The Australian Securities Exchange (ASX) is solidifying its status as the world’s premier destination for mining listings, with a surge in secondary listings expected this year, according to Reuters.
Mining companies are increasingly drawn to Australia’s deep pool of pension capital, stable regulatory framework, and relative insulation from global trade tensions.
While overall listings on the ASX have declined over the past decade, the exchange is rapidly gaining market share in metals and mining at the expense of traditional rivals like the Toronto Stock Exchange (TSX) and London Stock Exchange (LSE).
The shift comes at a critical time, as the mining sector requires an estimated $100 billion in annual investments to meet growing demand for metals essential to the global energy transition.
The successful 2023 ASX listing of Canadian copper producer Capstone Copper served as a catalyst, demonstrating how Australian institutional investors can provide exit opportunities for private equity while offering exposure to new mining projects.
Key advantages driving mining listings to Australia
Australia’s appeal stems from three major factors that set it apart from other financial markets. First, the country boasts the world’s fourth-largest pension system, with a $2.58 trillion in assets under management. Unlike their Canadian and British counterparts that allocate only about 4% to domestic equities, Australian superannuation funds invest nearly a quarter (23%) of their assets in local stocks.
Second, recent mergers and acquisitions have created gaps in the market. Major deals like BHP’s A$9.6 billion acquisition of Oz Minerals in 2023 have reduced the number of mid-tier mining stocks available to investors. This scarcity has increased demand for new listings that can fill the void in institutional portfolios.
Third, Australia’s political and economic stability makes it an attractive alternative to North American exchanges amid growing geopolitical tensions. The ASX offers mining companies a reliable listing venue less exposed to US-China trade disputes and other global uncertainties.
Notable upcoming listings
Several prominent mining companies are preparing to list on the ASX in 2024. Canadian copper developer Marimaca Copper plans a secondary listing this month to fund its Chilean project. Mining magnate Robert Friedland’s African iron ore venture, Ivanhoe Atlantic, is also preparing an ASX listing. Industry sources indicate at least four Canadian miners are considering similar moves this year.
While Australia attracts foreign listings, some ASX-listed miners are expanding their presence abroad. FireFly Metals recently listed on the TSX to develop its Canadian copper-gold project. The TSX reports seven Australian companies currently listed in Toronto, compared to just two Canadian firms on the ASX in 2023.
The mining sector’s growth contrasts with the overall trend of declining listings on the ASX, which has seen a 4% reduction in listed companies over the past decade. The divergence highlights how Australia is becoming increasingly specialised as a global center for mining finance.
The trend appears sustainable, especially as major miners like BHP have already consolidated their listings in Australia (moving A$96 billion from London to Sydney in 2022), and pressure builds on Rio Tinto to follow suit.
