Mining Industry's Massive Workforce Shortage Threatens Critical Mineral Production
Experts say there is a shortage of workers in the domestic mining and exploration industry, and crunch time is coming sooner rather than later.
Experts in both the United States and Canada say there is a shortage of workers in the mining and exploration industry, and crunch time is coming sooner rather than later.
"The U.S. is running out of miners," wrote Shawn Baldwin for CNBC on December 8, 2023. "More than half the nation's mining workforce, about 221,000 workers, is expected to retire by 2029, according to the Society for Mining, Metallurgy & Exploration (SME), and the number of candidates willing to fill those slots is shrinking."
The workforce is aging, Bold Baatar, chief executive officer of copper at Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTNTF:OTCMKTS), told the author.
"Many baby boomers are either approaching retirement or have already retired, and we continue to depend on their expertise," Baatar said.
Meanwhile, the demand for rare earth minerals like lithium, cobalt, and copper essential for manufacturing batteries for electric vehicles and smartphones is increasing, Baldwin noted. Globally, at least 384 new mines will need to be developed to satisfy the demand for electric vehicles by 2035, as reported by Benchmark Mineral Intelligence.
The SME said on its website that workforce availability has become a major issue for the domestic mining sector.
Without a sufficient labor force, the essential components of the economy energy and minerals cannot be produced domestically, the organization noted. The rise of a new global middle class will continue to drive competition for mineral resources, likely boosting demand well into the future. However, it is improbable that there will be enough skilled mine labor to meet this demand over the next two decades.
"Energy Information Administration (EIA) projections have the mining industry growing by about 50,000 workers by 2019; however, the industry will need 78,000 additional replacement workers due to retirement, for a total of 128,000 new positions by 2019," the SME noted.
Employers Are Exhausting Labor Pools
In Canada, the industry holds significant potential, but it faces several labor-related challenges that must be addressed to ensure its growth, according to the Mining Industry Human Resources (MiHR) Council, in a report by Lindsay Kelly for NWOnewswatch.now on October 22.
Gustavo Jurado, a senior labor market economist with MiHR, conveyed this message during a mini mining forum hosted by MineConnect on October 21, as part of the annual Modern Mining and Technology Sudbury events. MiHR is an independent, non-profit organization that collaborates with mining industry stakeholders to examine human resource and labor challenges in the sector.
Current labor market conditions are favorable, Jurado noted, largely due to high mineral prices. Approximately 100,000 Canadians are employed in the mining and quarrying industry, with an additional 85,000 to 95,000 working in the mining supply and service industry, marking record employment levels in both sectors. Unfortunately, despite the increased demand, the labor pool has not been able to keep pace.
"If we look at the unemployment rates, they are historically low, which is a sign that employers are starting to exhaust their labor pools," Jurado said.
Canada's average unemployment rate is about 7%, he noted, but in mining and quarrying, over the last four years, it has fluctuated between 4% and less than 1%, which is "extremely low."
"This is pointing to chronic labor shortages, which means that employers are hitting a barrier when they look at employment, and they're quickly running out of the types of workers that they need to expand," he said.
Demand is only set to grow as countries worldwide transition to low-carbon energy sources, increasing the need for critical minerals like those sourced from Canada, Jurado added.
Surveys: Industry Is Hard, Dangerous, Dirty
With Ontario recently implementing its "one project, one process" framework and the federal government unveiling its Critical Minerals Strategy, "we do think employment growth is likely to go even higher," Jurado stated.
Over the next decade, MiHR predicts that mining employment could increase by anywhere from 3% to 25%. At the very least, the industry will need to recruit 191,000 workers to address new hires, retirements, and turnover, according to MiHR. However, in a "recession and expansionary scenario," that figure could rise to 256,000 people, Jurado noted.
"Now, this is a large number of skilled workers that we'll need to hire," he said. "And it underscores the importance of preparing now to ensure that the industry has the talent it needs and doesn't run into more intense labor shortages."
To achieve this, the industry will need to overcome several challenges, Jurado said. The workforce is aging, Jurado pointed out, and the proportion of workers under 25 has decreased from 12% to just 6% over the past 35 years. Mining simply isn't an attractive industry for many young Canadians, who, in a recent survey, described it with words like "hard," "dangerous," "dirty," and "pollution."
A significant 66% of those aged 15 to 30 said they would not or definitely would not work in mining, while only 16% said they would or definitely would. "This is a problem," Jurado said, "because if we want to get the next generation to step in and fill the void of retiring workers, we will need to convince them that mining is an option."
