Stephanie McDonald
Northern News Services
Wednesday, May 09, 2007

YELLOWKNIFE - A Yellowknife industrial supply company and Lutsel K'e's development corporation have entered into a partnership that will see benefits for both.

Emco Ltd. and Denesoline Corporation, through their freshly minted corporation Dene-Emco, hope to supply NWT's three mines with industrial consumables.

The two corporations were in talks for three months. The deal was sealed April 3.

"I chose Emco because Emco came recommended and has existing business with the mining industry," said Roy Shields, chief executive officer of the Denesoline Corporation.

"We as a corporation have been looking for a viable partner since coming to the North," said Allen Webb, manager of the Emco store in Yellowknife. "It was the most perfect match for us."

Emco is one of Canada's largest distributors of products for the construction industry. The company bought Frontier Mining and Industrial Supplies from Glenn Zelinski in 1997. This is Emco's first partnership with a development corporation.

Dene-Emco is hoping to supply the Ekati, Diavik, and Snap Lake mines with pipes, valves, fittings, and welding supplies.

Within the partnership, Emco will provide the supplies while Denesoline will provide the administrative side of operations. Both partners will work on marketing.

Dene-Emco doesn't yet have any contracts with the mines and Webb doesn't expect to get any until the fall.

The mines have "just gone through the winter road, so they've done all the buying for this year," Webb said. "They won't start buying for next year's winter road until probably October or November."

The mines place orders and issue contracts in the fall.

"We'll be hiring from the Yellowknife labour pool," Webb said. Labour numbers haven't yet been negotiated, but Webb anticipates that two people will be hired with Emco in Yellowknife.

"That's a significant increase from our side," Webb said. Emco currently employs six people.

"Any revenue derived from the partnership benefits the community," said Shields, of the advantages for the community of Lutsel K'e.

This is the seventh such partnership between Denesoline and other corporations in the North.