By KELLY LOUISEIZE
Sudbury-based Mining Technologies International is spanning the globe in search of new opportunities.
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MTI's International business developments manager, Ed Sirkka. |
If history has shown mining supply heads anything, it is that one should not focus all his efforts in one area. Weak Canadian and American sales in the 1980s and late 1990s forced mining supply and service companies to diversify their customer portfolios. But this was something MTI had been
doing all along. With 66 percent of their sales coming from Canada, approximately 12 percent from the United States and an estimated 22 percent exported between Mexico and Chile, the company is well on the way to solidifying its place in the world.
"We are in most countries (that) have a mining industry," says international business developments manager Ed Sirkka.
Keith King, controller, expects those exporting percentages to increase, since most of the action is taking place overseas.
Overall, company sales have been rising in the last two years. In 2004, they pulled in $40 million and expect to top out at approximately $60 million this year, with forecasts peaking close to $80 million for 2006. Their growing presence in the international mining market is fuelling the flame.
The main focus in the next five to 10 years will be on nurturing key relationships by providing quality equipment and service.
"In my mind, more emphasis will be put on India, China, Russia and the South and Eastern Asiatic countries," Sirkka says. "South America is very important in this endeavour (as well)."
Relationships are expected to strengthen with Norilsk Nickel, one of the world's largest mines, accounting for more than four percent of Russia's export, and Alrosa Diamond Mine, one of the only diamond-bearing producers in Russia.
Other mining companies in China, Vietnam and the Philippines are being courted by Sirkka's team. Vena Resources Inc. and Lepanto Consolidated Mining Co. are continuing their ongoing discussions with MTI officials.
In June 1995, the manufacturer of mine development equipment systems consolidated with Drillex International Canada, Continuous Mining Systems (both of Sudbury), LHD Equipment (in North Bay), John Clark Inc. (in Denver) and Drilco Pty (in Australia).
Today, MTI operates three modern manufacturing facilities, supplying mine operations with hydraulic jumbo drills, load haul dump loaders, trucks, in-the-hole drilling rigs, rail haulage systems, mine locomotive buckets, crushers, underground mine utility vehicles and drill string components.
In truth, the company hit the ground running as a result of the already-sprouting businesses under MTI. Normally, it can take years to nurture international relationships. They had already been travelling to places like South America and Russia, so, it was a natural progression to seek out South and East Asian markets to fully complement their customer portfolios.
"It takes time to develop these markets, to get your name known and develop a reputation," Sirkka says.
North American technology is on par with the Scandinavian companies making that stable their prime competition. But it appears MTI is one of the leaders for in-hole drilling equipment in North America, so as spiking PGMs and base metals prices are making their debut, MTI is basking in the afterglow.
