Dick DeStefano is the Executive Director of Sudbury Area Mining Supply and Service Association (SAMSSA). His column was originally published in Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. destefan@isys.ca

The recent Doyletech study of the mining supply & service sector provided significant data indicating that this sector has close to 500 companies in Northern Ontario that sell more than 50 per cent of their products and services to mining companies. This is a large industrial sector within this important geographical region. Results demonstrate that this sector created more than 23,000 jobs and generated more than $5.6 billion in gross sales in 2008.

The six months of face-to-face interviews of over 150 companies established this industry sector as a vital contributor to wealth and employment in the four major cities of Northern Ontario.

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Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

We in the mineral industry often speak of “direct jobs” generated at mines and mills and “indirect employment”, those jobs as suppliers, manufacturers and consultants that spring up to serve the needs of the industry. We know that for every person directly employed by the mining industry there are several others indirectly employed.

Those numbers and others aspects of mining’s importance have been pinned down in a new survey prepared for the Sudbury Area Mining Service and Supply Association (SAMSSA). The Northern Ontario Mining Supply and Services Study looks at about 500 separate firms and organizations in what might arguably be called the “heart” of the mining sector.

The study found approximately 23,000 people are employed in the supply sector. That is a more generous number than the Ontario Mining Association came up with. But the OMA estimate of 480 direct mine jobs and 2,280 supply and services jobs in the province sounds too low by a factor of 10. The difference is probably due to differing definitions of what is a “mine” job or an “indirect” job. Either way, keep the multiplier effect in mind.

The SAMSSA study put a value of $5.6 billion on the supply and services sector in Northern Ontario. Read the rest of this entry »

Norm Tollinsky is editor of Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This column is from the May, 2010 issue.

The preliminary results from a study of the Sudbury and area mining supply cluster and its value to the economy of Ontario confirm the claims that Sudbury Mining Solutions Journal has been making since our inaugural issue in March 2004. We knew that the mining supply cluster in the Sudbury, Timmins, North Bay triangle was substantial in size and impact, but we would never have guessed that its value to the economy was a whopping $5.6 billion per year or that it accounted for some 23,000 jobs.

Sudbury, Timmins and North Bay may be big players in the mining industry, but they represent a very small percentage of Ontario’s population and can be easily overlooked on public policy agendas, both at the provincial and federal levels.

Hundreds of relatively small mining supply businesses failed to register in the public consciousness outside the region, but thrived in the shadows. Until the establishment of the Sudbury and Area Mining Supply and Service Association (SAMSSA) and the founding of Sudbury Mining Solutions Journal, the cluster was an uncoordinated and unheralded collection of independent businesses focused on doing their own thing. Coming together under the umbrella of an association and served by a journal dedicated to promoting their capabilities and innovations to an international audience, hundreds of disparate businesses are now part of something much bigger.

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Dick DeStefano is the Executive Director of Sudbury Area Mining Supply and Service Association (SAMSSA). His column was originally published in Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. destefan@isys.ca

A comprehensive survey of Northern Ontario mining supply and service companies supports earlier estimates that this sector is a significant wealth creator in Northern Ontario.

SAMSSA joined forces with a number of supporting partners to examine the importance of the mining supply and service sector and especially its claim that this mining support cluster is one of the most concentrated in the world. The partners included the Sudbury Area Mining Supply and Service Association (SAMSSA), the Ontario Ministry of Northern Development, Mines and Forestry (MNDMF), Ontario North Economic Development Corp. (ONE DC) and FedNor (Industry Canada).

The overall objective was to assess growth opportunities and outline a plan to realize them through concerted stakeholder action, both public and private.

Primary information for this analysis was complied by Doyletech Corporation over a five month period through interviews with 150 companies and three focus groups. Read the rest of this entry »

Norm Tollinsky is editor of Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This column was originally published in December, 2008 edition.

ntollinsky@sudburyminingsolutions.com

Euphoria pretty well summarizes the state of the mining industry in 2008 and the mood in the Ontario mining cluster of Sudbury, Timmins and North Bay. Our cover story this issue provides an overview of the capital investments, the spending on exploration and the impact of all this activity on the region’s mining suppliers. It’s a head-spinning story, but anyone who has ever been on a roller coaster ride or has been in the mining industry for more than five years knows that life and commodity prices don’t always follow an upward trajectory.

The last time the world’s mining community gathered at MINExpo in 2004, nickel was selling for a little more than $5 a pound. It peaked at more than $20 in early 2007 and remained above $12 until May, when it started to slide. At press time, it was holding steady at a still respectable $8.

Storm clouds caused by the sub-prime mortgage crisis, rising oil prices and the woes in the auto industry notwithstanding, commodity prices are holding their own and the mining industry continues to invest. Read the rest of this entry »

Norm Tollinsky is editor of Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This column was originally published in December, 2008 edition.

ntollinsky@sudburyminingsolutions.com

Writing headlines for a quarterly mining journal can be a risky proposition. Such was the case with the headline, “Ontario firing on all cylinders,” emblazoned across the front page of our September 2008 issue. The story accompanying it trumpeted an exhaustive list of mine development projects and record-breaking spending on exploration. It went on to illustrate the effects of all of this activity on mining suppliers, the housing market and the wear and tear of the region’s roads.

