MINEX Forum

Region: Europe

  • Poland proposes ban on Russian diamonds, LPG in new sanctions package

    Poland proposes ban on Russian diamonds, LPG in new sanctions package

    In a proposal brought forth on Monday, Poland has put forth suggestions for new European Union sanctions against Russia in light of its invasion of Ukraine. The proposal, obtained by Reuters, advocates for a ban on Russian diamonds and Liquid Petroleum Gas as part of the sanctions. Additionally, Poland calls for aligning the sanctions against Belarus with those against Moscow.

    According to the proposal, Poland recommends prohibiting the importation of Russian diamonds, which accounted for a substantial $4.5 billion in revenue for the Russian budget in 2021. The document further suggests implementing individual sanctions specifically targeting the Russian diamond company, Alrosa (ALRS.MM). The Polish paper highlights that Alrosa has been providing support to the Russian military forces and facilitating their engagement in the war in Ukraine, both directly and indirectly, over an extended period.

    The proposal also emphasizes the need for the European Union to expand the scope of sanctions beyond diamonds and Liquid Petroleum Gas. Poland suggests that the EU should impose a ban on Information and Communication Technology (ICT) services provided to entities from Russia. This would encompass computer software, cybersecurity services, and other ICT/IT services. By restricting these services, the EU would exert additional pressure on Russia and send a clear message regarding its actions.

    It is worth noting that the European Union has already implemented eleven sanctions packages against Russia since the invasion of Ukraine in February 2022. The proposal from Poland seeks to further strengthen these measures and ensure a coordinated approach in dealing with both Russia and Belarus.

    As discussions continue within the European Union, the outcome of this proposal remains to be seen. However, the proactive stance taken by Poland underscores the commitment of member states to address the ongoing crisis and hold those responsible accountable for their actions.

  • Statement by Savannah Resources Plc Regarding Barroso Lithium Project Sale Speculation

    Statement by Savannah Resources Plc Regarding Barroso Lithium Project Sale Speculation

    Savannah Resources Plc, the esteemed European lithium development company (AIM: SAV, FWB: SAV, SWB: SAV), feels compelled to address recent media speculation concerning its operations. The company would like to clarify that it is not currently engaged in any sale process pertaining to the Barroso Lithium Project or the company itself. Any assertions in the press suggesting an imminent sale are baseless and misleading.

    As previously disclosed in Savannah’s announcement on 6 September 2023, the Barroso Lithium Project has garnered significant commercial interest over the years. Moreover, with the endorsement of the DIA (Environmental Impact Assessment) and the successful completion of a positive Scoping Study, the project has attracted even greater attention from various stakeholders across the lithium value chain. Savannah has received numerous inquiries from interested parties and is currently undertaking a diligent and systematic approach to shortlisting potential strategic partners for the project. The company’s primary focus is on identifying partners who can contribute to the project’s financing and bring complementary expertise or additional opportunities to a long-term collaborative alliance with Savannah. Towards the end of the year, the company anticipates providing an update on the commercial arrangements surrounding the Barroso Lithium Project.

    Savannah Resources Plc wishes to emphasize that it will make further announcements as and when appropriate, ensuring transparency and clarity in its communications. The company remains committed to advancing the Barroso Lithium Project and looks forward to forging fruitful partnerships that will contribute to its success.

  • Adriatic Metals to start output at Bosnia silver mine in November

    Adriatic Metals to start output at Bosnia silver mine in November

    Adriatic Metals, a distinguished mineral exploration company based in Britain, is poised to make a momentous mark on the mining industry. In an interview on Monday, CEO Paul Cronin revealed that the Vares Silver Project, located in central Bosnia, is set to commence production in November. This groundbreaking endeavor will be the first mine to open in Europe in over a decade, signifying a remarkable milestone for the region.

    The mine is projected to yield approximately 800,000 tons of polymetallic ore annually. Through a comprehensive six-year exploration process and a notable investment of $200 million, the operation aims to extract around 65,000 tons of lead-silver concentrate and 90,000 tons of zinc concentrate. These valuable resources are expected to significantly contribute to the project’s output.

    The economic implications of this enterprise are momentous, particularly for the Balkan country, which has long grappled with economic challenges. The annual ore exports, estimated at around 800 million Bosnian marka ($436 million), are poised to make a substantial impact on the country’s economy, offering a much-needed boost to its financial landscape.

