Economic impact
Cameco is a major economic contributor everywhere we operate, both directly through things like salaries, wages, and local procurement, and indirectly through secondary employment and secondary economic activity.
In Northern Saskatchewan, for example, Cameco's operations are responsible, directly and indirectly, for 12.2% of the employment in the region. In Nebraska and Wyoming, for every uranium job in the mining sector, there are 1.6-1.8 other jobs created elsewhere in the economies of those states. And in Northumberland County (Ontario, Canada) every dollar spent by Cameco in purchasing supplies or hiring a local tradesman generates $1.10 of additional revenue for other businesses in the area.
Providing jobs and opportunity
Our five-pillar CSR strategy includes not only community investment – donations to fund infrastructure projects and other good works in local communities – but also workforce and business development. These investments have an immediate, short-term impact and they also build a foundation for economic wellbeing that can outlive our operations.
Like many businesses in the natural resources sector, Cameco must compete for skilled workers as well as for the mineral reserves and resources we depend on.
The need to find and develop the skills we need and to source materials locally as much as possible, benefits many small communities where business and employment opportunities are limited. In 2011, over 50% of the employees at our northern Saskatchewan mines were local residents, and we have successfully increased the number of northerners we've hired by 65% over the last seven years.
We are also providing career development opportunities to high-potential residents of northern Saskatchewan, to allow more northerners to move into senior management roles in the future.
About our Northern Preferred Supplier Program
Through our Northern Preferred Supplier Program, we have purchased over $1 billion in goods and services from local vendors and suppliers in northern Saskatchewan since 2004.
In 2011, we had a record setting year, paying over $390 million to northern businesses, who provided 74% of all services to our northern mines. Local sourcing is also prevalent at our operations in Ontario and Kazakhstan.
Investing in communities
We target community donations and investments in four areas that are key to community health and wellbeing:
- youth
- health and wellness
- education and literacy
- culture and recreation
We believe investments in these areas are likely to generate both short and long-term gains for community members.
Although we don't specifically target infrastructure investments, Cameco receives many requests to support infrastructure projects because the smaller, remote communities near our operations often have infrastructure deficits.
Where appropriate, we support requests to build, expand or improve schools, libraries, community and recreation centres, hospitals and clinics, and facilities for seniors, among others.
GRI Indicators
EC6 – Local spending
^This indicator shows the total dollar amount of services procured from local suppliers at Cameco's operating sites in northern Saskatchewan, Kazakhstan, and Ontario each year from 2009 to 2011.
| 2009 | 2010 | 2011 | |
|---|---|---|---|
| N. Saskatchewan | |||
| Total Services | $309,428,098 | $381,599,332 | $533,877,071 |
| Local Service Procurement | $219,373,260 | $296,268,979 | $393,191,740 |
| % Local Procurement for Services | 71% | 78% | 73.65% |
| Kazakhstan | |||
| Total Services | not available | $41,091,338 | $14,022,608 |
| Local Service Procurement | not available | $38,686,805 | $12,848,565 |
| % Local Procurement for Services | not available | 94.15% | 91.63% |
| Ontario | |||
| Total Services | not available | not available | $95,153,000 |
| Local Service Procurement | not available | not available | $60,780,000 |
| % Local Procurement for Services | not available | not available | 63.88% |
What it means
Cameco has helped to establish a strong base of local suppliers to provide services at our operating sites. In 2011 alone, Cameco procured over $450 million dollars in services for our operations from local businesses in northern Saskatchewan, Kazakhstan, and Ontario.
Looking ahead
Cameco will continue to work with local suppliers to increase their capacity and ensure we are able to continue to purchase as many of our services locally as possible. We will begin tracking local spending at our US operations in 2012.
Definitions
Local
This term differs from country to country and region to region. In northern Saskatchewan, our surface leases mandate the entire Northern Administrative District (an area that makes up one-half of the province) as local for our operations in Saskatchewan. In Ontario, communities within the provincial borders are local while in Kazakhstan, the country itself is considered local.
