The growing threat of supply deficits is acting as an incentive for miners to increase the share of critical mineral projects in their asset portfolio, Fitch noted.
Fitch analysts noted a significant uptick in M&A activity within the mining industry in recent years, starting in 2020 and accelerating throughout 2021-2022.
In 2023, deal activity remained robust, approaching the highest level seen in the last decade in terms of total deal value, Fitch said, adding that the number of deals remained relatively unchanged from 2022, indicating that individual deals were of higher value in 2023 than in 2022.
“In the coming years, we expect mining and metals M&A activity to remain strong, in terms of both value and count, as miners continue seeking new growth opportunities within a challenging environment for the development of new projects,” Fitch said.
Much of the strong M&A activity in 2022-2023 was centered around critical…
