Mining Sector C… · Web viewThe Town of Marathon has great potential to continue to benefit...

Marathon Mining Sector Capacity Development

March 20, 2012

1 Millier Dickinson Blais: Mining Sector Capacity Development, Marathon Economic Development Corp.

Contents1 EXECUTIVE SUMMARY.........................................................................................4

2 INTRODUCTION.....................................................................................................9

3 MINING SECTOR OVERVIEW..............................................................................10

4 VALUE CHAIN ASSESSMENT..............................................................................12

4.1 MINING SUPPLIES AND SERVICES SECTOR VALUE CHAIN ASSESSMENT 134.2 MINING EQUIPMENT AND SUPPLIES 17

4.2.1 COMPONENTS AND PARTS FABRICATION AND CASTING MAINTENANCE AND REPAIR 174.2.2 BLASTING AND DRILLING PRODUCTS AND SERVICES 184.2.3 PRODUCT SUPPLY GAPS 184.2.4 ELECTRICAL EQUIPMENT 194.2.5 FUEL HANDLING AND STORAGE 194.2.6 NEW AND RENEWABLE ENERGY 204.2.7 SAFETY 20

4.3 TESTING AND ANALYTICAL SUPPLIES AND SERVICES 204.3.1 TESTING AND ANALYTICAL SERVICES 204.3.2 GEOLOGICAL/GEOPHYSICAL 204.3.3 MULTI-DISCIPLINARY CONSULTANTS 22

4.4 ICT SUPPORT 224.4.1 MINING SOFTWARE 224.4.2 TELECOMMUNICATIONS 22

4.5 ENGINEERING & TECHNICAL SERVICES 234.5.1 WATER TREATMENT AND MANAGEMENT 24

4.6 SITE CONSTRUCTION 244.7 LOGISTICS 254.8 PROFESSIONAL BUSINESS SUPPORT 264.9 HUMAN RESOURCES SUPPORT 27

4.9.1 CONFEDERATION COLLEGE 274.9.2 CONTACT NORTH 274.9.3 EDUCATION AND TRAINING PARTNERSHIPS 27

4.10 HOSPITALITY 27

5 VALUE CHAIN OPPORTUNITIES.........................................................................28

5.1 VALUE CHAIN GAPS 285.2 BUSINESS EXPANSION AND ATTRACTION MODELS 29

5.2.1 BUSINESS EXPANSION POTENTIAL 305.2.2 TARGET COMPANY CHARACTERISTICS 30


5.2.3 MINING DEVELOPMENT CENTRE 315.3 DEVELOPING A SUSTAINABLE MINING SECTOR 31

6 SWOT ANALYSIS AND LESSONS LEARNED......................................................33

6.1 SWOT ANALYSIS 336.2 LESSONS LEARNED 34

7 MARKETING STRATEGY......................................................................................38

7.1 MARKETING MESSAGING AND VALUE PROPOSITION 387.2 STRATEGIC MARKETING OBJECTIVES AND PROMOTIONAL INITIATIVES 2012-14

417.2.1 HUMAN RESOURCE DEVELOPMENT 427.2.2 LAND AND BUILDING AVAILABILITY 437.2.3 LOGISTICS INFRASTRUCTURE 447.2.4 BUSINESS DEVELOPMENT INITIATIVES – ENTREPRENEURSHIP, RESEARCH AND INNOVATION 457.2.5 INVESTMENT ATTRACTION INITIATIVES 46AUGMENT EXISTING RELATIONSHIPS WITH MULTIPLIERS 46

INCREASE AWARENESS OF MARATHON’S MINING SECTOR 48COMMUNICATIONS CAMPAIGN 48

7.3 TECHNIQUES FOR MARKETING STRATEGY IMPLEMENTATION 487.3.1 LEAD GENERATION - INVESTMENT ATTRACTION 487.3.2 TRADE-SHOW STRATEGY AND PLAN 507.3.3 COORDINATION 527.3.4 BOOTH ACTIVITIES 527.3.5 POST-SHOW 527.3.6 TRADE SHOW OPPORTUNITIES 537.3.7 COMMUNICATIONS STRATEGY - MARKETING MESSAGES DEPLOYMENT 55

7.4 IMMEDIATE NEXT STEPS 57

8 APPENDICES........................................................................................................58

8.1 STAKEHOLDERS CONSULTED 588.2 INTERVIEW QUESTIONNAIRE 598.3 PROCUREMENT SURVEY 60


1 Executive Summary The Town of Marathon has great potential to continue to benefit from its mining resources and long, stable track record in the mining industry. Ontario’s development of the Ring of Fire, and the prioritization of the mining sector in the province, will help support and bolster Marathon’s initiatives in this sector. In the past, Marathon has adapted to new mining demand and has developed a strong relationship with Barrick Gold and other support and service companies in the town. With the future development of the Stillwater mine anticipated for late 2015 onwards, the mining supply and service companies in Marathon will have new and increased opportunities for business growth. In addition, the provincial government is very interested in supporting mining development in Northern Ontario – making it an appealing market for business investment.

Study Objectives: The Town of Marathon Mining Sector Supply and Service Study will:

Identify the key advantages, with supporting data, of a mining sector cluster in Marathon

Determine specific investment targets based on the community`s assets and competitive advantages

Assess the Stillwater project and determine the opportunities that exist as a result of the development

Identify and inventory local SMEs with the potential to compete in the mining sector value chain

Capture the views of mining industry leaders, industry associations, local business and provincial and federal government officials

Recommend specific actions that MEDC should undertake to market the community more effectively to the mining sector.

Study Methodology: This study was informed by extensive analytical research regarding key sectors and regional competitiveness, a stakeholder engagement process, benchmark indicators for business attraction and best practices research for mining sector business development and attraction.

Key Opportunities - There are a number of service and supply gaps in Marathon that present key opportunities for business development and growth in the Town. In particular, companies with the following characteristics have potential to strengthen Marathon’s value chain:

Agile Distribution Companies; small satellite branches of sizeable companies can offer supplier flexibility with access to large inventories, and can assist the Town in being more responsive to new business needs.

Software developers and resellers; offering new products, purchasing and reselling equipment and GIS services are non-existent in the Town. Mining software


providers who can assist with geological exploration and 3D mine design are not present in the community.

Engineering Firms: Marathon has two companies offering engineering and technical services focusing on environmental clean-up and reclamation. However, there is a lack of firms providing exploration and development services, as well as environmental consulting. Again, there is potential for a satellite office in Marathon.

Exploration Services: The supply and servicing of laboratory and testing services and equipment are a key component in the exploration stage. Currently the Town has no firms involved in the provision of testing or analytical services, geological services or equipment, or any firms who provide consulting services during the exploration stage.

Multimodal infrastructure and logistics hub: integration of Marathon’s various transportation assets, combined with its port and water access provides a unique potential for the development of a small, integrated logistics hub. As the Ring of Fire development continues, the demand for transportation services will increase significantly in Northern Ontario.

These gaps, combined with increased mining activity due to higher prices, the development of the Ring of Fire, which is three hours from the region, and the anticipated Stillwater development, provide the Town of Marathon with a strong value proposition with which to strengthen the mining sector service and supply value chain. The Marketing Strategy outlines how the Town can convey this proposition, focusing on messages that communicate Marathon’s:

established mining industry strong vibrant community progressive community leaders who support the industry substantial mining knowledge base in the community strong mining workforce central location with multi-modal potential location at the heart of major mining opportunity areas.


Recommendations

Build on current education and training initiatives, as well as develop attraction initiatives for new talent.

Liaise with Confederation College to extend programming to technology driven mining operations – geological/mining software, operations, information technology and telecommunications.

Explore partnership opportunities with software providers to provide cooperative or other applied learning opportunities for post-secondary students or adults interested in re-training.

Partner with local school boards to host a symposium for careers in the mining sector.

Develop career information modules for the mining industry. Develop a lifestyle brand for Marathon around the outdoor lifestyle and

recreation opportunities to attract key talent such as metallurgists, geologists and engineers.

Develop new industrial land and buildings to increase availability.

Increase industrial lands inventory for development. Determine viable supply options such as crown lands, land purchases, or

current vacant lots. Develop an industrial lands development plan. Maintain a list of available properties and buildings.

Integrate the various components to develop the intermodal logistics hub in Marathon.

Develop a strategy and plan to mobilize road, rail, air and water into an integrated, multi-modal logistics strategy to capitalize on mining and other sector opportunities.

Upgrade the roads infrastructure in and around the Port, Ring of Fire, and the industrial roads that connect Highway 17 to Highway 11.

Deploy the rail assets in the Town. Attract a scheduled service airline for cargo and passengers. Apply for government funding to undertake a gap analysis to determine

required infrastructure upgrades.


Recommendations

Undertake business development initiatives to grow local opportunities for existing businesses.

Identify businesses seeking expansion opportunities and create a forum for dialogue and opportunity exploration and regular site visits with local businesses.

Work with local businesses to ensure they access the tools to help them capitalize on opportunities.

In partnership with Barrick, identify potential business development opportunities.

Establish a mining development centre with infrastructure and services to support the mining industry, particularly prospectors and juniors.

Create an ad-hoc committee of local stakeholders to provide insight and intelligence on emerging mining opportunities.

Undertake investment attraction initiatives focused on filling gaps, expanding on current relationships and showcasing Marathon’s opportunities.

Develop a mining resource portal for prospectors and juniors, potentially a precursor to the mining centre.

Target former Marathon residents who could be business owners. Develop business immigration initiatives to attract businesses in key

service and product areas. Augment existing relationships with multipliers. Leverage on-site presence of key mining companies by identifying key

onsite companies at Barrick and meeting with them to discuss expansion opportunities.

Develop a trade show program for 2012-2013 with partnership opportunities, especially with prospectors.

Implement lead generation activities and an FDI program. Develop symposiums and events to showcase exploration opportunities in

the Marathon area. Develop a retail and hotel attraction strategy and plan. Explore the potential for a smaller investment attraction organization under

the wing of the Northwestern Ontario Development Network. Develop a communications strategy and pieces to support investment

attraction.


Next Steps

Investment in lead generation ($21,000) $15,000 – Work with consulting group to generate a program for lead

generation around the following events: Mine Expo in Las Vegas (September), Northern Mines Expo in Timmins (May), CIM in Edmonton (May); program can consist of arranging meetings for Marathon trade show delegates and/or attending shows on behalf of Marathon

$4,000 – Development of an investment attraction prospectuses for Mining Equipment Supply and Services and consulting group to distribute and follow-up on distribution

$2,000 – Stand alone commercial/industrial real estate online inventory

Media and Public Relations ($9,000) … Paid advertising increases name recognition, but media relations increases credibility. Good public relations does not happen on its own. It takes a lot of skill, and consistent hard work, over a period of time. It is part art, part science and when practiced correctly the results can be very rewarding.

