Laboratories in flux

As the mining industry struggles to adapt to changing financial markets and an industry-wide slowdown, the geochemical and assay laboratories are having to reposition themselves. Most recently, this took the form of a series of mergers and acquisitions, which, in turn, resulted in reduced laboratory staff and closure of some facilities.

For example, Intertek Testing Services sold its mineral testing division, Bondar Clegg, to management. Bondar Clegg started offering geochemical analyses from a single laboratory in Ottawa almost 40 years ago. The company subsequently became part of a large international product- and commodity-testing conglomerate that offered services in various countries. “We now plan to expand operations in Alaska, Chile and Argentina,” says George Cartwright, vice-president of Bondar Clegg’s North American division. “Our intention is to maintain current staff and develop innovative services.”

The sale of Bondar Clegg occurred just after Chemex Labs was purchased from Bruce and Robert Brown by Australian Laboratory Services (ALS), the lab division of Campbell Brothers, a publicly listed company in Australia. ALS has nine laboratories Down Under and several operations in South America and Asia. Chemex, which will now operate as ALS Chemex, is expected to benefit from ALS’s experience in specialized services such as Regoleach, BLEG and pulverization of large samples.

SGS, another publicly held international company specializing in testing and inspection, has maintained most of its mineral labs. However, FILAB Laboratoires of France is now operating privately, rather than as part of the SGS Group, and is one of the few labs offering geochemical analyses in Europe.

In January, Lakefield Research acquired Oretest of Perth, Australia. Oretest, now operating as Lakefield Oretest, provides metallurgical and environmental testing and also has plants in Canada, South America and South Africa. Russ Calow, Lakefield’s manager of analytical services, says his company already offers a complete range of testing and consulting services on an international scale. “Now, with the acquisition of Oretest, Lakefield will be able to expand into the Australasian marketplace.”

Meanwhile, a series of shakeups has affected other laboratory organizations. For example, Alex Stuart (Assayers) of England has purchased OMAC Laboratories of Ireland and HUMAC Laboratories Limited of Tanzania. Also, U.K.-based Inspectorate, another international testing and inspection organization, has purchased Barringer Laboratories. The latter’s founder, Tony Barringer, was instrumental in introducing geochemical analysis and surveys in the 1960s from his laboratory in Toronto. His company’s focus later shifted to the U.S., so that the only Barringer laboratory left was in Nevada.

The merger of Assayers, TSL and MinEn in the late 1980s did not survive the turbulence of the 1990s, and these companies now operate independently. Other small operations, such as Dunn Analytical of Saskatoon, Sask., and TerraMin of Calgary, Alta., are no longer in business.

Most of the major North American labs have moved toward voluntary accreditation and adopted ISO 9002 registration. Lakefield Research and Chemex are known to be accredited to ISO Guide 25 standards, and Bondar Clegg intends to follow suit. In addition to a documented quality system and external audits, the ISO Guide 25 accreditation requires participation in proficiency testing by an independent third party. Unfortunately, the third-party testing now available in Canada through the Canada Centre for Mineral and Energy Technology is restricted to only nine elements, though CANMET plans to expand the program.

Lakefield Research initiated its ISO Guide 25 accreditation program in 1992, and one result has been improved staff training and a reduction in analytical problems.

However, smaller organizations will find it difficult to rationalize the costs associated with accreditation in an environment of limited exploration activity. It is likely that the mining industry will see a continued reduction in the number of competitors and less access to local services. The industry has benefitted from competition between laboratories with increased access to assaying firms worldwide and ever lower detection limits for geochemical analysis with the introduction of expensive new technology. An upswing in exploration activity would attract new players to the commercial laboratory business, but, until that happens, mining companies will have few options.

— The author is president of Analytical Solutions, a geochemical consulting firm based in Toronto.