Beyond the numbers: Explore the trends and ideas shaping Australian business. Listen now.
Our latest Mining Contractors report examines FY26 performance across a sample of ASX-listed contractors and explores the trends influencing growth, profitability and resilience. It covers commodity markets, strategic investment, emerging contracting models, rehabilitation opportunities and the growing importance of supply chain integrity.
The results point to a sector with greater financial flexibility, but a more nuanced outlook for growth. Capital efficiency increased from 3.5 times to 4.1 times, while aggregate net debt fell by $411 million in FY26.
However, profit margins declined, return on equity eased to 9.7 per cent, and work-in-hand relative to revenue fell by 14 per cent. For mining contractors, the challenge is how to deploy capital effectively, secure future work and convert growth into stronger returns.
As contractors diversify and take on more complex projects, supply chain integrity is another consideration. Mining companies, investors and regulators increasingly expect contractors to demonstrate that controls over suppliers, subcontractors, labour hire and other third parties are effective in practice.
As supply chains become more complex, contractors need to demonstrate that their integrity controls work in practice. AI-enabled forensic analysis can help identify potential fraud, unusual payments, undisclosed relationships and other risks across large volumes of supplier and transaction data.
Gold and copper are supporting contractor activity, while lithium presents a more uneven recovery. Conditions across coal, iron ore and nickel also create different opportunities and risks, reinforcing the importance of commodity exposure and client selection.
Contractors are expanding into engineering, processing, maintenance, civil infrastructure, technology and underground mining. These moves can broaden service offerings and change the composition of earnings, with the quality of revenue and returns becoming increasingly important.
Stronger balance sheets are giving contractors greater capacity to pursue acquisitions, invest in capabilities and expand their operations. With profitability and work-in-hand relative to revenue under pressure, the challenge is to turn that financial flexibility into sustainable growth and shareholder returns.
Whether you're a mining contractor refining your strategy, a mine owner assessing contracting partners or an investor evaluating sector performance, our report offers a practical perspective on the opportunities and risks shaping the next phase of growth. Get in touch to discuss how these insights apply to your organisation.
The mining contracting sector is entering a renewed phase of activity. Stronger commodity prices across gold and copper, alongside early signs of recovery in lithium, are lifting demand for contractors and bringing higher-cost, previously marginal projects back into production.
Mining contractors are operating in an increasingly complex and competitive Australian mining sector. With shifting commodity markets, cost pressures, and evolving contract models, understanding contractor performance, financial strength, and growth opportunities is more important than ever.
We’re proud to have supported Renewable Metals in their application to Stream 1 of the NSW Critical Minerals and High-Tech Metals Activation Fund, which will fund project activation studies in this sector. Renewable Metals is a pre-revenue lithium battery and e-waste recycler, that leverages an innovative process and technology to recover lithium, nickel, cobalt, copper, manganese and graphite from end-of-life batteries – unlocking critical mineral capacity for NSW above its natural resources.
Grant Thornton Australia was proud to support Pure Battery Technology and their successful application of a Modern Manufacturing Initiative (MMI) grant. Valued at $120m to build a $460M pCAM (precursor Cathode Active Material) Hub in Western Australia.
Japanese investment in Australia’s energy and mining industries remains strong
Helping mining businesses navigate growth, risk and investment opportunities.
