Purchasers and suppliers rendezvous at Timmins Chamber of Commerce’s Meet the Purchasers Event

The discovery, development and operation of a mine is a strategic exercise that rivals the planning and operation of a military invasion, with one exception - the mining project generally lasts many years longer.

A mining company’s need for workers, materials, supplies and services such as, engineering, construction, electrical, transportation, geophysical, mechanical and metallurgical are enormous.

The various skills, expertise and know-how often go beyond the ability of a mining company to incorporate all of them into their permanent workforce. This is where purchasing supplies and services from outside providers comes in -- without them it would be that much more difficult to set up a mining operation.

On a cold January day in Timmins the Timmins Chamber of Commerce hosted “Meet the Purchasers” -- a one day event where purchasers from mining companies met with companies who could provide the supplies and services they need. The event was sponsored by Porter Air which opened a Toronto - Timmins route precisely a year earlier.

Presentations were made by representatives of five mining companies; DeBeers Canada, Detour Gold Corp., Lakeshore Gold Corp., Porcupine Gold Mines (Goldcorp), and Xstrata Kidd Creek Operations.

In addition presentations were also given by four service providers: Dumas Contracting Ltd., J.S. Redpath Ltd., Aecon Mining and Northern Colleges of Applied Arts and Technology.

Information tables were set up around the periphery of the hall. In the audience were owners and representatives of small, local companies who have the expertise and skills to fill many of the subcontract needs of the larger contracting firms or directly contract to the mining companies themselves.

One of the absolute musts for supply and services companies looking to do businesses with mining companies in Ontario is the consideration of employing or subcontracting to First Nations and other Aboriginal groups.

Though the companies are quite diverse in their operations they all have one thing in common -- respect for the First Nations whose traditional lands their operations take place on that includes the mine site itself - the hydro corridors and roads that maybe built, the airstrips and the taking of water from nearby rivers and lakes.

Mining companies, through Impact Benefits Agreements with local First Nations, have committed themselves to hiring community members and contracting to First Nations suppliers. They also require suppliers and service providers to adhere to the commitments they have made to the First Nations.

Another important requirement is providing the expertise and skill sets at a competitive price. All companies have a tendering process that begins with a posting of a Request for Service either on their website or through conventional mail to a list of providers or through advertising in major newspapers and trade publications.

Contracting companies that meet the criteria established in the RFS can then submit an Expression of Interest to the mining company. All those who submitted an Expression of Interest will be invited to a bidders meeting to get more detailed information of what is required of them to meet the service or supply needs of the Mining Company. Based on the information from the bidders meeting, the bidders will develop their tendered bid.

In some cases such as large scale mine operation developments, open pit mine engineering, shaft sinking and underground development, where there are only a few providers who can provide the service, individual tours of the proposed site are given. This visit and the information gleaned from it will serve as a basis for the tendered bid.

Generally, the tender is awarded to the company with the lowest cost bid, but this may not always be the case. In certain situations, cost is an important consideration, but not the only one. For example a company that has a higher cost bid, but also provides a greater range of expertise and capability may be selected even though it was not the lowest bidder. The bottom line is the job has to be done to specifications, on cost and on time.

Each company has a purchasing and supply department or similar named departments that contractors can call to get more information on how its purchasing and supply system works.

The Meet the Purchasers event helped to provide direct access to the purchasing and supply representatives of the mining companies and the large contractors who require subcontractors. After the presentations were over the tables of the respective companies were buzzing with activity as potential supply and service providers and subcontractors swarmed around the company rep for more information as they looked for business. The Timmins area is a rich source of supplies and service providers because of its long tradition of service and experience in mining.

One organization that provided a unique service to both mining companies and large scale contractors is Northern College of Arts and Technology which offers valued courses in mining related studies.

Education is increasingly the number one concern as veteran mining officials retire. New well educated replacements are in demand. Courses related specifically to mining include Mining Engineering Technology, Engineering Technology and Trades. However  there are many courses offered that are pertinent to mining and also have wider application e.g. Construction and Maintenance Electrician Apprenticeship and Heavy Equipment Operator.