Theme of the Day: Blackrock’s Evy Hambro on the importance of mining

Resourcing Tomorrow's annual fireside chat with Evy Hambro, one of the world's largest mining investors from BlackRock was as always measured and illuminating. As a senior leader at BlackRock, the world’s largest asset management firm, Hambro has built a distinguished career shaping how investors view commodities, sustainability, and the role of raw materials in the modern economy. His work extends far beyond fund management — it reflects a deep understanding of economic cycles, environmental transitions, and the global demand for essential materials. Hambro co-manages several notable funds, including the BlackRock World Mining Trust and the BlackRock Gold & General Fund, both of which are among the most respected vehicles for investors seeking exposure to mining and resource equities.Some takeaways:The world’s shift towards cleaner energy cannot happen without mining. Wind turbines, solar panels, and electric vehicle batteries all require vast quantities of metals and minerals. Therefore, supporting sustainable mining practices is essential not only for economic progress but also for global decarbonisation goals.Investor reticence towards mining risks starving the sector of capital and stymying the energy transition by creating shortages of metals vital for green technologies. “If people don’t give this sector a chance, then the energy transition is going to be impeded by the scarcity of materials to build everything required,” he said. He argues that his specialist sector is becoming less cyclical, amid structural demand for resources created by the energy transition.The copper price still isn’t high enough to incentivise the cost of building the massive new capital intensive mega projects in the pipeline.During the last cycle the massive capital investments and their demand for people and equipment created significant cost inflation in the mining sector, we aren’t quite there yet but it is on the horizon.New supercycle or tactical rotation? Blackrock is seeing significant moves away from treasuries to assets with purchasing power protection like from currencies and into real assets like mining.On whether governments entering the sector looking for supply chain protection is a good thing given they are historically bad allocators of capital? Evy was pragmatic. De-risking national security is actually more important than price, the west has finally realised how fragile supply chains are. The digital age needs a steady supply of materials for companies to remain competitive. The weaponisation of supply chains is an existential threat to economies and national security, and fundamentally that is more important than mispricing. Can governments afford to pay more? If you are the US even paying double is a rounding error, especially compared to cost and value of being able to provide reliable power. But that is harder for countries like the UK that don’t have the same balance sheet.The biggest threat to mining in the developed world is how stuck mines are in red tape and bureaucracy.What seasoned investors in mining look for has not changed, good geology, good assets, good boards and balance sheets and non-negotiable: capital discipline.