Producing Mines, 2015
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- Edgar Wiggins
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3 Producing Mines, 2015 Copper, gold, silver, zinc, lead (Yukon), Iron ore & gold (Nunavut), plus nickel and cobalt (NFLD & Labrador), Tungsten, diamonds (NWT) Source: GOC, Atlas of Canada, Minerals and Mining Map, 2015,
4 Top 100 Exploration Projects Source: GOC, Atlas of Canada, Minerals and Mining Map, 2015,
5 Aboriginal Businesses in the Extractive Sector 6% 61% 33% Mining and Oil and Gas Extraction Extraction Related Industries Unrelated Industries Canadian Council for Aboriginal Business, 2015 National Aboriginal Business Survey data, Q. 6. Proportion of Businesses interviewed that operate in mining or in mining related activities.
6 Aboriginal businesses are overwhelmingly successful Aboriginal Business Owners: Perceptions of Success 93% 41% 41% 11% 6% Somewhat Successful Very Successful Extremely Successful Total Success Weak Canadian Council for Aboriginal Business, Promise and Prosperity: The 2016 Aboriginal Business Survey, p. 24.
7 Entering the Supply Chain: Common Challenges Aboriginal Businesses Face Forecasting information Communication with procurement staff Financing Large contracts Mismatch between production cycle and mine needs Infrequent meetings with Aboriginal suppliers and AEDC staff Limited capital and difficulty accessing financing SMEs may not be able to provide all desired services Insufficient planning for employment and training Unrealistic assumptions about supplier capacity Inability to be bonded without additional guarantors SMEs are left out of tendering process Delayed payments and high interest rates disproportionately threaten SMEs Difficulties meeting legal, regulatory and safety requirements
8 The evolution of Aboriginal businesses Labor-intensive - Janitorial - Earthworks - Laundry - Security Large projects /Heavyequipment - Transportation - Reclamation - HVAC - Construction - Welding - Shop Maintenance - Drilling Specialized Technical / Professional - Engineering - Management - GIS and modeling - Mapping services
9 The Business Case
10 Why does a strategy matter? Just look at the statistics for the people who live and work here, and it makes a lot of sense from a business perspective to have a representative workforce. We are projecting that in the next 20 years, or less, that 30-50% of the population will be of Aboriginal descent, you better have a strategy for engaging those people in your business. If you don't, that means you are hiring people from different jurisdictions, different regions, different provinces, from outside. If you don't have that strategy, its going to contribute to significant increases in cost because you now have people coming in from outside and not even residing here. It impacts local economies, and costs related to mining, it impacts every level if you don't have a strategy that s going to ensure that you're extending benefits, including labour, to Aboriginal people within this area.
11 Corporate Perspectives We aren t just giving a cheque to the community we are focusing on creating opportunities, apprenticeship programs, and education programs and utilizing these programs We [have both] moved from that entitlement stage to I want to be a partner
12 Best practices for Aboriginal businesses to negotiate joint ventures Be candid about what your business and community wants and needs to get out of the joint venture. Be proactive with mining companies and initiate formal communication streams. See your joint ventures or partnerships as opportunities to do more than generate revenue. Focus on lateral training and capacitydevelopment beyond the life of the contracts. Ensure that revenue- sharing and partnership agreements are strategically designed to achieve these goals.
13 Joint Mine & Community Coordinators Presence in each other s communities Grievance Mechanism Joint Implementation Committee Committee Management Executive Resolution Business Development Key performance indicators Aboriginal Business Registry Town Halls, meet & greet Trade shows, conferences Tools for Working Together Procurement Employment & Training Business Development Community Investment Forecasting & Partnership building Aboriginal spend Employment Training opportunities Market and Supply Chain Evaluation Gaps Saturation Partnership opportunities
14 If you don t have the skill sets, make partnerships with people who do, utilize the skills of other organizations. Historic issues are not an excuse, but they make us who we are. When the north gets stronger [everyone] gets stronger.
15 Full report available in October 2016 For more information please contact: Karen Travers, PhD Anthea Darychuk, MPH Research Analyst Research Manager, Mining Shared Value Canadian Council for Aboriginal Business Engineers Without Borders Canada , x
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