How have the last few months been for Small Mine Development?

When we compare the first half of 2024 to the first half of 2025, revenue-wise, it has been a pretty steady year, even with record-high commodity prices. One noticeable shift, though, has been the impact of tariffs, especially on imported maintenance parts, bits, and steel. That has put some pressure on our fixed contracts.

At the same time, it has been a busy year for us. We secured a few major projects along with several smaller ones. The market clearly feels like it is turning bullish, especially with the growing demand for critical minerals. Production pressure has not eased as the mines we work with are pushing hard to make the most of these strong prices.

What factors are driving cost pressures for contractors, and how are you addressing them?

Wages have gone up, and so have consumable and maintenance parts prices. At the same time, publicly traded companies remain highly sensitive to market signals. In this inflationary context, clients are pushing to cut costs, putting pressure on contractors like us and squeezing our margins. Since much of the specialized equipment we rely on is coming from overseas, tariffs are hitting hard.

We try to source as much as we can from US suppliers. We are also trying to cope by sticking to our quality standards and using predictive maintenance to extend the life of components, but the reality is, component life has not improved much in the past five years.

What are the main projects you are currently focusing on?

We are working with Nevada Gold Mines on Turquoise Ridge, Goldstrike, and Leeville operations. For I-80 Gold, we are continuing our work at Granite Creek, and we recently won the RFP for the Archimedes project, which involves development and exploration drifting scheduled to begin in late Q3 2025. We are also collaborating with Newmont on a reclamation project in Alaska, which is nearing completion for this season.

Could you elaborate on the simulator-based training program you introduced in 2024?

It has proven very effective. Traditionally, training was conducted on-site, but this environment can be distracting, as people are focused on their daily tasks. Our training center allows for structured sessions and the development of a strong safety culture through rigorous training sessions. The simulator enables controlled, realistic practice (particularly for truck driving) and prepares workers for situations like fires, which cannot be safely simulated in real life. Early feedback has been excellent. It also helps us anticipate who is likely to succeed in mining, reducing accidents and equipment misuse.

How hard is it to build a safety culture in mining?

Despite regular training, annual refreshers, and dedicated safety initiatives, substandard practices persist. Creating a safety culture is a continuous and evolving process. Automation is helping, especially on the surface, but underground it is a different story. Unlike open-pit mining, GPS does not work underground, limiting full automation. Autonomous equipment requires fenced-off, unoccupied zones, which prevents concurrent work. So, although we are moving in that direction, human oversight is still necessary for supervision and maintenance.

Which role will underground mining have in the future of American mining?

Back in the 1970s, there was a large number of underground operations, but they  started declining in the 1980s with the advent of heap leach and the increase in capacity of trucks, loaders, and shovels, which boosted efficiency and profitability in open-pit mining. Now, the tables are turning, with a significant share of gold production in Nevada coming from underground mining, for example.

What would you communicate to our audience about Small Mine Development that they might not know?

That, despite our name, we are a big company with the capability and a track record of working on all kinds of projects, big and small. However, not all mines are huge operations, and not all companies have the expertise to handle small mines that we do, which is increasingly relevant as we see the rise of several small mines in California and in the uranium sector. It is an exciting time to be an underground mining contractor.