If you're looking to diversify your portfolio with some mining sector exposure, then read on.
Listed below are two ASX 200 mining shares that experts are tipping as buys with material upside potential.
Here's why these could be the mining shares to buy right now:
Allkem Ltd (ASX: AKE)
The first ASX 200 mining share to consider is Allkem.
It is one of the world's largest lithium miners and the result of the merger between Galaxy Resources and Orocobre in 2021.
From its projects in Argentina, Australia, and North America, the company is aiming to grow its production in a way that allows it to maintain a 10% share of global lithium supply over the long term. This leaves it well-placed to benefit from the insatiable demand for lithium from the electric vehicle market.
And while lithium prices have been tipped to fall materially over the next 18 months, its production growth and downstream opportunity are expected to keep its earnings strong. This has many tipping the company to start paying dividends in the not too distant future.
Bell Potter is bullish and has a buy rating and $19.36 price target on its shares. It also expects a maiden dividend to be paid in 2023.
South32 Ltd (ASX: S32)
Another ASX 200 mining share that has been named as a buy is South32.
It is a diversified mining and metals company producing bauxite, alumina, aluminium, energy and metallurgical coal, manganese, nickel, silver, lead and zinc at our operations in Australia, Southern Africa and South America.
Through its operations, the miner notes that it is supporting the transition to a low-carbon world by producing the commodities essential for this transition.
Morgans is positive on South32 due to the successful transformation of its portfolio and its positive long term outlook.
Last week, the broker retained its add rating and $5.40 price target on its shares.
