Mining stifled by capital crunch

Mining finance faces a structural paradox: while demand for critical minerals to support the energy transition is at an all-time high, the cost of capital has risen significantly due to a fundamental shift in risk assessment. Investors now prioritize geopolitical, permitting, and social license risks over traditional execution and commodity price cycles. This creates a mismatch between the 20-to-30-year horizons required for mining projects and the short-term, quarterly orientation of modern capital markets. Sir Mick Davis, a veteran in global mining finance, argues that this environment necessitates deeper partnerships between governments and industry to de-risk projects through off-takes and guarantees. Without addressing these systemic barriers, the industry risks supply chain failures and price spikes that could ultimately stall the global energy transition and threaten economic stability.