Drillers
Redefining a profession and a segment
The steep decline in exploration activity globally in 2023 affected many segments and sub-contractors, and drillers were not spared. Indeed, with several budget cuts (particularly in the critical minerals space in James Bay due to price drops) and drill programs coming to an end, S&P reports that Québec was the jurisdiction that saw the steepest decline in drilling activity globally in 2023. This market trend, along with the disruption caused by wildfires that prevented drillers from accessing exploration areas, meant that drilling activity slumped last year by over 23%, according to S&P. In an already competitive landscape, drillers are now turning to technology to build their competitive advantage, while making sure to stay commodity-agnostic.
Drill-rig electrician wanted
Autonomous rigs, GPS-equipped rigs, and remote capabilities are now industry standards. At majors’ operations – like at LaRonde, Casa Berardi or Olmaque – remote control, tele-remote, and autonomous drills are now common compared with 15 years ago. A PwC report shows that the deployment of automated drills in open-pit mines has grown at a CAGR of 74% since 2008, boosted by safety (automated rigs lessen workers’ exposure to risk) and productivity (operational consistency) reasons. Beyond those practical reasons, automation further stands as a way companies can reduce their reliance on a shrinking labor force. Finding talent is incredibly challenging currently, and for Diafor’s president Mathieu Dionne: “There has been a trend toward greater automation in drilling technology, driven largely by larger companies facing manpower shortages.”
In many ways, the adoption of technology means the driller now also ought to be a technician. Mario Rouillier, president of Groupe Rouillier, which has several subsidiaries in the diamond-drilling sector, said: “The advantage of the automated drill is that it no longer takes the driller 5 years to train, but months. In the future, we won't just be talking about drillers, but drill technicians.”
In the race towards arming themselves with the latest technologies, Québec drillers have an advantage compared with their Canadian peers: An ecosystem dedicated to supporting companies in developing and commercially deploying mining technology.
Recently, Atelier Val d’Or (AVD) has been partnering with MISA through their Vortex Course, a program allowing drillers to work on innovation projects, and conduct testing, before being ready for commercialization. “As part of the Vortex Course, AVD has access to IT experts, and we can test and prove our innovations before they are launched in the market” explained Vincent Boileau, co-president and BD Manager of AVD, adding: “Our technology allows us to remotely connect with drill rigs to monitor performance and do troubleshooting, which means less downtime than when you have to send out a technician to do repairs, saving costs for our clients.”
“While gold remains a focus due to its recent surge in prices, there has also been considerable attention on copper. Moreover, there is geological potential for uranium exploration in Québec."
Mathieu Dionne, President, Diafor
A commodity-agnostic approach
The cyclicality of metals markets is a formidable reminder of the old formula of not having all of one’s eggs in the same basket. From the dozen heli-portable drill rigs that were flying over James Bay in June 2023, perhaps a handful will make the trip this year. But more will fly in the coming months, as the bottom line of the green energy transition should drive demand for Québec’s critical minerals in the longer term. Today, societal, geopolitical, and price reasons mean copper and gold remain stalwart commodities for drillers. In the future, drillers have also noted that uranium exploration could ramp up in the context of the green energy transition.
Beyond the commodities above, Québec actors across the value chain will mostly hope for the return of a lithium frenzy. Holding some of the largest reserves in the world, and with many areas underexplored, the lithium in Québec’s James Bay could well represent a gold mine for contractors. In 2024, RJLL merged with Forage Nordik to grow to a fleet of 45 surface drills. For president, David Bradley, the slowdown in lithium activity is only temporary, and partnering with the right exploration firm will be key: “Despite fluctuations in prices and occasional market volatility, lithium continues to be a valuable and sought-after resources. However, it is essential to differentiate between genuine mining companies focused on responsible extraction and those merely capitalizing on market trends for short-term gains.”
Overall, while the past months have proven challenging for drilling contractors, Québec’s unique ecosystem and market trends means that the segment is poised for growth in the future. As put by Yuri Alexandre, CEO of Dynamitage Castonguay, who managed to secure new contracts in recent months: “The emergence of new projects and the shortage of skilled labor create opportunities for us as contractors. We believe mining companies will increasingly rely on contractors like us for turnkey solutions to simplify operations and stay on budget.”
Article header image courtesy of Northern Superior Resources