Thunder Bay’s Accurassay Laboratories are increasing their productivity and services to meet the demand created by high commodity prices.
Its most recent $1.5-million investment in new equipment and expansion of physical space for the lab’s 100 employees is one of many steps undertaken to increase its market share and competitiveness.
Accurassay Laboratories originally opened its doors in Kirkland Lake in 1982 with George Duncan at the helm. Demand at that time resulted in the start-up of its Thunder Bay branch, which is now the lab’s main processing facility.
Over the past 23 years, this lab has ridden the waves of fluctuating commodity prices and mineral exploration, which has become the bulk of the business.
Accurassay’s president Rob Duncan said the business has had an overall growth of about 300 per cent during the last five years, despite an almost 50 per cent pull back experienced in 2009, the repercussions of the global financial crisis.
“I took over the company in 2001 from my father,” he said. “At that time, it was at the bottom of the cycle. There were so many labs in this country basically on their knees gasping for their last breath, and we were one of them. Gold was only $245 an ounce.”
But then the industry returned and business grew. And now, high gold prices and exuberant junior miners have created a strong demand for mineral analysis.
Accredited with international standard ISO 17025, Accurassay processes about 3,500 samples per day. Its total workforce is about 115, which includes sample preparation labs in Timmins, Sudbury and Gambo, Newfoundland.
A “10 days guaranteed” program of sample analyses implemented five years ago has proved successful, evident in the company’s growth.
More recently, the company invested in four automated pulverizers. Custom-built in Germany, these systems were engineered and designed by an Australian company. The machines replace an inherently dusty and physically demanding process that involved frequent heavy lifting of 40-plus pounds of ore samples.
The new automated process improves productivity and efficiency, resulting in lower costs.
In addition to increasing sample throughput, Duncan said it improves the quality of work performed.
“Because it is automated, you can track a whole lot of metrics about what you are doing, more easily.”
As well, the health and safety aspect has improved because it not only reduces airborne particulate, it removes workers from the environment. It also eliminates the heavy lifting.
“The work of these four machines is equivalent to 10 manual machines,” Duncan explained. “We’re taking 10 people and replacing them with three people and getting the same output...and for the three employees doing it, it is a much better job.”
Equipment specific to chromium analysis is also being acquired in preparation for another target market: the Ring of Fire. Although it hasn’t been in the fore for the company as of yet, Duncan said they are gearing up for it as an area of growth next year.
Part of that preparation was the purchase and renovation of a building this past summer, located across Gorham Street from the original Thunder Bay lab, thereby increasing physical workspace to 20,000 square feet from its previous 12,000 square feet. This larger space houses the new equipment and by the spring, an upstairs office suite.
“It’s very busy and we’re growing very rapidly,” Duncan said. “We’re investing every dollar in new capacity and equipment for growth and expansion.”
While Accurassay expands its main facility, plans are underway to begin a sample preparation laboratory in Rouyn-Noranda, Que. beginning in the first quarter 2011. The intent is to build a market presence and eventually take it to a full lab.
