<div id="readability-page-1">Geopolitical tensions are expected to further drive fundraising demand in the mining sector amid a commodities “supercycle”, although concerns over national security could complicate dealmaking, according to industry experts. Johnson Chui, head of global issuer services at Hong Kong Exchanges and Clearing (HKEX), said 2025 had been an inflection point. Mining and metals companies had become a key driver in the capital market as rising commodity prices, triggered by the energy transition and geopolitical tensions, lifted demand, he added. Chui cited Zijin Gold International’s US$3.7 billion spin-off in Hong Kong last year, the largest mining company initial public offering (IPO) globally since 2012. “We will see more resource firms and some international businesses coming to list [in Hong Kong] in the future,” Chui told the South China Morning Post on the sidelines of Resourcing Tomorrow Hong Kong, a mining investment conference, on Thursday. According to HKEX, the mining and metals sector raised US$5.4 billion through IPOs and US$9.5 billion through follow-on offerings last year, the highest level in more than a decade.  Hong Kong could benefit from rising demand for mining financing, said Jason Chang, a board member of the Australian Chamber of Commerce Hong Kong. He said the city, besides attracting more listings, should make use of platforms like family offices to allow companies worldwide to tap into private capital. Lu Ling, managing director of metals and mining in Asia-Pacific at Standard Chartered Bank, said the world was in a commodities “supercycle”, where geopolitics was driving mining merger and acquisition (M&amp;A) activity. In a panel session at Resourcing Tomorrow, Lu said the US was making direct investments in miners, while Gulf countries like Saudi Arabia and the United Arab Emirates were using their sovereign wealth funds to invest in critical minerals globally to secure supply chains. David Bo, an independent director at Zijin Mining, the world’s fifth-largest miner by market capitalisation, said M&amp;A would continue to play a major role in the firm’s growth strategy. Zijin, based in China’s southeastern province of Fujian, has been on a buying spree. Last month, China’s largest gold producer acquired controlling shares in China-based Chifeng Jilong Gold Mining for 18.26 billion yuan (US$2.7 billion), only two months after proposing to buy Canadian Allied Gold for 28 billion yuan as part of its global expansion. Lu warned that geopolitics also brought more uncertainties, and predicted that mega mergers would take longer to complete because of antitrust and other approvals required in multiple jurisdictions. “Geopolitics is increasingly reshaping the mining M&amp;A landscape,” Lu said. Resourcing Tomorrow panellists said in an increasingly polarised world, some countries were building walls to protect their national interests, creating headwinds for multinational deals. Canada’s National Security Review for foreign investments was one example. Joyce Lee, partner and chair of the national Asia practice at Canadian law firm McCarthy Tetrault, suggested that foreign miners could lower regulatory risks in North America by introducing multiple parties and taking minority interests in projects.</div>

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<p>Geopolitical tensions are driving fundraising in the mining sector amid a commodities 'supercycle', according to experts. Johnson Chui from HKEX noted that mining companies are becoming key players in capital markets, with significant IPOs like Zijin Gold's $3.7 billion offering. The sector raised $5.4 billion through IPOs last year, the highest in over a decade. Experts predict more listings in Hong Kong, while geopolitical factors complicate M&A activities, with countries like the US and Gulf nations investing in critical minerals. Regulatory challenges may slow down mega mergers due to national security concerns.</p>

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Hong Kong Exchanges and Clearing (HKEX)

Geopolitics to drive Hong Kong mining fundraising amid ‘supercycle’, experts say