Stornoway Diamonds Canada - Mining Outlook - issue 1

RESPONSIBLY MEETING DEMAND FOR DIAMONDS

QUEBEC’S CROWN JEWEL

As owners of the first and only diamond mine in Quebec, Stornoway Diamonds Canada is meeting demand responsibly and sustainably. We find out more about this flagship asset with CEO, Patrick Sevigny

Demand for diamonds aggressively rebounded to record-high levels in 2021.

Although total output volume remains below pre-pandemic levels, the production and value of diamonds compared to 2020 was up by 12 and 51 percent, respectively.

It followed significant year-over-year

declines in natural diamond production, resulting from oversupply for much of the last decade, depleting legacy mines, and a very limited number of new supply sources most recently compounded by the operational disruption and mine closures caused by COVID-19.

“In general, the increase in demand

has been driven by a number of factors, including economic growth and a rising middle class in the US and China, as well as increased marketing efforts by diamond companies,” observes the CEO of Stornoway Diamonds Canada (Stornoway), Patrick Sevigny, who has always had a keen interest in value generation.

Writer: Jack Salter | Project Manager: Olando Greenock

“In addition, diamonds have become more affordable for many people due to advances in diamond production and distribution.”

While the increasing demand for diamonds is good news for the industry, it is important for companies such as Stornoway, a leading Canadian diamond producer, to meet

this demand in a responsible and sustainable manner.

This includes taking steps to minimise the environmental and social impacts of diamond mining, as well as ensuring diamonds are ethically sourced.

Stornoway has implemented a number of measures to minimise its

impact, including the use of natural gas to generate energy and the establishment of partnerships with local communities.

“We have set global industry standards in environmental and social sustainability, and are one of the only Canadian diamond companies with a comprehensive socio-economic

benefits agreement with local Aboriginal stakeholders,” reveals Sevigny.

“Moreover, both Stornoway and the Renard diamond mine are engaged in research projects to continually look for new ways to improve production and exploration processes.”

RENARD MINE

Known for producing medium-quality diamonds, production at the Renard mine commenced in 2015.

A significant contributor to the provincial economy and considered to be a responsible and sustainable operation, it is located in the remote James Bay region in north-central Quebec, one of the world’s best mining jurisdictions, and is wholly owned by Stornoway.

RENARD MINE – KEY ASSETS

“Due to its isolated location, Renard has required the construction of a large number of infrastructure projects, including roads, airports, an electric power plant (natural gas gensets), housing, nursery and water treatment plant facilities,” shares Sevigny, who was born and raised in the Abitibi mining region of northwestern Quebec.

Renard is the first and only diamond mine in Quebec, one of just four diamond-producing mines in Canada, and the only one in the country that is accessible all year round by road.

As the mine is a temporary user of land that will be returned to its traditional users at the end of its lifespan, the project design has prioritised a minimal environmental footprint and progressive rehabilitation.

HydroTech Mining

For those who don’t know HydroTech Mining, what would you say to them?

“HydroTech Mining develops innovative mine water management solutions. Since 2015, HydroTech Mining has been providing innovative, quality products and ongoing services to support our customers during all phases of the project. We are passionate professionals with nearly 30 years of experience serving North America and even South America!” –Cheyne Poirier, CEO

What kind of solution do you offer more specifically?

“We offer more than products! We offer the complete solution to manage mine water. Whether by submersible pumps, water clarification, pumping system up to the consulting services.” – Paul Cormier, Vice President Sales

How does HydroTech Mining stand out from its competitors?

RENARD 2 KIMBERLITE – The primary source of diamonds at the Renard mine, expected to produce the majority of the diamonds mined at the site. It extends from the surface down to an elevation of 900 metres.

RENARD 3 KIMBERLITE – The smaller ore body located 200 metres northeast of the Renard 2 kimberlite. It extends from the surface down to an elevation of 600 metres, and it is expected that exploration work will establish its presence at depth.

RENARD PROCESSING PLANT – A state of the art processing facility that is used to process the ore from the Renard 2 and Renard 3 kimberlites, equipped with advanced technology and designed to minimise environmental impacts.

RENARD INFRASTRUCTURE – The Renard diamond mine is located in an isolated region of Quebec and requires a significant amount of infrastructure in order to operate, including roads, airports and a power plant.

“We cannot speak for our competitors, but our several prizes won, and our loyal customers speak for themselves:

Laureate of the Chambre de Commerce de Val-d’Or three times:

• 2019: Export Market Development

• 2020: Export Market Development

• 2020: New business

Laureate of a Mercad’Or provincial competition:

• 2018: Regional winner

• 2022: Regional winner, Provincial winner

• 2023: Regional winner, Provincial winner? Stay tuned.” – Cheyne Poirier, CEO

Where can we find you?

“We are present across Canada and even outside. We have a branch in Mexico, and distributors in United States. Also, we participate in several trade shows like MINExpo, SME, CIM, PDAC and more!” – Paul Cormier, Vice President Sales.

HydroTech Mining is the specialist in dewatering solutions. We’re dedicated to the sale, design, and manufacture of pumping and dewatering systems for the mining industry.

Our wide range of submersible pumps and systems are designed and built for all types of operations. What’s more, exceptional service is always one of our top priorities.

Occupying just 3.1 square kilometres within a single watershed, Renard is surrounded by a network of ditches that collect all the run-off water, which is treated prior to being returned to the environment.

“Buildings have also been designed and materials selected to facilitate dismantling, recycling, and revegetation at the end of the mine’s life,” adds Sevigny.

PROJECT AVENUES

The Renard mine has reserves that will take it to 2025, primarily sourced from the Renard 2 kimberlite which is

expected to produce the majority of diamonds mined at the site.

