China to spend US$2.3 trillion on infrastructure

This week Chinese president Xi Jinping pledged to spur economic growth inside China by going “all-out” on infrastructure spending on everything from railroads and waterways all the way down to cloud computing facilities.

This comes on top of the already planned local government investments of at least 14.8 trillion yuan (A$3.1 trillion) in major projects in 2022.

Long time readers will know that the upcoming commodity super cycle is one of the main macro investment thematics we have built our portfolio around over the last 24 months. We expect commodity prices to move significantly higher and as a result demand for new discoveries to increase.

We have already seen the start of this with commodities including copper and lithium reaching all time highs this year.

But we believe that the bigger exponential move higher in commodity markets is not done yet. With major spending commitments from the US, China and the EU, we expect the demand for commodities to remain strong over the medium term.

Coupled with the need to invest in infrastructure that will aid the electrification revolution, we think that the demand for new discoveries will only become stronger.

This is why we continue to hold a wide basket of exploration Investments all along the risk curve, from very early stage all the way up to companies with development ready projects.

To view all of our investments in the mining sector, check out our commodities portfolio by clicking the image below.