A newly revived sand, gravel and rock quarry on Okanagan Indian Band (OKIB) land represents an opportunity for economic growth for the band, which has partnered with a Prince George-based company to bring the site back into full operation.
The OKIB Group of Companies, along with representatives with Kode Contracting Ltd., held a grand opening event for the gravel pit off Highway 97 beside the defunct Motoplex Speedway Thursday, July 11. The event featured a welcome ceremony, barbecue, ribbon cutting and a bus tour of the site.
Robert Whitney, CEO of the OKIB Group of Companies, said the site has been in operation on and off for the last 20 years, but in the last year, they got rid of an operator that wasn't satisfactory "in terms of providing accurate information on product being sold."
"Some of (the product) was leaving at night, not going through the scale, that sort of thing. So we've tightened all that up," Whitney said. "We've got good security now, and we do drone surveys, so that's a very accurate way of being able to determine current stock."
The OKIB considered seven potential proponents in choosing a partner for the venture, and went with Kode based in part on the third-generation company's experience in the industry, financial ability, experience working with First Nations and proposed revenue model.
"They're a good operator, and just great people," Whitney said.
The unique venture will see Kode hand over full control of the site to the OKIB, allowing the band to reap the full economic benefits of the operation. That transition is expected to take place in five years. For the time being, the band has a profit-sharing agreement based on gross sales, so if Kode's expenses run high, it won't affect the band's profit margins.
The band is preparing for the day it takes over operation of the site, with an eye towards job creation for band members. Whitney said the OKIB is in talks with a university to put a training centre directly on the site, and to work directly with Kode to train band members and get them certified.
"We have the funding to be able to do that, so we're in the early stage on that, but we should probably be able to announce that in the next month or two," Whitney said.
Rick Kovach, Kode's president, was at the grand opening with his son Ed, the company's VP.
Kovach said based on his company's surveys of the site, there is likely enough material to last a century.
"Usually there has to be at least 25 years of resource available to really be able to turn a quarry into a very productive site. This location here just happens to be very significant in its size, and it's so strategically located to the Okanagan that it should benefit the Okanagan for 100 years," he said.
Sand and gravel have always been produced at the site, but Kode has also added rock aggregate to the production list, producing rock from one inch in diameter to three feet in diameter, said Whitney.
The site will produce concrete aggregates, and Kode is working to build relationships in the asphalt paving sector, as well as environmental work to be done with riprap products. Those latter products are already being used for the Vernon Creek naturalization project in Polson Park.
Kode has also struck up a deal with AIM Roads to provide about 30,000 metric tonnes of material for its sand salt mix in the next year.
Kovach said the Okanagan is a "dynamic" and growing market, which combined with the specifics of the site, presented a "unicorn opportunity" for the company.
In a press release, OKIB Group of Companies operations manager Tetku Marchand said she believes Kode is the right operator for the site "because they are taking our restoration plan seriously to allow for these lands to one day be turned back into land available to (band) members for housing."