A project to extend the mine is now underway, which consists of deepening the ramp below the surface in order to mine the resources located between elevations of 600 and 850 metres.

A decision will be made this year on the project, and if approved, it will extend the life of the mine to 2029.

“Thereafter, the mine has additional resources in the Renard 4 and Renard 9 kimberlites that could be brought into production if diamond market conditions continue to improve. If these two kimberlites are mined, the mine life could be extended to 20352040,” Sevigny outlines.

Soudure GAM Chibougamau

Established in Chibougamau since 1979, Soudure GAM Chibougamau is the leader manufacturer of machined and welded parts in North-of-Québec.

The culture of the company, built on family values, has allowed for providing a personalised service in close relationship with our customers. We have a deep concern for efficiency and quality wich allows us to offer a fast and competitive service and, most importantly, respecting the targeted deadlines.

PATRICK SEVIGNY, CEO: “We know that creating strong relationships with trusted local suppliers allows us to have a reliable supply chain of materials and services that meet our high standards.

“At the same time, we prioritise paying our suppliers on time to ensure that they are consistently providing the necessary resources and services. To adequately compensate our suppliers for their efforts, we focus on delivering prompt payments and maintaining open communication on all aspects of our business.

“This allows for a level of mutual trust and respect, an atmosphere of cooperation, and ultimately, a stronger and more profitable business relationship for both our company and our suppliers.”

Completion of the Renard expansion project is Stornoway’s main priority for the coming year, and in an inflationary environment where diamond prices are expected to decline slightly and certain commodity prices are higher, it is important for the company to meet production targets in order to maintain projected profitability levels.

Hydroelectricity, meanwhile, is another potential avenue for Stornoway given the potential to substantially reduce the company’s dependence on natural gas and diesel. The water system on which

Our geographic location allows us to be at the centre of economic activity in North-of-Québec. We are, moreover, the only company to have CSA CWB 47.1 welding certification in the area.

Proud supplier of Stornoway Diamonds.

www.gamchibougamau.ca

Quebec’s numerous hydroelectric power plants are built, allowing the province to be one of the most important producers of hydroelectricity in the world, is located 120 kilometres north of the Renard mine.

Stornoway’s vision is to connect to

MINING OUTLOOK: I UNDERSTAND YOU PRIDE YOURSELVES ON PAYING SUPPLIERS ON TIME?

the provincial hydroelectric grid, an initiative that must be accomplished in partnership with the Indigenous population to benefit all parties.

“Once the Renard mine is connected to the hydro grid, the vehicle electrification phase can be undertaken. This phase consists of converting high-consumption diesel vehicles such as loaders and production trucks to battery powered vehicles, which would enable Renard to become one of the greenest diamond mines,” notes Sevigny.

INDIGENOUS AND LOCAL ENGAGEMENT

The success of Stornoway depends on having a committed workforce that upholds its principles and embraces the company culture.

Stornoway offers a fulfilling career path to its employees, the majority of

whom work at Renard, and provides fair compensation and benefits that are in line with the salary range for each corresponding role.

“We give our workers rewarding opportunities for growth, recognise their accomplishments, promote and constantly hone a model corporate culture,” Sevigny emphasises.

Of the 545 full time members of staff currently employed by Stornoway, 15 percent are women and 20 percent are from Indigenous and local communities.

Stornoway collaborates with its host communities in an atmosphere of respect, openness and partnership. By keeping open lines of communication, getting to know the values and concerns of the community, and working to address those concerns, the company hopes to establish longlasting, fruitful relationships with its

Indigenous and local communities.

“We work to improve the wellbeing of our host communities’ local economies and social structures,” Sevigny elaborates.

“By creating communication procedures with the Crees (a North American Indigenous people), putting together a joint environmental monitoring committee, hiring people of the communities, and conducting business with their firms and joint ventures, we have gradually developed a trusting relationship with them.”

In 2021, 1,334 hours were devoted to the professional development of Cree employees in various functions at the surface, in the processing plant and in the underground mine, whilst more than 2,100 hours were dedicated to developing staff members from the Chibougamau and Chapais communities.

383 certificates and 347 attestations were awarded to Cree personnel as a result of this training, as well as 790 certificates to Chibougamau-Chapais employees.

A relocation policy has also been set up and promoted by Stornoway to provide employees who relocate to Chibougamau and Chapais with financial benefits.

“The objective is to attract new residents to the region and retain the Renard mine’s workforce. The policy addresses the need to build the population of Stornoway’s host communities in Chibougamau and Chapais, in addition to maintaining a stable workforce,” Sevigny tells us.

– PATRICK SEVIGNY, CEO, STORNOWAY DIAMONDS CANADA

DIVERSE AND DEMANDING

The mining industry is diverse, and there are many different career paths that individuals can pursue, including roles in mining exploration, operations, engineering and management.

Generally, a career in the diamond mining industry may involve working in remote locations, such as the Renard mine, often in challenging and harsh environments.

“It can be physically demanding work, and individuals in the industry may be required to work long hours, including weekends and holidays,” acknowledges Sevigny.

As such, Stornoway makes sure

that it provides a vibrant, friendly, and inclusive environment at the Renard mine to alleviate the demands of mining work.

A workplace where everyone feels respected, along with maintaining a safe work environment and high environmental performance, will always be a priority at Stornoway.

STORNOWAY DIAMONDS CANADA

Tel: 1-450-616-5555

info@stornowaydiamonds.com

www.stornowaydiamonds.com

“WE WORK TO IMPROVE THE WELL-BEING OF OUR HOST COMMUNITIES’ LOCAL ECONOMIES AND SOCIAL STRUCTURES”