BlackRock tops institutional investors snapping up mining shares in 2022

Institutional investors increased their net holdings in 10 of the world's biggest miners by 407.4 million shares in 2022, according to an analysis of S&P Global Market Intelligence data.

Undeterred by flat gold prices and lower prices for key base metals, investors looked past short-term volatility and toward long-term metals shortages in expanding their exposure in 2022.

BlackRock Inc., the world's largest asset manager, had the biggest net increase in holdings in the analyzed mining companies. It added 468.5 million shares worth a total of $36.83 billion across diversified miners BHP Group Ltd., Glencore PLC, Rio Tinto Group, Anglo American PLC and iron ore producer Fortescue Metals Group Ltd.

Vanguard Group Inc., the second-largest asset manager in the world, increased its net holdings in Fortescue and diversified miner Saudi Arabian Mining Co.

Duncan Burns, Vanguard's Asia-Pacific chief investment officer, said the movement in the asset manager's holdings in ASX-listed companies are "generally in line with their weightings on indices that our funds adhere to. The movement in holdings either way do not reflect any view on the investment merits of the underlying securities."

Guy Keller, a commodities specialist at boutique hedge fund manager Tribeca Global Natural Resources Ltd., told S&P Global Commodity Insights that "there was certainly a sector in the market who felt safer in the larger-cap names."

"The moment things start normalizing after the world fell apart, stocks are responding because there are few who can respond on the supply side due to years of under-investment," said Keller.

Big ownership shifts

BHP had the largest net increase in ownership by institutional investors, who now own 17.1 percentage points more than they did in 2021 after adding 376 million shares to their holdings in 2022.

Chinese gold producer Zijin Mining Group Co. Ltd. had the biggest net increase in actual shares held by institutional investors, with 629 million shares — or 4.7% of total ownership — added to its register in 2022, largely courtesy of China's Perseverance Asset Management LLP and Shanghai Orient Securities Asset Management Co. Ltd.

Net shares held by institutional investors in Glencore increased by 364 million shares, or 6.4% of the miner's common stock, during the same period.

Institutional investors shed a net total of 1.02 billion shares in Vale SA, representing 32.6% of the iron ore giant's common shares, with The Capital Group Companies, Inc unit Capital Research and Management Co. accounting for 756.3 million shares sold.

Anglo American and Freeport-McMoRan Inc. saw institutional investors shed a net 20.3 million and 29.5 million shares, respectively, from their shareholder registers.

The Capital Group, whose subsidiary shed the most number of shares in the miners analyzed — a net total of 722.5 million shares — declined to comment.