Workforce Needs New Digital Skills
On May 8, 2023, the Center for Strategic & International Studies said the U.S., and by extension, Canada, will need more than mining engineers, but all types of workers.
The workforce and talent gap is a familiar issue to those involved in the mining and geoscience sectors, but the rising demand for critical minerals has intensified the problem, the site said.
By 2029, more than half of the current domestic mining workforce approximately 221,000 workers will need to be retired and replaced. This figure starkly contrasts with the mere 327 degrees awarded in mining and mineral engineering in 2020 and a 39% net decline in graduations in the United States since 2016. University programs responsible for developing this workforce have also been dwindling, with the number of mining and mineral engineering programs in the U.S. decreasing from 25 in 1982 to 15 in 2023.
"More than half the current domestic mining workforce will need to be retired and replaced by 2029," it said. "This number stands in stark contrast to the total of just 327 degrees awarded in 2020 in mining and mineral engineering, and a 39% net drop in graduations in the United States since 2016. University programs tasked with creating this workforce have also been decreasing, with the number of mining and mineral engineering programs in the United States dropping from 25 in 1982 to 15 in 2023."
This is in sharp contrast to China, which boasts over 38 mineral processing schools and more than 44 mining engineering programs, the Center noted. Central South University, China's largest mineral processing program, alone has 1,000 undergraduates and 500 graduate students poised to fulfill China's mineral ambitions.
Adding to the issue are advances in technology in the sector, according to a page titled "How can miners address the workforce skills shortage by changing perceptions of the sector?" on oil and gas giant Shell Plc's website.
"The acute workforce skills shortage in the mining industry is made challenging by the ongoing development and adoption of advanced mining equipment and technologies," the page noted. "Miners must adapt rapidly and bring new digital skills into their workforce to drive the productivity and sustainability of their operations."
US Bill Would Provide Education Grants
In the U.S., a bill introduced in March in the House of Representatives (H.R. 257), would mandate that the Secretary of Energy to provide technology grants aimed at enhancing domestic mining education.
The "Technology Grants to Strengthen Domestic Mining Education Act of 2025," also known as the "Mining Schools Act of 2025," outlines the establishment of a grant program to support mining schools in recruiting and educating future mining professionals to meet the nation's energy and mineral needs. It specifies that up to 10 grants per year will be awarded to mining schools, with a focus on ensuring geographic diversity and developing region-specific specialties. The grants are intended to fund programs related to mining technology, critical mineral exploration, environmental impact reduction, and more.
The bill also establishes the Mining Professional Development Advisory Board, composed of six members with expertise in the mining industry and academia. This board will evaluate grant applications, recommend recipients, propose grant amounts, and oversee the proper use of funds.
Expert: Industry Has Been 'Undercapitalized'
In a recent interview with Streetwise Reports, industry expert Quinton Hennigh, who has more than 40 years of experience in the sector, said one of the causes is an "undercapitalized" industry that needs to make discoveries and train new workers quickly. Hennigh is chief executive officer of private global silver and zinc producer San Cristobal Mining Inc.
"We have very few mining professionals entering this field," Hennigh said. "There's practically no significant influx of geologists, engineers, metallurgists, and others into the mining sector. Meanwhile, other industries like tech have expanded rapidly. Mining, not so much. That's a problem we need to address."
A new influx of money into the industry as a result of gold's recent moves is a "double-edged sword," he noted. "We lack the workforce necessary to meet global demands."
"We need to train the next generation of mining professionals," Hennigh continued. "Otherwise, I don't see how we'll resolve this dilemma."
Since he anticipated that commodity prices will eventually rise, Streetwise Reports asked him for some of his top recommendations, and he mentioned Snowline Gold Corp. (SGD:TSX.V; SNWGF:OTCQB) The company's Valley Deposit stands out as one of the most notable gold discoveries in recent years, boasting 7 million ounces (Moz) of gold across all resource categories with grades exceeding 1 gram per tonne (g/t) gold, according to an article by John Zadeh for Discovery/Alert on March 14, 2025.
Hennigh said the discovery is sparking a renewed gold rush in the Yukon. "The perception of Yukon as a gold jurisdiction had waned over the past decade or so until Snowline revitalized interest," he said. "I think the discovery of the Valley Deposit by Snowline really energized people and reminded them that Yukon is a great place to be. And now you're seeing that enthusiasm spill over into new ventures."
