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Transition creating chances for miners

By Zheng Xin | China Daily | Updated: 2025-10-22 10:32
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An employee guides a liquefied natural gas carrier arriving at a receiving station in Shenzhen, Guangdong province, on Sept 7. [Photo/XINHUA]

The global energy transition and accelerating industrialization across emerging economies, especially China, are propelling critical resources into a period of sustained structural deficit, creating significant opportunities for global metals and mining companies like Eurasian Resources Group, said a top executive.

Shukhrat Ibragimov, CEO of ERG, highlighted China's robust demand for critical resources, such as copper, aluminum, chrome and green steel, and forecasted continuous growth for these resources, partly fueled by infrastructure stimulus measures.

"China may put more efforts to support domestic demand as part of its five-year plan, including in steel-intensive infrastructure and construction sectors," Ibragimov said.

"In the coming years, demand for copper, aluminum, chrome, and green steel is also expected to see moderate-to-high growth rates, as the energy transition accelerates and industrialization gains pace across China amid other emerging economies."

To capitalize on this rising demand, Ibragimov said the company will continue to strengthen its production lines, maximize capacity utilization and optimize costs at a systemic level.

He also emphasized the company's commitment to moving to mid and downstream and expanding into higher value-added segments to enhance value creation.

Analysts believe China's ambitious infrastructure initiatives, combined with its growing appetite for high-grade metals, position the country as an appealing market for global mining companies seeking dependable, long-term revenue streams.

This strong domestic demand underpins a significant opportunity for international players, said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

With increasing emphasis on green technologies, the nation's drive for electric vehicles and renewable energy will significantly boost demand for critical minerals essential for battery production, such as lithium and cobalt, he said.

"China has a robust demand for a range of commodities, including iron ore, copper, and lithium," he said, attributing this to its rapid industrialization and urbanization.

China's consistent commitment to open trade policies instills greater confidence in companies looking to make substantial investments in the country, he added.

According to Ibragimov, copper, widely regarded as a bellwether for economic health, is forecast to grow at a compound annual growth rate of 2.4 percent over the longer term (2025-30).

"This growth will be underpinned by rapid industrialization and continued demand from China, as well as from South and Southeast Asia," he said.

Ibragimov said China is strategically pivoting toward domestic consumption as a key growth driver.

The government has amplified stimulus measures, including "trade-in programs", and declared "boosting consumption and domestic household spending" as the top policy priority in its 2025 Government Work Report, he said.

This domestic consumption push is already yielding results. China's automotive market recorded an 11 percent year-on-year growth in both production and sales in the second quarter. Continued policy support aimed at stimulating car consumption has enhanced market quality, encouraged new product launches, and boosted consumer confidence.

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