$8,000 – develop an inventory of copywriting and articles on mining activity in Marathon and the region and aim for a continual feed of press through target media; partner with Hemlo and other companies and prospectors; the College could be an effective partner

$1,000 – develop a template for Marathon’s own industry newsletter that is populated with above articles

GIS mapping ($10,000) Create GIS mapping strategy for mining sector Compile information on exploration surrounding Marathon and

design web interface, preferably link with Google Maps instead of proprietary software. This web interface can be connected to Ontario Geological Survey's web portal. OGS should be contacted as a potential partner or advisor in this process.

A partnership with NCIR for matching $10,000 and consider partnership with NODN and OGS to contribute another $10,000. Mapping projects like this have been conducted in the Greenstone area and was successful in bolstering exploration activity. In fact, Greenstone Economic Development Corporation is interested in having the mapping data they compiled be housed in Marathon in addition to mapping data from across Northwestern Ontario. The technology created for the Greenstone project cost $25,000, however, licensing of the software may be cheaper now.


2 IntroductionMining is a key economic driver of northern Ontario with Marathon positioned to become a hub of mining supply and services for exploration, resource extraction and processing facilities located in the community. Today, Barrick Gold Corporation’s Hemlo operation is one of the largest gold producers in Canada and, as a result, Marathon has developed a skilled and knowledgeable workforce in the mining sector and has some established equipment suppliers and related service providers located in the community.

Recent exploration has also found significant deposits of copper and platinum 10 km from Marathon. The project, operated by Stillwater Canada, seeks to develop an open pit mine and milling operation. Stillwater expects the environmental review process to be completed by 2015. Projections are for an 11.5 year reserve mine life with strong expansion potential. The project will create an estimated 300 construction jobs, and 130 to 250 permanent full time positions throughout the life of the mine. There will be roughly three spin-off jobs for each full time position.

Gold, palladium, copper, platinum and diamonds are among the area’s natural assets, and exploration programs conducted by prospectors and juniors, including Entourage Metals, have been positive, pointing to future opportunities in mineral extraction. Exploration activities are likely to continue and perhaps see more increases as commodity prices continue to rise.

There is an opportunity for Marathon to strengthen its position as a mining cluster based on increases in exploration activities around Marathon and throughout northern Ontario. The Marathon Economic Development Corporation (MEDC) has already taken some initiative in cluster development, including work with Confederation College and Barrick-Hemlo to establish an Applied Mining and Industrial Training Centre.

This project examines other opportunities, specifically:

Determines specific investment targets based on the community’s assets and competitive advantages and the views of mining industry leaders;

Identifies and inventories the local mining sector value chain;

And, recommends specific actions the Marathon Economic Development Corporation (MEDC) should undertake to market the community more effectively to the mining sector.

By following the recommendations that are outlined within this document, the MEDC can guide the expansion of an innovative cluster that will generate jobs, attract investment and provide opportunities for existing small and medium sized enterprises (SMEs) to expand.


3 Mining Sector OverviewOver the past few years, the mining industry has experienced a boom in growth, with high commodity pricing leading to increased exploration and development. However, this new growth is different from previous eras of high demand, and today’s mining industry has had to adjust to a new, volatile reality over the past several years. With new developments have come new risks, higher input costs, and demographic changes which have led to a decreasing availability of skilled labour. Barrick Gold has responded, for example with an expanded role in workforce development. The table below outlines a number of major trends and their impacts.

Theme Description of Trend Implications for Marathon

Strengthened Demand

Increased demand, fueled by development in emerging economies, combined with a limited current supply, has boosted prices.

Higher prices mean that previously unprofitable developments are now being undertaken. Marathon needs to support the local prospectors and junior explorers to ensure that deposits in the region are being developed while the market is so favorable.

Increased Risk

As demand grows, the supply of key inputs becomes more volatile, increasing the challenges in meeting steady production goals. Some companies have reacted by integrating mining assets, as well as supply and service functions into their activities, to mitigate supply risks by gaining greater price control and security.

Marathon can assist companies in mitigating risk by ensuring the community can offer local or regional supply at all levels of the value chain and by helping smaller companies in building supply relationships locally and in the region.

Increased Input Costs and Costs Volatility

While the demand for mining products has risen, so have the costs of transportation, business services, chemicals, fuel, electricity and construction materials. Despite higher prices, some products which require high levels of inputs during the extraction process may not be profitable should particular

Once again, by strengthening the local supply chain and local infrastructure, MEDC can assist in mitigating risk by ensuring the community can offer local or regional supply at all levels of the value chain.


GLOBAL

costs rise (example, electricity or fuel).


REG

ION

AL

Increased Environmental and Social Awareness

Issues around environmental sustainability and human rights have resulted in increased community unrest and activism in response to mining developments.

Approvals processing turnaround can increase due to public concerns. Companies must now consider the risk of delays or negative impacts caused by increased public and political pressures. Prospectors have to be more diligent than ever at consulting with First Nations. The local and provincial governments will have to work with stakeholders to address concerns.

Talent

The Mining Industry Human Resources Council recently found that 2,840 new jobs will be created in the mining sector within the Thunder Bay District by 2022.1 As the workforce ages, it is estimated the mining industry in Ontario could lose 40% of its workforce by 2018.

Marathon will need to address their labour force needs and the current skills gap in their community to best capitalize on future developments. While the Town is currently able to deal with the bulk of Barrick’s labour requirements, a lack of young workers and highly specialized technical labour will need to be addressed for Marathon to capitalize on the Stillwater and Ring of Fire developments.

Ring of Fire

The Ring of Fire development refers to a variety of developments in what is now known as a highly mineralized region in the James Bay Lowlands of Northern Ontario.

The continued development of the Ring of Fire will bring significant infrastructure developments and mining investments to the region. Using industrial roads that connect Highway 17 to Highway 11, these developments are only a three hour drive from Marathon.

Government Support

The current provincial government is supportive of mining developments.

Long-term support from the province, in the form of project and infrastructure funding, will be available for the industry and to Marathon.

All of these trends, whether global or local, have an impact on the industry and its future in Marathon. As Ontario further develops its mining resources in the north, it is important for local players to understand the current movement of the industry in order to be proactive. The following section outlines these themes and trends in further detail.

1 Mining Industry Human Resources Council, Executive Summary: Thunder Bay Mining Industry Employment and Hiring Forecast, 2012


4 Value Chain Assessment Marathon’s company base has been instrumental in its success as a small town. Suppliers to the mining industry such as Moffatt Supply are pivotal in the mining value chain.

The Value Chain Chart illustrates the mining supplies and services sector value chain in the Town of Marathon. The diagram does not represent an exhaustive list of companies in all categories. Rather, it is intended to illustrate the strengths of the sector with a selection of companies.

The companies, organizations and institutions are categorized according to their position in the value chain, and companies may be located in more than one activity category;

Equipment and supplies, Laboratory instrumentation and testing equipment, ICT support, Site construction, Engineering and technical support, Compliance and risk services, Testing or analytical services, Logistics, Human resources support, Transportation and travel, Business professional services, Research and development, Professional associations, and, Industry associations.

The names of these companies were sourced from the Marathon Business Directory and the Barrick-Hemlo supplier directory, with assistance of the MEDC.

The discussion on the following pages aims to dig deeper into each value chain link with an emphasis on examining the strengths, weaknesses and opportunities that have presented themselves.


This discussion acknowledges that

value chain gaps could be filled by companies in Marathon. In doing

so, expansion possibilities for existing

businesses are taken into account,

partnerships potential with an eye to job

creation are explored and complimentary

rather conflicting activities with the

existing business base are proposed.

4.1 Mining Supplies and Services Sector Value Chain Assessment

The value chain assessment chart identifies opportunities in mining services and supply industries by mapping out where businesses currently exist.

FIGURE 1: MARATHON’S MINING SECTOR VALUE CHAIN

Equipment & Supplies

Drilling & Blasting

Orica (onsite Hemlo) Boreal Drilling

Crushing & Conveying Mineral Processing

Excavation & Loading - Materials Handling

Cress Contracting

Transportation & Stacking

R.J. Joseph Levesque Contracting

Bulk Products

Electrical Equipment

Rite Price Electrical

Components & Parts

Hemlo Equipment Major Machine Works Moffat Supply Royal Tire

Fabrication & Casting

Hemlo Equipment Major Machine Works Moffat Supply

Pumps & Pipelines Water Air Equipment Power Transmission

Hydro One

Fuel Handling & Storage

Bluewave Energy

Equipment Hire

Health, Safety & Environment

Superior Safety

Maintenance & Repair

Hemlo Equipment Major Machine Works Moffat Supply Royal Tires RDH Mining Equipment

(onsite Hemlo)

Laboratory Instrumentation & Testing EquipmentLaboratory & Appliances Measurement & Testing

ProductsInstrumentation

Testing and Analytical Services


Mineral Processing Services Assaying & Sampling Laboratories - general

Condition Monitoring & Inspection

Hydrometallurgy & Metallurgy

Geochemical Analysis & Consulting

Engineering & Technical Support

Civil Engineering Electrical - Mechanical Engineering

Mine Planning

Project Management Strata / Geological

Environmental

Reclamation Services

Compliance & Risk Services ConsultationAppraisals Environmental Audit Social Impact Assessment

Risk Assessment Regulatory Compliance Community Consultation

ICT Support

Computer Hardware - general

CINET Consulting &

Computer Services Griffin Computers &

Services Lone Wolf Computers

Computer Software - general

CINET Consulting &

Computer Services Griffin Computers &

Services Lone Wolf Computers

Communications

Bell Canada Customer

Service Tbaytel

Automation & Control


Site – ConstructionManagement Underground Works Buildings

Armstrong General

Construction B.H. Building

Maintenance D&D Construction John Cress Contracting Levesque & Son

Contracting Marathon Built Inc R&C Plante Contracting S&M General Contracting A&M Enterprises

Earthmoving

Cress Contracting Levesque Contracting

Shaft Construction

Roads Minerals Processing

Demolition Camp Services

Electrical

Pick Electric Rite Price Electric

Drilling Services

Orica - onsite Hemlo Boreal Drilling

LogisticsFreight

Manitoulin Transport NSE Services

Air Cargo

Wilderness Helicopter

Couriers

Bob’s Delivery Service Trottier Bus Lines Courtesy Purolator

3PL Logistics

Manitoulin TransportInventory Control &

Freight TrackingBulk Haulage Manitoulin Transport


Transportation & TravelAirlines


Aviation Services


Food Services

Brew's & Cues Sports Pub Classic Cafe Hill Top Cafe Gloria's Motel &

Restaurant Marino's Restaurant Midtown Restaurant Pizza Hut Marathon Gas Bar Robin's Donuts Rumours Coffee Deli Oar House Restaurant Twilla's Chipstand Rovers Return Wok with Chow A&W Restaurant

Helicopter


Travel Management Services

Accommodation

Lakeview Manor Bed &

Breakfast Marathon Harbour Inn Peninsula Inn Travelodge Wayfare Inn Zero-100 Motor Inn

Car Rentals

Emergency Response

Marathon Fire

Department

Human Resources Support

Human Resources Recruitment Outsourcing

NW Employment Works

Post-Secondary Education Institutions

Confederation College Contact North

Training - Management / Leadership


Training - Health & Safety Confederation College

Training – Environmental

Contact North

Training - Mining


Security Training – Software

Contact North

Contractors


Business Professional Services and Supplies

Financial Services

Scotiabank Superior Credit Union TD Canada Trust

Accounting

Dee`s Tax Service Filipovic Brothers &

Conway Superior Bookkeeping &

Tax Services

Legal

Kinna-Aweya Legal Clinic Shaffer Jobbit Law Office

Insurance

Ernst & Young Northwest Insurance Robichaud Insurance Canada Brokerlink

Security Health & Safety

Superior Safety

Marketing Administrative Supplies Leasing

Research & Development Professional Associations

Industry Associations

4.2 Mining Equipment and SuppliesBarrick’s Hemlo Operation indicated in the survey that they most of their equipment supply and servicing was outsourced with suppliers within a fifty mile radius. Proximity and convenience is seen as an important part of the supply and service package. Marathon can capitalize on supply gaps to benefit of existing and future mining activities.

