Mining poised to lead in the post pandemic recovery

August 3, 2020

The global lockdown and economic halt due to COVID19 has had a positive impact on the environment. Daily emissions of carbon dioxide levels in comparison to 2019 levels dropped by 17% in April this year.

We start August with many countries around the world still in some form of lockdown and this has only further reduced the level of carbon dioxide emissions.

Many innovators and researchers are pursuing a return to a pre-pandemic level of productivity while ensuring the positive affects on the earth’s ozone layer is not reversed as the global population slowly returns to normal.

There is an urgent need to come up with better solutions that cross between conventional energy and renewable energy. Energy and sustainability go hand in hand. The materials needed to develop new technologies still has a long way to go and have not been exploited in full.

It is for this reason, I pick the mining sector as the one that will buck the trend and lead us in the recovery phase of the market.

Renewable energy, batteries and technology are interlinked with mining operations. They cannot exist without the other.

Mines need to adopt green energy to reduce operational costs and this opens the door to creating more employment opportunities.

Renewable energy is not a buzz word anymore. It’s ethical and is gaining strong lobbying support and being adopted around the world. Although a more balanced approach is needed, as people, even with the right intentions, could effectively set us back decades.

Renewable energy, modern batteries and environmental vehicles require a unique mix of metals. These metals are copper, cobalt, iron, nickel, lithium, rare earths and silver.

Many of these materials are mined in Australia. In fact, name a metal and we can probably dig a hole somewhere in WA and SA and find it.

China has spent vast amounts of money on renewable energy and they are trying to reverse the process of climate change and make their economy more durable. They are doing this by adopting and leading the charge in the green energy sector, to have an economy and energy system that will thrive in the future.

What does China need from Australia?

Minerals and metals. For all the political posturing and sabre rattling, a country of China’s size cannot grow without the means to feed its growing economy.

They’re building to restart the economy, by introducing large infrastructure projects and upgrades. Their investment into Green energy needs Australia’s raw material.

There are other countries in the world that could supply China, take Brazil as an example. However, they do not have the ability to provide the quality and quantity on a consistent basis to China.

The advantage for Australia is that China is not the only country to shift their focus to green energy, there are a lot of countries around the globe that will need the minerals and metals that Australia exports.

A lot of countries around the globe are kick starting their economy by spending on large infrastructure projects to boost flagging unemployment rates.

With all of the above considered, the mining sector ticks the boxes to buck the trend and lead the recovery in the post pandemic world.

Members can check our folio for the in-depth analysis on our mining company share holdings.

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