How the decarbonization megatrend is disrupting mining investment – by Editor ( – September 29, 2021)

The mining and metals sector will see sweeping changes from the transition to a low carbon economy out to 2030, says market analyst Fitch Solutions in its latest industry report.

Some of these changes have already begun and will be accelerated in 2021 and beyond as government policy becomes increasingly stringent and investors’ pressure on ESG credentials rises. The transition will require large investments to reduce miners’ emissions and to increase exposure to new growth markets, Fitch points out.

“It will also disrupt industry trends for almost all sub-sectors, dooming the coal industry, reviving copper and green steel, and prompting the emergence of new sectors including lithium. As such, it poses key risks and opportunities to the entire mining and metals sector.”

The decarbonisation megatrend will bring risks to the sector, as it will require large investment to adapt processes and reduce emissions. It will also disrupt businesses linked to the commodities in decline, which include coal in particular, along with low-quality iron ore, steel and zinc, says Fitch.

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