4.2.1 Components and Parts Fabrication and Casting Maintenance and Repair

Components and parts, fabrication and casting, and maintenance and repair services are provided by three companies.

Major Machine Works is a Canadian Welding Certified (CWC) fabrication shop that has grown through the provision of value-added services. They are also dealers for Interstate Cargo Trailers and Advantage Utility Trailers. Moffatt Supply of Atikokan is a national company with a global customers base that includes Russia and Australia. Hemlo Equipment, a small local company also provides these services.


Moffatt Supply and Major Machine, in particular, have demonstrated an ability to innovate and grow in tandem with the Hemlo mine. Accordingly, their forward planning processes should take into account Entourage Metals and Stillwater’s expansion programs.

Royal Tire provides off-the-road tire services and 24-hour mobile service for the mining industry.

4.2.2 Blasting and Drilling Products and ServicesOrica (Australia) is a major global company with annual sales of $6.137bn and 14,000 employees worldwide. It is one of the world's leading mining services companies and provider of commercial blasting solutions.

Orica are located on-site at Barrick. They deliver bulk powder to the underground mines and load holes in the pit. Consulting and technical support is provided from off-site personnel. One local technician services specialized equipment leased to Hemlo. There are about 4-5 full time equivalent employees in the Hemlo area. An onsite model could be applied to other product and service areas.

Given the size of this company it is likely that their products and services are tailored to majors and, possibly, juniors rather than prospectors.

Boreal Drilling of Quebec also provides blasting services. The company has a share in Versadrill, a manufacturer of drilling rigs enabling the company to provide engineering, drills, parts, drills and maintenance.

While Boreal Drilling of Quebec, is an SME company (sales $3.79m - Hoovers) the consultations suggested there is a need for more drilling services for prospectors.

Companies such as Downhole Surveys (Australia) are examples of value-added services as they provide surveying as well as drilling services. Investments from such companies can strengthen the value-chain in an expeditious way.

Drilling services also overlap with other sectors. Geothermal is a green energy source that is suitable for remote areas. Maxidrill of Montreal supplies multi-purpose drill rigs and accessories for geothermal drilling.

The ability to provide drilling equipment rental is an important service component and should be considered in the evaluation of target companies in this product category.

4.2.3 Product Supply GapsWhile services in respect to excavation and loading (Cress Contracting), and transportation and stacking (R. J. Joseph, Levesque & Son Contracting) are provided, products are not. There are a slew of product gaps that could be filled by new supplier(s):

crushing and conveying


mineral processing transportation and stacking air equipment water pumps and pipelines.

Such company(s) have to be in a position to respond to changes in procurement policy by the likes of Barrick and Stillwater. A small satellite branch of a sizeable company that is nimble enough to fulfill such requirements would be an appropriate fit for Marathon. P&H Mine Pro services is a possible example. The on-site model deployed by Orica at Barrick discussed above is another potential route for the delivery of new investments.

Potential target companies could be a supplier to multiple product categories.

Used and/or recycled equipment is another possibility, especially for prospectors and juniors.

Smaller, lower value products such as rims, tires, separators, pumps & tanks, valves, and generators could be supplied by a smaller, regional company, possibly in conjunction with electrical equipment discussed below.

In addition, Major Machine and Moffatt Supply could consider diversification into equipment supply either through their own expansion or strategic partnerships as a distributor or agent.

The ability to provide rental services should be considered as part of the package in the evaluation of target companies in these product categories.

It should be noted Hemlo indicated in the survey that no changes to its outsourcing arrangements are anticipated.

4.2.4 Electrical EquipmentRite Price Electrical, a small local company provides electrical equipment. These products can also be accommodated through distributors and suppliers in other categories, especially smaller, lower value products.

4.2.5 Fuel Handling and StorageFuel handling and storage services are available through Nova Scotia-based Bluewave Energy. This company serves small communities and provides specialist fuel products and services to the mining industry suggesting there are no supply gaps in this area.

Going forward there may be opportunities in energy usage technologies. Energy costs can be as much as 10 percent of a mining company's revenues. Innovations in ‘smart’ energy use could provide breakthroughs in this area.


4.2.6 New and Renewable EnergyBarrick recently received a ‘Towards Sustainable Mining Leadership Award’ in recognition of its work in tailings management and greenhouse gas emissions. New technologies are emerging in carbon capture, which could be a next step on their part. MEDC should keep a watch for any developments.

4.2.7 SafetySuperior Safety of Thunder Bay provides safety products, services and training. With branches in towns across Northern Ontario, including Marathon, this company’s roots are firmly in Northwest Ontario. It is a prototype of a company that could be receptive to setting up in Marathon.

4.3 Testing and Analytical Supplies and ServicesThe supply and servicing of laboratory and testing services and equipment are a key component in the exploration stage of the mining cycle. The gaps in the supply of these supplies and services potentially provide Marathon with a range of opportunities to attract new business. Marathon’s intentions to bring in more prospectors will be a key part of the value proposition.

4.3.1 Testing and Analytical ServicesThe town has no firms involved in the provision of measurement or testing and analytical services. There are a number of labs providing services in the region such as Accurassay Laboratories in Thunder Bay (www.accurassay.com) and ACT Labs (www.actlabs.com), which has facilities in Geraldton, Dryden, Timmins, Thunder Bay, and Sudbury. At one time, ACT Labs considered setting up in Marathon but the management did not think it was feasible.

4.3.2 Geological/Geophysical Exploration requires a range of geological products and services such as geological maps, airborne and ground geological surveys, remote sensing, satellite imagery, and digital terrain modelling.

4.3.2.1 Instrumentation and Equipment Supplies

Products that serve exploration activities range from the very simple to the very complex.


The supply and servicing of laboratory

and testing services and equipment are a

key component in the exploration stage of

the mining cycle. The gaps in the supply of

these supplies and services potentially

provide Marathon with a range of

opportunities to attract new business.

Outdoor equipment or lower value products for professional field workers can serve multiple sectors. As well as covering geology, mineral exploration, and mining, it also extends to forestry, conservation, agriculture, archaeology, biological science, park management, construction, law enforcement, and emergency services. Some these areas synergize with Marathon’s regional economy as well as outdoor recreational activities (fishing, hunting, snowmachining, ATVing, etc.) that are popular with residents and visitors.

Examples of products include compasses, clinometers, Wristop computers (watches), field desks, magnifying glasses, binoculars, microscopes, GPS receivers, waterproof protective hard cases, and anemometers.

This area could present opportunities for expansion of existing businesses such as Napa Auto Parts & Pro Hardware, Home Hardware, Canadian Tire and Superior Safety, all of which supply hunting and fishing equipment.

There are opportunities for the supply of higher value, complex geological and geophysical instruments. These would need to be supplied by new investors. Companies such as Phoenix Geophysics (Toronto) (www.phoenix-geophysics.com) is an example. There is the possibility of providing such instruments through a Mining Development Centre as discussed in the Investment Attraction Opportunities section below.

4.3.2.2 Mineral Exploration Services

Wilderness Helicopters’ mineral exploration services include GPS, satellite tracking systems, new moving map GPSs, and Iridium satellite phones. This company could be interested in providing further value-added services, possibly through partnerships. Terraquest (Markham) (www.terraquest.ca) acquires and processes geo-scientific data through airborne geophysical surveys, structural mapping, and custom data enhancement. Fugro Airborne Surveys (South Africa) (www.fugroairborne.com) provides exploration and mapping consulting solutions through Furgro Interpretation and Consulting Group, its consulting arm.

As local and regional mining exploration activities expand, there could be room for more companies providing aerial mineral exploration services. For example, Boreal Drilling provides helicopter services which do not appear to be available in Marathon.

4.3.2.3 GIS (Geomatics) Software

The supply of GIS services is also a potential opportunity area. With the Geological Survey of Canada's Targeted Geoscience Initiative (TGI), companies such as ESRI (Redlands, CA, US) integrate this data with their proprietary GIS systems. This is an invaluable tool throughout the mining cycle for junior exploration and even some major companies. These GIS systems go above and beyond detailed geophysical information through data analysis and modelling to discover ore body characteristics that might not be apparent through drilling.


http://www.phoenix-geophysics.com/

ESRI has a developer community as well as Value Added Resellers (VARs), which could represent potential targets for Marathon, as could other smaller software companies providing services to the mining industry.

4.3.3 Multi-disciplinary consultantsSome companies provide multidisciplinary services covering the whole cycle of exploration, geological, environmental engineering, and GIS data solutions. Smaller firms or those empathetic to locations in small towns could be potential targets. These companies may also provide environmental services as discussed in engineering and technical support below.

4.4 ICT Support4.4.1 Mining SoftwareSpecialist software support to the mining industry is non-existent in Marathon. Basic computer software and hardware maintenance services to local businesses and the general public are provided by three local companies.

Hemlo use Oracle enterprise software, for, we assume, management information systems rather than specific mining applications as Oracle does not appear to cater to this sector.

Mining software providers cover the entire mining process from geological exploration and 3D mine design to mine production management, mine production control and data management solutions. Applications such as geo-statistics (deposit and resource estimations) could help prospectors and juniors secure investments.

Industrial automation is another potential area with systems that can track production and enhance scheduling of workers and machines. Sudbury-based BESTECH (www.bestech.com) provides services in engineering, automation, software development, and environmental monitoring.

4.4.2 TelecommunicationsMining companies are using global positioning, communications, and imaging satellites to improve exploration, production, and reclamation efforts. GPS is used with mining machinery to make delivery of metals and minerals more efficient and safer, and to help place explosives for maximum precision in blasting holes.

In exploration, imaging satellites analyze land areas for sites that have metal deposits and depict precise locations of seams and deposits to allow for greater recovery of the mineral.


Tbaytel does not appear to have the capacity to serve specialist satellite needs in mining and remote and rugged locations. However, this company has proven to be receptive to Northern community needs and they might be interested in expanding their product lines either on their own account or in partnership with other companies.

Satellite products and services could also be provided in conjunction with GIS services or through satellite communications hardware and software VAR integrators and distributors.

