Servicing mining’s newest frontiers

As miners advance into emerging markets, many are requesting the support of trusted service partners. Kal Tire’s Dan Allan speaks to the challenges and opportunities that small- and mid-sized service firms face in establishing businesses abroad and shares some important lessons.  

As global demand for metals rises—fuelled by the energy transition, urbanization and infrastructure growth—mining companies are increasingly compelled to venture into remote or complex jurisdictions. Although these organizations are adept at entering new markets and establishing supply chains, sourcing expert operational support, particularly for critical services like maintenance, remains a significant challenge.

For the largest OEMs and service providers, expansion into new markets is expected and well resourced. These companies can mobilize capital and talent quickly to capture key contracts, often leveraging support from legal, risk and compliance teams.

For small and mid-sized service providers, the challenges are markedly different. Entering a new jurisdiction can yield transformative opportunities but can also present disproportionate risks that threaten the viability of the enterprise. Many firms are grappling with whether to go or not to go on an increasing basis.

The rise of emerging markets

During his 13-year tenure as Senior Vice President of Kal Tire’s Mining Tire Group, Dan Allan has had significant experience of evaluating and executing on these types of opportunities. The company currently operates across 25-30 countries, comprising a mixture of sustainable and opportunity markets.

“On average, my team and I request from one to three new country approvals from our board of directors every year. That number has been consistent since I joined Kal Tire,” Allan said.

This observation aligns with broader industry trends. The Fraser Institute’s 2024 Annual Survey of Mining Companies, which ranked 82 jurisdictions based on investment attractiveness, showed that the mining industry is becoming increasingly globalized. Emerging markets (nations transitioning from lower-income economies to more advanced, industrialized ones) are particularly important; while established jurisdictions, including Finland, Nevada and Alaska led the 2024 rankings, countries such as Guyana, the Philippines and Saudi Arabia also made the top 25.

“How will the world meet high mineral demand to build a renewable energy future? The answer lies in mineral-rich countries in the developing world,” wrote the World Bank in a recent article.

It explained that over two-thirds of the world’s known lithium reserves are in Argentina, Bolivia, and Chile – known as the ‘lithium triangle’. The Democratic Republic of Congo (DRC) holds the world’s largest cobalt reserves; and bauxite reserves are highly concentrated in Brazil, Guinea, Indonesia and Jamaica. Growing demand for critical minerals like these is expected to require $1.7 trillion in global mining investment by 2050.

Setting a standard for work and living

For mining companies and service providers, decisions about entering new markets are under increasingly scrutiny from investors, governments, employees and civil society. ESG-conscious stakeholders expect clear justifications, particularly if the country has a contested governance or human rights record.

Balancing risks, ethics and commercial opportunities, and maintaining transparency throughout the process is vital. The UN Global Compact offers a framework for evaluations, requiring companies to uphold the highest standards of their best-performing jurisdictions wherever they operate.

Allan endorsed this approach: “The obligation of any corporation going into a new country is to bring the higher standards of their best-performing operations, so that they raise the standards of work and living, he said.

“At Kal Tire, we follow the UN Global Compact principles, but we also bring our Canadian values and work practices to every operation. This means our team members across the globe feel as valued and integral to the company as our team members in Canada.”

The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct is another useful resource. These cover all areas of business responsibility—from labour rights to environmental stewardship and anti-bribery.

For service providers, adherence to such principles is not just reputationally prudent but strategically necessary. Embedding global standards in local operations mitigates risk and ensures that organizations support the long-term sustainability of host countries’ mining sectors.

Balancing business opportunity with risk

While ethical alignment establishes legitimacy, the operational reality of new markets is defined by risk. For Allan and his team, safety and security are paramount: “If we’re not comfortable that we can guarantee our team members safety, then it’s generally a no-go; regardless of the business opportunity,” he said.

The risks can be diverse. For example, in Burkina Faso, jihadist violence in 2019 saw an attack on a mining convoy, resulting in the suspension of multiple projects. In Colombia, tensions between artisanal and industrial miners recently escalated at an underground mine, where homemade explosives damaged infrastructure and temporarily halted production in January 2025.

Fiscal and regulatory regimes present further challenges. Countries such as Argentina and Brazil, while rich in resources, impose taxation and compliance obligations, ranking them among the least attractive globally, according to the Fraser Institute’s Policy Perception Index. For smaller service companies, such environments can render opportunities unviable.

Additionally, governments in resource-rich jurisdictions are asserting greater control over their mineral wealth through heightened royalties, restrictive local content rules and, in some cases, outright seizure of assets.

