"We definitely see a lot of room for expansion in Ontario, especially with projects looking to mine commodities like lithium and nickel coming online at a quick pace."
Can you introduce Black Diamond Drilling Tools and how you serve the mining industry?
Black Diamond Drilling Tools was established in 1999 with a 300,000 m2 factory in China. The factory now employs over 1,000 people, and we operate from three separate satellite operations in Mongolia, Australia and Sudbury. Our clients are looking for high-quality tools at a reasonable cost, especially with tariffs making everything expensive. Maintaining quality to ensure our products are better than what is currently on the market is very important to us. We can do this because we deal directly with our factory without middlemen.
Most of our clients are now looking for Down-The-Hole (DTH) products and rotary bits for open-pit mining, due to the speed of these machines and the size of hole that they are capable of producing.
What sets your products apart from the rest of the market?
I think our value for money makes us stand out compared to our competitors. Furthermore, with the amount of compressed air in underground operations, our hammers will still produce at the same level even with lower mine air. We also have laser-cladding on the barrels and drive subs and carbides on the top of the hammer to help free them if stuck. This is a key differentiator for us, as well as the fact that our products use American and Swedish steel, which is of a higher quality.
How do you ensure that your products are able to work in the harsh winters of Ontario?
Most of our products are being used around the world in every condition. We can modify the tolerances of the rig to allow for the expansion and contraction of the metals. This ensures the same performance no matter the temperature. Not only do we sell to northern Ontario, but also to Africa and Australia, demonstrating the reliability of our products. We have a team of engineers who are able to quickly find a solution if there are any issues.
What are some of the challenges you have faced due to the current geopolitical climate in the world?
To date, we have felt minimal impact from the tariffs on China within our Canadian operations, however, we are beginning to see a trickle-down effect from the US tariffs on our business. As Chinese costs rise, companies importing goods or parts from China are experiencing corresponding increases in their own costs. We are not alone in this, and many others are in a similar position. As a result, mining companies may see their costs rise over the next 12 months.
Do you see opportunities for expansion for Black Diamond Drilling Tools within Ontario?
We definitely see a lot of room for expansion in Ontario, especially with projects looking to mine commodities like lithium and nickel coming online at a quick pace. We mainly deal with producing mines and due to increasing gold prices, some of our clients and junior companies are expanding and developing mines more than in the past. Our team has expanded further into the north of Ontario to help with the project expansions around the Timmins area.
Where are your R&D efforts focused currently?
Within the last year or two, we have begun to focus more on the development side of mines. This has led to a focus on jumbo bits and handheld products. Recently, we have started testing raise bore tooling to look to offer more solutions in this sector. Most of our testing remains in Australia.
Looking to the future, what are your plans for growth at Black Diamond Drilling Tools?
Our core focus remains Ontario, but we do have a reseller in Québec, and we are looking to expand our presence in other provinces and areas of Ontario. At some point down the line, we will look to offer our products to the oil and gas industry; however, for now, our company remains committed to serving the mining industry to the best of our ability.