There has been a concerted effort to provide internet and cell phone coverage to much of Northwestern Ontario. Tbaytel provide local services but cell-phone coverage is limited or non-existent through the major providers. SIM card provision for unlocked phones would be beneficial for visitors and temporary workers. Having kiosks in strategic locations is a user-friendly delivery method.

4.5 Engineering & Technical ServicesProvision in engineering and technical services is limited to the environmental audit with two companies providing services in forestry and environmental cleanup. One of those companies, J. Wilkins Disaster Cleanup, also provides reclamation services.

Potential centres on exploration and development (i.e. juniors and prospectors) including multi-disciplinary firms with an emphasis in environmental consulting in the mining sector or natural resources.

Examples include:

DST Consulting Engineers of Thunder Bay whose primary consulting services are geotechnical engineering, environmental services, and building management services.

A smaller, more broadly diversified, example that includes a distribution arm is Halltech. As distributors, manufacturers and consultants to environmental research entities, natural resource management, and military, their competencies and product range spans global positioning systems, application development and data analysis, sampling equipment, and flow meters.

A potential target could be an environmental/mining/resources specialist firm. A satellite office would provide services from the exploration phase to the construction phase. Services could also include geological consulting as well as mining feasibility studies. Furthermore, these areas are closely related to compliance and risk services, environmental audits, and possibly community consultations and social impact assessments.

Such a firm could have the capacity to provide the wider range of engineering services for the development and construction of mines outlined below.


Potential centres on: exploration and

development (i.e. juniors and

prospectors) including multi-disciplinary firms

with an emphasis in environmental

consulting in the mining sector or

natural resources.

Expansion of existing mining activity and construction of new mines: (i.e. majors) including larger firms such as Golder Associates, Genivar and AMEC that have capabilities throughout the mining development and construction cycle. Services cover mine planning, civil engineering, electrical/mechanical engineering, project management, and reclamation services. Opportunities arising from a focus on services aimed at this stage of the cycle are probably limited. Furthermore, Hemlo indicated they outsourced all their engineering and scientific services from outside a fifty mile radius.

4.5.1 Water Treatment and ManagementHemlo sees water management as high priority. The company recently received a ‘Towards Sustainable Mining Leadership Award’. Initiatives include the utilization of storm water runoff and the installation of an Actiflow water management system.

With new disruptive water technologies emerging in water management and utilization, Hemlo may well commission companies providing these services. However, they may not be local on the basis of past procurement patterns. This sector is worth keeping on the radar in the context of green mining activities and increased focus on sustainability issues.

Furthermore, the Government of Ontario has a stated objective to become a North American leader in developing and selling water technologies and services. The province is gaining international recognition as a cluster. Ontario has been cited in the New York Times as a model of best practice and a top cluster to watch by Sustainable World Capital. There could be spin-off from the Province’s investment attraction activities in this sector that could benefit Marathon. It would be worth liaising with MEDI and The Ministry of Northern Development and Mines on any initiatives in the water sector that could be applicable to Marathon.

This broad area of knowledge-based business activity includes a wide range of engineering, research, testing, and data management activities, coupled with hands on field efforts in direct interaction with the natural and physical sciences. Further speaking to the opportunity are a number of research and innovation bodies such as Lakehead University’s Water Resource Sciences program, Innovation Initiatives Ontario North Regional Innovation Centre (iiON), Ontario Centres of Excellence Energy and Environment Department, and Laurentian University’s Cooperative Freshwater Ecology Unit.

4.6 Site Construction Specialist earthmoving and electrical services are available from local companies. Nine local companies provide general contracting services plus there are two concrete construction companies and two serving residential needs.


The Government of Ontario has a stated

objective to become a North American leader

in developing and selling water

technologies and services. The province is gaining international

recognition as a cluster.

Larger firms are likely to undertake mining construction projects. Sub-contracting opportunities could exist for the local companies. Assistance to these companies in tendering for such opportunities could be beneficial. In the absence of websites and interviews it was difficult to establish whether or not they have the capacity to provide such services.

Blasting and drilling services are covered in the equipment and services section above as an opportunity area.

Ancillary service opportunities for camps can be targeted in advance of employment ramp up at Stillwater.

4.7 LogisticsManitoulin Transport has a transfer yard with two local drivers in Marathon. Courier services are well provided through four local and national providers, including Purolator. Air cargo and helicopter services are available through Wilderness Helicopter.

The town has multi-modal potential as a small integrated logistics hub with Manitoulin’s terminal, a potential port at the mill, a CP rail line and an airport.

These possibilities are being considered in terms of access to ‘The Ring of Fire’. Rail and water could have great potential for Marathon. A water route to the mill and then by road to Terrace Bay and then Geraldton is believed to take 1.5 to 2 hours off the journey time. This scenario presents opportunities for bulk haulage, which do not appear to be provided by Manitoulin.

Manitoulin’s capabilities in rail intermodal transportation in this context need to be considered and explored. The company has its roots in Northern Ontario and may be a receptive partner in the development of transportation nodes in Marathon.

There are a number of airlines serving northern communities. With a 3,933’ (1,220 m) runway and an airport terminal building with passenger and pilot lounges, Marathon’s airport can serve cargo and passenger needs. While Bearskin Airlines have investigated Marathon in the past, there are a number of other airlines serving northern communities. Wasaya, Thunder Airlines, Mesaba Airlines, Porter Airlines and Wiskair (Helicopters) all operate out of Thunder Bay. In the light of the mining activity and potential in the vicinity of Marathon these airlines might be considering establishing a presence at the airport.

Integrating the road, rail, water and, potentially, air modes together will require considerable resources and collaboration to develop a long term plan in tandem with opportunities around the ‘Ring of Fire’.

United States border crossings are four hours away at Sault Ste. Marie, Ontario (east) and Pigeon River, Ontario (west). providing access to major U.S. Midwestern and Southern Ontario markets such as Minneapolis, Milwaukee, Chicago, and the Greater


Larger firms are likely to undertake mining

construction projects. Sub-contracting

opportunities could exist for the local

companies. Assistance to these companies in

tendering for such opportunities could be

beneficial.

The town has multi-modal potential as a

small integrated logistics hub with

Manitoulin’s terminal, a potential

port at the mill, a CP rail line, and an

airport.

Toronto Area are within 1200 kilometres/800 miles. The population in this area (The Great Lakes and Horseshoe ) is expected to increase by 10% by 2030.

Marathon also has access to road and rail routes (CN, CP), which connect to the mid-continental NAFTA road and rail corridors, a market of over 100 million people. This includes access to inland ports at Winnipeg and Iowa.

4.8 Professional Business SupportThe town has a range of business services providers in financial services, accounting legal, and health and safety. There do not appear to be any specialist providers to the mining industry. PDAC provide specialist mining services insurance programs which could be deployed through local brokers if they do not already. The potential to capitalize on the likes of Stillwater and Hemlo would appear to be limited. Hemlo indicated they do not outsource any human resource or accountancy services. Therefore expansion potential would lie with new prospectors and possibly junior mine demand.

Business administrative supplies may have possibilities on account of Hemlo purchasing such supplies within a fifty mile radius.


4.9 Human Resources Support4.9.1 Confederation CollegeConfederation College has programs for every stage of the mining cycle except site decommissioning; they include prospecting programs, line cutting programs, geology, etc. It is the only school in Ontario offering programs in surface mining, underground hard rock mining, mining techniques, and underground diamond drilling involving a working mine in partnership with Barrick.

Confederation College also provides bespoke and off-the-shelf business training programs at the Marathon campus.

4.9.2 Contact NorthContact North provides training programs by distance education from 44 colleges and universities in Ontario. A variety of certificate programs are offered, in mining and in mining support services such as Mining Engineering Technician from Northern College, and in Building Environmental Systems from Seneca College.or an Electro mechanical Technician Certificate from George Brown College. The Contact North centre is conveniently located within the Confederation Campus in Marathon.

4.9.3 Education and Training PartnershipsICT training in mining software programs represents another opportunity. This could increase the potential labour pool to include students who are interested in Information Technology and would not normally consider a mining career.

For example, ESRI have a suite of training programs that could be deployed in partnership with Confederation College or even Barrick. The same model could be applied to mining software providers such as Micromine or GPS software providers that also provide training programs. This model could be further extended in partnership with engineering firms’ training programs.

4.10 HospitalitySix hotels and fourteen restaurants are present in the town. With Stillwater expecting to hire 300 employees rising to 500 by 2015, there are opportunities for new hotels and restaurants in Marathon. Boston Pizza, Swiss Chalet, Tim Hortons, Montana’s and Subway are at an appropriate price point and positioning for Marathon. A Subway’s Franchise has also examined opportunities in the Town in the past, but no developments were pursued at the time. Hemlo indicated that they outsource food services within a fifty mile radius indicating potential opportunities.


Confederation College is the only

school in Ontario offering programs in

surface mining, underground hard

rock mining, mining techniques, and

underground diamond drilling

involving a working mine in partnership

with Barrick.

5 Value Chain Opportunities 5.1 Value Chain GapsThere is no doubt there are opportunities for Marathon to capitalize on the value chain gaps explored above. There are 74 active mining companies in and around Marathon as shown below. The extent of this activity is a fundamental part of the value proposition in the attraction of new companies.

FIGURE 2: 74 ACTIVE MINING COMPANIES IN THE VICINITY OF MARATHON

In order to scope potential target opportunity areas to facilitate the growth of the mining industry it is important to synthesize:

The existing gaps in the value chain Current trends Classify the needs of Marathon’s mining sector through the mining cycle (i.e.

prospectors, juniors, and majors).

This process enables target opportunity areas to be derived that are a good fit for Marathon and will contribute to the future growth and sustainability of its mining sector.


There are 74 active mining companies in

and around Marathon as shown below. The extent of

this activity is a fundamental part of

the value proposition in the attraction of new

companies.

The figure below is the summation of the differences in Marathon’s actual mining sector value chain and the total mining sector value chain compliment. The result is a list of areas where there is little or no representation in Marathon.

FIGURE 3: VALUE CHAIN GAPS AND LOW PRODUCT AND SERVICE CATEGORY REPRESENTATION

Professional & TechnicalServices

Mining Equipment and Supplies Support Services

Testing and Consulting Services

Laboratory testing and analytical services

Environmental consulting

Water technology consulting (part of environmental)

Multi-disciplinary engineering consulting

Equipment, instruments and software Outdoor field worker

equipment Specialist Geological

instrumentation GIS software GPS/Satellite hardware

and software Mining and industrial

automation software

Crushing and conveying

Mineral processing Transportation and

stacking Air equipment Water pumps and

pipelines Low value

miscellaneous equipment – including electrical equipment

Equipment hire

Drilling services

Green mining

Site construction Drilling services Camp services Mine construction

project management

Logistics Bulk haulage Water transportation

provider Airlines

Transportation and Travel Hotels Restaurants Food Service Scheduled air services

Human Resource Support Software training and

development

5.2 Business Expansion and Attraction ModelsThe development of Marathon’s mining sector is not just about investment attraction; there are opportunities for existing businesses in Marathon as well.


