The Asian mining landscape will continue to benefit from the availability of high-grade resources and low labour costs, but key countries with grapple with Policy uncertainty, resource nationalism and environmental protection, Fitch Solutions analysts warn.
In a recent overview of key mining themes in Asia, Fitch predicts rising geopolitical tensions and pressures to the global economy will continue to evoke volatility in commodity markets, heightening risks to metal demand and prices.
In 2020, Fitch expects risks to the Chinese economy will continue to rise, with no easy resolution to the trade dispute with the US on the horizon, which will prompt further monetary and fiscal stimulus from the government to cushion the downside pressure on growth.
Analysts say this will buoy domestic metals demand and prevent any metal price collapse, which will in turn support mining sectors in the region. But Fitch notes that a slowdown in the automotive industry in China, poor relations with the US, and environmental regulations continue to pose risks.
In Asia as well as globally, Australian miners who benefit from supportive government regulations and advanced infrastructure will spearhead the disruptive technology movement in mining.
For the rest of this article: https://www.mining.com/policy-uncertainty-resource-nationalism-and-environmental-protection-key-themes-for-asia-mining/