“The general consensus,” the story noted, “is that the current supercycle, fuelled by the ascendance of China and several other rapidly developing economies, will endure for decades, with a few ups and downs along the way.”

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SAMSSA Executive Director Dick DeStefano at their Annual Meeting

The leaders in the mining supply and service industry have proven that mining is only as efficient and productive as the quality of products and services provided from mining supply companies.  Over 400 Northern Ontario mining supply and service companies can boast of their historical influence in mining camps worldwide and their significant employment opportunities for skilled personnel making this sector larger in number than all direct mining and refining jobs in Northern Ontario. – Dick DeStefano: Executive Director.

Robert S. Lipic – President & CEO
Mining Technologies International Inc.

Bob Lipic has had an extensive career in the mining industry and is well known in international mining circles.  As President and CEO of Mining Technologies International (MTI), Bob Lipic has spent more than 30 years building, consolidating, expanding and adapting his company to the challenges of the mining industry.  This Canadian owned company was established in 1995 as a result of a merger of several companies, with names familiar to the mining industry: Drillex International of Canada, Continuous Mining Systems, LHD Equipment, John Clark Inc., Drillex U.S. Inc., CMS Pacific, and Drilco Australia PTY.

Robert S. Lipic - President and CEO of Mining Technologies International Inc.

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Claiming Our Stake! Building a Sustainable Community

I: COMPANY INVESTMENTS IN LOCAL OPERATIONS

Local Operations Managed by Two Major Mining Companies

lnco is planning capital expenditures of about $2 billion in the Sudbury Basin over the next five years to expand current production and build new mines. The company is embarking on the largest period of growth in Sudbury in more than 30 years. This is a conservative estimate and depending on the financial clout of the new owner, may be increased substantially, lnco has plans for new mine developments that include the Kelly Lake and Totten deposits, milling upgrades, smelter improvements, including investments in sulphur emission reductions and expansions at the nickel refinery. The company intends to maintain the stability of their workforce, with longer-term growth potential.

Falconbridge’s half billion-dollar Nickel Rim South project, currently under construction, may become the richest individual mine in Canadian history. Read the rest of this entry »

The Sudbury Mining Supply Journal gave Republic of Mining.com permission to post Dick DeStefano’s column. This Sudbury-based magazine showcases the mining expertise of North Bay, Timmins and Sudbury.

Dick DeStefano

What do the City of Greater Sudbury and North Bay have in common that make them unique within the global mining context?

The simple answer is they anchor a corridor which includes 415 mining supply and service companies who market their tools, talent and technology domestically and internationally.

The Northern Ontario corridor of mining suppliers is known worldwide in all mining circles as the centre of mining excellence based on products and expertise that, in some cases, stretch over 40 years of refinements and production of quality work in the field.

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The Sudbury Mining Solutions Journal gave Republic of Mining.com permission to post Dr. David Robinson’s column. This Sudbury-based magazine showcases the mining expertise of North Bay, Timmins and Sudbury.

Dr. David Robinson

Here is the formula for a crystal ball. Take a cube of derived demand, add a book from a Singapore scholar, stir in some used predictions and a sprinkling of judgment. Apply this mix liberally to the mining supply and services industry and voilá – you can see the future.

Economists have long understood that nobody really wants grass seed – they like it once it has been turned into bread and a few people like it turned into lawns. Demand for wheat is almost all “derived” from the more basic demand for food. Demand for copper is even more indirect: copper makes wire to deliver electricity to bake bread. Nobody eats copper or stoves or electricity.

Nobody eats scoop trams, either. Read the rest of this entry »

The SAMSSA Hall of Fame recognizes management leaders who have developed and provided mining advancing technologies and/or products and services that  have improved the efficiencies of mining globally and domestically and have built or assisted in building companies in Northern Ontario that have proven to be successful.

The leaders in the mining supply and service industry have proven that mining is only as efficient and productive as the quality of products and services provided from mining supply companies.  Over 400 Northern Ontario mining supply and service companies can boast of their historical influence in mining camps worldwide and their significant employment opportunities for skilled personnel making this sector larger in number than all direct mining and refining jobs in Northern Ontario.

SAMSSA and the Mining World congratulate the following inductees into the SAMSSA Hall of Fame: Fred Castron, Cast Resource Equipment Limited and Conrad C. Houle, Chairman and CEO, Tracks and Wheels Equipment Brokers Inc.

Fred Castron

The son of a blue collar mine worker in Penticton, B.C., Fred grew up in the 30’s and 40’s with limited formal education but he developed a fondness for numbers and a willingness to learn which would later serve him well as a young partsman working in the warehouses of Blackwood Hodge Equipment Limited.

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OEM Off-Highway magazine Editor Chad Elmore has given Republic of Mining.com permission to post an October 2007 article on Sudbury’s Mining Supply and Service sector.