The development of Marathon’s mining

sector is not just about investment

attraction; there are opportunities for

existing businesses in Marathon as well.

5.2.1 Business Expansion PotentialThe analysis identified expansion possibilities for existing businesses to capitalize on gaps in the value chain. These suggestions could form part of the consultation process in moving the Sector Capacity Development Plan forward.

Expand product range (e.g. Major Machine, Moffatt Supply) Partnerships with manufacturers and distributors Equipment hire Provides additional training and programming at Confederation College Align technology, ICT, laboratory, consulting provision to student and workforce

development to embrace as much of Marathon’s existing and potential workforce as possible.

5.2.2 Target Company CharacteristicsThe value chain assessment shed light on potential target company characteristics that point to a greater chance of a positive response to setting up in Marathon:

Roots in Northern Ontario – Manitoulin, Superior Safety Services, Moffatt Supply, Bluewave Energy

Multiple branches/offices in small towns – Superior Safety Services, Moffatt Supply Alberta, Saskatchewan and Manitoba companies – small town branches, recent

growth through oil sands boom, empathetic to culture and lifestyle Existing customers and suppliers of Hemlo and Stillwater.

The following company characteristics have the potential to strengthen the mining value chain in Marathon:

Agile distribution companies - supplier flexibility, large inventory, small town branch friendly - can respond to changes in procurement practices

Software – Value Added Resellers providing training Engineering firms providing education and training Value added exploration services Multi-disciplinary environmental engineering consultancies Consultancies distributing products Foreign companies - provide a trading bridge to overseas markets for mining

companies – Orico, Australia (there is a significant presence at the PDAC conference)

Independent consultant environmental specialists e.g. community consultations, First Nations relations etc.


5.2.3 Mining Development CentreProfessional and technical services firms, software development companies and independent consultants are all potential candidates for an incubation facility in a Mining Development Centre.

Product and service suppliers that set up in the town could potentially facilitate the synergy of resources to form service package for prospectors and juniors.

The centre of excellence could provide:

Freelancers and contractors – available on flexible working terms; hourly, daily etc. Testing and laboratory services Mineral assets databases Interactive online mapping tools Software – GIS/GPS Equipment hire Environmental professional services, including social aspects (community

consultation, First Nations liaison etc.) Software and engineering training.

This scenario presents a ‘win win’ situation because it facilitates the start of the exploration cycle ultimately leading to the development of new mines and the demand for products and services.

5.3 Developing a Sustainable Mining SectorThe exploration and mining cycle is a long process. Typically there is a ten year window from prospector to the formation of major mine. Prospectors are at the start of the mining cycle laying the foundations for the development of mines. A from the ground up approach is required to provide the foundations of a sustainable mining sector in Marathon.

With this in mind an important part of the initial focus should be on services to prospectors through local provision of exploration products and services:

Laboratory testing and analytical services Equipment supply and hire Technical services and supply: GPS, GIS, software, including training Environmental engineering and professional services


Opportunity: Software developers, prospectors, geologists, metallurgists, engineers, and other professionals could be drawn to Marathon’s fishing and hunting outdoor lifestyle. Concepts could be built around “like minded people - The Great Outdoors” in a similar way to Prince Edward County – www.buildanewlife.ca. A similar approach has been deployed already in Marathon in the attraction of doctors.

http://www.buildanewlife.ca/

Mining equipment and supply opportunities should be explored as Hemlo have indicated a propensity to purchase with a fifty kilometre radius.

Interest shown by restaurant franchises should be harnessed as should hotel provision.

In the longer term, MEDC should have an eye for emerging opportunities in green mining and water technologies.


6 SWOT Analysis and Lessons Learned

6.1 SWOT Analysis

Strengths Weaknesses

Proactive local governments willing to work with stakeholders and mining companies to address concerns over mining activities.

Long-term support from the province, in the form of project and infrastructure funding, will be available for the industry.

Lakehead University’s Water Resource Sciences program, Innovation Initiatives Ontario North Regional Innovation Centre (iiON) and Laurentian University’s Cooperative Freshwater Ecology Unit.

Confederation College has programs for every stage of the mining cycle except site decommissioning. It is the only school in Ontario offering programs in surface mining, underground hard rock mining, mining techniques, and underground diamond drilling involving a working mine in partnership with Barrick.

There are 74 active mining companies in and around Marathon as shown below. The extent of this activity is a fundamental part of the value proposition in the attraction of new companies

While Marathon is currently able to deal with the bulk of Barrick’s labour requirements, a lack of young workers and highly specialized technical labour will need to be addressed for Marathon to capitalize on the Stillwater and Ring of Fire developments.

Industrial roads connecting Marathon to the Ring of Fire are not fully maintained throughout the year which greatly increases transportation time.

Unknown capacity of local companies to participate in mining construction projects.

No local specialist business services providers to the mining industry.

No scheduled air services.


Opportunities Threats

Increased mining activity, higher prices means that previously unprofitable developments are now being undertaken.

The continued development of the Ring of Fire will bring significant infrastructure developments and mining investments to the region. Using industrial roads that connect highway 17 to Highway 11, these developments are only a three hour drive away.

Marathon can alleviate some cost pressures for fuel, fly ash and other products/services by ensuring these services are available in abundance locally.

Ontario is gaining international recognition as a cluster for water technologies and services.

Ancillary service opportunities for camps can be targeted in advance of employment ramp up at Stillwater.

The town has multi-modal potential as a small integrated logistics hub with Manitoulin’s terminal, a potential port at the old mill, a CP rail line, and an airport.

ICT training in mining software programs.

While the demand for mining products has risen, so have the costs of transportation, business services, chemicals, fuel, electricity and construction materials.

Approvals processing turnaround can increase due to public concerns. Companies must now consider the risk of delays or negative impacts caused by increased public and political pressures.

The Mining Industry Human Resources Council estimates that the Canadian mining industry needs approximately 92,000 workers over the next decade, with an estimated 20,000 positions in Ontario alone.

The Thunder Bay International Airport Authority has a strong business attraction program that targets mining and mining supply and service sectors.

6.2 Lessons LearnedIt is important to note that the following case studies are not to act as best practices but rather as case studies of lessons learned from communities who have attempted specific policies that may be helpful for MEDC to consider it as a way of diversifying the local economy in relation to mining activity.

Generally this section is divided into four key themes and lessons learned, these are summarized in the table:

Marketing and Communications: The Town of Marathon must be actively involved in building relationships throughout the mining community and market the area as a prime exploration hub in Northwestern Ontario. With this being said, Marathon must be business ready and be able to properly service and support new business that is interested in locating to the area. The case study of Labrador City will be explored as an example of investment attraction that did not provide the feasibility for business development. Greenstone is also explored as a best practice of innovative business attraction tools. With the assistance of MNDM,


Greenstone collected mapping conducted in the region and developed an interactive online mapping tool that brings together all of these resources.

Talent Attraction: in order to attract firms involved in technical services and support for Barrick Hemlo and Stillwater educated and talented people must be willing to relocate to Marathon. Developing Marathon's quality of life and ability to attract talent will set the stage for the future success of Barrick, Stillwater and other developments.

Training and Education as a method of business attraction: Centres of excellence related to research, training and education have been utilized in numerous sectors as a means to jump start local sector development and support. Sudbury's Mining Centre of Excellence will be explored as an example of this. Incubators are also used to develop specific sectors or to diversify local economies through providing affordable space and training programs. NORCAT (the Northern Centre of Advanced Technology) will also be explored as an interesting case study of work being done in the mining sector.

Business support: Many of the firms in the mining support and services sector are small operations who may require support from the local community. Specifically, communities who have provided prospectors and juniors with appropriate equipment, services training and office space have been successful at attracting business to the community. Northern BC as well as innovative examples from Zimbabwe and New Zealand are explored.

FIGURE 4: LESSONS LEARNED FROM OTHER EXPERIENCES

Tale

nt A

ttrac

tion

Prince Edward County, ON

Prince Edward County is quickly becoming recognized throughout Canada as a thriving and innovative creative rural economy.

The County has developed an intensive talent and investment attraction campaign including their investment attraction website www.buildanewlife.ca. The backbone of PEC`s strategy is to emphasize the County`s rural character and quality of place characteristics.

Developing Marathon's quality of life and ability to attract talent will allow it to better attract business. The Town of Marathon has already exemplified their ability to attract professionals through its physician attraction success.

MEDC must be actively involved in building relationships throughout the mining community and be involved in marketing the area as a prime destination for workers who enjoy hunting, fishing and outdoor recreation.


Strategy Community Lessons Marathons Take Away

Mar

ketin

g an

d co

mm

unic

atio

ns Labrador City, NFLD

Through the investment attraction strategy Labrador City was able to secure interest from a number of global investors. However, as these companies began to investigate, some basic factors for investment were lacking including competitive infrastructure (e.g. commercial, industrial and residential land), available human capital, cluster based development, transportation infrastructure, financial assistance and entrepreneurship.

Generally it was found that Labrador City did not have the infrastructure needed to attract and retain the number and types of businesses it was interested in attracting.

A marketing and communications plan is an important element in attracting new investment to Marathon. However, it is also important that the Town of Marathon is business ready with the appropriate land, servicing and support available for the particular companies it is interested in attracting.

In addition, Marathon can work with partners to develop innovative marketing and business development tools that will allow the community to attract investment. These new methods can include interactive mapping technologies and other information sharing mechanisms that will be helpful to prospectors and juniors.

Greenstone, ON

There are other innovative methods communities can utilize to attract business particular to mining sector development. Greenstone, for example, has developed an interactive web space that consolidates mapping information from a variety of sources that is pertinent to mining exploration. The community recently completed this project as a pilot project in coordination with the MNDM, FedNor and NOHFC.

Trai

ning

/ Inc

ubat

ion

Cen

tre

Sudbury Centre of Excellence, Sudbury, ON

A Centre of Excellence is a place that brings together academia, business, industry and communities to drive marketable and exportable research, leading to economic growth and development. Sudbury's business community, academia and residents benefit immensely by the development of a Centre of Excellence through the innovative research being done as well as business opportunities and marketing opportunities that stem from its work.NORCAT, also in Sudbury, has recently constructed 60,000 ft2 Innovation and Commercialization Centre. The centre rolls out three programs (Underground Centre, Residency Program and Health and Safety Resource Centre) each designed to provide a wide range of opportunities for all types of clients. These facilities add to the value proposition of the community and attract business interest to the area.

Incubator company graduates create jobs, revitalize neighbourhoods and commercialize new technologies, thus strengthening local, regional and even national economies. Marathon, with the assistance of the Province and the private sector can develop innovative tools or a centre to assist the mining sector in the region. By developing a facility that provides training, equipment and mentorship to local small business Marathon can attract new investment and assist the businesses already located in the area.

