Mining contractors prepare for the next phase of growth as activity rebounds

Press release

Mining contractors prepare for the next phase of growth as activity rebounds

29 Apr 2026

Grant Thornton has released its latest mining contracting report, Preparing for the next phase of growth, examining how contractors are navigating a renewed upswing in activity amid shifting commodity markets, evolving contract structures and rising exposure to higher‑cost mines.  

Drawing on first‑half FY26 performance data and market insight, the report highlights how diversification, disciplined capital management and emerging profit‑sharing models are reshaping risk and opportunity across the sector. This includes insights from Mineral Mining Services, a leading provider of JV‑style and profit‑sharing contract models, comparing these structures with traditional schedule‑of‑rates contracts and highlighting how they can provide junior mine developers with a credible alternative to established debt and equity capital.

Supported by stronger commodity prices across gold and copper and early signs of recovery in lithium, commodity prices are bringing higher‑cost, previously marginal projects into production, driving increased demand for contract mining services while also introducing new risk considerations.

The report shows first‑half FY26 performance is mixed but improving, while EBITDA margins have moderated due to a shift toward lower capital‑intensity services. Contractors are delivering stronger capital efficiency, improved balance sheets and rising return on equity, reflecting diversification and disciplined capital management.

At the same time, the report cautions that contracting with higher‑cost operations, often owned by single‑asset miners, can increase contractor exposure if commodity prices soften or funding becomes constrained. It highlights the need for contractors to assess risk at the project level, understand capital structure, and proactively monitor credit to protect cash flow.

The report also identifies mine rehabilitation as an emerging structural growth market. Regulatory reforms and rising social expectations are shifting rehabilitation from an end‑of‑life obligation to an ongoing operational priority, creating a more predictable pipeline aligned with contractor capabilities and a meaningful path to diversify revenue beyond production cycles.

Will Kendall, Principal, Mining – Financial Advisory, Grant Thornton Australia, said: “Mining contractors are entering a new phase of opportunity, commodity tailwinds are lifting activity, and stronger balance sheets are giving contractors the flexibility to grow. But as higher‑cost, single‑asset operations return, contractors need sharper project‑level risk assessment and protections to manage payment exposure. Rehabilitation is also becoming a compelling, longer‑dated growth avenue.”

Experts / Authors

Carla van den Hoorn

Communications Manager at Grant Thornton Australia