OEM Off-Highway magazine provides an editorial mix of new technology, component information, engineering processes and industry news to help product development teams design and produce better off-highway vehicles and component systems. OEM Off-Highway

The Northern Bermuda Triangle

Today CVRD Inco is still involved in product development, albeit in a different capacity. Most of the equipment in Sudbury leaves the factory fully assembled. If it’s going to be lowered in a cage, a few tricks must be performed. Depending on the size of the cage, this can mean tearing the machine down, lowering the pieces on the cage and rebuilding it underground. It’s an extra process that can cost the mine as much as $30,000.

CVRD Inco wanted to prove new machines above ground. It created a ramp with a 20% grade in an old open pit mine near Sudbury.
It’s been called the Bermuda Triangle of the North because things happen to vehicles on the ramp test that never occurred in the past. The vehicles are pounded repeatedly by worst-possible situations that replicate real-world conditions. The Canadian Standards Assoc. (CSA) and other groups spell out specifications like safe stopping distances. CVRD Inco’s test uses the standards, then cuts them by a third to make up for extended maintenance intervals.

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OEM Off-Highway magazine Editor Chad Elmore has given Republic of Mining.com permission to post an October 2007 article on Sudbury’s Mining Supply and Service sector.

OEM Off-Highway magazine provides an editorial mix of new technology, component information, engineering processes and industry news to help product development teams design and produce better off-highway vehicles and component systems. OEM Off-Highway

Adit Makes It Easier

NORCAT’s laboratory work is balanced by its mine training and testing facility in the former Fecunis Mine, located on Xstrata Nickel land in Onaping, an hour northwest of Sudbury.

Safety indoctrination is required for any person employed by a mine or working as a contractor underground in Ontario. CVRD Inco and Xstrata Nickel look to NORCAT for training.

The month-long course for the hard rock miner common core program begins in front of the computer and moves to safety training at NORCAT’s underground mine. This is followed by hands-on work where students go through the cycle of drilling, blasting, scaling, bolting and mucking. More than 2,000 students each year go through the program, which is taught by miners with decades of real-world experience.
While extracting paydirt isn’t the goal of NORCAT’s mine work, the mining is real. Students don headlamps to open drifts and ventilation passages following a plan. The mine gets deeper with each wave of students. The longest drift is 750 ft.

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OEM Off-Highway magazine Editor Chad Elmore has given Republic of Mining.com permission to post an October 2007 article on Sudbury’s Mining Supply and Service sector.

OEM Off-Highway magazine provides an editorial mix of new technology, component information, engineering processes and industry news to help product development teams design and produce better off-highway vehicles and component systems. OEM Off-Highway

Deep Impact

How Sudbury developed into a mining technology center can be linked to a number of factors. Common elements in every explanation are a direct hit from a meteorite (about 1.8 billion years ago) that created one of the highest concentrations of nickel-copper sulfides in the world, and the two oldest and largest mining com¬panies in the area.

They were for¬merly known as Inco (Creighton Mine started producing ore in 1901; today production areas are more than 8,000 ft. deep) and Falconbridge (80 years of history in Sudbury). Last year Inco was acquired by Brazilian mining giant Companhia Vale do Rio Doce (CVRD) and became CVRD Inco, while Falconbridge attracted Switzerland’s Xstrata plc. The Sudbury division is now Xstrata Nickel.

Clusters of companies that work together to solve industry problems do not develop overnight. Mining activity throughout the basin increased after the 1940s. Mines required custom-built equip¬ment to meet unique applications and standards. Synergy between individual mines owned by the same company was rare. Between different companies it was worse. Still, improving production efficiencies — especially when nickel prices bottomed out — was always important. Local suppliers were busy sup¬porting activity in and around Sudbury and expanded along with their customers. Mine firms were in a position to support research in mineral extraction techniques and technology, and when something worked they became a customer. Read the rest of this entry »

OEM Off-Highway magazine Editor Chad Elmore has given Republic of Mining.com permission to post an October 2007 article on Sudbury’s Mining Supply and Service sector.

OEM Off-Highway magazine provides an editorial mix of new technology, component information, engineering processes and industry news to help product development teams design and produce better off-highway vehicles and component systems. OEM Off-Highway

If mining expertise is what you need, the Sudbury Basin has it.

The deep hard rock mines lining Ontario’s Sudbury Basin feature some of the toughest working conditions in North America. There are more than 3,000 miles of mine tunnels under the region’s lakes and trees — some of those miles start at the bottom of a shaft more than 8,000 ft. below sea level. Down there, moisture-laden air mixes with ambient rock temperatures hovering around 100 F. Factor in long ramps with grades of more than 20%, narrow tunnels walled with unforgiving igneous rock and the occasional puddle holding enough sulfuric acid to consume a screw — Pebble Beach, this is not.

Equipment builders get no breaks, even in that environment. Whether using a production or support vehicle, mine operators expect maximum availability from their equipment. An equipment failure in a narrow tunnel 5,500 ft. down and two miles from the elevator, or cage, to the surface can be very expensive and downright inconvenient. Mines also want the machines to be safe and easy to maintain.

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