Master Drilling: cutting-edge mining solutions
As mining ventures deeper and grows more complex, companies that make access quicker and less costly are becoming increasingly important. Master Drilling has spent over four decades at the forefront of this shift. It is a global leader in specialised drilling solutions, operating in highly challenging and technically demanding environments. We explore how Master Drilling is using its scale, technology and innovation to capture high-value opportunities in a progressively complicated mining landscape.
Master Drilling has become an expert in raise boring, a mechanised method of excavating vertical shafts by drilling a small pilot hole downwards and enlarging it with a reamer. The reamer is a cutting tool used to widen the existing hole by rotating and pulling it from the bottom of the pilot hole to the surface to create a smooth, round, full-sized shaft. It requires access to the lower level of the mine to install the reamer and remove debris. This mining method can deliver large shafts reaching depths of up to 1 380 metres and diameters of up to nine metres.
The technique is also widely used in civil engineering and hydraulic applications. Within mining, it is particularly valuable for developing ventilation shafts, ore passes and access routes.
The key advantages of raise boring over conventional drill-and-blast methods are:
- Improved safety: Workers are not exposed inside shafts during excavation.
- Greater efficiency: Project timelines can often be reduced by up to 50%.
- Lower costs: Typically, 30-40% cheaper than the labour-intensive and hazardous conventional methods.
- Higher precision: Produces smooth, accurately sized shafts.
Shaping mines and margins
Master Drilling operates the world’s largest raise boring fleet, a dominant position built through strategic acquisitions and the consolidation of a historically fragmented global market. Expansion accelerated during a period of subdued mining expenditure following the collapse of China’s infrastructure-led commodity supercycle around the middle of the last decade.
As charted below, this counter-cyclical investment strategy, acquiring raise boring fleets and competitors at the bottom of the cycle, has positioned the company favourably. These investments are expected to generate strong returns as mining capital expenditure recovers. This recovery is supported by improving demand linked to the global energy transition and the rising geopolitical importance of critical minerals.
Demand for raise boring services is inherently cyclical and fluctuates significantly over the life of a mine. As a result, it is essential for drilling companies to maintain diversification across regions, commodities and customers to sustain high utilisation rates across their fleet. Master Drilling’s global footprint and broad exposure help mitigate these demand fluctuations and support more stable earnings.
Structural tailwinds: deeper mining
A structural sector trend is the increasing depth of mines as shallower ore bodies deplete. Extending operations further underground drives the need for larger-diameter raise boring, which requires more specialised equipment and technical expertise. These projects are inherently more complex and higher risk, commanding significantly higher revenue per machine for capable service providers.
Master Drilling has carved out a distinct competitive edge through technological innovation. Rather than merely purchasing equipment, the group retrofits machines with proprietary, patented technology to drill deeper shafts at greater diameters than standard industry models. A notable demonstration of this capability is the partnership with Northam Platinum at the Zondereinde mine. Here, Master Drilling completed the world’s deepest, largest-diameter raise bore shaft in just 31 months. By comparison, conventional drill-and-blast methods for a shaft of similar size (4.8 m wide and 1 380 m deep) would have taken an estimated five to seven years.
Master Drilling has significantly increased its exposure to larger, more advanced machinery, which now accounts for around 70% of its raise boring fleet (up from roughly 60% five years ago). Due to strong demand, these machines are fully utilised at present and generate approximately 90% higher revenue per machine than smaller units.
Transformative technology: a potential game changer
In addition to steady growth from its core raise boring business, Master Drilling has the potential to materially enhance profitability through the commercialisation of several new technologies. While these innovations have progressed to contract stage, the key hurdle remains proving scalability and consistent commercial success.
The mobile tunnel borer (MTB) is the most advanced of these innovations, effectively adapting raise boring for horizontal application. Engineered for underground mine access, it has the potential to halve development timelines, accelerate production and materially lower project costs. Financially, the impact is outsized: a single MTB can generate revenue equivalent to approximately five large raise boring machines. Given similar operating costs, this implies a significant expansion in margins.
Blind shaft boring (BSB) enables vertical shaft development in undeveloped (virgin) ground. Unlike conventional raise boring, it does not require pre-existing underground access, making it well suited for greenfield projects. By providing an efficient alternative to traditional shaft sinking, BSB substantially expands Master Drilling’s addressable market.
Developed in partnership with African Rainbow Minerals, the reef boring machine (RBM) targets complex narrow and tabular ore bodies that are difficult to mine using conventional mechanised methods. The technology focuses on the selective extraction of high-grade ore and reducing dilution and waste. It benefits continuous, high-production operations in challenging geological conditions.
Together, these technologies provide substantial embedded optionality. If successfully commercialised, they could be transformative - redefining Master Drilling’s role in the mining value chain and structurally boosting margins. However, their impact will depend on effective execution and the pace of client adoption. We showcase Master Drilling’s evolving revenue mix and potential profitability outcomes below.
Turning safety into strategic advantage
Master Drilling has strategically broadened its scope beyond traditional drilling technologies through the acquisition of a majority stake in the A&R Group, a provider of safety solutions for underground mining operations.
Proximity detection technology is A&R’s core offering, designed for high-risk underground environments where interactions between workers and heavy machinery can be fatal. The system equips personnel and equipment with detection devices that automatically slow or stop machinery when a worker is in range. Essentially an override function, it significantly reduces accident risk and is supported by sustained demand through South African safety regulations.
Master Drilling already holds over 20% of the South African market for safety solutions, leaving substantial room for growth. The company aims to tap into its global client relationships to export these safety solutions. South African miners are frontrunners in this area, particularly in the gold and platinum sectors, where some of the world’s deepest mines require advanced safety systems.
As global safety standards tighten with evolving industry complexities, international adoption is expected to accelerate. This segment offers a highly resilient revenue stream for Master Drilling, that:
- Is non-discretionary: Safety spending is less sensitive to commodity cycles than traditional capital expenditure.
- Has sticky contracts: Once awarded, these long-term contracts are difficult to displace.
- Produces accretive margins: Profitability is currently more than the core raise boring operations, expanding the group’s overall margin.
Multiple pathways to growth
Master Drilling stands out, not only as a leader in specialised raise boring, but also as a pioneer in transformative mining technologies and safety solutions. Its established fleet, global footprint and consistent focus on innovation position the company to capture increasingly complex, higher-value projects.
While the core business remains a steady foundation, the rollout of new technologies offers the potential for materially higher margins and expanded market reach. Simultaneously, the growing safety solutions segment provides a resilient and complementary revenue stream that is largely decoupled from commodity cycles. Together, these elements create multiple avenues for sustainable long-term value, reinforcing Master Drilling’s role as a strategic partner in a modernising mining sector.
