Silicon Valley of mining in the making.

• Author: Ross, Ian
• Position: Special Report: Sudbury

Ask Dick DeStefano how Sudbury's mining supply trade association is evolving and he will say it has morphed into something beyond his wildest expectations.

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While economists and government policymakers lecture about creating clusters as a tool for economic growth, Sudbury's mining supply sector has taken the first tentative steps in establishing one.

Buoyed by recent visits of mining trade delegations from Chile and South Africa, DeStefano, the executive director of the fledgling Sudbury Area Mining Supply and Services Association (SAMSSA), envisions Sudbury evolving into a Silicon Valley of mining technology. The cluster will be built around a conglomerate of companies who both compete against and complement one another in globally marketing their products.

"The whole premise of the association was based on goodwill and synergy," says DeStefano.

The reach of SAMSSA, formed last summer with about 32 members, has spread both inwards and outwards, says DeStefano, who owns Factonics, a Sudbury strategic planning firm.

"Not only (are we matchmaking) externally where we are matching up with companies in Chile and South Africa, but matchmaking was starting to go on internally."

Since the North's mining industry extends into so many facets of business life, DeStefano is fielding inquiries from accounting firms, insurance groups and logistics companies wanting to align themselves with the group.

Besides adding North Bay supply companies to their membership, SAMSSA's publicity has led to phone calls from potential clients in Elliot Lake, New Liskeard and Sault Ste. Marie.

"Now under its mandate, it's become a Northern Ontario association," says DeStefano, who explains the membership criteria requires client companies to create their wealth and be physically located and employ people in Northern Ontario.

Despite early misgivings among the highly competitive suppliers to participate and share information, DeStefano finds each client brings something unique to the table.

"They all have primary objectives in products or services that others don't seem to be duplicating."

The association has produced some promising returns to date, and he estimates there are about four or five deals currently being negotiated between South African and Sudbury firms--deals that stem from a networking trade delegation event in November.

The group has big plans for 2004 with the launch of a newsletter to share information among its membership, the...