Mining contractors are positioning for a new phase of growth as activity across the sector begins to rebound, according to a report released by Grant Thornton, which points to improving market conditions alongside evolving risks.
In its latest report, Preparing for the next phase of growth, the firm examines how contractors are responding to a renewed upswing driven by shifting commodity markets, changing contract structures and increasing exposure to higher-cost mining operations.
Drawing on first-half FY26 performance data and broader market insights, the report finds that diversification, disciplined capital management and the emergence of profit-sharing contract models are reshaping both risk and opportunity.
It highlights insights from Mineral Mining Services, noting that joint venture-style and profit-sharing arrangements are being positioned as alternatives to traditional schedule-of-rates contracts, particularly for junior developers seeking options beyond conventional debt and equity funding.
The report attributes rising activity levels in part to stronger commodity prices, particularly in gold and copper, along with early signs of recovery in lithium. These trends are bringing previously marginal, higher-cost projects back into production, increasing demand for contract mining services while also introducing additional risk considerations.
According to the findings, financial performance across contractors in the first half of FY26 is mixed but showing signs of improvement. EBITDA margins have moderated, reflecting a shift toward lower capital-intensity services, while capital efficiency, balance sheets and return on equity have strengthened, supported by diversification strategies and tighter financial discipline.
However, the report cautions that greater exposure to higher-cost operations – often run by single-asset miners – can heighten risk if commodity prices weaken or access to funding tightens. It advises contractors to strengthen project-level risk assessment, gain a clear understanding of counterparties’ capital structures and closely monitor credit conditions to safeguard cash flow.
The analysis also identifies mine rehabilitation as an emerging area of structural growth. With regulatory reforms and rising social expectations reshaping industry practices, rehabilitation is increasingly being treated as an ongoing operational priority rather than an end-of-life obligation.
Will Kendall, Principal, Mining – Financial Advisory at Grant Thornton Australia, said the sector is entering a period of opportunity, but with more complex risk dynamics.
“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,” he said.
“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.”