Local supplier
Under the northern preferred supplier program in northern Saskatchewan, a local supplier is defined as a company or joint venture that is at least 51% owned by people or communities from the Northern Administration District that also has local people in management positions. In Ontario, a local supplier is one from within the provincial borders, while in Kazakhstan any Kazakhstani business is considered a local supplier.
Note
2011 totals for Ontario include both goods and services.
EC7 – Local hiring
^This indicator provides information about the number of local employees at our operations in northern Saskatchewan, and the number of senior managers from those local communities.
| 2009 | 2010 | 2011 | |
|---|---|---|---|
| Local Employees / Total | 669/1,337 | 703/1,410 | 761/1,505 |
| % Of Employees from Local Community | 50.00% | 49.90% | 50.60% |
| 2009 | 2010 | 2011 | |
|---|---|---|---|
| Senior Management from Local Community / Total Senior Management | 2 of 37 | 1 of 38 | 1 of 33 |
| % Of Senior Management from Local Community | 5.40% | 2.60% | 3.03% |
What it means
Our corporate social responsibility policy includes a commitment to encourage local employment wherever we operate. Through this policy, Cameco continues to build capacity by hiring qualified local residents whenever possible.
Looking ahead
Cameco is working toward increasing the number of senior managers from northern Saskatchewan at our mining operations by providing career development opportunities to high-potential candidates.
Definitions
Senior manager
A manager or superintendent level employee.
Local employee
To be considered a local employee in northern Saskatchewan, you must be registered as a Resident of Saskatchewan's North (a designation defined and managed by the Saskatchewan government).
EC8 – Infrastructure and service investments
^This indicator provides an overview of Cameco's investments in infrastructure and services for local communities in Canada, the US and Kazakhstan.
a – Needs assessments
We have not completed formal infrastructure needs assessments in our local communities.
b – Current (or expected) impact of infrastructure and service investments
From 2009-2011, Cameco invested nearly $4.4 million in support of infrastructure improvement projects in local communities. Some of our more significant infrastructure investments include:
Highlights
| Community | Region | Amount | Infrastructure/Service | |
|---|---|---|---|---|
| 2009 | Saskatoon | Saskatchewan | $500,000 | St. Mary's Wellness and Education Centre |
| 2010 | Saskatoon | Saskatchewan | $500,000 | Friendship Inn Expansion |
| 2009 | Taikonur | Kazakhstan | $484,317 | Construction of Medical Aid Facility |
| 2010 | Saskatoon | Saskatchewan | $365,000 | Royal Vital Care |
| 2011 | Black Lake | Northern Saskatchewan | $300,000 | Elizabeth Falls Hydro Project |
| 2009 - 2011 | Fond du Lac | Northern Saskatchewan | $300,000 | Community Arena |
| 2010 | Saskatoon | Saskatchewan | $250,000 | Meewasin Skating Rink |
| 2011 | Saskatoon | Saskatchewan | $239,550 | Childrens Hospital Foundation |
| 2010 - 2011 | Cobourg | Ontario | $150,000 | Community Center |
| 2009 | La Ronge/Air Ronge | Northern Saskatchewan | $100,000 | Churchill Community High School |
| 2010 | Southend | Northern Saskatchewan | $100,000 | Cell Tower |
| 2010 | Wollaston/Hatchet Lake | Northern Saskatchewan | $100,000 | Wollaston Lake Store |
Northern Saskatchewan
- Between 2009 and 2011 we helped the Fond du Lac Denesuline Nation build their community rink. This facility and its programs target both youth and the broader community, encouraging everyone to become healthier and more active.
- In 2011, we made a large donation to Black Lake Denesuline Nation in support of a planned community development project (the Elizabeth Falls Hydro Project) that has the potential to provide significant economic development and jobs to the community.
Saskatoon
- In 2009 and 2010, we made significant donations to two inner-city projects aimed at improving access to health and food services for community residents. One involved the rebuilding of an elementary school that will include a paediatric wellness clinic. The other supported redesigning and rebuilding the Saskatoon Friendship Inn, a soup kitchen providing 500 meals a day to families and individuals in need.
- In 2011, Cameco matched funds raised for the Saskatoon Children's Hospital, a regional maternal and paediatric treatment centre that, when built, will serve sick children from across the province, including northern communities.
