Following the money: Wawa launches mining supply study.

AuthorRoss, Ian
PositionMINING

Wawa is digging into the details of what it takes to become a vibrant mining supply hub.

Last spring, the economic development corporation hired consultants McSweeney & Associates to launch a mining study to uncover business opportunities to service area mines.

The northeastern Ontario town near the shores of 'Lake Superior has two operating gold mines, Wes-dome and Richmont, within an hour's drive, and also more than a dozen properties in various stages of exploration.

"We're trying to determine the supply chain," said Maury O'Neill. CEO of the Wawa Economic Development Corporation.

"Where are the mines buying their goods and services? Who in Wawa is part of that supply chain? Where are the gaps in terms of money going out and how can we capture some of that money that the mines are spending for our existing business?"

The first phase to identify the opportunities was done in September. A second phase will provide a list of actions to help local businesses grow or assist entrepreneurs start a new business. The final report comes out in November.

"What we found in the first report is that Wawa businesses are doing a pretty good job," said O'Neill.

The consultants visited many businesses and came away impressed with the dedication, entrepreneurial spirit, and savviness of the business community.

"They've taken care of a lot of the supply and goods demand that the mines have had over the years."

As a follow up to the first report, the EDC and the consultants are now surveying about 50 businesses that are working or have potential to work with the mines.

"We're trying to find out what do these businesses need to expand or grow to take these opportunities on," said O'Neill. "The response so far has been really good."

Many companies are asking for assistance in public funding applications to grow their business.

The study has also revealed some chronic labour issues for small business.

Quite often both the mines and their suppliers are chasing after the same skilled tradesperson.

And that shortage is hindering small business expansion.

One operating gold miner, Richmont Mines, has developed its own feeder system.

It's partnering with Northern College in running a very successful common core training course that puts out between six and eight graduates every few months directly into the company's workforce.

The arrangement utilizes the local workforce and the company doesn't need to provide accommodations for what otherwise would be a transient...

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