NorCAT, Sudbury, ON


Bus

ines

s Su

ppor

t

Northern BC

Northern BC offers an Industry Attraction Rebate program that provides up to $20,000 in matched funding from the Cross Regional Account directly to small business interested in moving to communities in central and northern British Columbia.

Many of the firms in the mining support and services sector are small operations who may require support from the local community. Specifically communities who have provided juniors and prospectors with appropriate equipment, services, training and office space have been able to attract investment and growth in the local economy.

Marathon must develop resources for prospectors and juniors as well as companies involved in servicing and supplying the mining industry in the area. Although the Town of Marathon cannot provide capital financing to small business, by acting as a repository of information about small business programming that is available as well as Provincial support, the town can better attract new investment.

The examples highlighted emphasize two ways of assisting business, the first includes providing business with a cash incentive whereas the second calls for particular services and space to be provided to companies who require it. Both of these models can be beneficial to the sector.

Zimbabwe

The assay testing facility provides majors, juniors and prospectors with assaying and testing services. Staff from the centre can also be called on site to deliver technical assistance. It was set-up with the objective of assisting small-scale prospectors and juniors to acquire the appropriate technologies, skills, knowledge and employees (if needed) in gold mining exploration, mining and processing. The centre is also intended to encourage the establishment of viable, safe and environmentally-sound mining operations that contribute to sustainable rural development.

Dunedin, New Zealand

To improve its communication to funders and increase the chances of winning grants, the R&D industry identified the following needs: industry connections, visits to funding agencies, partnership opportunities, access to good grant bid writers, mentoring and financial analysis. Taking approximately nine months to build by the city’s Economic Development Unit (EDU), the programme releases researchers’ valuable time, shares the financial risk, provides expertise to solve business problems, and fosters business excellence and innovation.


7 Marketing Strategy 7.1 Marketing Messaging and Value PropositionThe objectives in the deployment of the selling messages are:

Integration of Marathon’s strengths and opportunities into the mining sector value proposition

Developing the Marathon ‘brand’ Creating awareness of Marathon’s opportunities in exploration and supply and

services Building trust (influencing attitudes and perceptions) among sector participants –

mining service and supply companies, mining exploration companies, investors, multipliers, influencers, public/private sector enablers

To support and inform all communications activities To facilitate marketing and business development initiatives.

Marathon’s current value proposition is a starting point and a foundation for the future. The value proposition should embody Marathon’s potential. The selling message should set out Marathon’s vision for the future by conveying its marketing plans and how the asset infrastructure will be developed to support prospectors and juniors.

Marathon is a Regional Hub

Marathon is an established regional mining town through the consistent promotion of itself as a hub. With a developed business and retail infrastructure, surrounding communities within a one hour radius rely on Marathon for business, economic and domestic needs. The town will continue to improve this capacity to serve the needs of businesses, residents, visitors, incoming workers and neighbouring communities.

Marathon is a vibrant, strong community

Marathon has all the element of an excellent quality of life in a Northern setting:

To support and inform all communications activities To facilitate marketing and business development initiatives Outdoor lifestyle – fishing, hunting, winter sports, parks Four seasons Safe community Envy of other Northern Ontario communities Sense of community set Marathon apart Top quality health care services Hometown proud.


Marathon is a Progressive Town

Marathon is a leading municipality in Northern Ontario.

A positive ‘can do’ approach of Community LeadersProgressive and pro-active ‘can do’ attitude with a willingness to get things done. Community leaders are action oriented, take calculated risks and take on challenges.

A track record of success - Transition from a mill town to a mining town. The community assisted 65% of mill workers into new jobs while the remainder retired.

Substantial Mining Knowledge Base in Marathon

Marathon has a considerable local knowledge base in the mining industry through its business leaders, workforce and education institutions. There is a commitment to the mining industry throughout all stages of the education system.

High School Education – Pathways to Mining Careers – The District School Board has 10 programs that provide dual credits towards mining programs. Subjects include construction/carpentry. Mining programs are oriented to technical rather than academic and help high school students identify career opportunities in the industry.

Every program is a pathway or bridge to university level. Someone who wants to be a geologist can navigate their way to university through bridge programs.

Experience based programs – education/industry collaboration – industry ready graduates – Mining programs reflect industry requirements. Programs at Confederation College are based on industry requirements. Aspects such as construction, ancillary services, heavy equipment operators, electrical, industrial, etc. were reviewed for industry compliance.

Programs cover every stage of the mining cycle – The result is a suite of programs covering every stage of the mining cycle from prospecting, to geology to line cutting, etc.

Unique Mining Programs involve experience of a working mine (at Barrick) – Confederation College is the only school in Ontario offering programs in surface mining, underground hard rock mining, mining techniques and underground diamond drilling involving a working mine in partnership with Barrick.

Graduates prepared for the mining industry – Confederation College’s programs have significant advantages over other colleges (e.g. Northern College -Haileybury Campus, which also seems to be regressing significantly in terms of mining training) while others do not have an active mine. The quality of education is recognized by Barrick, which employs 90 students.

Mining Expertise – Workforce


The workforce is an asset to Marathon. Staff loyalty is high and many businesses have employees with over 15 years service. The result is a breadth and depth of industry expertise across many skills in the industry. Strong loyalty and low turnover generally helps efficiency.

Central Location with Access to Key Markets

Marathon is centrally located between Sault Ste. Marie and Thunder Bay along the North Shore Highway #17, linking Canada east to west.

United States border crossings are four hours away at Sault Ste. Marie, Ontario (east) and Pigeon River, Ontario (west) providing access to major U.S. Midwestern and Southern Ontario markets such as Minneapolis, Milwaukee, Chicago, and the Greater Toronto Area which are within 1,200 kilometres/800 miles.

Further afield, Marathon is in proximity to road and rail routes (CN, CP), which connect to the mid-continental NAFTA road and rail corridors, which connects to a market of over 100 million people. The town has access to inland ports at Winnipeg and Iowa.

Marathon has multi-modal potential

With its road and rail links combined with the potential of its airport and deep- water port, Marathon has the potential to become a multi-modal transportation hub.

A prime exploration hub in Northwestern Ontario at the heart of major mining opportunity areas

Marathon is an ideal location for mineral exploration. Mining capacity has enormous potential with 74 mining claims in the vicinity of Marathon.

Exploration services are available through Wilderness Helicopters. GPS, satellite tracking, and satellite phone services are provided.

MEDC is considering plans to establish a Mining Development Centre, which will provide a suite of services for prospectors and juniors.

A cohesive and collaborative business community

Local businesses are committed to the community’s well being and development

The Hemlo mine is an integral part of the education programming provided by Confederation College.

Long established local businesses employ local people, some of whom have many years service.

Barrick, a global leader and exemplary company


Barrick is an exemplary corporate citizen with a consistent track record of giving back to communities. A recent recipient of a ‘Towards sustainable mining leadership award’ is working with leading water technology company, Veolia, on tailings management. The company also is pre-disposed to using local suppliers.

Barrick is a magnet for leading companies

Orica, a global leader in drilling and blasting services are located on-site at Barrick as are RDH Mining Equipment.

Entourage recently entered into an agreement with Barrick to explore properties next to and along trend of the world-class Hemlo Gold Deposit.

Stillwater Canada Marathon PGM-Cu Project

There are significant opportunities for suppliers through the Stillwater Canada Marathon PGM-Cu Project. An open pit mining and milling operation will provide opportunities for the supply and service industry.

Long standing companies providing important areas with support services:

Moffatt Supply and Major Machine provide components, fabrication and maintenance with a strong emphasis on quality and service.

Supplemental support from Bluewave Energy, Wilderness Helicopters, and Superior Safety

A range of small local companies providing essential services.

7.2 Strategic Marketing Objectives and Promotional Initiatives 2012-14

The following outlines a series of strategic objectives and initiatives that will assist MEDC and its economic development partners to firmly establish Marathon as a hub for mining supply and services and exploration opportunities.

Economic development is concerned with product development, business development and marketing/promotion. Each of these pieces needs to be at the highest standard of success in order for Marathon to be consistently successful at attracting investment.

As has been shown, Marathon has a base of assets that are a starting point. However, it is important that MEDC work on product and business development initiatives to lay the foundation for long term sustainability of its mining sector. At the same time, make it easier to attract new investment and expand the current business base in the town.


7.2.1 Human Resource DevelopmentWith an impending skills shortage in the industry it is important to build on current education and training initiatives in the Town through expanding the potential labour pool in the emerging workforce and the attraction of new talent.

FIGURE 5: MINING SECTOR HUMAN RESOURCE DEVELOPMENT INITIATIVES

Recommended InitiativePriority,

Role Timeline

Partnerships

Expand emerging labour force.

Liaise with Confederation College to extend programming to technology driven mining operations – geological/mining software, operations, and information technology/telecommunications. Explore partnership opportunities with software providers.

Develop school programs to compliment these initiatives.

High; Lead

Short/medium term

Confederation College, Local School board,

Region Local Training Board

Software providers

Partner with the local school boards to host a symposium for careers in the mining sector.

High School/Confederation student participation in social media mining projects.

Medium; Facilitator

Short/medium term

School boards; Durham Region Local Training

Board

Develop career information modules covering all operational aspects of the mining industry for schools.

High

Facilitator

Long term

Confederation College,

Superior-Greenstone District School Board

Develop lifestyle concept around Marathon’s outdoor lifestyle in the same way as doctors to attract software developers, prospectors, geologists, metallurgists, engineers, and other professionals.

High

Lead

Short term

Diaspora initiative – attract talent Target former residents of Marathon through university and college recruitment networks in Golden Horseshoe and GTA areas, mining industry publications and newsletters, industry associations.

Medium

Lead

Short term

Superior-Greenstone District School Board


7.2.2 Land and Building AvailabilityThe consultations revealed issues in the supply and availability of lands and buildings. The actions set out below reflect these discussions and the Strategic Action Plan. These initiatives are essential to the future growth of the Town. Solutions must be worked through to overcome the hurdles in bringing development land forward.

FIGURE 6: LAND AND BUILDING AVAILABILITY INITIATIVES

Recommended InitiativePriority,

Role Timeline

Partnerships

Increase industrial lands inventory for development.

High

Partner

Long Term

MNDM, NOHFC and FedNor, Ministry of Natural Resources.

Determine viable supply options: Future development land purchase by municipality Identify Crown Land Vacant land at the Marathon Airport.

High

Partner

Long Term


Develop plan to bring viable land options forward.

High

Partner

Long Term


Continue to maintain a list of available, vacant, and/or for sale properties in the public and private sectors.

Lead

OngoingMEDC


7.2.3 Logistics Infrastructure

Marathon has the all the components of a logistics hub. However, the integration of these components will require considerable resources and collaboration over a long period.

FIGURE 7: LOGISTICS INFRASTRUCTURE INITIATIVES

Recommended InitiativePriority

Role Timeline

Partnerships

Develop strategy and plan to mobilize road, rail, air and water into an integrated multi-modal logistics strategy to capitalize on mining and other sector opportunities. The vision could include the development of a Commercial Transportation Service Centre.