A recent example is in 2025, a Malian court placed Barrick Gold’s Loulo-Gounkoto complex under provisional state administration following a tax dispute and the interpretation of the country’s revised mining code. This led to gold stockpile seizures and export suspensions, disrupting one of Africa’s most productive gold mines and prompting arbitration.

For service providers, such measures can have cascading impacts, from immediate contract suspensions to sudden import restrictions and local ownership requirements. These incidents show how quickly risks can escalate, reinforcing the need for flexible contracts, diversified portfolios and robust contingency planning. A comprehensive approach to risk management supported by specialist risk firms is highly advisable.

 Get your boots on the ground

Beyond safety and compliance, companies must anticipate the cultural, geopolitical and economic reality on the ground, as well as the potential long-term impacts of broader issues, such as climate change, on local operational viability.

Allan explained that, while digital tools and web-based research can help with information gathering, that information is often tainted by western biases. Direct observation provides context that data alone cannot. For example, many mining camps, despite being located in high-risk jurisdictions, are usually among the safest environments because operators invest heavily in protecting people and assets.

“Nothing beats having boots on the ground when evaluating a new market,” said Allan. “It can be very hard to find accurate, factual information about a country and its culture. The reality is nearly always better than what people anticipate.”

Lessons learned, lessons shared

Kal Tire’s practical experience highlights several key lessons. First, disciplined objectivity is vital. “Enthusiasm for new opportunities can easily overshadow crucial considerations, leading to costly mistakes,” Allan reflected.

A second lesson is the value of local partnerships. In Guinea, early collaboration with in-country advisors enabled Kal Tire to navigate regulatory systems and build credibility at a time when the country’s mining sector was still evolving. This foresight proved advantageous as production expanded to globally significant levels.

Another lesson relates to underestimated costs. Establishing and maintaining legal entities, filing tax reports, and meeting labour obligations can require significantly more resources than anticipated. Without sufficient contingency, smaller firms can quickly encounter financial strain.

Finally, flexibility is essential. Circumstances can change quickly, and service providers must be prepared to adapt. During the COVID-19 pandemic, one Kal Tire team member became stranded in Burkina Faso for 12 weeks due to travel restrictions, despite anticipating only a two-day visit. The incident reinforced the duty of care companies have towards their employees: which is both a legal and moral responsibility.

The early bird captures the market

Despite the risks, early entry into new markets can offer substantial rewards. Kal Tire’s initial work in the DRC’s Katanga copper belt opened access to multiple clients, though compliance challenges later required withdrawal. Similarly, in Ecuador and Burkina Faso, establishing operations ahead of broader market development led to subsequent business opportunities.

The principle is clear: presence and performance build trust. As Allan noted: “Once a service provider is operational in a new country or region, and gaining recognition for supporting miners, it often leads to other opportunities.”

Beyond commercial benefits, the developmental contribution of mining can also be considerable. According to the latest ICMM Members’ Tax Contribution report, the 24 mining company members that contributed data paid US$41.1bn in salaries, wages and related payments to around 609,300 employees worldwide during 2024. They also invested US$203.8bn in partnerships with suppliers and contributed US$1.5bn to local communities to support their lasting social and economic wellbeing.

By facilitating this type of responsible mining, service providers indirectly contribute to national economic and social progress.

Always have an exit plan

Exiting a jurisdiction can be as complex as entering. As Allan pointed out, even well-prepared plans can falter. Political environments can change fast, and conflicts can escalate overnight. In high-risk jurisdictions, companies must continually monitor local developments, apply mitigations and have exit strategies ready in case a situation becomes untenable.

Even when change is slower and less fraught, a carefully planned exit strategy can save companies years of administration and costs. Kal Tire, for example, has only recently completed the closure of its Sierra Leone operations – a process initiated nearly a decade ago.

Robust compliance from the outset is critical. Entering a market without proper legal and fiscal structures can hinder an efficient exit, with potentially significant repercussions for smaller service firms.

Expanding businesses responsibly

The mines of tomorrow are likely to emerge in remote and less-developed regions, as the industry shifts towards more complex jurisdictions.

For service providers, participation in this expansion is inevitable if they wish to remain competitive. Achieving success, however, requires rigorous evaluation, disciplined risk management and collaboration with responsible operators. The focus should not be on whether to participate, but on how to do so responsibly.

“At Kal Tire we believe that if we can help, even in a small way, to improve the lives of people in a jurisdiction, and we can align that opportunity with our risk tolerances, then it’s better that we’re there than not,” Allan summarized.

At a macro level, mining has the capacity to transform nations. For purpose-led businesses, the potential to support this kind of socio-economic development can be as compelling as a new growth market. By approaching opportunities with discipline and strong values, service providers can ensure everyone benefits from this global movement.