    Adriatic Metals’ commitment to responsible mineral exploration, combined with their strategic investment in the Vares Silver Project, demonstrates their dedication to sustainable economic growth. By harnessing the potential of the region’s mineral resources, they are paving the way for progress and prosperity, not only for the company but also for the local community and the wider European mining industry as a whole.

  • IRA, EGD and now the EU move on China EVs – governments are showering mining with money

    IRA, EGD and now the EU move on China EVs – governments are showering mining with money

    In her annual address to the European parliament, President Ursula von der Leyen announced that the European Union will initiate an anti-subsidy investigation into Chinese electric vehicles. She expressed concern over the flood of cheaper Chinese electric cars in global markets, which are sustained by substantial state subsidies, leading to market distortion. Von der Leyen specifically highlighted the predicament faced by European car manufacturers who are often undercut by competitors benefiting from these subsidies. Given the high stakes and the challenging outlook, particularly for German mass market automakers like Volkswagen, it seems inevitable that measures such as tariffs or restrictions on Chinese carmakers’ access to Europe will be imposed.

    Although European carmakers already have successful joint ventures in China and ownership restrictions for foreign carmakers have been lifted, it remains unclear how China could further open up its market to the EU. The concerns raised by the European Commission regarding Chinese electric vehicles are justified, as China’s growing success in the European car market may be attributed to predatory practices and significant investments from Beijing into its industrial champions. However, the response from the EU, represented by the Inflation Reduction Act (IRA) and the European Green Deal (EGD), may be perceived as delayed, considering China’s rapid dominance in the global electric vehicle supply chain over the past decade.

    China has already captured a fifth of Europe’s electric vehicle market, which raises concerns within Europe. Data from Adamas Intelligence reveals that in the first half of 2023, 19% of all gigawatt-hours delivered to electric vehicle buyers in Europe originated from China-made electric vehicles and battery packs. The absolute amount of battery power exported from China to Europe has grown by more than 51% this year, totaling 14 gigawatt-hours. Chinese automakers showcased their products at the recent Munich auto expo, impressing even the most fervent European car enthusiasts.

    The potential response from the European Commission, which may lead to higher electric vehicle prices and reduced variety, may not be well-received by European car buyers. Notably, the best-selling Chinese electric car, the BYD Song Plus DM-i plug-in hybrid, offers advanced features and an impressive range at an affordable price. With a range of 1,000 km, including 150 km in fully electric mode, it is available in China for just $27,000. The availability of such vehicles, along with their cutting-edge technology, presents a tempting proposition for European consumers.

    It is worth noting that the majority of Chinese electric vehicle exports to Europe this year consisted of non-Chinese brands, including vehicles manufactured by BMW and Dacia in China. However, the presence of a significant number of Teslas among these shipments further complicates the situation, as imposing tariffs on the American electric car pioneer may not be well-received by Washington.

    In terms of battery metals, China’s dominance in the EV supply chain has led to the export of significant quantities of lithium, graphite, nickel, manganese, and cobalt to Europe. These materials are essential for battery production. The EU-China electric vehicle dispute is likely to disrupt the flow of battery materials from China to Europe. China’s position in the supply chain gives it influence over battery metal prices, acting as a monopsony in certain raw material markets. This development brings miners closer to their long-held dream of commanding a premium for their products in Western markets with stricter environmental, social, and governance regulations. Von der Leyen’s remarks about artificially low prices further highlight this reality.

  • In the realm of the United Kingdom, the suspension of the liquidation process for Ganberg and Gexior companies has transpired

    In the realm of the United Kingdom, the suspension of the liquidation process for Ganberg and Gexior companies has transpired

    In terms of the project’s ownership, the state has consistently retained its stake as a “stable entity,” with a controlling interest of 51% held by “Kazatomprom.” However, the remaining portion of the company, SGHK, has experienced a change in ownership.

    The establishment of TOO “SP Budenovskoye” in 2015 marked its primary objective of exploring and extracting uranium from sections 6 and 7 of the Budenovskoye deposit, which currently resides in the Turkestan region. This partnership was officially registered in 2016, with two initial owners: 51% attributed to the national company “Kazatomprom” and 49% under the ownership of TOO “Stepnogorsk Mining and Chemical Plant” (SGHK).

    During the year 2016, SGHK found itself under the ownership of Singaporean enterprise Rosdale PTE Ltd, originating from the British Virgin Islands.

