfer best practices will still leave vulnerabilities and gaps in community relations programs unless there is a common framework and reporting process throughout the corporation.

⇒ With the exception of Northern procurement, Northern/native employment and the Northern Affairs Office, community relations objectives and priorities do not seem to be integrated into Cameco’s performance management program. With Northern procurement and employment, the integration into the MAP program seems to have created amazing results and strong ‘ownership of the issue’ within the purchasing department.

⇒ The wind-down of construction will create excess business capacity in Northern Saskatchewan. Executives and managers in purchasing and Human Resources are exploring opportunities to establish a committee that could help coordinate industrial procurement in Northern Saskatchewan


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– helping to link current capacity to opportunities in other industries. Another option may be to explore opportunities for inter-indigenous partnerships – linking Indigenous businesses from Northern Sask. to Indigenous peoples in other areas where resource development projects are taking place. Inter-Indigenous partnerships are an opportunity that Canada is actively promoting.

⇒ The Northern Affairs office in La Ronge is very responsive to community needs. A good example occurred during the latter part of the day spent in La Ronge. There was an emergency situation with residents from Northern Saskatchewan stranded in Prince Albert after a serious illness had stricken one of their leaders. Despite numerous logistical difficulties, the office helped solve the issue quickly and professionally, and involved the rest of the industry in the process as well.

7.2 On Community Relations Generally

⇒ There is a strong realization of the

importance of community relations and the need to avoid mistakes. In some cases the Kumtor incident is responsible for altering internal opinions/understanding on this issue.

⇒ Many employees don’t understand the importance of community relations – they see it as a cost at a time when the entire company is under pressure to cut costs. (Note: Steps have already been taken to address this by incorporating community relations into the recent management development workshop)

⇒ There were no interviews or interaction with Cameco Gold, so we are unable to comment on community relations issues in that company. However, the public is unlikely to distinguish between Cameco Corporation and Cameco Gold. Any community relations and/or environmental issues at Cameco Gold will impact Cameco Corporation directly and may focus increased attention on the uranium mining activities in Saskatchewan.

⇒ Most interviewees identified Mr. Jamie McIntyre as the key person on community relations issues. However, this seems to be informal and not recognized in the organizational structure. There does not seem to be a clear focal point for community relations in the organizational structure. Some thought is being given to the creation of a department/unit for sustainable development. This could be an important and useful step, but care must be taken to ensure that the issue doesn’t become ghettoized with other departments passing off ownership of the issue.

⇒ New employees and contractors (and their personnel) are not briefed on community relations.

⇒ Chief Harry Cook could be a strong spokesman for Cameco on all sustainability issues, but it does not appear that Cameco is making full use of this potential.

⇒ The Kumtor issue, coupled with Cameco’s leading role as a uranium producer, has increased the potential damage from any future community relations and/or environmental


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problems. Cameco no longer has a clean slate internationally.

⇒ According to the Exploration Department, community relations is a more important risk in Australia than in Canada. They are looking for support on the issue.

⇒ Community relations is seen as an insurance. It insures the firms continued ability to operate and avoids the distraction of management focus and resources that can be caused by something like Kumtor.

8 RECOMMENDATIONS The recommendations have been divided into two sections: those pertaining specifically to the Northern Saskatchewan community relations program, and those pertaining more to Cameco’s general approach to community relations.

8.1 Recommendations – Northern Saskatchewan Program8

Accountability and Responsibility – Currently there is not a formal point/position in the organization where all community relations programs and efforts come together. This impairs the ability to manage and understand community relations on a comprehensive basis. Cameco may wish to consider a formal (as opposed to the current informal role played by Mr. Jamie McIntyre) focal point with

8 Recommendations and strategic steps related to Cameco’s approach to community relations beyond Northern Saskatchewan are contained in the following section on Implementation and Strategic Steps.

accountability and responsibility for Northern Saskatchewan community relations. Care must be taken that the establishment of a focal point does not detract from individual managers ‘owning’ their respective pieces of the program. This focal point should be a senior level position and should be considered on a corporate wide basis as outlined in the following subsection 8.2. Measuring, Monitoring and Reporting – currently only two programs (Northern/Native Employment and Northern Procurement) have a regular measuring and monitoring program. Other programs are either measured and monitored on an ad-hoc basis, or not at all. Other than the Northern procurement and the Northern/native employment program there is little, if any, integration of program management into manager evaluations (the Northern Affairs Manager is an exception). As well, there is no measuring, monitoring and reporting on the overall community relations program. This lack of a comprehensive accounting detracts from the ability to understand (or communicate) an overall picture of Cameco’s community relations program. At a minimum, we suggest that the following actions be given serious consideration: Standardized reporting – Using the Development Technology Analysis Sheet©, or a similar system, a standardized reporting process (format and timing) should be developed for all community relations programs.

Increased focus on measuring and monitoring – We recommend that program managers, along with the community relations focal point, develop quantifiable objectives for each program and incorporate progress towards those


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objectives into the management evaluation program.

