Orbit Garant Drilling

Drilling deeper  Orbit Garant Drilling was formed by merger in 2007 and now is one of the top surface and underground diamond drilling service providers to the mining industry in Canada and around the world. Keith Regan learns how vertical integration and customer satisfaction excellence have helped the driller stay busy during down times and position itself for growth as the economy rebounds.  When a mining company needed to quickly commence drilling at a remote gold mining site in Nunavut, it turned to Orbit Garant. Because it is vertically integrated with its own manufacturing operation, Soudure Royale Concept, Orbit Garant was able to commission brand-new drills that were sent by barge to the northern province within a matter of a few weeks.  ÔÇ£We were able to get new rigs into the field, in a very remote location, and have work under way about eight weeks later,ÔÇØ says vice president and chief financial officer Alain Laplante. ÔÇ£Our customer knew weÔÇÖd be sending new and up-to-date equipment to its location, and because we were able to build it ourselves, we were able to get the rigs for 50 percent of the cost of what we would have to pay if we went into the market ourselvesÔÇöand we probably wouldnÔÇÖt have been able to source them as quickly.ÔÇØ That engagement is an example of how Orbit Garant has become a go-to provider of drilling services for mining concerns in Canada and beyond. Formed by the merger of Orbit Drilling and Garant Brothers Diamond Drilling in January 2007, Orbit Garant now employs more than 600 people and has 140 drills in service, with plans to add another 10 before the end of June 2010. During its 2009 fiscal year, Orbit Garant completed more than 1 million meters of drilling work. The merger and the ensuing year of integration created a company with expertise in both underground and surface drilling, with a sharp focus on serving the mining industry. Much of the firmÔÇÖs work lately has been on gold projects, a reflection of the market realities, though Laplante says the company is starting to see more movement in the base metal area also. Orbit Garant does work overseas as well, following major customers to places such as Mexico and Guyana, though Laplante says the company believes ample growth opportunities abound within its home country. ÔÇ£Our customers know we can work in harsh conditions and in the most remote locations, and do so in a timely fashion so that their projects can stay on schedule.ÔÇØ The firm has managed to keep its drillers working through the downturn, keeping utilization above 80 percent, compared to much lower rates for the industry as a whole. That has helped the company retain most of its drilling talent, with a 95 percent retention rate even during the peak of the recent cycle in 2007ÔÇöa fact that Laplante says is a reflection of the opportunities for advancement and consistent work the company offers. ÔÇ£Some firms only hire drillers when they have a contract and then lay them off when itÔÇÖs done. We take a longer view, and people know that if they come to work for us, there will be chances to grow within the company. They might start as a helper and become a driller and move up to a foreman. We also can offer them a variety of interesting work in a lot of different locations. People appreciate those opportunities.ÔÇØ To help train future generations of drillers, Orbit Garant has formed its own drilling school in the gold mining hotbed of Val-dÔÇÖOr, where the company is based, with novice drillers doing as much as 1,600 hours of course work on safety and environmental responsibility as well as drill operation. The downturn has changed how Orbit Garant uses Soudure Royale Concept as well. The manufacturer has been deployed to upgrade existing equipment, build new drills as contracts are signed, and create and make safety equipment and other necessary items. ÔÇ£WeÔÇÖre able to manage that subsidiary to a beneficial use for us whether itÔÇÖs a busy time or a slow period,ÔÇØ says Laplante. Meanwhile, the company pulls feedback from customers in the field back to the manufacturing operation, helping to design and build the next generation of drilling machines, with customers seeking smaller machines capable of drilling deeper. Compared to other drillers, Orbit has seen its work flow hold up well over the past two years. In 2009, it signed contracts with Xstrata Zinc and Maudore Minerals. Because less of its work comes outside of Canada, it has been somewhat buffered from the international mining slowdown as well. Looking ahead, Laplante says the company is hopeful that late 2010 and 2011 will bring a return to more robust growth. ÔÇ£WeÔÇÖre really pleased with what weÔÇÖve done over the past year during difficult times, and thereÔÇÖs reason to believe that 2011 will be a better year overall,ÔÇØ he says, adding that exploration for potential future mines is a strong source of business. With mines taking longer than ever to permit, mining companies need to prove that their resources are more extensive than ever in the pastÔÇöand proving those reserves requires additional drilling. ÔÇ£It takes more time to get a mine approved. It used to take five to seven years, and now it can take 10 to 15 years, and because of the economic realities, it will require more drilling to make that happen. ÔÇ£Together, our companies have more than 25 years of experience, so weÔÇÖve been through tough periods in the past and we came out of those successfully, and that gives us the confidence to stay on track during this time,ÔÇØ Laplante concludes. ÔÇ£We have customers who have been with us for 15 to 20 years, and we believe weÔÇÖve been delivering good products and services to them. We maintain constant dialogue with our customers and will do what we must to make sure we continue to fit their needs.ÔÇØ