Ontario
- In 2010, Cameco committed to donate $250,000 to the Cobourg Community Center ($150,000 provided in 2010 and 2011) which provides social and recreational opportunities for residents of Cobourg. The centre includes a twin-pad arena, gymnasium, multi-purpose program and meeting space, indoor track and dedicated space for seniors and youth.
What it means
Although Cameco does not specifically target infrastructure investments, we receive many requests for investments from local communities to support infrastructure projects because many of these communities have infrastructure deficits.
Currently, we target four areas for support from our community investment fund:
- youth
- health and wellness
- education and literacy
- community development
Looking ahead
Cameco will continue to provide investments toward infrastructure projects in local communities on a case by case basis. We will also consider opportunities to conduct formal community needs assessments in the future.
About this indicator
The community investments measured and reported on in this indicator are also included in the community investment total in EC1.
For this indicator, we have not included any infrastructure that was built primarily for business purposes (i.e. roads) but that local communities may also benefit from.
EC9 – Indirect economic impact
^This indicator provides information about our economic impact on particular geographic areas, including the secondary or indirect impact of Cameco's operations.
Cameco has completed economic impact assessments in:
- Northern Saskatchewan – The Economic Impact of Cameco Corporation on Saskatchewan with Emphasis on the North. By Eric Howe, Department of Economics, University of Saskatchewan. Feb, 2009.
- Port Hope and Northumberland County, Ontario – Economic and Financial Impact Analysis of Cameco in Port Hope and Northumberland County. By Harry Kitchen, Department of Economics, Trent University. Nov, 2010.
- Wyoming – The Economic Impact of Cameco on Wyoming: Existing Uranium Operations and Planned Expansion. By David T. Taylor and Thomas Foulke, University of Wyoming, Sept, 2010.
- Nebraska – The Economic Impact of Cameco Resources' Uranium Production on the Nebraska Economy. David T. Taylor and Thomas Foulke, University of Wyoming, Sept, 2010.
Highlights from completed reports
Northern Saskatchewan
Overall, through direct and indirect activities, Cameco's operations are responsible for 12.2% of the employment in northern Saskatchewan. As well, Cameco, through direct and indirect activities, is responsible for the employment of more than one aboriginal person in 20 in the province of Saskatchewan. Finally, for every one aboriginal person Cameco hires aboriginal employment in Saskatchewan increases by a total of 2.1 employees by the end of the second year.
Port Hope and Northumberland County
In Port Hope, for every dollar a Cameco employee earns, $0.80 is earned by other workers in the local area through secondary spending effects. In Northumberland, this number is $1.40. Further to that, every dollar spent by Cameco in purchasing supplies from a firm in Northumberland or hiring a local tradesman generates $1.10 of additional revenue for other businesses in the area. In Port Hope, this number is $0.40 of additional revenue.
- indirect employment: 981 secondary jobs
- indirect spending: $132 million in secondary expenditure impact through wages and salaries, local procurement, local trades, and charitable contributions
Wyoming
For every uranium job in the mining sector, there are 1.6 other jobs created elsewhere in the Wyoming economy. For every $1.00 of uranium job income in the mining sector, $1.20 of income is generated in other sectors of the Wyoming economy.
- indirect employment: 144 secondary jobs
- indirect labour income (trades): $5 million in secondary labour income
- indirect economic activity: $16.8 million in secondary economic activity
Nebraska
For every direct uranium job in the mining sector, there are 1.8 other jobs created elsewhere in the Nebraska economy. For every $1.00 of uranium job income in the mining sector, $1.40 of income is generated in other sectors of the Nebraska economy.
- indirect employment: 69 secondary jobs
- indirect labour income: $2.5 million in secondary labor income
- indirect economic activity: $7.8 million in secondary economic activity
What it means
Cameco is a major economic contributor everywhere we operate, both directly through things like salaries, wages, and local procurement, and indirectly through secondary employment and secondary economic activity.
Looking ahead
Cameco will continue to work to understand the economic impact, both positive and negative, we have on communities wherever we operate.