Creating a World-Class Mining / Mining

XII Congreso Industrial del Federación Nacional de Cámaras de Industrias del Ecuador

September 24th 2015

Creating a World-Class Mining / Mining Supply Cluster in Canada

The Mining Industry in Canada – Big and Important!

• 380,000 people work in the mining and mineral processing industries

• 3,400 mining supply companies in Canada – one of the largest national mining clusters in the worldmining clusters in the world

• Mining contributes ~$55B to GDP and 20% of the value of Canadian exports

• 1st in potash, 2nd in uranium / cobalt, 3rd

in aluminum / tungsten, 4th in sulphur / titanium / platinum group metals, and 5th

in nickel / diamondsSource: Mining Association of Canada

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Province of Ontario

The Mining Supply / Service Cluster in Northern Ont ario – Snapshot

Ontario's Mining Supply and Service Sector

• 40,000 employed• Economic impact of $6.6B• 1,000 companies• 43 active mines

Sudbury

Ontario

Toronto

• 43 active mines• 30 to 35 advanced mining projects

Timmins

~70% of the activity occurs in the Northern Ontario Mining Cluster with Sudbury (population 165,000) serving as the epicentre

Source: Ontario Mining Association

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CompetitiveStrong Academic and Research Institutions

Competitiveness via Outsourced Innovation

Globally Relevant Mineral Potential

Ontario’s Competitive Advantages

Why is the Mining Supply / Service Cluster Successf ul?

Competitive

$###

Talented and Skilled Workforce

Livable Communities / Healthy Economy

Access between “Buyers” and “Sellers”

Strong and Stable Government / SupportAdvantages

Domestic and International Market Focus

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Start-ups and Small Companies Drive the Mining Clus ter

93% of mining and mining supply / service companies have less than 50employees.

Approximately

But more importantly…

75% of mining and mining supply / service companies have less than 10employees

Source: Canadian Mining Industry Employment, Hiring Requirements and Available Talent - 10 -year Outlook

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4-10% of new companies become high-growth firms.

Only…

But the top…

This is Critical for the Future Sustainability of t he Cluster

1% in any given year generate roughly 40% of new jobs.

5% in any given year generate roughly 66% of new jobs.

Source: High-Growth Firms and the Future of the American Economy, Kaufmann Institute, 2011

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Training and DevelopmentInnovation Broker

NORCAT – Our Role in Supporting the Ontario Mining C luster

Business / Mining Companies“Buyers”

NORCAT

“Research is turning money into knowledge. Innovation is turning knowledge into money”

“Reducing injuries, savings lives, and enhancing productivity is key for the future of the global mining industry”

NORCAT

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What are the Top Five “Things” Entrepreneurs Want / Need?

1

34

8

2 5

The Mill’s Start-up Services / Programs – Cluster Le adership

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9

2 3

The NORCAT Innovation Mill is the only innovation centre in the world that ownsand operates a functioning mine .

This asset provides our clients with a range of training programs, talent development services, and opportunities

NORCAT Underground Centre – Unique in the World

development services, and opportunities to develop, test, and showcase leading-edge innovation and technologies in the mining sector.

This asset provides NORCAT with insight into the latest trends and opportunitiesrelated to technology innovation in the mining and related industries.

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As part of the Ontario Network of Entrepreneurs, the Innovation Mill acts as Sudbury’s Regional Innovation Centre, with strong connections to other innovation centres and corporates across Canada that can be leveraged to expedite the resolution of our client’s challenges

Creating Virtual Density – Collaborate to Compete = Winning!

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The integrated and collaborative nature of our “clubhouse”…everything under one roof!

• Start-up Services and Programs• Co-location Incubator “Clubhouse”• Conference and Meeting Centre

Multiple players aligned to the innovation,

The “Neutral Non-Profit” – Driving Economic Prosperi ty

• Conference and Meeting Centre• Educational Institute• Thought Leadership and Think Tank• Capital and Talent Connections• Underground Testing / Showcasing • Business Development / Customer Connections• Product Design and Prototyping• …and more!

innovation, commercialization and entrepreneurial ecosystem working together to expediteeconomic and social prosperity

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Culture of

EntrepreneurshipEntrepreneurship

NORCATSudbury, ON | Timmins, ON | Onaping, ON

@norcat

www.norcat.org

www.facebook.com/NORCAT

www.linkedin.com/company/norcat

Don Duval | CEO | NORCATTwitter: @ don_duval