Capital: Leading Risk for the Mining Industry in 2025

In 2025, capital will be the leading risk for the mining industry, rising from second place in the 2024 EY ranking. This shift is attributed to increasingly challenging financial and economic conditions that hinder metal production. Following capital, the most significant risks include environmental stewardship, geopolitics, resource and reserve depletion, license to operate, rising costs, productivity, climate change, new projects, evolving business models, and innovation.

EY highlights that as access to new capital becomes more limited, mining companies are adjusting their strategies such as concentrating on specific metals like copper or base metals while divesting from coal operations.

Theo Yameogo, Americas and Canada Mining and Metals Leader, EY, emphasized that capital risk is interconnected with other key risks, particularly when financing projects in geopolitically or environmentally sensitive regions. He underscored the importance of robust environmental stewardship as a prerequisite for attracting investment, stressing the industry's need to align with the energy transition.

The 2025 EY survey revealed notable shifts in the risk landscape. Four risks—governance, cyber, digital, and workforce—dropped out of the Top 10. While many companies now consider cyber and digital risks as integral to daily operations, the decreased focus on governance is concerning, particularly as mining projects progress in countries with weaker regulatory frameworks. Another concerning issue is the omission of workforce risk, given the sector’s ongoing challenges in attracting and retaining the talent needed to secure its long-term success. 

The report emphasized that new projects will be crucial to meet the increasing demand for critical minerals needed for the energy transition. However, the sector faces significant challenges, including regulatory complexities, high taxation, lack of standardization, inflation, and declining ore grades. To address these issues, mining companies are advised to strengthen stakeholder relationships to secure their license to operate, reduce capital project risks by integrating supply chains, and build talent pools with the expertise required for sustainability, automation, and electrification beyond traditional mining.