    In May of 2017, the government of Kazakhstan granted permission to Rosdale PTE Ltd to divest SGHK to two other legal entities. Ganberg UK Ltd acquired a majority share of 60%, while Gexior UK Ltd secured a minority share of 40%. Both of these structures were hastily formed just prior to the planned transaction on March 1, 2017, and were registered within the same jurisdiction, namely the United Kingdom. Notably, they shared a common parent structure by the name of Degevol UK Ltd, which was established a mere day before its subsidiaries, on February 28, 2017. Consequently, Vasily Anisimov and Yakov Klebanov emerged as the newfound co-owners of the uranium deposits.

    In the month of December 2022, yet another shift in ownership occurred for SGHK. This particular transaction stirred up a scandal within Kazakhstan’s information sphere, as SGHK was transferred to AO “Uranium One Group” and AO “YATC Logistic Center.” Both of these joint-stock companies are integral components of the state corporation known as “Rosatom.”

    It is worth mentioning that certain structures within “Rosatom,” such as “Rusatom Overseas,” which is responsible for promoting “Rosatom” projects beyond national borders, have been subjected to stringent Western sanctions. Furthermore, Alexey Likhachev, the head of “Rosatom,” finds himself under the weight of these sanctions as well. Given the vulnerable position of the Russian corporation, concerns have arisen within Kazakhstan.

    Currently, “Kazatomprom” holds the lion’s share in uranium extraction within Kazakhstan, accounting for 55%, while “Rosatom” holds a 21% stake as of the conclusion of 2022. With the commencement of production at SP “Budenovskoye,” it is anticipated that “Rosatom’s” share in the nation’s total production will increase by at least 10%, as stated by Abzal Narymbetov, the author of the Energy Analytics Telegram channel.

    Narymbetov further highlights that if “Rosatom” becomes the target of anti-Russian sanctions, it may prove challenging for “Kazatomprom” to market its own product. This, in Narymbetov’s view, constitutes the “main and most significant” risk arising from the change in ownership of the Budenovskoye deposit.

    Looking ahead, six months subsequent to the sale of SGHK, in June 2023, all three aforementioned companies – Ganberg UK Ltd, Gexior UK Ltd, and Degevol UK Ltd – initiated the process of deregistration, effectively dissolving themselves. However, in August, the liquidation proceedings were halted by the UK’s Companies House in response to a lodged protest.

    In an attempt to shed light on the initiator of the suspension and the rationale behind it, “Kursiv” reached out to Companies House. Regrettably, the registrar’s press service declined to provide any commentary on matters pertaining to specific companies, deeming such information to be confidential.

    The editorial team of “Kursiv” also made inquiries to Vasily Anisimov and Yakov Klebanov (via their respective companies based in Russian and Kazakhstani jurisdictions) regarding the fate of Ganberg UK Ltd, Gexior UK Ltd, and Degevol UK Ltd. However, no responses were received at the time of reporting.

    According to the information available on the Companies House website, there exists a multitude of reasons for filing objections, although an exhaustive list of these grounds is not provided.

    Oleg Degtyarev, the director of the esteemed British law firm Law Firm Ltd., elucidated on the matter, stating that “Examples of reasons for objecting to the removal of a company from the register include not being notified of the company’s decision, believing that the information in the company’s application is inaccurate, and intending to take legal action against the company. You must have evidence supporting your objection, such as invoices or bills showing that the company owes you money.”

    In the month of December 2022, yet another shift in ownership occurred for SGHK. This particular transaction stirred up a scandal within Kazakhstan’s information sphere, as SGHK was transferred to AO “Uranium One Group” and AO “YATC Logistic Center.” Both of these joint-stock companies are integral components of the state corporation known as “Rosatom.”

    It is worth mentioning that certain structures within “Rosatom,” such as “Rusatom Overseas,” which is responsible for promoting “Rosatom” projects beyond national borders, have been subjected to stringent Western sanctions. Furthermore, Alexey Likhachev, the head of “Rosatom,” finds himself under the weight of these sanctions as well. Given the vulnerable position of the Russian corporation, concerns have arisen within Kazakhstan.

    Currently, “Kazatomprom” holds the lion’s share in uranium extraction within Kazakhstan, accounting for 55%, while “Rosatom” holds a 21% stake as of the conclusion of 2022. With the commencement of production at SP “Budenovskoye,” it is anticipated that “Rosatom’s” share in the nation’s total production will increase by at least 10%, as stated by Abzal Narymbetov, the author of the Energy Analytics Telegram channel.

