According to the latest Marsh Mining Market Update 2024, the mining sector is gearing up for a year packed with opportunities and challenges.

This industry, crucial for the global shift to clean energy, finds itself balancing between rising demand for essential materials and mounting pressures from environmental, social, and governance (ESG) concerns.

Mining companies are at the center of the action as the world pushes toward renewable energy and infrastructure development. However, stakeholders—governments and insurers—expect more than production. They’re demanding greener, more sustainable operations.

Insurers, for example, scrutinize ESG practices like tailings dam safety, pollution control, and biodiversity preservation before offering coverage.

Commodity prices are all over the map this year. Gold, silver, and copper are strong, but other minerals are struggling. These swings mean mining companies need to be extra careful about their insurance coverage, especially with business interruption (BI) terms getting stricter.

Volatility clauses are becoming more common, and insurers want transparency in BI calculations.

Risks are piling up, from natural disasters to cybersecurity threats. Flooding, extreme rainfall, and blocked export terminals have caused significant losses.

Meanwhile, adopting advanced tech like AI and augmented reality is a double-edged sword. It boosts efficiency but makes companies more vulnerable to cyberattacks.

Here’s what’s happening in key mining regions. In Australia, weather-related losses are prompting stricter scrutiny, though the local insurance market remains optimistic.

In Canada, more competition means better terms for companies with solid risk management.

Political risks and natural disasters keep insurers cautious in South America, particularly in Chile and Brazil.

South Africa sees casualty insurance rates drop, but ESG compliance remains a priority. Meanwhile, the United States is experiencing stabilizing property insurance rates, with competitive renewals for loss-free clients.

Political instability is making life tougher for miners worldwide. In the past year alone, over a dozen incidents have disrupted operations. These include cancelled licenses in Mexico, violent protests in Ecuador, and resource nationalization in Indonesia.

Lower rates are being seen in political risk insurance, but insurers are picky about who they cover and under what conditions.

The report highlights innovative solutions like Sentrisk, which uses AI and geospatial imaging to map supply chain risks. Another tool, MineSight, analyzes over 100 data points to help companies make smarter insurance decisions.

Claims from natural disasters, operational disruptions, and cyber incidents have surged. Cyber threats, in particular, are evolving. Generative AI makes it easier for attackers to breach systems, though improved cybersecurity practices have led to a 4% drop in insurance rates.