EY has released the 21st edition of the Global Capital Confidence Barometer, and the report indicates that 63% of mining and metals executives anticipate that the economy will have a positive impact on the sector in 2020.
Strong earnings growth, combined with stronger balance sheets and reduced debt, supports their positive outlook for 2020, EY reports, although 45% of the executives expect an economic slowdown by 2021.
Despite concerns on environment-related policies and political uncertainty, demand for mineral growth from decarbonization will be a key growth driver for the mining and metals sector, the report reads.
Despite concerns on environment-related policies and political uncertainty, demand for mineral growth from decarbonization will be a key growth driver
EY says the interconnected nature of the modern global economy presents many downside risks that mining executives are constantly monitoring, and that US trade protection measures have disrupted trade and M&A activity in the metals sector.
16% of the report respondents cite the focus on climate-change-related policies or reducing carbon footprints as a key barrier to growth.
Mining companies have a significant role to play in reducing emissions, and key mining players have already introduced actionable targets, EY says, noting that miners also plan to increase production as they look to tap into demand for lithium, cobalt and nickel.
Read the full report here.