With strong metals prices spurring increased production and new mining operations worldwide, demand for mining equipment has grown, and Spokane-area companies that make parts for such equipment say theyre experiencing a boost from the surge.


Our business is much larger now than it ever was before. Having the mining people back is really good, says Jimmie T.G. Jim Coulson, CEO of Spokane-based Coeur dAlenes Co.


The steel supplier and fabricator has made parts for the mining industry since its start back in 1884, but shifted its emphasis mostly to steel salesand adopted the marketing name CdA Metalsin 2003 after downturns in the mining and aluminum industries.


Since then, however, the pendulum has swung back, says Coulson. As a result, the company has refocused on supplying copper and sheet ironware for mining equipment, he says.


At Spokane Industries Inc., a Spokane Valley-based foundry and contract manufacturer, sales have doubled over the last four years, and about half of that new volume has come from demand for manufactured parts for mining equipment, says Tyrus Tenold, president of the companys foundry division.


Meanwhile, Factory Company International Inc., the former fabrication division of RAHCO International Inc., expects revenue growth of between 30 percent and 40 percent over the next year. Much of its fabrication is done for the mining industry under contract for FLSmidth RAHCO Inc., a company formed here last year with the sale of the engineering and sales divisions of the former RAHCO International to Danish industrial giant FLSmidth & Co. A/S.


Among the items Factory Company makes are track components for mobile mining conveyor-belt systems that can be miles long and are used at huge mining operations around the world.


Mining companies both globally and locally are aggressively boosting production and launching new operations to take advantage of relatively high metals prices. Coeur dAlene-based Hecla Mining Co., for instance, expects its Lucky Friday Mine, located in the Silver Valley, to produce 3 million troy ounces of silver this year, up from 1 million ounces a few years ago, says Hecla spokeswoman Vicki Veltkamp.


Gold has been selling recently for $886 an ounce, up from about $350 an ounce five years ago. Meanwhile, the price of silver has increased to about $17 an ounce, up from about $4.50 a few years ago, and prices for copper, lead, and zinc also all have increased in recent years.


The surge has given CdA Metals a definite boost over the past year, Coulson says. The company currently employs about 100 people, up from about 55 in 2003. Coulson says the company has pulled back on some of its diversification efforts and is returning more to its 1884 roots.


The kinds of products we sell now are the same ones we sold then, he says.


Employment at Spokane Industries also has increased over the past couple of years, to about 280 people currently from about 230, says Tenold.


Among other things, the company fabricates parts for mining equipment and vehicles made by companies such as P&H Mining Equipment Inc., of Milwaukee, and Peoria, Ill.-based Caterpillar Inc.


In the mining side, for P&H Mining and other manufacturers of mining equipment, weve dramatically increased our volume, Tenold says.


Mike Folsom, general manager of the Factory Company, says customer FLSmidth RAHCO has orders for hundreds of millions of dollars worth of mining work stacked up. He says he expects that work to drive volume increases at the Factory Company this fall and into next year.


Brooklyn Iron Works Inc., a Spokane company that fabricates steel frame industrial buildings, trusses, and other components used in the mining industry, has seen its sales to mining companies increase this year by about 20 percent, says Scott Allen, its general manager.


Id like to push that to 50 or 60 percent next year, Allen says.


He says that before this past year, Brooklyn Iron Works had about a six-year dry spell in serving the mining industry. With the increased business, it now has grown its work force by about 20 percent, to about 100 workers. The company has annual sales of about $20 million, he says.


Allen says the growth in mining industry work represents more than just a boost to overall volumeit represents a shift in focus for the company.


In addition to constructing steel frame industrial buildings, Brooklyn Iron Works acts as a subcontractor to companies such as Garco Building Systems Inc., of Airway Heights, which also manufactures heavy industrial buildings, Allen says. He says Brooklyn Iron Works often does specialized painting jobs for Garco, or makes the interior platforms and steel walkways and walls used in steel buildings. Global reach


Though Coulson says CdA Metals sells most of its goods in the Inland Northwest, other companies here say mining operations outside the region are big sources of business for them.


Allen says Brooklyn Iron Works has built industrial buildings for mines as far away as Siberia, and currently is seeking contracts in Canadas Yukon region and in Alaska.


Tenold says much of Spokane Industries mining components are shipped out of the region, though mostly in North America. Its castings for oil rigs are sent all over the world, he says.


The Factory Companys Folsom says much of that manufacturers work is shipped worldwide, including to Africa, South America, and Australia.


Weve got 84 truckloads (of parts) for just one job were doing in Australia, just for the track system, Folsom says. Demand no accident


Mining equipment parts makers here say the boost in their business volume from the surging mining industry isnt accidental fortune, but intentional focus. Tenold says Spokane Industries increase in mining work is the result of a deliberate emphasis on that industry.


We made a conscious effort to go after mining markets more about five years ago. Thats paying off for us, he says. We felt that that was the right market for us.


Allen says he has steered Brooklyn Iron Works toward an increased focus on the mining industry during his three-year tenure there.


He says working for mining procurement teams often creates a smoother cash flow for the company, because such teams typically dont hold contingency retainers until the end of a project, as he says frequently is done with commercial building projects.


Allen says that mining companies frequently will pay up front for raw materials when they place an order, an additional help as production costs rise.


The work is expected to continue increasing, at least for the next few years, the companies say.


Folsom says the Factory Company is experiencing what it anticipates to be just the beginning of an extended surge in its mining work.


As long as oil prices and mineral prices are up, we expect that (growth) to continue for the next five to 10 years; thats what the industry keeps throwing out there, Folsom says. Thats what were hoping.


Contact Jeanne Gustafson at (509) 344-1264 or via e-mail at jeanneg@spokanejournal.com.