The mining sector is navigating evolving environmental expectations, resource depletion, and stricter regulations in 2025—all while meeting the demand for minerals driving Australia’s energy transition.
With around 7,600 unique mining businesses nationwide, it’s crucial to tailor strategies to your risk profile. Backed by insights from EY and industry research, this article will help you prepare for what’s ahead.
Let’s dig in.
Top risks in a nutshell
EY has named the top risks for the mining sector in 2025:
Two risks newly added to the list this year are resource depletion and new projects. We’ll unpack a few key risks that are likely to be most relevant to you.
Meeting Environmental Standards
ESG priorities like waste management, water usage, and ‘nature-positive’ initiatives are under increasing scrutiny from regulators and investors. Mining businesses face risks such as pollution events, improper waste disposal, and environmental incidents leading to property damage, resource contamination, or costly clean-ups.
Environmental liability insurance can help manage these risks, offering coverage for financial losses, regulatory compliance, and reputation protection.
Addressing Resource Depletion 
With resources harder to find and rising exploration costs, mining SMEs face mounting pressure on profitability. Exploration risk insurance helps offset the financial impact of unsuccessful efforts, safeguarding your business’s stability amidst these challenges.
Tackling Rising Costs and Productivity
Labour shortages, rising energy costs, supply chain disruptions, and wage pressures are straining productivity. IBISWorld cites wages, purchases, rent, and utilities as the biggest expenses for mining businesses, potentially leading to delays and higher overheads.
Workers’ compensation insurance provides vital protection against labour-related claims, helping you manage these challenges with confidence.
Responding to Climate Risks
Climate change is reshaping the mining sector with:
- Increased costs from extreme weather disruptions
- Higher regulatory compliance expenses for emissions reduction
- Shifts in market demand and investor ESG pressures
- Declining coal demand alongside rising interest in ‘green’ metals
Climate risk insurance provides essential protection against weather-related losses, enabling swift recovery and helping you meet decarbonisation targets.
Overcoming Barriers to New Projects
Rising costs, regulatory hurdles, and unforeseen expenses make new mining projects harder to launch. Construction insurance mitigates financial losses from delays, ensuring risks are effectively managed to keep projects on track.
Adapting to Changing Business Models
Sustainability is driving innovation with recycling, circular economy frameworks, digital mining, and autonomous equipment. Workforce dynamics are also evolving, with a focus on green skills and diversity, creating new opportunities for forward-thinking businesses.
Preparing for 2025
The year ahead will bring transformative challenges and opportunities. Tailored insurance strategies aligned with your goals and risk profile can help you thrive in this rapidly changing environment. Let us guide you through your unique business needs.
If you’d like to know more about Protecting Your Mining Business from 2025’s Challenges CLICK HERE, or contact us today.