Medium

Facilitator

Long term

NOHFC and FedNor, First Nations

Address strategy and plan for each transportation mode to realize vision:

Road – road upgrades to port and ring of fire industrial roads that connect highway 17 to Highway 11

Rail – deployment of this asset Air – attract a scheduled service airline (cargo and passenger) Water – development and operation

Medium

Facilitator

Long term

NOHFC and FedNorCP

Town of Marathon

Mill purchaser

Gap Analysis Apply for Government Funding to undertake a gap analysis to determine required infrastructure upgrades (from strategy).

Medium

Facilitator

Long term

NOHFC and FedNor


7.2.4 Business Development Initiatives – Entrepreneurship, Research and Innovation

FIGURE 8: BUSINESS DEVELOPMENT INITIATIVES


Role Timeline

Partnerships

Identify businesses seeking expansion opportunities. Create a forum and ongoing dialogue to explore interest in value chain opportunities identified.

High

Lead

Short term

Chamber of Commerce, MEDC

Work with local businesses by providing the tools to help them capitalize on value chain opportunities.

High

Lead

Short/medium term

MEDC, Chamber of Commerce

In partnership with Barrick, identify potential business development opportunities for local companies.

Facilitate discussions and brainstorming with key Barrick personnel to compile a list of potential business development opportunities.

High

Lead

Short/medium term

Barrick, MEDC

Conduct regular, ongoing site visits with local businesses to understand barriers to growth. Develop a number of questions that must be asked each time to ensure a benchmark of sector health is identified and can be tracked over time.

High

Lead

Ongoing

MEDC

Establish a Mining Development Centre with infrastructure and services to support the mining industry (prospectors and juniors) and the development of Marathon as a mining services centre.

High

Lead

Medium term

MEDC

NOHFC and FedNor

Create a group of local mining stakeholders. Develop an ad-hoc committee of local stakeholders to provide insight and intelligence on emerging mining opportunities.

Sudbury Area Mining Supply and Service Association could be a model.

High

Lead

Short/medium term

Barrick, MEDC

Ontario Prospectors Association web site gateway to the home pages of all the Prospectors Associations in the province of Ontario, Canada. Input relevant information on OPA website tab.

Low

Lead

Short/medium term

Ontario Prospectors Association


7.2.5 Investment Attraction InitiativesFIGURE 9: INVESTMENT ATTRACTION INITIATIVES


Role Timeline

Partnerships

Develop a mining resource portal for prospectors/Juniors precursor to mining development centre.

Include local prospectors association information link to Ontario Prospectors Association website – tab provided on site.

Create interactive mapping technologies and other information sharing mechanisms that will be helpful to prospectors and juniors.

Integrate social media into these properties - Twitter, Facebook, etc.

High; Lead

Short/ medium term

MEDC

MNDM, NOHFC and FedNor

Diaspora initiative – attract companiesTarget former residents of Marathon who could be business owners.

Medium, Lead

Short/ medium term

MEDC

Develop Business immigration initiatives to attract businesses in product and service gap areas.

Medium, Lead

Short/ medium term

Invest Northern Ontario, MEDI

Augment Existing Relationships with Multipliers

Influencing the Influencer – (provincial/federal investment representatives and site location consultants).

Build relations with consulates in key mining supply and service nations - start with Australia, South Africa, US, and then South America, Chile, Brazil, Peru, etc.

Include Influencers on public relations distribution lists One-on-one meetings with key Influencers Frequent telephone contact with locally-active Influencers Attendance at key meetings Hosting of incoming familiarization tours and events that showcase the

community, its businesses, and mining exploration opportunities.

Medium, Lead

Short/ medium term

MEDC

Leverage onsite presence of key mining companies

Identify onsite companies at Barrick in product and service opportunity areas (e.g. Orica, RDH Mining Supplies) and meet with them to discuss expansion potential.

Provide case studies to showcase company activities in Marathon (see Veolia example).

High, Lead

Short termBarrick

Develop a campaign around lifestyle concept (along the lines of the doctor recruitment campaign) to attract entrepreneurs in key skill areas.

High, Lead

Short termMEDC



Role Timeline

Partnerships

Develop trade show program 2012/13 with potential regional, provincial and federal, industry association partnership opportunities.

Provide support to prospectors through trade show program.

High, lead

Short termMEDI; DFAIT

Implement lead generation activities and Implement FDI Program

Develop product and service category target company lists - includes companies profiled in attraction program.

Develop symposiums/events to showcase exploration opportunities in the Marathon area.

Examples: 2012 Northeastern Ontario Mines & Minerals Symposium “ABITIBI GOLD 2012″ April 17 to 19, 2012, Northern College, Kirkland Lake, Ontario.

Sudbury Mining Week aims to promote mining and its importance to the economy and culture of Northern Ontario.

Medium, Lead

Medium Term

Develop an image enhancing initiative within key media including SAMSSA websiteHigh, Lead, Short term

Develop a retail and hotel attraction strategy and plan.High, Lead, Short term

The Northwestern Ontario Development Network (NODN) – Possibility of the creation of a sector team for smaller communities along the same lines as Ontario East Economic Development Commission (OEEDC).

Low, partner, Medium/long

term

Northwestern Ontario

Development Network (NODN)

Develop communications strategy and pieces to support investment attraction program and BR&E initiatives.

Integrate communications into regional organization communications/websites.

Invest Northern Ontario - Town newsletter link.

North Western Ontario Development Network.

High, Lead, Short term

Invest Northern Ontario



Role Timeline

Partnerships

Increase Awareness of Marathon’s Mining Sector

Communications Campaign

Raise the profile of local successes and mining companies (i.e. community ambassadors) to give credibility as an investment destination.

Develop profiles of key mining companies with testimonials. Provide detailed geological knowledge of mineral opportunities. Successes and news about Marathon’s mining sector. Utilize for communications: website, podcasts, articles, press releases, social

media etc. Deploy through relevant communications channels. Integrate with the selling

messages.

High, Lead, Short term

7.3 Techniques for Marketing Strategy Implementation

The marketing strategy implementation plan is built around the following pillars:

Lead generation activities (regional, provincial, national and foreign investment attraction)

Trade show strategy and plan Communications strategy and plan – selling messages deployment through public

and media relations, social media and seminars.

The tactics involved in the execution of these activities are outlined below.

7.3.1 Lead generation - Investment AttractionA show walk was conducted at PDAC to identify potential prospects and gain further pointers on the type of companies that could be interested in Marathon. In total about 40 companies were approached. The outcome of these discussions is included in the table below. Target company profiles will be compiled as part of the investment attraction initiative (provided as a separate confidential document).


FIGURE 10: WHAT POTENTIAL TARGETS COULD LOOK LIKE

Product/Service Category Comments

Mining Equipment Supply and Services

Onsite branch with conversion potential into facility

Orica, RDH Mining Equipment identified so far

Further campaign to determine stand alone potential

Home based sales reps – Schramm (West Chester, PA)

Chartrand Equipment (Timmins) expanding – to investigate further

Laboratories

Small facility of larger entity –

Will require about 20,000 samples p.a. to be viable (ACT Labs)

Broad based campaign to all types of LaboratoriesFairly positive response: ACT LabsAcme Labs are opening in Timmins but thinks Marathon could be possibleAGAT Laboratories

Laboratory Equipment Product extension of existing businesses

Provision through laboratory services

Exploration services

Work on an ‘in and out basis’ difficult to attract on a stand alone basis. Expansion/partnerships with Wilderness Helicopter is best bet

Lidar Services International (Calgary) work with partnersImdex (Mexico/Timmins) through AMC (fluids), Reflex (rentals) work with distributors

MinePros – partnership with drilling company

Software providers (including GIS services)

Partnerships with education institutions welcomed: Companies: Maxwell Geoservices (Vancouver), Micromine (Englewood, CO), CAE Mining (Sudbury – regional office)

Spatial Dimension work with Barrick

Value added resellers

Telecommunications

Partnerships

Possible interest: Mobile Wireless, Sudbury InfoSat (Calgary) work through resellers but keep in mind

Engineering Consultants

Possible long term lead – CSA Global (Horsham, UK) expect to set up in two years

Halltech – possible long term interest

Entrepreneur professionals


Product/Service Category Comments

Logistics

Clear concept needed to discuss any proposals

Existing companies should be a starting point

SDV Mining – contact for further discussion

Water TechnologiesCustomers of BarrickVeolia interested in a meeting with MEDC – community focus

All product categories Foreign companies – substantial presence of Australian, South African company representation at booths

Retail and HotelRestaurant targets identified

Hotel operators receptive to small towns – Inns etc.

7.3.2 Trade-Show Strategy and PlanPre-show Activities

The pre-show activities break down into the following components; the foundations upon which a successful trade show is built.

Strategy and Plan

Setting quantifiable goals and objectives. Research - identification of trade-shows that potentially fulfill Marathon’s

objectives.

Lead Generation

Obtaining lists of participants (exhibits and registrants). Pre-show outreach to appropriate attendees. Sending special invitations to prime prospects. Organizing media relations activities. Designing and producing collateral materials.

Booth

Booking space and requirements. Designing and producing the booth. Purchasing or renting accessory materials. Logistics. Travel and accommodation arrangements.


Trade Show Research

A thorough evaluation of potential trade-shows should be undertaken to ensure they are a fit for Marathon in that they have the potential to deliver quality leads.

The trade show evaluation should assess:

The quality of exhibits, representation of quality companies that could be potential investor candidates as opposed to an over representation of academia, industry associations, government and so on.

Where possible and if an attendee list is available - the quality of attendees the presence of key decision makers.

While quality is always better than quantity, the number of registrants/exhibits should be taken into consideration.

Feedback from DFAIT and MEDI and Marathon’s mining industry network

Objectives

Typically objectives will centre around:

Attracting potential investors i.e. lead generation. Developing manufacturing partnerships to create jobs. Contribution to awareness building of Marathon as a mining service supply centre

and potential for prospectors and juniors. Relationships to build on existing networks in the mining sector.

Pre-Show Lead Generation and Outreach

Typically, exhibit lists are available on the show website. Show evaluation work will contribute to list building and can be fine tuned to identify potential target companies, and applicable phone and email contact information for pre-show out reach. Where possible, this should be supplemented by the attendee list. These lists are occasionally available on the website. Also, shows are increasingly providing virtual networking facilities to enable participants make pre-show connections. Failing that, show organizers are sometimes willing to provide attendee information. Outreach activities can be supplemented by special events with invitations to prime prospects.

Show organizers can be helpful in facilitating media relations activities by way of features in the show magazines and in their own pre-show outreach. Opportunities for show program advertising and sponsorships to reinforce the message can be investigated. Other initiatives might include features in applicable publications that align with the show audience.


7.3.3 CoordinationThe logistics of attending a trade show are considerable. The time involved should not be underestimated.

Booking: deadlines, payment deadlines, set-up times, take-down deadlines etc. Shipping and Handling: packing, shipping, unpacking and assembling the booth

and all peripheral materials. Travel and Accommodation: itinerary and travel plan. Staffing: booth personnel should have knowledge of Marathon’s key selling

proposition and product offering.

