Gold's Record Prices Create New Bottleneck: Equipment Shortages

The gold price near record levels has solved many problems for mining companies, but it hasn't addressed one major issue: getting equipment and personnel to run the operations. Historically, capital was the main constraint, but now it's iron and labor that are in short supply.

Drill rigs and other equipment have long lead times, measured in months or quarters, and experienced operators are scarce. This has led to a bottleneck in project timelines, with companies struggling to mobilize capacity when needed.

Major Drilling Group International Inc., the largest provider of drilling services to the mining sector, reported record revenue of $889.1 million for fiscal 2026, up 22% from the previous year. Fourth-quarter revenue rose 25%, and EBITDA increased by 37%. The company's Canadian and U.S. revenue climbed nearly 67% due to expanded senior exploration budgets and junior financing activity.

JZR Gold Inc. is one example of a company trying to navigate this challenge. It assumed direct operatorship of the Vila Nova Gold Project in Brazil, which includes a fully permitted and paid 800-tonne-per-day gravimetric mill. To support mining activities, JZR contracted RR Bueno to mobilize excavators, haul trucks, and other equipment along with experienced operators.