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Building resilience: Navigating climate and sustainability risks for modern mining companies

11/14/2025 · 5 minute read

The mining industry sits at the heart of the global economy and is a foundational component of the energy transition, supplying the critical minerals needed for electronics, electric vehicles, and renewable energy systems. For North American miners, embedding resilience into every stage of their decades-long lifecycle is necessary to lead this global charge.

In today's challenging environment, blind spots are costly. Unplanned disruptions – whether stemming from climate-related events, equipment failures, cyberattacks, geopolitical shocks, or people risks – can halt production, undermine stakeholder confidence, and drive financial losses. Resilience is no longer merely a defensive stance; it is now a source of advantage.

Understanding the climate risk landscape

The mining industry is uniquely vulnerable to the consequences of climate change due to its reliance on the natural environment and the long operational lifecycle of its projects. Risk managers and executive leaders must consider impacts extending decades into the future.

According to the 2025 Global Risks Report, extreme weather is identified as the second highest risk most likely to present a material crisis globally in 2025 and is the primary long-term risk over the next decade. As the planet warms, extreme weather events are likely to become more frequent and severe.

While climate risk focuses specifically on the consequences of adverse weather, rising temperatures, and the transition challenges related to decarbonisation, mining companies must also address broader sustainability and governance risks. These encompass environmental concerns like pollution, water scarcity, and biodiversity loss, alongside the social and regulatory implications of these challenges.

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Key climate risks threatening mining operations

Depending on the location, commodity, and lifecycle phase, mining companies face a host of specific climate risks:
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Extreme weather events, such as hurricanes, convective storms, wildfires, and flooding, can damage power generation infrastructure, processing facilities, and access roads. Flooding interrupts production and supply chains. Warmer temperatures affect equipment efficiency and increase wear and tear. Damaged infrastructure, including roads, railways, and ports, also hampers supply chains, leading to increased costs and reduced operational efficiency.

Climate change alters precipitation patterns, exacerbating water scarcity, which inhibits water-dependent operations like cooling, crushing, milling ore, and dust mitigation. Reduced water efficiency leads to production delays, increased costs, and potential reputational damage. Critically, mining companies may find themselves in direct conflict with local communities for water resources as water stress rises globally.

High temperatures pose significant risks to the physical safety and mental wellbeing of miners, leading to heat-related illnesses and decreased productivity. Natural disasters (floods, hurricanes, wildfires) disrupt operations, placing workers at risk. If workers are displaced from remote mining communities, organizations may face workforce instability and climate-related psychological strain.

As governments implement policies to mitigate greenhouse gas (GHG) emissions, mines face regulatory shifts, including more rigid emission standards and carbon pricing. Public backlash if a mine is perceived as a significant GHG contributor can lead to a loss of social license to operate. Shareholders, investors, and insurers are also exerting stronger scrutiny, expecting disclosure on transition risks and corporate governance processes related to climate adaptation.

Five opportunities to build long-term resilience

Building resilience against climate change is crucial for maintaining the long-term viability of mining operations. By proactively addressing these challenges, organizations can better mitigate existing and emerging risks.

Mining leaders should focus on these five key strategies:

This involves a comprehensive assessment of urgent transition risks associated with the shift to a low-carbon economy. Integrating this climate transition risk analysis helps organizations enhance resilience, comply with evolving regulations, and capitalise on new opportunities.

This approach leverages climate projections and scenario analysis to pinpoint the most vulnerable assets and evaluate climate exposure across various perils and timeframes. This detailed overview informs the development of adaptation strategies, such as investing in asset resilience (retrofitting physical assets) and implementing climate-resilient technologies.

The complex global network of the mining sector is highly susceptible to extreme weather events. Having a clear view of the entire supply chain, potentially through advanced technologies like IoT sensors and data analytics, allows leaders to detect potential disruptions quickly and implement contingency plans.

Growing social and regulatory pressure requires mining organizations to reduce GHG emissions. By conducting comprehensive GHG accounting, organizations can align reporting with recognised frameworks (like SBTi or GRI) and use carbon offsets to balance unavoidable emissions, enhancing both global contributions and individual competitiveness.

Equipping the workforce with the necessary skills and knowledge – including new technologies, safety protocols, and sustainable practices – helps mitigate workforce risk and fosters a culture of adaptability in response to climate impacts.

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Resilience must be embraced as a strategic priority to secure a stronger, more sustainable future. By combining forward-looking strategies with data-driven decision-making, mining leaders can safeguard their operations and position themselves as indispensable players.

While climate and sustainability are critical challenges, modern mining companies face a wide, intricate web of risks. Resourcing for tomorrow: Building resilience for mining companies highlights five crucial risk areas with the greatest implications for miners today.

To learn how to build resilience against climate events, equipment failures, cyberattacks, geopolitical shocks, and people risks and fully understand their interconnected exposures, download the complete guide.

Download the full report to master the 5 critical risks for modern mining resilience.

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