7.3.4 Booth Activities Lead Capture: Shows provide booth visitor badge scanning services that are

written to a spreadsheet for post-show activities. Business cards should also be collected as backup because the scanners do not always capture all the information.

Brochures: Collateral materials should always be up to date. More substantial items such as directories etc. should be kept only for serious inquiries.

Promotional Items: While promotional items contribute to booth traffic, they are not necessarily a precursor to generating quality leads. Smaller promotional gifts (key chain, pen, etc.) can the balance value for money and quality of visitor equation, with more significant items can be given to more serious prospects.

Presentations: dynamic multi-media presentations can run continuously to attract the attention of passers-by to stop and check the booth out.

Activities: A busy booth draws visitors. The key is to increase their length of stay through activities that engage visitors and to keep the booth looking busy.

7.3.5 Post-show Follow-up calls

Badge scanners generate a spreadsheet of booth visitors for follow up. These devices normally capture the nature of interest in various categories. Additional business cards gathered should also be added to this list. It is important that follow to serious inquiries is carried out as soon as possible, in any event within 10 days, after the trade show is complete. More general inquiries can be followed up with a general email - ‘thank you for visiting our booth’ leaving the door open for future opportunities should they arise.

Thank you emails should also be sent to attendees of special events with a “sorry we missed you” to those special invitees who did not visit the booth. This could lead to additional sales through the trade show even if the contact did not attend.

Evaluation

It is important to gauge the results throughout the trade show campaign,. Several indicators allow effective monitoring of a trade show’s performance:


Anecdotal Evidence: feedback from the team on the floor, other exhibitors whose experiences are particularly useful if they have participated previously, and booth visitors.

Lead Generation: one of the key objectives is to generate leads. Metrics can be developed in terms of number of companies approached in the pre-show outreach, number of booth visitors and the conversion rate in terms of quality leads and site visits. These results will influence the choice of trade shows for future participation.

Booth Traffic: the number of people who visited the booth team is a factor but the team should make a point of asking visitors how they found out about the booth and what made them decide to visit.

7.3.6 Trade Show OpportunitiesLocal and regional shows will likely be within the scope and budget of MEDC.

Given the global nature of the industry and the size and scale of many mining industry expositions, partnerships with MEDI (Ontario Pavilion) and DFAIT (Canada Pavilion) are the best way to access these opportunities. Canadian Association of Mining Equipment and Services for Export (CAMESE) partners with DFAIT in several shows and provides a trade show service in which members can participate for as little as CAN$615. CAMESE are the Canadian agents for Chile’s bi-annual Expomin event. The Ministry of Northern Development and Mines leads several trade show missions for exporters.

MEDI and DFAIT have a list of planned missions and trade shows in Canada, US and globally, typically over a two year period. MEDI and DFAIT are always willing to provide feedback on their experiences with individual shows.

Barrick through its Hemlo mine might be willing to offer Marathon partnership opportunities at their booths.

The table below shows a list of regional, national and international opportunities.

FIGURE 11: TRADE SHOW OPPORTUNITIES

Show Comments

Local and Regional Opportunities


Show Comments

Ontario Prospectors Association

The OPA hosts four mineral exploration symposia every year.

April: the Northwestern Ontario symposium is held in Thunder Bay

Northern Mines Expo 2012Timmins, May 16-17

350 Exhibits, $1600/booth

MassMin Conference 2012Sudbury, June 11-14

Small conference – 42 exhibits

COM 2012Niagara Falls, Ontario, Sept. 30 to Oct. 3, 2012Conference of Metallurgists in conjunction with Pressure Hydrometallurgy 2012

Possible potential to attract services for prospectors

Canada Opportunities

CIM 2012, Edmonton, Alberta, May 6-8, 2012 MEDC attending

Cambridge House Investor Series

World Investment Conference, Vancouver, June

Toronto Investment Conference, September 27/28

Free entrance for public – Toronto venue could be worth attending.

Possible potential to bring prospectors

Prospectors and Developers Association of Canada (PDAC), Toronto, March 6-9, 2013

Potential to participate through Ontario booth

US Opportunities

MINExpo 2012

Las Vegas, Nevada, September 24-26, 2012

Every four years, 38,000 attendees, 112 countries , 181 exhibitors from Canada as of March 9, 2012, CAMESE/Canada Pavilion, Ontario/MEDI Pavilion

Overseas Opportunities

Various opportunities in Chile, Columbia, South Africa, Mongolia etc.

Discuss viability of participation through CAMESE/Canada

Investor Conferences

Asia Mining Congress 2012

World Mining Congress, UK

Investigate Canadian connections at these conferences


7.3.7 Communications Strategy - Marketing Messages DeploymentAn integrated strategy communicating Marathon’s selling messages should support all marketing and business attraction initiatives. These messages need to convey opportunities in exploration and supply and services to attract prospectors and supply and service companies to attract new investment.

The target markets to be addressed are as follows:

Prospectors Junior mining companies Major mining companies Mining suppliers and services Industry influencers – commentators, investors.

Communications pieces should be developed with a view to fielding them to online publications for publication on the websites, and more importantly through their email communications that potentially can reach would be investors.

Create a distribution list of industry publications and investment letter writers. The publications in Figure 11 below were extracted from the PDAC conference. This is not an exhaustive list and should be viewed as a starting point.

Placements should harmonize with trade show activities to reinforce the message and generate interest in Marathon. Print advertising is expensive and not recommended since audiences are migrating online and a single advert can cost as much as booth at a trade show. In any event, print advertising should be undertaken on the understanding that a PR piece on Marathon will be included.

FIGURE 12: JOURNAL OPPORTUNITIES

Mining Supply and Service Targets

The Prospector, CanadaHas extensive online presence and developed website that includes daily news, company profiles however, does not develop subscription online. There is the ability to submit articles for publication on web. Publications are released six times a year.

ICMJ Prospecting and MINING Journal, US

US publication that is released every month and has the most extensive classified advertising of any prospecting publication with an average of eight or nine pages per issue. Most of the information in the publication relates directly to the US market, however, they do occasionally develop features on projects in other countries.

Resource World Magazine, Canada

Typically this publication is to be read by investors who are seeking information on publicly traded resource extraction companies.

Mining Markets, Canada

Mining Markets has an extensive collection of resources and articles available online as well as a print publication and is published quarterly to provide increased information about the mining sector to investors. This publication is focused particularly on Canada's mining sector.


The Northern Miner, Canada

The Northern Miner published weekly news and detailed articles about the mining sector worldwide. It offers online publications in addition to their print publication.

Canadian Mining JournalThe Canadian Mining Journal provides information on Canadian mining and exploration trends and developments. An online newsletter is available.

Mining Journal, UKThe Mining Journal the most comprehensive and targeted marketing solutions of any mining and underground construction media company. The publication is published weekly and offers information on international mining projects.

Online Properties

Mine Snooper Submit exploration opportunities in vicinity of Marathon- 1 company in all Ontario at present

Infomine.com Online newsletter. Submit articles for publication

Mining.comBlog, Twitter, Facebook, 7 newsletters, sponsorship, ad opportunities available. Provides opportunities to submit articles

Industry Influencers, Investors Letter Writers, Research Publications etc.

ICD Research - Full-service global market research agency and premium business information brand specializing in industry analysis in a wide set of B2B and B2C markets.

Publish reports on The Canadian Mining Sector – Market Opportunity and Entry Strategies, Analyses and Forecasts to 2015

Greg McCoach, The Mining Speculator Regular presenter at PDAC

Leonard Melman, The Melman Report Regular presenter at PDAC

Marino G. Pieterse, Goldletter International Regular presenter at PDAC

The communications pieces should be supplemented and reinforced by a continuous feed of news and information about Marathon through social media channels such as Twitter, Facebook, and videos on YouTube.


7.4 Immediate Next StepsOver the next six months MEDC should undertake the following initiatives:

FIGURE 13: MARKETING STRATEGY NEXT STEPS

Investment in lead generation ($21,000) $15,000 – Work with consulting group to generate a program for lead generation

around the following events: Mine Expo in Las Vegas (September), Northern Mines Expo in Timmins (May), CIM in Edmonton (May); program can consist of arranging meetings for Marathon trade show delegates and/or attending shows on behalf of Marathon

$4,000 – Development of an investment attraction prospectuses for Mining Equipment Supply and Services and consulting group to distribute and follow-up on distribution

$2,000 – Stand alone commercial/industrial real estate online inventory

Media and Public Relations ($9,000) … Paid advertising increases name recognition, but media relations increases credibility. Good public relations does not happen on its own. It takes a lot of skill, and consistent hard work, over a period of time. It is part art, part science and when practiced correctly the results can be very rewarding.

$8,000 – develop an inventory of copywriting and articles on mining activity in Marathon and the region and aim for a continual feed of press through target media; partner with Hemlo and other companies and prospectors; the College could be an effective partner

$1,000 – develop a template for Marathon’s own industry newsletter that is populated with above articles

GIS mapping ($10,000) Create GIS mapping strategy for mining sector Compile information on exploration surrounding Marathon and design web

interface, preferably link with Google Maps instead of proprietary software. This web interface can be connected to Ontario Geological Survey's web portal. OGS should be contacted as a potential partner or advisor in this process.

A partnership with NCIR for matching $10,000 and consider partnership with NODN and OGS to contribute another $10,000. Mapping projects like this have been conducted in the Greenstone area and was successful in bolstering exploration activity. In fact, Greenstone Economic Development Corporation is interested in having the mapping data they compiled be housed in Marathon in addition to mapping data from across Northwestern Ontario. The technology created for the Greenstone project cost $25,000, however, licensing of the software may be cheaper now.


8 Appendices 8.1 Stakeholders ConsultedName OrganizationAdam Brown EDC ChairAndrew Bauman BarrickBrian Gionet ProspectorHarold Griggs ProspectorJeff Dawson Barrick

Jeff DicaireNorthern Development Officer/Ministry of Northern Development and Mines

John Florek Entourage MetalsMichael Cameron Confederation CollegeMike Dorval Wilderness HelicoptersRick Chevier Moffat SupplyRick Dumas MayorRoger Souckey HemloRudy Wahl ProspectorSteve Humphrey HemloSylvain Dunn Major Machine


8.2 Interview QuestionnaireMarathon Mining Sector Capacity Development Strategy

Interview Questions

1. What is your company’s greatest achievement in the last three (3) years?

2. Has the company introduced new products/services/capabilities in the last five (5) years?

3. Are there new products or services anticipated in the next two years?

4. Is there new technology emerging that will substantially change either your company’s primary product or how it is produced?

5. Is the percentage of products and/or component imported by the site from suppliers outside Marathon

a. Increasing

b. Stable

c. Decreasing

d. No imports

6. Which products/services (if any) are difficult to obtain?

7. Do you anticipate any federal, province, or local legislation changes that will change your purchasing habits over the next five years?

8. How do you see your company’s growth prospects in the next two years?


8.3 Procurement Survey


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