The co-manager of a $12 billion global mining fund says the resources sector is still “rife with investment opportunities”.
BlackRock fund manager Evy Hambro, who co-manages the company’s World Mining Fund, said while demand from China appeared to be slowing, there were still some sectors that had huge potential.
“This is a sector that is rife with investment opportunities,” he said.
Hambro also said while China’s growth had levelled off, its development was still strong and its expansion would spur parts of the mining industry, according to The Australian.
“Many people forget the scale of Chinese demand today – it is a much larger economy than it was only a few years ago,” he said.
Hambro said miners and investors needed to become “pickier about their investments” but it was possible to see demand for some minerals rising sharply.
He said low cost iron ore and copper miners were well placed for the future while aluminium, zinc, and nickel producers would continue to face challenges.
He also said the challenges that had already plagued mining companies, including inflation, industrial action, and production records, would continue to be a problem in the future.