Contractors
Labor shortages, ore quality decline, and the tech revolution transforming the industry
Challenges such as permitting complexities, declining ore grades, the scarcity of easily accessible deposits, and rising safety standards position the Western United States as an environment ripe with growth opportunities for construction companies to adopt new technologies to enhance their workforce efficiency. Furthermore, the boom in critical minerals may revive the appeal for greenfield exploration. Keaton Turner, founder and CEO of Turner Mining Group, noted that the demand for battery metals in the Western USA has surged: "This has sparked increased interest in capital expenditure projects."
However, he also mentioned that the industry is hampered by the scarcity of labor and timely equipment procurement to meet project demands: "With tight operation schedules throughout the year, quick responses and efficient mobilization are essential. While it is a favorable time for the industry, careful planning and sticking to project schedules are crucial factors," added Turner.
A company that, against all the industry's odds, has not been affected by labor shortage and turnover is Small Mine Development (SMD). In the latter part of 2022, the company experienced significant workforce expansion, surpassing 600 employees, and successfully secured more than 10 contracts. However, upon entering Q1 2023, a sudden shutdown at Jerritt Canyon and the suspension of Jervois' Idaho Cobalt Operations reduced SMD's workload. Despite headwinds, Keith Jones, SDM's general manager, remains optimistic, particularly when considering underground mining opportunities, especially in Nevada. "Today, more than 50% of the gold production in Nevada is likely derived from underground mines. The reason behind this transformation is the increasing scarcity of open-pit deposits. Many easily accessible resources have already been tapped, leaving larger pits with lower grades and higher strip ratios. In contrast, underground mining allows us to concentrate on higher-grade ore bodies.”
“Clients in the region are predominantly focused on upgrading existing operations, decarbonization, and enhancing productivity and efficiency. Our role has been pivotal in upgrading infrastructure, facilitating client development, and aligning them for low-carbon production in the future.”
Eric Smith, Managing Director, Cementation Americas
For SMD and Master Drilling, the South African multinational and global leader in providing drilling services to the mining industry and pioneer in raise boring equipment and services, inflation and cost pressures are always present. The elixir? Automation: "If we can implement more automated drilling solutions, the operations will become more efficient, it will reduce labor costs for sinking a shaft, and we will address both the labor shortage and inflationary pressure challenges," elaborated Robert Schumm, GM of Master Drilling in North America.
Master Drilling has pioneered large-diameter underground reverse circulation drilling, a technology developed and perfected in Mexico that is now introducing to the US market.
Cementation America, a contractor with operations in the US and Canada, is experiencing increased demand for its services in the US. The challenges junior companies face fuel this demand as they embark on new projects. In contrast, major-producing companies are concentrating their efforts on enhancing infrastructure: "In the Western US, the government's permitting process, marked by prolonged approval timelines with various agencies' involvement has been a driver of these limitations. Despite these hurdles, there is significant potential in the US, especially for precious metals and critical minerals," added Eric Smith, managing director at Cementation.
“Not all mine tailings are suitable to make a paste backfill, and often we have to make some sort of an amendment, such as cycloning the tailings to remove slimes or dealing with certain mineralogy in the tailings unsuitable for making a paste.”
David Stone, President, MineFill Services
Article header image by Michael Evens at Adobe Stock