Magnifying Mining's Hidden Gem

2011-05-09

The mining sector in Canada has grown significantly since the discovery of coal on Cape Breton Island over 350 years ago. Today, Canada is considered one of the largest and most powerful mining nations in the world with a reputation for quality expertise, exploration and skills.

As an industry, mining and mineral exploration contributes about $32 billion to Canada’s GDP and employs over 300,000 workers in mineral extraction, processing and manufacturing. According to the Mining Association of Canada, 55 per cent of the world’s publicly-traded mining companies were listed on the Toronto Stock Exchange at the end of 2008, far more than any other stock market.

For publicly-traded mining companies there is significant value in maintaining a reputation for solid mineral analysis testing, in particular with respect to a metal’s purity. Generating credible test results enables those companies to better manage investor relations, and to establish public confidence in mining stocks.

Many SCC-accredited laboratories recognize that their success in working with the mining sector would not be possible without accreditation from a recognized body. They see a direct correlation between the value of accreditation to their rate of growth and potential for expansion.

“Because we are accredited to the international laboratory standard (ISO/IEC 17025, which specifies general requirements for competence to carry out tests and/or calibrations including sampling) that automatically provides a certain level of credibility and assurance,” said Marcus Maguire, the Senior Vice-President of AGAT Laboratories Inc. AGAT’s geochemistry division, which deals with the study of the chemical makeup of the Earth, has seen extensive benefits from accreditation and standardization. In mining exploration, geochemistry is typically applied to the search for mineral deposits by sampling and analyzing the soils, stream sediments or rock outcrops of an area.

“In geochemistry, we are maintaining month-over-month triple growth and it’s fair to say some of that is attributed to the fact that we aggressively pursued accreditation from the very start and we didn’t cut any corners and now we’re able to play at the big kids’ table,” said Maguire. Less established mining labs in Canada do experience some success without accreditation, but the opportunities for long-term sustainability significantly decrease without that established merit recognized by so many companies around the world.

“It’s an absolute pre-requisite,” said Maguire. “As far as we’re concerned, you can be a small player and you can (operate) locally without accreditation, but as soon as you get that (status), it grants you the credibility you need for aggressive and prolonged growth.” Maguire explained that AGAT witnessed accreditation’s benefits in its various divisions from the beginning and admitted the idea of doing business without it was never contemplated.

SGS Canada Inc., a mineral testing laboratory in Lakefield, Ontario has similar views about the impact of their accreditation from the Standards Council of Canada (SCC). “The mining industry itself has become more aware and more knowledgeable about accreditation,” said Valerie Murphy, the Quality Systems Manager at SGS.

“What that means is there’s a system in place and they have proper quality control and quality assurance,” she said. Murphy adds that times have changed, and that while accreditation is not considered mandatory for mining laboratories, it is much more important than it once was.

“A few years ago if you told a client you were accredited, they didn’t know what that meant and they didn’t really care. But now, they ask,” said Murphy adding how this change forces companies to step up their quality assurance practices.

“We wouldn’t have as big a client base (without accreditation) and I would imagine we wouldn’t have as strong a reputation,” explained Murphy. “It forces a place to maintain and improve their system.”

In Canada, mineral analysis testing laboratories provide a range of services; however, accreditation has proven to be the hidden gem that authenticates and legitimizes the work of mining companies, particularly those whose metals are to be listed and publicly-traded on any commodities exchange.

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