Miners in a Squeeze: Elements by Clara Ferreira Marques
Higher costs and volatile politics are discouraging investments in new projects.
Work at the Gudai-Darri mine operated by Rio Tinto Group in Western Australia.
Photographer: Carla Gottgens/BloombergHello, this is Clara Ferreira Marques with today’s edition of Elements, Bloomberg’s new energy and commodities newsletter. We bring you a daily mix of commentary from Bloomberg Opinion writers and the best of our market-leading news coverage. We hope you’re enjoying it, and if you haven’t yet signed up to get it direct into your inbox, you can do that here.
After a run of shiny profits on the back of surging prices, big miners look a little tarnished, with Rio Tinto Group and others signaling an end to record returns. Payouts are still healthy by historical standards, but the prospect of a global downturn is clouding horizons, and the leitmotif of this earnings season has been the rising price of everything from explosives to freight to contractors’ wages. Investors are sounding gloomy.