Comprehensive reporting and measuring/monitoring – We recommend that quantifiable objectives be established for the overall community relations program and progress towards them be included in the evaluation of the focal point position. As well, there should be a regular comprehensive reporting on the overall community relations program.

Communications strategy/plan Community relations is a critical part of Cameco’s operations in Northern Saskatchewan and efforts should be made to communicate its success and importance. We suggest that the communications strategy/plan focus on both internal and external audiences and, at a minimum, address the following: Communication materials – We recommend that appropriate communication materials be developed. They could be used to support the communication objectives listed below, and for other purposes (including supporting the enhancement of senior executive/board understanding of community relations). Note – the recommendations on reporting of community relations programs and activities recommended previously will provide valuable information for the development of communications materials.

Workforce/contractor education program – We recommend that everyone involved with Cameco’s operations in Northern Saskatchewan be exposed to a minimum of information on the importance of community relations and on how Cameco approaches the issue.

Briefing/orientation for new employees – We recommend that briefing and

orientation sessions for all new employees, whether contractor or direct Cameco employees, include community relations issues in much the same way as it now includes environmental and safety issues.

Management Education – We recommend that managers be supported and encouraged to develop a better understanding of the importance of community relations, how Cameco addresses the issue and how it is related to their particular job (much the same as environmental and safety issues are now supported and encouraged). A significant step was taken towards this end when community relations was specifically included in the 1998 Management Development Workshop.

Management Support Materials – We recommend that managers be provided with support materials and, if necessary training, to assist them to manage the complaints and resentments that develop from the preferential treatment of Northern and native employees and contractors.

Identify other communications needs and opportunities. Cameco may wish to identify other elements to include in a communications strategy/plan for community relations. The development of such a list is beyond the scope and mandate of this report.

Increasing Executive/Board Understanding of Community Relations – The Kumtor incident has enhanced the Executive and Board level understanding of the importance of community relations. However, we recommend that continuing efforts be made to further develop this understanding. Cameco may wish to consider activities such as holding a Board of Directors meeting in Northern Saskatchewan and encouraging all senior


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executives to make regular visits to Northern Saskatchewan.

8.2 Implementation and Strategic Steps

The following strategic steps are a practical approach that we feel will help Cameco deal with current issues and challenges and begin positioning the firm to thrive in the next millennium. 1. Standardize Community Relations –

We believe community relations as too important an issue to be left without a standardized process that local managers can use to develop and maintain the relationships that are critical to success.

The community relations program in Northern Saskatchewan, with its focus on developing mutually beneficial relationships, has created strong local partners and personnel who understand the community relations dynamics very well. However this situation was created out of a unique set of circumstances, rather than from a coordinated and well thought out plan.

Given the global issues outlined previously (section 2.1), we see it as it is vitally important that community relations be managed systematically throughout Cameco’s global operations. There should be a community relations standard in place that ensures there are no gaps in the programs. a) As a starting point, it may be

worthwhile to consider establishing a department or office that is a focal point for community relations

and other sustainability issues for the entire corporation.

b) Implement the steps outlined in the previous section to completely systematize community relations in Northern Saskatchewan.

c) Using the Development Technology© system, undertake an assessment of community relations at Cameco’s other operations, identifying issues, opportunities and challenges.

2. Strategic Collaboration –

Corporate/community relations ultimately touches on the economic, health and social fabric of a community. This is a difficult and expensive area for a company to operate in alone. There are a number of potential partners and collaborators who can support and build on the company’s efforts to extend benefits to local communities. In Northern Saskatchewan Cameco has worked well with federal and provincial agencies and with NGOs, leveraging increased benefits to Northern people and communities. We recommend that Cameco build on the experience in Northern Saskatchewan and apply this strategy to international operations as well.

CIDA has already expressed interest in assisting financially with initiatives in Kyrgyzstan. Other institutions such as the World Bank, the United Nations Development Programme, the World Health Organization, the International Labour Organization, various nation states and international organizations are working to help improve community health, social and economic well being. These institutions are


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increasingly open to collaborating with the private sector. Collaboration with these institutions will not only leverage additional finances to support Cameco’s initiatives to benefit local communities; it can also expand Cameco’s network into important arenas, including the NGO community. Additionally, it can help prevent Cameco from the type of solitary exposure that occurred in Kyrgyzstan and it will develop communication networks that can be invaluable if/when future problems occur.

3. Communication and Relationship

Building – There is a ‘silver lining’ in the current storm around Kumtor. As the issues around Kumtor are dealt with and community relations are standardized across Cameco’s operations, there is an opportunity to develop a story that is very interesting to the institutions that Cameco needs to build relationships with, such as the IFC. The Kumtor challenges are already well known to these institutions. How Cameco deals with the problems (standardizing community relations and increasing collaboration with development institutions)

represents a unique communications opportunity. A series of brown bag presentations at key institutions in Washington, New York, Ottawa and elsewhere will highlight the innovative and progressive work Cameco is doing – positioning the company as an institution that can learn from its mistakes. These presentations will also dispel many of the lingering concerns over Kumtor and can begin to build important relationships inside key institutions. To sustain them, regular contact should be maintained with key individuals at various levels of those institutions.

