Giant Miners to See Record Profits Slip on Cost Pressures
- Top resources companies have faced headwinds in second half
- Slowing China growth, labor shortages loom as industry threats
Workers walk through a tunnel at a copper-gold mine in Khanbogd, the South Gobi desert, Mongolia.
Photographer: Taylor Weidman/BloombergThis article is for subscribers only.
Investors in the world’s biggest mining companies will this month be watching for signs that mounting cost pressures and the impacts of slowing Chinese growth could further erode record earnings.
Miners are likely to report a drop in profits. The top-five western diversified mining companies, including iron-ore giants Rio Tinto Group, Vale SA and BHP Group Ltd., may see combined 2021 second-half earnings of $73 billion, according to analysts’ estimates, compared to $82 billion in the first half.