Companies expect suppliers to have Aboriginal strategy
- EFN Staff | May 27, 2015
Most mining companies in Saskatchewan have developed advanced policies and relationships with First Nation and Métis economic development groups and businesses across the province. This has helped strengthen their supply chain and provided access to good employees. At the recent Saskatchewan Mining Supply Chain Forum in April, suppliers to the industry heard the message loud and clear:
the big companies expect their suppliers to have some sort of Aboriginal strategy that brings Aboriginal business to the fore front.
The event discussed current mining operations and projects in Saskatchewan and the related supply chain opportunities for manufacturing and service businesses. It also provided practical information on how to be a preferred supplier to the mining industry.
“Industry wants suppliers to be part of increasing their Aboriginal involvement. They are asking suppliers to consider ownership, joint ventures, training, employment and other means to develop the Aboriginal portion of their industrial activities,” said Alun Richards, Executive Director of the Saskatchewan Industrial & Mining Suppliers Association. “The larger suppliers and those serving the northern Saskatchewan mines are used to this. Small and medium size suppliers generally understand the issue and are seeking means to meet these goals within their capabilities.”
Several suppliers that are interested in joint ventures or succession planning and Aboriginal economic development groups and businesses ready to get to business had the opportunity to participate in a daylong session on Aboriginal supplier development the day prior to the forum. Presentations were made by First Nations Bank CEO Keith Martell, Des Nedhe Development President and COO Gary Merasty, and former Cameco CEO Gerry Grandey. Suppliers also heard about Aboriginal procurement from PotashCorp’s Leanne Bellegarde, Terry Bird from K+S Canada, Sean Willy from Cameco, Ken Smith from BHP Billiton and Carolanne Inglis-McQuay of Areva.
Derrek Wenisch, a manager at WESTLUND/EMCO Water Solutions, knows that times are changing and their biggest clients are asking for change. “We have heard they are putting more emphasis on Aboriginal content, not only in their business, but in their suppliers as well. It is important for us as a company that supplies products to various companies in the province to make sure that we engage ourselves and move forward in the direction of having that Aboriginal involvement in our businesses,” said Wenisch.
EMCO does have Aboriginal partnerships in other parts of Canada, so they have some experience. That experience taught them to do it right.
“We need to find a viable model that is not only good for the Aboriginal community but can also be profitable and successful into the future. We are looking at various ways to start putting a better foot forward to the demands of our customers. There is a sense of urgency. But again, this is not a process that happens overnight. It is about building relationships not only for short term, but to continue to foster for several years.”
This move by industry could potentially open the door for some lucrative business opportunities and Alun Richards knows it won’t be easy for his members, but it is important to start. “The question from smaller suppliers is often how to start. They need sources of information and contacts within industry and Aboriginal organizations as well as training to help them out. In the end, they will have to develop something that works for their particular circumstances,” added Alun. “The opportunities are significant for both groups and will depend on developing relationships that work for everyone involved.”
Check out more stories on Saskatchewan Mining Week, such as:.
- Opinion: Developing the road to Aboriginal prosperity
- Room at Saskatoon's Ronald McDonald House named after late northern man
- Opinion: How the mining lobby can influence Aboriginal affairs
- Mining careers: not just moving (or mining) rocks
- Saskatchewan Mining Week: celebrating 50 years
- Whitecap Industrial Services: a partnership of resource service providers
- Northern leaders and Cameco share success in Ottawa
- Event celebrated students in mining readiness program
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