Owner
Post by Franko10 ™ on Mar 7, 2005 9:20:29 GMT -5
Shortages the flip side of an industry working flat out
By WENDY STUECK
MINING REPORTER
Monday, March 7, 2005 - Page B4
VANCOUVER -- When Acme Analytical Laboratories Ltd. added a night shift last year, it was supposed to be a short-term fix.
Six months later, the night shift is still going as the Vancouver-based company works flat out to analyze ore samples from around the globe.
"It's one of the busiest seasons we have ever seen," Acme business development manager Rick McCaffrey said last week. "Usually it's just hype, when companies say we're going to do this or that project. But now everybody has money for a change, and when they are cashed up, they start drilling."
That is, if they can book a drill rig, one of many parts of the global mining machine in desperately short supply.
As a global commodities boom enters its third year and mining companies rake in record profits, the flip side of the boom is emerging -- rising costs, equipment shortages and a daunting human resource crunch. Such ripple effects are on the agenda at this week's Prospectors and Developers Association of Canada convention in Toronto, which features a "prospecting for people" session along with updates on commodities, global exploration and conditions in emerging mining regions such as Kazakhstan.
The convention is expected to draw as many as 9,000 delegates, some of whom will likely spend this year's show hitting up contacts for leads on equipment and employees -- or swapping tales of woe related to delays or higher costs.
At Acme, for example, turnaround times for assay results have stretched from one week to two or more. That's despite the company going from two to three shifts and boosting its payroll from 60 to 120 employees over the past two years.
Bottlenecks are also hitting the geo-analytical laboratories of the Saskatchewan Research Council, which is scrambling to keep up with increased uranium and diamond exploration in the province.
Concerned by the delays, Vancouver-based resource companies International Uranium Corp. and JNR Resources Inc. recently donated $43,000 to the SRC for new lab equipment.
Exploration companies typically don't have much money to spend, but International Uranium president Ron Hochstein considers the donation a sound investment.
"For us, each drill hole is costing around $50,000 to $60,000," Mr. Hochstein said. "So if we can save the cost of one misplaced drill hole by getting sufficient information when we need it, we have paid for that investment already."
He may want to direct any cost savings into a tire fund.
Strong global demand has created a shortage of off-the-road tires for trucks, graders and other mining equipment, said Robert Foord, vice-president with Vernon, B.C.-based tire distributor Kal Tire.
Tire manufacturers are going full-tilt and it takes months or years to add new capacity, Mr. Foord said.
"The [rising] commodity prices are driving mine activity, and companies are firing up projects that have been mothballed and firing up equipment that's been mothballed.
"And it's happening all at once around the world, and everybody's getting caught short."
So far, he added, Kal Tire has been able to meet demand, although some customers are having to wait longer for new tires than they had anticipated.
Kal Tire is also working with customers to try to make the tires last longer with proper maintenance.
That's a tactic adopted by Elk Valley Coal Corp., which runs five mines in southeastern British Columbia and one in Alberta.
"We are trying to prolong the life of tires we have," said Elk Valley spokeswoman Susan Soprovich.
That means lighter loads and sensors that monitor heat and inflation. Such efforts are likely to spread as rising fuel, construction and labour costs work their way into budgets for new projects.
But cost-cutting and conservation efforts won't do much to address the issue of over-stretched engineering and construction firms.
Companies that need such services may have to wait.
Bob Stanlake, the Vancouver-based vice-president of mining and metals for Amec Americas Ltd., said Amec has boosted its mining-related work force to 800 from 540 people over the past year.
But Amec, currently working on projects in Alaska, the Northwest Territories and Ontario as well as South America, has still had to turn down work because it doesn't have enough experienced employees.
By WENDY STUECK
MINING REPORTER
Monday, March 7, 2005 - Page B4
VANCOUVER -- When Acme Analytical Laboratories Ltd. added a night shift last year, it was supposed to be a short-term fix.
Six months later, the night shift is still going as the Vancouver-based company works flat out to analyze ore samples from around the globe.
"It's one of the busiest seasons we have ever seen," Acme business development manager Rick McCaffrey said last week. "Usually it's just hype, when companies say we're going to do this or that project. But now everybody has money for a change, and when they are cashed up, they start drilling."
That is, if they can book a drill rig, one of many parts of the global mining machine in desperately short supply.
As a global commodities boom enters its third year and mining companies rake in record profits, the flip side of the boom is emerging -- rising costs, equipment shortages and a daunting human resource crunch. Such ripple effects are on the agenda at this week's Prospectors and Developers Association of Canada convention in Toronto, which features a "prospecting for people" session along with updates on commodities, global exploration and conditions in emerging mining regions such as Kazakhstan.
The convention is expected to draw as many as 9,000 delegates, some of whom will likely spend this year's show hitting up contacts for leads on equipment and employees -- or swapping tales of woe related to delays or higher costs.
At Acme, for example, turnaround times for assay results have stretched from one week to two or more. That's despite the company going from two to three shifts and boosting its payroll from 60 to 120 employees over the past two years.
Bottlenecks are also hitting the geo-analytical laboratories of the Saskatchewan Research Council, which is scrambling to keep up with increased uranium and diamond exploration in the province.
Concerned by the delays, Vancouver-based resource companies International Uranium Corp. and JNR Resources Inc. recently donated $43,000 to the SRC for new lab equipment.
Exploration companies typically don't have much money to spend, but International Uranium president Ron Hochstein considers the donation a sound investment.
"For us, each drill hole is costing around $50,000 to $60,000," Mr. Hochstein said. "So if we can save the cost of one misplaced drill hole by getting sufficient information when we need it, we have paid for that investment already."
He may want to direct any cost savings into a tire fund.
Strong global demand has created a shortage of off-the-road tires for trucks, graders and other mining equipment, said Robert Foord, vice-president with Vernon, B.C.-based tire distributor Kal Tire.
Tire manufacturers are going full-tilt and it takes months or years to add new capacity, Mr. Foord said.
"The [rising] commodity prices are driving mine activity, and companies are firing up projects that have been mothballed and firing up equipment that's been mothballed.
"And it's happening all at once around the world, and everybody's getting caught short."
So far, he added, Kal Tire has been able to meet demand, although some customers are having to wait longer for new tires than they had anticipated.
Kal Tire is also working with customers to try to make the tires last longer with proper maintenance.
That's a tactic adopted by Elk Valley Coal Corp., which runs five mines in southeastern British Columbia and one in Alberta.
"We are trying to prolong the life of tires we have," said Elk Valley spokeswoman Susan Soprovich.
That means lighter loads and sensors that monitor heat and inflation. Such efforts are likely to spread as rising fuel, construction and labour costs work their way into budgets for new projects.
But cost-cutting and conservation efforts won't do much to address the issue of over-stretched engineering and construction firms.
Companies that need such services may have to wait.
Bob Stanlake, the Vancouver-based vice-president of mining and metals for Amec Americas Ltd., said Amec has boosted its mining-related work force to 800 from 540 people over the past year.
But Amec, currently working on projects in Alaska, the Northwest Territories and Ontario as well as South America, has still had to turn down work because it doesn't have enough experienced employees.