    Narymbetov further highlights that if “Rosatom” becomes the target of anti-Russian sanctions, it may prove challenging for “Kazatomprom” to market its own product. This, in Narymbetov’s view, constitutes the “main and most significant” risk arising from the change in ownership of the Budenovskoye deposit.

    Looking ahead, six months subsequent to the sale of SGHK, in June 2023, all three aforementioned companies – Ganberg UK Ltd, Gexior UK Ltd, and Degevol UK Ltd – initiated the process of deregistration, effectively dissolving themselves. However, in August, the liquidation proceedings were halted by the UK’s Companies House in response to a lodged protest.

    In an attempt to shed light on the initiator of the suspension and the rationale behind it, “Kursiv” reached out to Companies House. Regrettably, the registrar’s press service declined to provide any commentary on matters pertaining to specific companies, deeming such information to be confidential.

    The editorial team of “Kursiv” also made inquiries to Vasily Anisimov and Yakov Klebanov (via their respective companies based in Russian and Kazakhstani jurisdictions) regarding the fate of Ganberg UK Ltd, Gexior UK Ltd, and Degevol UK Ltd. However, no responses were received at the time of reporting.

    According to the information available on the Companies House website, there exists a multitude of reasons for filing objections, although an exhaustive list of these grounds is not provided.

    Oleg Degtyarev, the director of the esteemed British law firm Law Firm Ltd., elucidated on the matter, stating that “Examples of reasons for objecting to the removal of a company from the register include not being notified of the company’s decision, believing that the information in the company’s application is inaccurate, and intending to take legal action against the company. You must have evidence supporting your objection, such as invoices or bills showing that the company owes you money.”

    He noted that initiators of objections can be founders and employees of the company, as well as creditors. “This can also include British government agencies, such as HMRC (tax authority),” explained Degtyarev.

    When asked whether the suspension could be related to the sanctions status of certain structures and the head of “Rosatom,” my database does not provide specific information regarding the liquidation suspension of Ganberg and Gexior companies in the United Kingdom or their ownership of the Budenovskoye uranium deposit. It is advisable to consult reliable news sources or official statements for the latest information on this topic.

    Now that the liquidation process of the companies has been suspended, they must take steps to resolve the disputed issues before the deregistration process can resume.

    “This may involve negotiations with the objecting party, settling outstanding debts, or providing additional information to the registrar,” says Oleg Degtyarev.

    The party that raised objections also needs to be proactive. “They must confirm their actions or provide acceptable evidence of progress in resolving the unresolved issues,” the lawyer enumerates. “This evidence should be obtained at least two weeks before the expiration of the objection period.”

    The objection period has a lifespan of six months. It needs to be renewed, or else it will automatically expire.

  • Investors glimpse opportunity in Europe’s unloved mining shares

    Investors glimpse opportunity in Europe’s unloved mining shares

    The STOXX Europe 600 mining index has fallen 15% this year, making it the worst performing sector in the region by some margin, with second-placed real estate down 4.5% and the top-performing retail index up 27%. The metals and mining sector is typically used as a proxy for equity investors in Europe to gain exposure to China, given it is the world’s largest commodities consumer, and it has sunk along with China’s growth expectations.

    The world’s second-largest economy has been struggling after a brief post-Covid surge, dragged down by huge debt due to decades of infrastructure investment and a property downturn. Analysts forecast the economy will grow by just 5% this year, the slowest rate, outside of Covid years, since 1990.

    But Beijing in recent weeks has taken targeted steps towards supporting key pockets of its economy, lifting the mining sector off its 31-month lows. In the last month, the mining index has risen nearly 10% compared with a gain of just 2.5% for the wider STOXX 600.

    “China is building a wall of stimulus, but they’re doing it brick by brick,” said Nathan Sweeney, chief investment officer of multi-asset at Marlborough Investment Management.

    “At some point people will realize they have built the wall, but it just hasn’t come all at once.”

    In the last three months, China has relaxed rules around home purchases and borrowing, and cut key interest rates. There are also new tax relief measures for small businesses and private investment in some infrastructure sectors, for example.

    Sweeney says this wide range of measures could be a catalyst for an upturn in the metals and mining sector.

    The STOXX basic resources index trades at over a 20% discount to the STOXX 600. Miners trade at a 12-month forward price-to-earnings ratio of 9.8, compared to 12.3 for the market, according to LSEG Datastream.

