Trade missions used as launching pad: northern firms tap into potential demand for products, services overseas. (Exporting: Special Report).

Developing export links abroad requires having people on the ground, planting the seed through face-to-face networking, then waiting a while for the relationship to germinate.

Mining supply companies looking to broaden their interest in a foreign market are being encouraged to take part in an upcoming trade mission to South Africa this fall.

The North has played host to South African delegations over the years, including a stopover in Sudbury and North Bay two years ago by about 15 mining equipment companies.

And over that time several have partnered with northern firms not only in export sales, but in technology transfer, says Jock Forbes, a trade co-ordinator with the Ministry of Northern Development and Mines. "And likewise there's been reciprocal marketing, you carry my product for South Africa, I'll carry yours for North America."

Forbes is busy finalizing preparations to bring about six to eight small- and medium-sized mining supply companies from Northern Ontario to the Electra Mining Show in Johannesburg, the third-largest mining show in the world behind last spring's Expomin in Chile and the Las Vegas Mine Expo.

The show, which runs Sept. 30 to Oct. 4, involves networking sessions, receptions, a briefing by the Canadian High Commission and hopefully a mine tour.

"The show covers not only South Africa, but the whole sub-Sahara region, Zambia and Zimbabwe."

Prior to the mission, Forbes intends to set up a virtual trade mission, using videconferencing technology, tentatively scheduled for Sept. 10 in Sudbury.

A similar session was held in the city last March just before a mining-related trade mission to Expomin mining show in Chile.

Through videoconferencing and the trip, B & D Manufacturing, a 60-employee Sudbury-based fabrication shop, were able to secure a Chilean-based sales representative to market their specialty line of portable align boring machines and aluminum safety products, such as heavy equipment wheel chocks and-bucket stands.

Although it has not yet translated into sales, general manager Andre Ruest says "the prospects remain very good."

The 20-year-old company counts Inco and Falconbridge among its major clients, and is also an authorized Canadian rebuild centre for Cleveland gear drive manufacturer Horburgh and Scott.

"Our decision to go to Chile was last minute and was really based on this virtual trade mission. It gave us more of an opportunity than we thought of the potential demand for our product."

Ruest, whose company frequently attends the major mining fairs in Las Vegas, says the relaxed, friendly atmosphere in Santiago was well worth the trip, and they are strongly leaning toward attending the upcoming trade mission to South Africa.

"We'll know for sure by end of the year if it materializes as we expect it to do. Just by having a presence there will make a difference."

Establishing a presence in a foreign market is now almost second nature to Cast Resource Equipment of Lively, just outside of Sudbury.

Mike Castron, technical sales manager, estimates about 25 per cent of their sales are outside Canada, and they have been shipping remanufactured underground mining equipment to the U.S., South America, Russia and South Africa for the last two years.

Their objective going into the Chile mission was to set up a distributorship or agent, and although they are still talking with a potential partner, the trip spurred some business interest in their products, selling about $50,000 worth of equipment since returning in May.

"We had done business in Chile before this mission so we had some connections already standing, but we were looking to get some new people on board," says Castron.

Though the South American mining industry remains slightly in the doldrums, Castron says the level of interest in their load dump machines, underground haul trucks, drills and tele-operational components is high.

"There are opportunities everywhere and we're just trying to get set up globally," says Castron. He notes the company has been improving its Web site and expanding its 35-employee business into the contracting side.

The pre-Chile mission videoconference held at the Sudbury Contact North office he rated as "excellent."

"You can see people who are interested in your product right up front and you can evaluate more what kind of expertise they might have."

Ontario Exports, the province's lead trade agency, and CAMESE (the Canadian Association of Mining Equipment and Services for Export) plans on following the same formula for South Africa with a high-speed integrated systems digital network connection with potential agents and representatives in that country.

Forbes says South Africa has a history of deep-mining development, having tackled the challenges of hoisting, ventilation and ground control in developing the technology in dealing with those issues.

The trip presents a great opportunity for northern companies to make contacts with those in deep-mine development and further develop this expertise by partnering with South Africans, he says, particularly those with expertise in ground control, health and safety and mine rehabilitation.

www.bdmfg.com

www.castresource.com

www.electramining.co.za