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Mining executives at Mining Forum Americas said Sunday that worker and contractor shortages could slow projects and increase construction costs, even as major miners have cash to invest. McKinsey estimates the sector will need about $2.2 trillion in capital spending from 2025 to 2035, while its historical project sample showed frequent overruns and delays.
Mining executives warned Sunday at Mining Forum Americas in Colorado Springs that shortages of skilled workers, engineers and contractors could delay new mines and raise construction costs, despite strong finances across the sector. The constraint could limit production growth at a time when McKinsey estimates mining and processing will require about $2.2 trillion in capital spending from 2025 to 2035.
McKinsey’s estimate includes exploration and sustaining investment as well as spending on new projects. A separate study of 58 mining projects from 2003 to 2023 found average cost overruns of 37% and average delays of 1.2 years, according to figures presented to delegates. Only 45% of projects in the sample finished on time, and 14% exceeded their original budgets by at least 100%.
Peter Toth, Newmont’s chief sustainability and development officer, said the challenge for well-funded producers is finding the people, engineering firms and partners needed to deliver projects. Coeur Mining CEO Mitch Krebs said filling skilled-trade positions at the company takes more than twice as long as filling other typical site roles. He described the workforce shortage as a major vulnerability for the industry.
The pressures extend beyond mine construction. Krebs said companies also need drill crews to explore and define future resources. He warned that increased interest in exploration cannot translate into more drilling if crews are unavailable. The report did not give a total number of current vacancies or identify how many planned projects are already delayed specifically because of staffing shortages.
Crew Gaps Could Limit Mine Growth
The shortage could prevent miners from converting investment plans into operating capacity on schedule. That matters to governments and industries seeking more mineral supply, particularly as projected capital needs include substantial investment in copper and other metals. McKinsey puts copper at 35% of projected capital requirements through 2035 and gold at 17%.
Execution problems also affect the choices companies make about growth. McKinsey partner Nathan Flesher compared the project record with takeovers: across 375 transactions in the same period, the average takeover premium was 30%. He said buying an existing operation can look attractive alongside the risks of building one. Acquisitions may add production for the buyer, but they do not necessarily create the additional industry-wide supply needed for expansion.
Investors are weighing those risks while miners report strong financial conditions. McKinsey forecasts combined revenue of about $3.6 trillion this year for global metals and mining companies and an EBITDA margin of 33%, up from 29% in 2025. Among 16 large miners it tracks, market capitalization reached about 5.4 times its 2015 level by the first half of 2026, while production rose about 5%. These figures point to a gap between rising valuations and output, but they do not establish that worker shortages alone caused it.
Project Risks Shape Investment Choices
Executives said investors may support growth but remain cautious about large construction commitments. BMO Capital Markets analyst Matthew Murphy said investors ask whether a project could threaten a company if it goes badly. He said their typical outlook of three to five years can be difficult to align with mines planned to operate for decades and companies expected to show progress every quarter.
Toth said Newmont faced such questions ahead of a project decision at Red Chris in British Columbia. He pointed to understanding the orebody, preparing a sound feasibility study and securing experienced contractors as key steps, alongside relationships with First Nations and local communities. Krebs also cautioned against rushing engineering or introducing unfamiliar technology on major projects, saying he favours teams that have worked together and know local conditions.
Geography matters to the projected investment workload. McKinsey data presented at the forum assigned one-quarter of spending needs to Latin America and 12% to North America. Krebs said government attention to mining had improved and cited permitting progress in Mexico, while stressing the importance of policies that last. Toth noted that a mine operating for 40 to 50 years could span roughly 10 successive governments.
““I think it’s the Achilles’ heel of our industry.””
— Mitch Krebs, Coeur Mining CEO
Shortage’s Project-Level Impact Is Unknown
The figures presented at the forum describe the scale of investment needs, workforce pressure and past project performance, but they do not quantify how many projects are currently delayed because of labor or contractor shortages. It is also unclear how much of the historic cost overrun and delay record is attributable to staffing, rather than other project risks.
Flesher estimated mining will need about 250,000 additional workers worldwide over the next decade, even as coal mining employment declines. The report does not specify the geographic or occupational breakdown behind that estimate. Krebs cited technology, immigration and greater participation by women as possible parts of the response, while saying there is no quick fix. Women make up about 16% of Coeur’s workforce, he said; that company figure does not establish the share across the industry.
Projects Depend on Delivery Capacity
Miners will need to show whether they can secure experienced project teams and skilled trades as they advance studies, make investment decisions and move projects toward construction. Newmont’s decision process for Red Chris is one of the examples discussed at the forum, but the report did not provide a decision date or a construction schedule.
Companies and governments are also likely to face continued pressure to expand hiring and training, draw on a broader workforce and maintain permitting policies across political changes. The scale and timing of any response remain uncertain. For now, executives say the ability to execute projects and staff exploration programs will help determine how much of the sector’s planned investment becomes new production.
Key Questions
What did mining executives warn about?
They said shortages of skilled workers, engineers and contractors could delay projects and increase construction costs, even as major miners have money to invest.
How much investment does mining need?
McKinsey estimates mining and processing will require about $2.2 trillion between 2025 and 2035. The estimate includes exploration and sustaining investment as well as new projects.
What did McKinsey find about past mining projects?
In a study of 58 projects from 2003 to 2023, McKinsey found average cost overruns of 37% and average delays of 1.2 years. Only 45% finished on time; the figures do not show that labor shortages caused these outcomes.
How many additional mining workers may be needed?
McKinsey partner Nathan Flesher estimated the industry will need about 250,000 additional workers worldwide over the next decade. The report did not give a breakdown by location or job type.
What remains uncertain?
The report does not quantify how many current projects or exploration programs have been delayed specifically by workforce shortages, or how quickly hiring, training and other responses could ease the constraint.
Source: rss
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