4. Ongoing Information, Networking

and Support – It is important for Cameco to have regular information flow from, and an ever expanding network in, the areas of sustainable development, international development and multi-lateral institutions. This will facilitate keeping the company ahead of the curve on emerging issues and will also keep personnel aware of key international activities and events that Cameco may be interested in either participating in or presenting at.

9 LIST OF INTERVIEWEES 9.1 Cameco Interviewees Ms. Rita Mirwald, Senior Vice President Human Resources and Corporate Relations Tel: 306-956-6313 Fax: 306-956-6312 11:00am – Thursday, August 20 – Saskatoon 2:30pm – Thursday, July 30 – Saskatoon

Mr. Jamie McIntyre, Manager Human Resources Tel: 306-956-6219 Fax: 306-956-6539 8:30am – Monday, August 17 – Saskatoon

Mr. Gerald D. Pollock, Vice President – Exploration Tel: 306-956-6341 Fax: 306-956-6390 1:00pm – Monday, August 17 - Saskatoon

Mr. Paul Ogryzlo Director - Exploration Tel: 306-956-6393 Fax: 306-956-6390 1:00pm – Monday, August 17 – Saskatoon


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Mr. Bob Steane, Vice President - Mining Tel: 306-956-6352 Fax: 306-956-6540 2:00pm – Monday, August 17 - Saskatoon

Mr. Ken Johnson, Director – Purchasing Tel: 306-956-6507 Fax: 306-956-6501 3:00pm – Monday, August 17 – Saskatoon 10:00am – Thursday, August 20 – Saskatoon

Mr. Dwayne Hounsell, Superintendent Northern Business Development and Transportation Tel: 306-956-6381 Fax: 306-956-6501 3:00pm – Monday, August 17 – Saskatoon 10:00am – Thursday, August 20 - Saskatoon

Chief Harry Cook Chief Lac La Ronge Indian Band Director – Cameco Corporation President – Kitsaki Development Corporation Tel: 306-426-2600 (Kitsaki) or 425-2183 (Band Office) Fax: 306-425-2288 12:00pm – July 31, 1998 – La Ronge, SK

Mr. Gerald W. Grandey, Executive Vice President Tel: 306-956-6256 Fax: 306-956-6302 4:30pm – Monday, August 17 – Saskatoon

Mr. Bill Murphy, Director Marketing International Tel: 306-956-6289 Fax: 306-956-6282 9:00am – Tuesday, August 18 – Saskatoon

Mr. Al Shpyth, Manager – Special Projects Tel: 306-956-6210 Fax: 306-956-6539 10:30am – Tuesday, August 18 – Saskatoon 12:00pm – Thursday, August 20 – Saskatoon

Mr. Kim Goheen, Treasurer Tel: 306-956-6256 Fax: 306-956-6444 1:30pm – Tuesday, August 18 – Saskatoon

Mr. John Clarke, Senior Specialist – Human Resources Tel: 306-956- Fax: 306-956-6539 3:00pm – Tuesday, August 18 – Saskatoon

Ms. Julia Ewing, Manager – Northern Affairs Tel: 306-425-4144 Fax: 306-425-2153 9:00am – Wednesday, August 19 – La Ronge

Ms. Angie Merasty, Northern Affairs Officer Tel: 306-425-4144 Fax: 306-425-2153 9:00am – Wednesday, August 19 – La Ronge

Ms. Alice Wong, Director – Investor and Corporate Relations Tel: 306-956-6337 Fax: 306-956-6318 11:00am – Monday, August 17 – Saskatoon

9.2 Non Cameco Interviewees Mr. Mike Mercredi, Executive Director – Economic Development Saskatchewan Northern Affairs Tel: 306-425-4290 Fax: 306-425-4267 9:00am – Wednesday, August 19 – La Ronge

Mr. Mark Liskowich, Manager Northern Mines Monitoring Secretariat Sask. Nor. Affairs Tel: 306-425-4211/4200 Fax: 306-425-4613 10:00am – Wednesday, August 19 – La Ronge

Mr. Earl Cook, Director – Post Secondary Education, Northern Education Services Tel: 306-425-4380 Fax: 306-425-4383 11:00am – Wednesday, August 19 – La Ronge

Ms. Gil Cracie, Aurora Communications/Northern Mines Monitoring Secretariat Cell: 306-425-7280 Tel/Fax: 306-425-3826 12:00pm – Wednesday, August 19 – La Ronge

Mr. Peter Mayotte, Director – Central and Athabasca Regions Northlands College Tel: 306-425-4353 Fax: 306-425-2696 2:00pm – Wednesday, August 19 – La Ronge


Career

Cameco Community Relations Report (1998)