Mining Forum: Miners have cash but lack the crews
Major miners face skilled labor shortages, threatening delays and cost overruns on $2.2T capital spending from 2025-2035, per McKinsey. Newmont's Peter Toth and Coeur Mining's Mitch Krebs highlight execution challenges. McKinsey forecasts $3.6T revenue for global metals/mining firms in 2026, with 33% EBITDA margins. Copper and gold lead projected capital requirements, with Latin America and North America as key regions.
How this was made
The 30-second read
Why it matters
Sector‑wide labor constraints may lead to higher capex overruns, delayed production, and pressure on mining stock valuations.
Market read
The workforce shortage is a material operational risk for major miners, potentially affecting earnings forecasts and investor sentiment.
What to watch
Automation and remote‑operated equipment may mitigate some labor constraints over the longer term.
Background
The article reports comments from senior executives at Newmont and Coeur Mining about a shortage of skilled workers and contractors, which could delay new mine projects and increase construction costs.
Ticker impact
Newmont executives warn that skilled‑worker shortages could delay projects like Red Chris, raising construction costs.
likely downside as investors price in higher project costs and execution risk
The article highlights a sector‑wide shortage that directly affects Newmont's upcoming projects, suggesting cost pressure.
Coeur Mining CEO warns against rushing engineering work amid skilled‑trade shortages, citing higher labor fill times.
potential price pressure as market anticipates higher execution risk
The piece cites Coeur's own concerns about workforce gaps, indicating possible negative impact on upcoming projects.
Market effects
Highlights a systemic labor shortage that could raise capex for the entire mining sector.
North American miners may face tighter project pipelines, while Latin America could see slower capital deployment.
Potentially dampens investor enthusiasm for mining equities worldwide due to execution risk.
Counterpoint
If contractors secure higher wages, it could boost profitability for firms with strong balance sheets.
Key entities
- ExecutivePeter Toth
Newmont chief sustainability and development officer
- ExecutiveMitch Krebs
Coeur Mining CEO
