Mining Viewpoint: Capital Stewardship Amid Changing Sentiment

There is reason for optimism as the mining industry transitions into a new era. Major demand drivers such as data center proliferation, the expected acceleration of the energy transition, and a push for new infrastructure are expected to boost metal demand in enduring and unprecedented ways.

A swirl of volatility, however, directly impacted miners and the health of their capital markets. Among others, we have seen:

• Key transition metals, such as lithium, have seen significant price drops, copper has been range-bound for years;
• Concentrated geopolitical risk is upending markets (China in steel and iron ore, Indonesia in nickel);
• Major capital project costs are twice the original statements to the market; and