Canada’s industry ‘envy of the world’
Supply chain forum urged to make most of new opportunities
Bill Whitelaw is bullish on opportunities for Canadian mining, and his message to the Saskatchewan firms that supply the industry is that they should be, too.
Whitelaw, executive vicepresident of the Northern Miner Group and InfoMine, gave the opening address to the 9th annual Saskatchewan Mining Supply Chain Forum in Saskatoon in early April.
The forum is sponsored by the Saskatchewan Mining Association, the Saskatchewan Ministry of the Economy and the Saskatchewan Industrial and Mining Suppliers Association. It is an opportunity for suppliers to the mining industry to make contacts with key players in the sector, show off their wares and participate in educational workshops.
Titled Beyond Saskatchewan’s Borders, Whitelaw’s presentation was aimed at prodding suppliers to extend their vision and look for more opportunities.
Especially, he said, now that there is some positive momentum in base and precious metals around the world thanks to increased productivity and innovation, if not commodity prices.
“Saskatchewan is recognized as one of the best investment jurisdictions in the world, and a huge part of that recognition is thanks to the quality of supply chain that we have,” Whitelaw said.
He invited suppliers to keep a watchful eye on the other jurisdictions of Canada where innovation is occurring, like Goldcorp’s use of an IBM supercomputer to crunch drill results data from Red Lake, Ont. The computer software recommends where to drill next and saves the company valuable time.
“That’s what capital likes to hear, that we’re innovating on process and productivity. And everybody has an innovation that they’re adding to the supply chain,” said Whitelaw.
“The key is to not only know your own link, but to know the links that are two, three, four and five links beyond you, so that you are actually part of a value proposition.”
Whitelaw said there are other facets of Canadian mining, and its supply chain, that we take for granted. These include sustainable mining practices, working with indigenous communities, mining education and a mature policy and regulatory system.
“These are incredible competitive advantages,” he said.
“We’re extremely well organized in terms of the voices we have, and we’re the envy of the world in the way our industry associations work with government, work with mining companies and work with suppliers.”
He said that is reflected in a recent Fraser Institute report that ranked Saskatchewan as the most attractive jurisdiction in the world for mining investment.
The Institute’s attractiveness index gives 60 per cent of its weight to the quality of the geology and minerals, and 40 per cent to the operating context, which weighs 15 factors including the supply chain.
“Capital really has no conscience. It wants to go to the place where it will have the best, and safest return. And obviously this survey tells us that Saskatchewan is that place.”
Other jurisdictions around the world don’t take Canadian methods for granted, he said. Mining organizations in places like Botswana, Finland and Argentina have adopted the Mining Association of Canada’s Toward Sustainable Mining program.
“And there are many other organizations behind these three taking what we do in Canada — how we operate, how we think about the communities we serve, how we think about the diversity of stakeholders we serve, and doing things the Canadian way,” said Whitelaw.
“For you as suppliers, this is critically important, because you should be building this into your business plans. It should be reflected in how you bid on jobs, and how you serve the sectors that you serve.”
The upcoming Canadian Mining Symposium in London, England, will see some of the global giants of mining touting Canadian opportunities to 250 high-end investors from around the world, said Whitelaw.
Guest speakers will include Robert Friedland of Ivanhoe Mines Ltd., David Garofalo of Goldcorp Inc., and Kevin Dushnisky of Barrick Gold.
If asked, Whitelaw said all of those mining notables would probably cite the quality of the supply chain as a major reason for Canada’s success in world rankings.
“They are recognized in the world as leaders for what they’ve done in mining, and they will be talking about why we are so good at what we do. The quality of Canadian mining investment opportunities is huge,” said Whitelaw.
“The opportunity is ripe for the supply chain to take advantage of all that investor interest.”
Capital really has no conscience. It wants to go to the place where it will have the best, and safest return. And obviously this survey tells us that Saskatchewan is that place.