Denis, you have been with Major Drilling for almost 30 years now. What has kept you in the company for 3 decades?
The diversity of work around the world makes it fun and, seriously, there is no dull moment in our work at Major Drilling. We are incorporated in 20 countries, so there is always something different to see. It is a fun industry despite its cyclicality. I see the same faces repeatedly, which shows that nobody quits this industry.
Could you introduce us to the main offerings of Major Drilling?
Our drilling service is essentially about producing data. Our data allows mining companies to analyze and determine what is under the surface. This helps them decide if there is potential for a mine or where to develop their plans in an existing mine. It is a sampling business, but very important because the investments that follow are huge and require the right information.
But the world of mining is changing. We used to say we produced rock samples, but now there is more to it. We gather information while drilling, which helps mining companies understand ground composition and predict what the mine will look like. We specialize in retrieving undisturbed rock samples so mining companies can accurately assess the ground. In addition, of course, we perform drilling from the surface and in underground mines.
How would you describe the main difference between surface and underground drilling in terms of costs?
Drilling from underground allows more precision because operations are closer to the target, reducing costs compared to drilling from the surface and having to re-drill everything above the target. In an underground mine, activities take place at the face of the rock, determining where the mine should go next and what lies ahead as it develops.
Concerning data, have you started using AI to help with your operations?
Yes. Our industry faces challenges with labor and expertise. Drilling is not just about pulling a lever; it is about producing high-quality samples. As one drills deeper, risks like deviation or getting stuck increase, depending heavily on the driller's knowledge. We have developed tools to help drillers improve their trade, accelerating training and improving productivity.
In the past, drillers would use wrenches or even stethoscopes on the rods to listen to what is happening at the bottom of the hole. Now, we have designed computerized rigs with data that help drillers make better decisions. This has improved productivity and training. We have an in-house platform called Rock5, which brings data from the rig to assist drillers and provide geological information for our customers.
Would you say that this focus on data makes Major Drilling's offerings unique compared to other drilling companies?
Two things make us unique. First, we focus on specialized drilling. Over 20 years, we have built in-house expertise to tackle challenging programs. Our customers come to us for difficult projects like deep holes, remote locations, or high altitudes. We have developed expertise in all these areas, unlike many smaller drilling companies that might have only one piece of expertise.
Second, our innovations. We have been developing new technologies like Rock5, which provide data and improve productivity. Customers want this on their sites because it offers better productivity and information, which reduces overall exploration costs. Specialized drilling and our innovative approach give us a competitive advantage, ensuring safer operations and better results for our clients.
What is the major challenge for a drilling company today? You mentioned the problem of labor force…
Yes, labor force is definitely the number one challenge. The mining industry is very cyclical. During downturns, we lose some of our labor force because we cannot retain everyone when things are down. During a downturn, things can be down 60% from the peak, causing us to lose people to other industries or through retirements. Currently, we are rebuilding as we see an uptick that we believe will be strong for the next 7 to 10 years. With the rising prices of copper and gold, if there is a wave of extra exploration, the industry will not be ready from a labor perspective.
We need to create a knowledgeable labor force, and right now, we are close to max utilization of the existing skilled labor. This is why we need to invest in training and technology to reduce training time. Finding and producing rigs will be manageable, but having a good quality labor force is key.
Do you plan to expand your operations geographically?
Geography is always tough to predict. During the last upturn from 2004 to 2012, we ended up in unexpected places like Mongolia and Indonesia with significant mining projects. It is hard to pinpoint where we will go next, but it will definitely be driven by copper and battery metals due to the growing demand. There is a huge shortage coming, and demand is set to keep growing, so we will focus on areas rich in copper.
Currently, Chile is a major copper producer, and we are seeing growth there. Argentina is also making a comeback in copper, and Saudi Arabia is investing heavily in copper development. Additionally, the main markets like Canada, the US, and Australia will continue to lead in the mining world. We are hearing from gold mining companies about the need for more exploration, as M&A alone will not create new reserves. The same applies to other commodities like copper and nickel, emphasizing the need for drilling to discover new reserves.
How would you summarize your efforts to make drilling more sustainable?
Our innovations have an ESG aspect, especially regarding water consumption. Water is crucial in drilling, and we have developed systems to reduce water usage significantly. One innovation is a water recirculation system that filters and recycles water used in drilling, greatly reducing water consumption.
This system filters out cuttings and other materials from the water, allowing it to be reused, which is a significant improvement from past practices where water was simply dumped. We have also introduced AquaLink, a remote pump system that allows drillers to control water flow directly at the drill site, using only the necessary amount of water. This system helps reduce water wastage and is a valuable contribution to mining companies.
Additionally, we have improved rod handling to reduce hand injuries and strain, allowing more women to join the field. This year, we have increased the number of women in the field by almost 100%. We have also started a decarbonisatization plan to reduce diesel consumption through electric motors and more efficient operations, achieving significant progress in just three years through our innovation department.
