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Mining & Metals 2022: Putting the resilience rhetoric to the test

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Is the mining & metals sector prepared for a global downturn?

Is the mining & metals sector prepared for a global downturn?

Russia's actions in Ukraine fueled an unprecedented rally in mineral and metal prices earlier this year, with multiple metals breaking historical records. However, this rally was short-lived. Within six months, metal prices collapsed back to 2020 levels in the most volatile first half of the year. There are myriad factors that are lining up to cap mineral and metal prices in the coming months, the most significant of which, we believe, is the rapid deterioration of the global economy.

In recent times, the mineral commodities cycle has been out of synchronization with the global macro-economic cycle—this time the cycles appear to be converging. With the prospect of global downturn looming, we ask the question, "Is the mining & metals sector prepared?" Is the sector truly resilient to disruption in supply chain, inflationary pressures, headwinds on demand, increased funding costs and of course, the drive to net-zero? Or will China's fiscal and monetary policies and the latest legislative developments in US and EU regulation provide enough support to the sector so that miners and the rest of the supply chain can capably respond to market conditions? Can the ESG agenda and decarbonization projects contribute to the long-term sustainability of the sector itself?

We are thinking critically about what a downturn means and whether this could, in fact, be a major opportunity to distinguish the sector from its traditionally dominant counterpart, the oil & gas sector. We hope you find Mining & Metals 2022: Putting the Resilience Rhetoric to the Test a stimulating read.

The mineral commodities cycle, in recent times, has been out of synch with the global macro-economic cycle—this time the cycles appear to be converging

Decarbonizing in a downturn: Can the mining & metals sector afford (not) to change?

Softening commodity prices and economic headwinds may deter miners and metal companies from deploying the significant capital expenditure required to decarbonize.

solar panel farm

Quest to bolster critical mineral supply will persist through economic downturn

A steady supply of minerals critical to the energy transition must be ensured through the expected recession.

solar panels and an electric car

How mining & metals companies can make ESG work in a downturn

Mining & metals companies have been increasingly focusing on enhancing their environmental, social and governance credentials in recent years as part of the energy transition. But with a global recession looming, will they be able to maintain their commitment?

mining site

Chinese battery material companies remain active despite economic downturn

China is looking beyond its borders to maximize the returns from the minerals needed to make the energy transition happen.

electric car charger

Opportunities in a downturn: Capital raising and getting the “right” M&A deal done

Participants in the mining & metals supply chain will see many challenges—but also opportunities—in playing both offense and defense in an economic downturn.

mining site

Liability management opportunities for mining & metals companies during a downturn

Mining & metals companies can take advantage of low prices in the leveraged finance markets to manage their liabilities amid the expected recession.

mining site

How to navigate the increase in financial crime risks during a downturn

Financial crime flourishes in a downturn, and the mining & metals sector is not immune to it. The sector faces a number of industry-specific risks, and will need to react to the ensuing likely surge in enforcement activity.

sunset at the windmill farm
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