Global demand outstripping supply, mining industry says.

A flurry of exploration activity globally and continuing high base-precious metal prices are keeping the order books full for many companies in North Bay's mining supply and manufacturing hub.

A number of local mine engineering and manufacturing firms are expanding their operations and diversifying their product lines to gain greater footholds in world markets.

Sixty-five area businesses receive a portion of their revenues from supplying the mining industry, which provides direct employment for 1,300 people and generates an estimated $82 million in earnings annually.

Increased activity and an opportunity to diversify convinced mining parts manufacturer J.N. Precise to move into a new 70,000-square-foot facility on Highway 11, renovating a former food product-distribution warehouse.

The 65-employee firm is a sub-contractor for Boart Longyear, manufacturing a variety of drill tools and augers, as well as producing their own line of rotary bits for the coal mining industry in British Columbia and the U.S.

With 26 CNC (computer numerically controlled) milling machines in-house, the company also makes hydraulic cylinders for a manufacturer serving the agricultural sector.

Earlier this year, mine builders Cementation Skanska consolidated its Aurora and Sudbury operations under one roof in North Bay and increased its North Bay workforce by 28, to bring the company's local presence to almost 70 employees.

Drill manufacturer Atlas Copco is reconfiguring and reorganizing its work area to add office space and open up about 3,000 square feet of more plant floor space for storage.

The company is attempting to free up floor space for production by adding outside office space and a lunchroom.

Business has been booming for the mining suppler, particularly within the past 12 months, as metal prices in copper, nickel and gold have stayed strong, and inventories have dropped.

"The (mining) economy is unbelievable," says Bob Gibson, the company's financial manager. "It's really quite strong at the moment."

The company has increased its North Bay workforce by about 20 per cent, adding to its 110-person work force.

"We're seeing significant activities around the world for the use of our products," says Gibson, in exporting product around North America, South America, exploration areas in Africa and the Far East, especially the Chinese and Russian markets. "Lots of everything, bits, rods, drilling machines, the complete range."

After bottoming out in 2000, the company is back in the midst of what it believes is a seven-to-eight year cycle upswing similar to the late 1990s.

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Boart Longyear recently purchased St. Lambert Drilling from Quebec to strengthen the company's foothold for drilling services in West Africa.

Rick LaBelle, general manager of drilling services in their North Bay plant, says some administrative functions will come to the city, but management will stay intact in Montreal. Overall, it should create more demand for drill rods from North Bay and from their Haileybury facility.

The company started a drilling training school in Haileybury this year and has trained 80 people over the past three months, all utilized on their payroll as part of their drilling services.

"What it means is more opportunities for drillers who are French-speaking from Northern Ontario to be getting jobs from Boart Longyear and being transferred to West Africa."

LaBelle says global demand is far outstripping supply by a factor of two or three.

"The phone is ringing off the hook and we can't hire and train people fast enough."

Almost two years ago, Boart purchased Bradley Manufacturing, a Rouyn-Noranda diamond core drilling products company, and brought all their manufacturing to North Bay and Salt Lake City.

The demand for core-drilling products has boosted the North Bay manufacturing workforce by one-third from 75 to more than 110 in manufacturing and skilled labour.

Redpath Group, a mining engineering firm, has renovated an adjacent warehouse building on Highway 11 North during May, previously used for trailer repairs, and expanded their equipment repair department.

They also consolidated two equipment departments by moving their underground mobile repair shops from Timmins to North Bay.

Andy Fearn, Redpath's vice-president of international projects, says in his 25 years in the mining contracting business, the current exploration cycle is "as optimistic as I've ever seen it.

"We're a service company and we're busy throughout the world with projects in Indonesia, Africa, and Asia, which are expanding as are our North America ones.

Redpath is well-known regionally for its involvement in the Kidd Creek Mine D expansion in Timmins, as well as Falcon-bridge's Montcalm mine project (Redpath is contracted to do the entire length of the mine's production).

The company is also focussing on international growth with a successful gold project underway for Barrick in Tanzania and they are mobilizing for a copper mine shaft sinking in Mongolia

By IAN ROSS 

Northern Ontario Business