The mining industry could face a serious shortage of tires by the end of this year and that could lead to delays at a time when demand for mining equipment is booming.

The head of Caterpillar's global mining division said that the shortage could be similar to the mid-2000s, when the heavy equipment maker was caught off guard as demand doubled for the giant tires used in mining trucks, increasing costs for miners and delaying production.

Cat Global Mining President Mr Chris Curfman in an interview with Reuters during the CRU copper conference in Santiago said that "By the end of this year, or early next year, we will be in a potentially serious tire shortage situation.”

He added that "There is a lot of truck demand, a lot of big tractor demand. Lead times are stretching out now and we are seeing some supply chain issues."

While Mr Curfman is concerned about the tire shortage, he said the company has developed closer ties with its suppliers and is better prepared to deal with a crunch this time around.

Mr Curfman said that "The whole mining industry is really on fire. We're seeing a back-up in availability on some products going out eight to 12 months."

While this could lead to delays, the positive for Caterpillar is that it is selling more trucks, tractors and other heavy equipment to miners all around the world.

Mining trucks and tractors require giant tires, some as big as 16 feet in diameter, which cost tens of thousands of dollars and need to be replaced throughout a vehicle's lifetime.

(Sourced from Reuters)