Mining sector outcropping in North Bay.

Visitors to the Gateway City will be hard-pressed to find any mining headframes on the horizon, but the community is home to a collection of mining supply companies working on projects across Northern Ontario and as far away as the Northwest Territories and South America.

North Bay is more than an hour's drive away from any major mine operation, but this sector generates major employment and big bucks for the city, employing about 1,300 people (and about 2,000 indirectly) and generating annual earnings of $82 million.

About 65 North Bay businesses cater to the mining sector, including engineering firms such as J.S. Redpath, headframe builders Minesteel Fabricators, drill manufacturers like Boart Longyear and Atlas Copco. The cluster includes underground vehicle builders like Miller Technology, heavy-duty electricians such as Canelec Manufacturing and Development. The cluster continues with explosives experts such as Topex Inc. and ETI Canada Inc., as well as a bevy of machine shops, tool and parts makers, automated systems manufacturers, even marketing firms all make up what is known as the Blue Sky Economic Partnership mining cluster.

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The partnership pegs the city's mining supply industry producing an estimated $280 million in output annually. About $142 million of the $280 million represents the purchase of goods and services of which between $20 million and $30 million is dumped back into the local economy.

"We don't have any headframes here," says Rick Evans, North Bay's manager of economic development, "and there's pluses and minuses to that, but the companies we have provide engineered products and services to mining companies all outside of our region, whether it's Sudbury, Chile, or South Africa or South America.

Between 1991 and 1996, when North Bay experienced some drastic public-sector downsizing with 2,600 jobs disappearing at CFB North Bay, the city took a studied look at the cluster approach. It looked at what places like Moncton had done with respect to cluster technology and decided to embark upon a sectoral cluster strategy and looked around for any well-established sectors that would lend themselves to the cluster approach.

Before, the spirit of co-operation among mining companies was on an ad hoc basis, says Evans. On some occasions, such as when major buyers from Russia were in town, all the mining players came together.

The cluster approach brought some structure for mining suppliers to share market intelligence and exchange information that led to many companies partnering for tradeshows and occasionally collaborating on projects.

"I've had a lot of experience in international business," says Tom Palangio Sr., president of Topex Inc., and chairman of the Blue Sky Mining Cluster, "and I've had to learn the hard way ... but I'm willing to help others."

In the cyclical Canadian mining industry, flexibility and export readiness are essential to survival, says Palangio.

"Exporting isn't all that difficult once you talk to someone that does it."

But it can be formidable for companies to go abroad without some sound advice with issues of customs paperwork, currency, language barriers and a lack of contacts.

Usually meeting about once a month at the call of the chairman, companies exchange the latest scuttlebutt, organize themselves for trade missions, find out about upcoming trade shows or listen to an industry-related guest speaker.

Palangio admits it was difficult to get competitors to share ideas and experiences.

"People in the mining industry are very individualistic. They're self-made men ... and it's difficult to introduce structure and programming.

"But through dialogue they realize who is paying their bills, the mining activity going in certain areas, mines opening or closing, and find out where to obtain equipment and other resources, and issues of payment and non-payment."

There is also the social element, including an annual summer cruise, which represents an opportunity for suppliers to rub shoulders with bankers, lawyers and politicians.

Logistically, North Bay is a great area for mining companies to be, being easily accessible to historic mining camps in Sudbury, Timmins-Kirkland Lake and northwestern Quebec, says Evans.

It is also at the hub of major road and rail links in Sudbury, Timmins-Kirkland Lake and northwestern Quebec, says Evans.

It is also at the hub of major road and rail connections and airport facilties, including the 10,000-foot runway at Jack Garland Airport enables heavy lift aircraft to pick up mining machinery, locomotives and drills to be transported anywhere in the world.

The fledgling mining supply group is also interested in aligning themselves with other associations and has made some moves toward striking a relationship with Sudbury's mining supply cluster group.

The city assists the companies in export initiatives, research and development of products and services, and securing joint-venture partners for companies.

In the last few years, the Blue Sky Mining Sector and the local branch of the Canadian Institute of Mining (CIM) have collaborated on events such as the city's Mining Week in May.

North Bay's Mining Week takes place with a major focus on public education and awareness about the impact of the industry to the area. Volunteers from the participating mining companies arrange outdoor displays of mining equipment or visit area elementary and high schools to speak about what the industry is about and possible careers.

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"Education is a big part of the cluster," says Palangio. Since mining is so multifaceted, the sector is on the leading edge of many technologies including remote-operated machinery ..."

www.blueskyregion.ca/mining

By IAN ROSS

Northern Ontario Business