Hennigh also expressed enthusiasm for Sitka Gold Corp. (SIG:TSXV; SITKF:OTCQB; 1RF:FSE). "They have multiple discoveries, like they have reduced intrusion sprinkled across their property that I think collectively could lead to the discovery of over 10 Moz very easily," he said. "So, I love Sitka."
On November 6, the company announced assay results for seven diamond drill holes completed at the Rhosgobel intrusion target, part of its wholly owned, easily accessible RC Gold Project located within the Yukon's renowned Tombstone Gold Belt. The 2025 drilling campaign was completed successfully, both on schedule and under budget, encompassing 91 diamond drill holes totaling 31,841 meters. This included 43 holes (12,722 meters) at Rhosgobel, 26 holes (10,494 meters) at Blackjack/Saddle, 10 holes (4,401 meters) at Eiger, six holes (2,171 meters) at Contact Zone, three holes (1,044 meters) at Pukelman, two holes (606 meters) at May-Qu, and one hole (401 meters) at Bear Paw Breccia Zone. Assay results are still pending for 55 drill holes completed at RC Gold, the company stated in the release.
Analyst Says Pendulum Will 'Swing the Other Way'
In a discussion with Streetwise on gold's possible continuing trajectory, Global Analyst Adrian Day said he agreed with Hennigh and the other experts that the cycle of capital may have left the industry in need of a new generation of workers and experts. However, he said he believed the pendulum would "swing the other way."
"You get gold to US$5,000 or US$6,000, suddenly more and more people want to do geology," he said.
Day said he did not believe the gold bull market had ended quite yet. "It's not 2011, and it's not 1980, which were the last gold peaks, of course, the peaks that have ended the gold runs in the last 50 years," Day said. "And I say that for several reasons. One reason is that, although obviously in September and October, we got very, very excited. Every day, gold was up and, you know, another US$100 hurdle fell, another US$100 hurdle fell. And we got very excited about it. But we're talking about an asset of US$3,600, US$4,000. So, US$100 means nothing compared with what it meant in 1980."
A pick Day noted for Streetwise readers was Equinox Gold Corp. (EQX:TSX; EQX:NYSE.A), which he described as a "troubled" company a year ago due to delays and cost overruns that recently announced its third-quarter 2025 results. The company reported quarterly sales of US$819.01 million and a net income of US$85.58 million, both significantly higher than the same period last year, according to a report by Simply Wall St.
"Even though the stock has risen considerably, nearly tripling from its previous lows when investors were offloading it due to the issues, it remains significantly undervalued compared to its peers," Day remarked.
Day also suggested Fortuna Mining Corp. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE), which recently unveiled a preliminary economic assessment (PEA) for its upcoming mine, the Diamba Sud project in Senegal, indicating a capital payback period of less than one year. With a gold price assumption of US$2,750, the internal rate of return (IRR) is projected at 72%, and the payback period is estimated at 0.8 years, supported by a modest capital expenditure of US$283 million. The low all-in sustaining costs (AISC), estimated at US$1,238, are expected to reduce the company's overall cost profile.
New Investments Will Attract People Back to the Industry
Tavi Costa, a member and macro strategist at Crescat Capital, told Streetwise Reports that he believed gold and other precious and critical metals, like copper and silver, are all "in a major bull market," despite any corrections that happen in the short-term.
"I think all of those are going to get to extremely high prices we have not seen in the past," he said. "And it is extremely exciting when you think about the magnitude of the changes that will cause in the mining space."
Conventional views are just starting to change about the industry as the bull market builds.
"I think usually labor market interest comes ... ultimately not because a job is necessarily just interesting, but also a place where people can actually make money," Costa said. "And the mining industry has been a place that just now it's changing the views of the mainstream . . . It's going to naturally attract people to the space again."
Mining is "extremely complex as an industry," he continued. "I think it takes time for people to feel comfortable with the space and have a degree of understanding to make decisions."
But of course, metals and mining are essential to our survival on the planet.
"If you look at the enrollment for geosciences across universities, it's been in a long-term decline as well," Costa said. "There have only a few times in history you find these kinds of legacy industries that we need in our society to survive . . . just ignored it all the sudden. And I think mining has been in that place for the last few decades. That's going to make a major comeback given the necessities we have."
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Important Disclosures:
As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Equinox Gold Corp., Rio Tinto Plc., Fortuna Mining Corp., Equinox Gold Corp., and Snowline Gold Corp.Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.