Sustainability, supply chain and geopolitical issues are making Australia an even more attractive proposition for investment in the mining and resources sector according to financial experts and investors who look forward to discussing the impact of these interwoven challenges at the International Mining and Resources Conference (IMARC) in Sydney this November.
A major focus for investors right now is the mass-decarbonisation across the entire mining value chain, but global hurdles are slowing efforts and putting an emphasis back on cost-effective, quickly sourced energy forms to help nations struggling with power generation.
CEO and Director of Queen’s Road Capital Investment, Warren Gilman, says “There’s no question that there’s a global trend towards decarbonisation but necessity often trumps trends like this and we’re seeing a short-term necessity for the re-investment in carbon-based energy forms around the world to fill what is hopefully a short-term requirement.”
A major reason for that requirement is Russia’s invasion of Ukraine, which is disrupting energy sources within Europe and beyond, with a flow-on effect reaching around the world.
Blayney Morgan, an energy & resources specialist and Partner at SW Accountants and Advisors and says “Russia is of course a significant exporter of coal, but also an importer – mostly from Ukraine. When you stop the imports, and you stop the exports, the entire market gets affected.”
The impact of Russia’s actions has also highlighted the global susceptibility of relying on foreign resources which is forcing many countries to rethink the role of globalisation within their own economy. However, while domestic self-sufficiencies might seem like an attractive proposition, it is not necessarily an achievable prospect.
Mr Gilman says “there’s certainly a much greater awareness of the idea of the security of supply chains and domestic production due to the impacts of COVID, the invasion of Ukraine and the polarization of global politics generally. Countries have realised that you are putting your populace at heightened risk by not having a domestic supply chain and a domestic source of inputs, so there’s an increased realisation of that risk.
“But the incentive is just not there to prioritise domestic resource security and governments have had other priorities. They’ve been all about efficiency and cost reduction, not about security, so I’m not sure that’s going to change.”
And until domestic supply chains do become more of a priority in places like the United States, Australia is providing the best investment opportunity as a reliable, increasingly sustainable market with incredible opportunity for growth.
“Australia is top of the heap. It’s in a wonderful, wonderful position. Along with Canada the two countries are the best to invest in when it comes to mining,” says Mr. Gilman.
“There’s a rich history of mining, a significant part of the population that makes its living from mining and a mentality that responsible mining creates wealth and opportunity with minimal damage. As long as you’ve got that mindset, you’ve got an opportunity to develop those resources.”
Blayney Morgan agrees, saying “my personal view is that Australia is such an easy place to do business. You see it in project valuations, with the lower cost of capital. That’s because Australia has good infrastructure, the right legal system, well trained people and it is the lucky country – because we have less development across our outback areas – which gives us the opportunity to find great deposits.”
IMARC is a forum where these rich investment opportunities can be explored with mining heavyweights and exciting newcomers to the industry.
“A key role of IMARC is to highlight challenges facing the sector, locally and globally, and provide a positive and productive forum where people can talk about them. Discussions started at IMARC often lead to positive solutions!” says Mr. Morgan.
IMARC has a dedicated three-day stream covering investment and financial issues facing the sector with over 120 mining companies exhibiting on the expo floor in the mining and investment hub.
A crucial event for any industry investor, IMARC is the only forum of its kind that uses enhanced and incredibly accurate networking technology to match delegates, allowing them to pinpoint new business and investment opportunities and start important conversations. Investors can attend the event for free by visiting imarcglobal.com
The International Mining and Resources Conference (IMARC) is where global mining leaders connect with technology, finance, and the future. As Australia’s largest mining event, it brings together over 7,500 decision makers, mining leaders, policy makers, investors, commodity buyers, technical experts, innovators, and educators from more than 100 countries for three days of learning, deal-making and unparalleled networking. IMARC is developed in collaboration with its founding partners the Victorian State Government of Australia, Austmine, the Australasian Institute of Mining and Metallurgy (AusIMM) and Mines and Money.
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