But now their penitence is over.
Across the mining world, the appetite for large, transformational mergers and acquisitions has returned, based on multiple conversations with executives at large producers and bankers who advise them. The industry is flush with cash after last year’s record profits, while boards and managers believe they have the support of key investors after promising to avoid the reckless overspending of the last cycle.
No. 1 producer BHP Group is interested in even bigger deals after announcing a $6.4 billion copper purchase last month. Rival Rio Tinto Group is actively looking for lithium acquisitions. Mining and trading giant Glencore Plc is focused on “strategic” opportunities that build on existing connections, its chief executive said last month, while Saudi Arabia’s state mining company last week announced a new venture to invest in overseas assets.
The mining sector is also in the middle of its…
