Access to critical minerals has become a strategic priority for governments across the globe. In the UK this has reactivated interest in what lies beneath the land, across the country.
Why minerals now matter for UK real estate
The UK Government’s Vision 2035: Critical Minerals Strategy sets out a plan to secure domestic supply of key materials, with a target of producing 10% of demand locally by 2035. This includes funding to support exploration, mining, and processing.
As a result, mineral-related activity and scrutiny is increasing across the UK and for property investors, developers, and lenders, the implication is clear:
1. Legal disputes over ownership
Mineral rights in the UK can be severed from the surface title, meaning ownership of the land does not necessarily include ownership of what lies beneath.
This creates potential for third-parties to assert rights, particularly where valuable minerals are identified, leading to disputes that can delay or derail transactions.
2. Trespass risk
Subsurface trespass is a key exposure where excavation works may infringe third-party mineral rights, even where no minerals are ultimately extracted.
This can trigger claims during development, introducing both legal and practical complications.
3. Transactional and funding impacts
Unresolved mineral rights issues can have a direct commercial effect, via:
Delays to acquisition or refinancing
Lender concerns around enforceability and risk
Constraints on development scope
In practice, these risks translate into reduced liquidity and impaired asset value.
Closing the gap: a transaction-led insurance solution
Traditional property and construction policies typically exclude subsurface and mineral-related risks, creating a clear protection gap.
Mines and minerals insurance has evolved to fill this gap and is now commonly deployed as a transaction solution, typically placed at either:
Acquisition
Refinancing
Pre-development stage
Policies are designed to protect asset value and transaction certainty by covering losses arising from third-party claims and can include cover for:
Loss of asset value
Third-party settlements
Legal and professional costs
Delay Interest
Wasted Development Costs
Evolving insurer appetite: the role of agreed conduct
Historically, certain counterparties, such as institutional mineral owners or aggregates operators, were considered uninsurable due to their proactive approach to enforcing rights.
However, the market has evolved, and insurers are increasingly willing to structure policies on an “Agreed Conduct” basis, enabling risks involving more active claimants to be managed and transferred.
This has significantly expanded the scope of insurable scenarios and made cover more accessible for transactions previously considered too complex or contentious.
Begin the conversation
Once overlooked or an afterthought, mines and minerals insurance is becoming a necessary tool for protecting value, managing uncertainty, and ensuring property assets remain investable in a changing world.
Our Legal Indemnity practice has vast experience in sourcing mines and minerals insurance and can tailor cover to suit specific and unique requirements.
For further information, please visit our Construction Legal Indemnities (opens a new window) page or contact a member of the Lockton Global Real Estate and Construction team.