    Shares in some of the industry heavyweights have taken a battering this year. Glencore and Boliden have dropped by more than 20%, while Anglo American has lost 30%. The pan-European STOXX 600 benchmark meanwhile, is up 7.5%.

    Copper and iron ore have fared better. Three-month copper on the London Metal Exchange is flat for the year at $8,380 a tonne, while front-month Singapore iron ore futures are up nearly 9%.

    Considering China’s heft in the commodities world – Morningstar estimates it accounts for over 50% of refined copper demand and about 70% of the seaborne iron ore trade – some of that resilience should eventually seep into mining stocks, analysts said.

    “Obviously, the 800-pound gorilla from a primary metal demand perspective is China,” Peter Mallin-Jones, mining analyst at UK investment bank Peel Hunt, said.

    “I’m quite positive because I can see, certainly for the base metals, fairly significant demand drivers into markets that feel relatively tight,” he said.

    Sector is key to going electric

    Specifically, Mallin-Jones points to the global energy transition, as economies begin to decarbonize, which could bring a huge increase in demand from fast-growing nations such as India, Indonesia, Malaysia and Nigeria.

    Copper is the backbone of the electric and electronic industries and is essential in upgrading power grids, building solar farms, wind turbines and electric vehicles.

    The United States and China are expected to add record amounts of solar production capacity this year, with a projected extra 32 gigawatts and between 95 and 120 gigawatts, respectively.

    “That’s an enormous number and is a huge support for demand for copper and to an extent aluminium,” UBS metals and mining analyst Daniel Major said.

    Major does not believe stimulus in China will lead to the kind of explosion in commodities demand seen after 2008, when the country bounced back from the global financial crisis.

    We see measures limiting downside and creating stabilisation in aggregate commodities demand but not driving a very strong rebound,” he said, adding that he expects the demand outlook for iron ore to deteriorate alongside a slower global economy while the likes of copper and aluminium will likely benefit from the renewables boom.

    Accordingly, UBS has ‘sell’ ratings on diversified miners Rio Tinto and BHP Group and Major prefers companies with more direct exposure to copper.

    Antofagasta, Europe’s largest pure-play copper miner by market cap, Poland’s KGHM and copper recycler Aurubis are all down less than 12% this year, and have all relatively outperformed diversified miners Glencore, Rio Tinto and Anglo American, which have fallen between 14%-35%.

    “The reality is the sector now looks attractive and a lot of bad news is in the price,” Marlborough Investment Management’s Sweeney said.

  • Ukraine: first batch of uranium shipped to Canada

    Ukraine: first batch of uranium shipped to Canada

    Ukraine has shipped its first batch of uranium to Canada under an agreement signed between Energoatom and Cameco. The agreement presupposes the supply of all uranium extracted by Vostochniy Mining and Processing Works to Canada and its further conversion into natural uranium hexafluoride (UF6). Such a process is necessary to prepare uranium for its further…

  • G7 to announce Russian diamonds ban in 2-3 weeks

    G7 to announce Russian diamonds ban in 2-3 weeks

    The embargo, proposed by Belgium where the city of Antwerp is the world’s No. 1 one diamond trading hub, will come into effect in January, one of the government officials, who asked not to be named, told reporters in Brussels.

    If the ban on the multi-million dollar trade is announced as anticipated, this would lead to a split in the global diamond market as the G7 accounts for close to 40% of this market.

    “We’re talking about restructuring a global market” the official said, acknowledging that the system will not work perfectly right away and the G7 was still evaluating Belgium’s proposed plan.

    “Russia is the biggest supplier globally. With this system, we are cutting them out, leaving them in an inferior market with lower prices. We are slashing the financial flows from this sector.”

    Efforts to reduce Russia’s revenue from diamond exports and build on Washington’s existing sanctions on Russia’s Alrosa ALRS.MM, the world’s largest producer, have been under discussion among leaders of the G7 since last year.

    The EU bought 1.4 billion euros ($1.5 billion) worth of Russian diamonds last year, according to Eurostat, as it banned neither the gem imports nor blacklisted Alrosa.

    The EU has previously floated a ban of its own but Belgium was concerned that this would divert trading to other centres and away from Antwerp. Further, the EU on its own only accounts for 15% of the global market

  • Norway should call off deep sea mining plans, key ally says

    Norway should call off deep sea mining plans, key ally says

    Norway’s minority government should withdraw its proposal to open a vast Arctic offshore area to deep sea mining and call at least a ten-year moratorium on the activity, its key backer in parliament, said.

