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Fact Sheet

2.7 Economic and Social Benefits


of the Project

Fact Sheet:
2.7 Economic and Social Benefits
of the Project

Key Facts
The Ajax Project will invest $1.5 billion toward needed infrastructure
and facilities, which will create $6.9 billion in economic benefits during
the mines 23-year operations lifetime, while employing hundreds of
local residents, supporting local businesses, and other beneficial uses.
The Economic and Social Benefits of the Project

and type of economic benefit experienced will

assessment describes the potential benefits of

dier with each phase.

the Ajax Project to the public, with a particular


focus on the City of Kamloops. This section
contains information on possible economic
impacts, employment and training, income,
business opportunities, healthy living, and
community development.
The Project is expected to make a positive
contribution both economically and socially
to Kamloops, the surrounding area, and the
Province of British Columbia. During the con-

Construction:
Approximately three years in duration.
The total cost of the Project Construction
phase is estimated at $1.5 billion.
Approximately two-thirds of all the spending
during this phase is expected to be within
B.C. and the remaining third elsewhere in
Canada and internationally.

struction and operations phases, the Project

The extra demand for goods and services

is expected to create a significant number of

created by the Project will lead to additional

jobs, additional business activity, income, and

provincial and local taxes as suppliers and

tax revenue for Kamloops and in the Thomp-

other aected businesses increase sales,

son-Nicola Regional District (TNRD), while also

hire more employees and/or expand their

diversifying the local economy.

facilities.

Economic Benefits

Local taxes generated during the construction phase are estimated at $25 million,

Overall economic impact of the Project takes

while B.C. provincial tax revenue is esti-

into account direct, indirect, and induced

mated to be $115 million.

impacts. There are four phases to the Project


(construction, operations, decommissioning
and closure, and post-closure), and the amount

Operations:
Estimated at 23 years in duration.

KGHM Ajax Mining Inc.: Fact Sheet


2.7 Economic and Social Benefits of the Project

The Project is expected to create $6.9 billion in total economic benefits, or $299
million per year.
450 full-time workers will be directly
employed by KGHM Ajax Mining Inc. (KAM).
Total direct wages, including benefits, will be
close to $62 million per year and approximately $1.4 billion over the life of the mine.
Total annual employment supported by
the Project (direct, indirect and induced) is
estimated at 1,450 full-time positions in B.C.
and an additional 540 full-time positions for
the rest of Canada. The majority of the jobs
created are expected to be full-time.
Total tax revenue created over the life of
the mine at the local level is $160 million
and provincially $710 million.
Decommissioning/ Closure and Post
Closure:
Expected to last five years.
The total cost of Project activities is expected to total $195 million.

Labour Force and Employment


Benefits
Kamloops and the surrounding area have
a larger than average and growing pool of
skilled trades who are qualified to fill the
potential Project workforce needs. KAM

organizations to provide the skilled labour


required for the Project.
During Year 1 of Construction, the overall
local-hire percentage would be between
63 percent and 80 percent. In Year 2, more
skilled positions will be needed, resulting in
an overall local-hire percentage of between
47 percent and 64 percent of the total
workforce. In Year 3 the overall local-hire
percentage will range between 48 percent
and 66 percent of the total workforce.
During the operations phase of the Project,
total employment opportunities are expected to range between 400 and 500 positions
in an average year.
During the operations phase, KAM estimates that between 58 percent and 74
percent of the positions will be filled locally.
Decommissioning jobs will be filled by
employees from operations and closure
phase jobs and are expected to be filled
locally.

Business Opportunities Benefits


The Project may depend on several contract
services during construction and operations phases that will likely be met locally.
Transportation, fuel supply, catering, security, and some maintenance services could
all possibly be provided by local businesses.

will bolster the pool of potential hires by

KAM expects that between 25 percent and

working with universities and businesses

35 percent of spending on Project supplies

to provide job training and apprenticeship

and services will take place in the Kamloops

programs.

area.

KAM will continue to work closely with local

Total annual average spending in the Kam-

First Nations groups to provide job training

loops area is estimated to be between $55

in hopes of filling as many Project positions

and $77 million.

with First Nations workers as possible.


Some forestry sector workers will be able to
transfer their skills into the mining sector.
KAM has committed to hire locally and
will partner with local training/education

KAM has signed contracts with Aboriginal


and Aboriginal-aliated companies to provide services to the Project.

KGHM Ajax Mining Inc.: Fact Sheet


2.7 Economic and Social Benefits of the Project

Income Benefits
The construction phase is expected to
generate local employment income in the
range of $264 million to $328 million.
In the operations phase 933 full-time jobs
in the Kamloops area are expected, including direct, indirect, and induced positions.

Community Development
Benefits
KAM is dedicated to supporting the growth
of the community and environmental
sustainability by aiding local events, clubs,
businesses,

community

groups,

athlet-

ics, and arts activities, as well as a variety


of non-profit groups. This assistance may

The average wage paid to a direct Project

come in the form of donations, sponsor-

employee for a year of full-time work will be

ships, or partnering with other businesses

$117,000.

or organizations.
An access management plan will be devel-

Healthy Living Benefits

oped with a goal of continuing to provide

KAM will support and sponsor local community organizations that encourage and
support healthy living and health education.
KAM will also support recreational activities
around the Project where it is safe to do so.

recreational access to areas around the


Project site.
KAM will also continue to consult and work
with local First Nations in order to build
strong and lasting relationships.

Safety for employees and the community


will be a priority on-site during all Project
phases, with a goal of Zero Harm.

KGHM Ajax Mining Inc.


124 Seymour Street
Kamloops BC, V2C 2E1

tel. (+1) 250 374 5446


fax (+1) 250 374 5443
www.ajaxmine.ca