BUSINESS

Miners Live or Die by Cost Competitiveness, DBS Executive Says

Published: Dec. 9, 2025 6:25 p.m. GMT+8

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Adrian Chai. Photo: DBS

For mining companies navigating the natural boom-and-bust cycle of the commodities market, one critical measure of survival is cost competitiveness, said a senior executive at DBS.

This key metric will determine how well a mine or other project weathers any inevitable downturn in the market, said Adrian Chai, a managing director and group head of Global Industries, Institutional Banking Group at DBS Group Holdings Ltd.

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Cost competitiveness is essential for mining projects to withstand commodity market volatility, with projects in the top 50% of the cost curve less vulnerable to downturns.
Minerals vital for EVs (nickel, cobalt, lithium) face price volatility due to supply outpacing demand, while copper and aluminum are seeing significant recent investments.
Gold mining remains attractive to investors amid geopolitical uncertainties; Chinese gold miners like Zijin, Chifeng, and Shandong are expanding listings in Hong Kong.

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Who’s Who

DBS Group Holdings Ltd.: DBS Group Holdings Ltd., a prominent financial institution, plays a significant role in the Asia-Pacific mining sector, particularly in Indonesia and Australia. The company's executive, Adrian Chai, emphasizes cost competitiveness and long-term demand sustainability when evaluating mining projects. DBS Bank also supported PT Halmahera Persada Lygend with a $625 million project financing structure in 2021.

DBS Bank: DBS Bank is a significant player in the Asia-Pacific mining sector, particularly in Indonesia and Australia. They assess mining projects based on long-term demand sustainability and production costs, favoring those in the top 50% of the cost curve. DBS also provided financing for Indonesia's first high-pressure acid leach plant for nickel and cobalt extraction.

PT Halmahera Persada Lygend: PT Halmahera Persada Lygend is an Indonesian subsidiary of the Chinese firm Lygend Resources & Technology Co. Ltd. In 2021, DBS Bank provided a $625 million project financing structure for PT Halmahera Persada Lygend to support the development of Indonesia's first high-pressure acid leach plant. This plant utilizes technology for the extraction of nickel and cobalt.

Lygend Resources & Technology Co. Ltd.: Lygend Resources & Technology Co. Ltd. (洛阳钼业股份有限公司) is a Chinese firm whose Indonesian subsidiary, PT Halmahera Persada Lygend, received a $625 million project financing structure from DBS in 2021. This funding supports Indonesia's first high-pressure acid leach plant, which extracts nickel and cobalt.

Zijin Mining Group Co.Ltd.: Zijin Mining Group Co., Ltd. recently spun off its overseas gold mining business. This part of their operations was then listed, indicating a strategic move to potentially unlock value or streamline their business segments.

Chifeng Jilong Gold Mining Co.Ltd.: Chifeng Jilong Gold Mining Co.Ltd. (600988.SH) is a Chinese gold mining company that recently completed a secondary listing in Hong Kong. This move highlights the favorable capital market conditions for gold miners amid global uncertainties.

Shandong Gold Mining Co.Ltd.: Shandong Gold Mining Co.Ltd. is mentioned as preparing for a Hong Kong listing. This move suggests the company is looking to tap into equity markets amidst sectoral volatility, as gold miners are currently seen as a bright spot for investors. The company's stock is traded under the ticker 600547.SH.

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