    Norway could become the first nation to make deep sea mining happen on a commercial scale if the country’s parliament approves a plan to open ocean an area larger than the United Kingdom to the new industry. The mining could provide a source for such metals as copper and rare earth elements for the transition away from fossil fuels.

  • Investors glimpse opportunity in Europe’s unloved mining shares

    Investors glimpse opportunity in Europe’s unloved mining shares

    Investors are beginning to recognize the potential in European mining shares as China’s gradual economic stimulus paves the way for a recovery in this overlooked sector. The STOXX Europe 600 mining index has experienced a decline of 15% this year, making it the worst-performing sector in the region. In comparison, the real estate sector has seen a 4.5% drop, while the retail index has shown a remarkable 27% increase.

    The metals and mining sector is often seen as a means for European equity investors to gain exposure to China, given its status as the world’s largest consumer of commodities. Consequently, as China’s growth expectations have declined, so too has the sector. The second-largest economy has faced challenges due to significant debt resulting from decades of infrastructure investments and a slowdown in the property market. Analysts predict that China’s economy will only grow by 5% this year, marking the slowest rate since 1990, excluding the years affected by the COVID-19 pandemic.

    However, in recent weeks, Beijing has implemented targeted measures to support key sectors of its economy, resulting in an upturn for the mining sector, which had reached its lowest point in 31 months. Over the past month, the mining index has risen by nearly 10%, while the broader STOXX 600 has only experienced a 2.5% gain.

    Nathan Sweeney, Chief Investment Officer of Multi-Asset at Marlborough Investment Management, describes China’s stimulus efforts as a gradual process, likening it to the construction of a wall, brick by brick. Eventually, people will realize that the wall has been built, even if it hasn’t been erected all at once.

    China has recently relaxed regulations surrounding home purchases and borrowing, as well as reduced key interest rates. Additionally, there are new tax relief measures for small businesses and private investments in certain infrastructure sectors. Sweeney believes that this diverse range of measures could serve as a catalyst for a turnaround in the metals and mining sector.

    The STOXX basic resources index currently trades at a discount of over 20% compared to the STOXX 600. Miners have a 12-month forward price-to-earnings ratio of 9.8, while the market ratio stands at 12.3, according to LSEG Datastream.

    This year, the shares of industry giants such as Glencore and Boliden have experienced significant declines of over 20%, while Anglo American has seen a 30% drop. In contrast, the pan-European STOXX 600 benchmark has risen by 7.5%.

    Copper and iron ore have fared better, with three-month copper on the London Metal Exchange remaining flat at $8,380 per tonne, and front-month Singapore iron ore futures showing an almost 9% increase.

    Considering China’s substantial influence in the commodities market, analysts expect some of the resilience in copper and iron ore demand to eventually translate into mining stocks. Morningstar estimates that China accounts for over 50% of refined copper demand and approximately 70% of the seaborne iron ore trade.

    Peter Mallin-Jones, a mining analyst at UK investment bank Peel Hunt, highlights the global energy transition as a significant factor that could drive increased demand for base metals. As economies move towards decarbonization, fast-growing nations like India, Indonesia, Malaysia, and Nigeria may contribute to this surge in demand. Copper, in particular, plays a crucial role in the electric and electronic industries, as well as in upgrading power grids, constructing solar farms, wind turbines, and electric vehicles.

    The United States and China are expected to add record amounts of solar production capacity this year, with an additional 32 gigawatts and between 95 and 120 gigawatts, respectively. This surge in solar production will significantly support the demand for copper and, to some extent, aluminium.

    Daniel Major, a metals and mining analyst at UBS, does not anticipate the same level of commodities demand explosion as seen after the global financial crisis in 2008. While he acknowledges that measures have been taken to stabilize aggregate commodities demand, he does not anticipate a strong rebound. Major predicts that the demand outlook for iron ore will deteriorate alongside a slower global economy, while copper and aluminium are likely to benefit from the renewables boom.

    UBS has issued ‘sell’ ratings on diversified miners Rio Tinto and BHP Group. Major prefers companies with more direct exposure to copper, such as Antofagasta, Poland’s KGHM, and copper recycler Aurubis, all of which have experienced declines of less than 12% this year, relatively outperforming diversified miners like Glencore, Rio Tinto, and Anglo American, which have seen declines ranging from 14% to 35%.

    Marlborough Investment Management’s Sweeney believes that the sector now appears attractive, with much of the negative news already reflected in the price.