Outlook 2012: We’re a mining hotspot [Sudbury] – by Heather Campbell (Sudbury Star – March 29, 2012)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

According to SAMSSA source, Stan Sudol, the demand for resources in developing
nations, like China, will continue to place upward pressure on commodity prices,
and Canada is the top country in the world for mining project development. It is
estimated that over the next 25 years, we will need to dig out of the ground as
many minerals as has consumed since the beginning of time.
(Stan Sudol, Mining Analysist)

The booming mining sector has the suppliers and service companies scrambling to keep up with the demand and opportunities.

Dick Destefano, Executive Director, Sudbury Area Mining Supply and Service Association (SAMSSA), said the group has switched gears from connecting his members with work to helping them meet the overwhelming demand.

The organization represents the interests of 115 members providing the largest concentration of expertise in mining supply/products and services from within the most recognized centre of excellence worldwide. For the past nine years SAMSSA has been monitoring the mining sector and Destefano predicts that we are not even close to finishing the super cycle.

“I don’t think we are going to come close to the amount of energy that’s going to be put into mining development,” said Destefano.

According to SAMSSA source, Stan Sudol, the demand for resources in developing nations, like China, will continue to place upward pressure on commodity prices, and Canada is the top country in the world for mining project development. It is estimated that over the next 25 years, we will need to dig out of the ground as many minerals as has consumed since the beginning of time.

The mining knowledge in Sudbury makes it a hotspot in North America.

They say the region is even more fortunate than the booming oil sands capital Fort McMurray, because Sudbury has four vibrant and innovative clusters of mining expertise.

The biggest challenge for the supplies and services sector is primarily in attracting skilled human resources and technology.

They need engineers, skilled trades and experienced drillers. Employees that are trained for technically specific work and who tend to be mobile, making them harder to attract.

As Sudol points out there are more jobs in supply and services hardrock mining cluster — the largest in Canada and possibly North America — than in the region’s mines.

The sector employs about 13,800 people with an economic value estimated at $4 billion in 2011.

“It is the smart mine that is defining the future mine. That is more technology doing the work rather than workers,” said Destefano.

It is expected that four to eight mines will be opening just in Northern Ontario in the next five years.

“Every time a mine opens, there is a demand on services and supplies,” said Destefano.

“They have a high level of credibility because they are good at what they do and it just grows.”

Aside from the new mines there are plenty of projects that will also impact the workload and economy.

 “With Vale announcing their $2-billion investment in the Clean AER Project, 70% will be spent locally,” said Destefano.

A substantial project to reduce sulfur dioxide emissions at Vale’s smelter is expected to be completed in 2015. Preparation began in 2008 with some $100-million spent on research and development. This project is one of the largest environmental investments made in Ontario’s history.

With the super cycle still in full swing and more mines opening on the horizon, the focus for SAMSSA over the next couple of years is to share knowledge about innovation in practical terms and the technological advancements in response to the demand.