Buy these ASX 200 mining shares before they boom: experts

These mining shares could be destined to benefit from China's reopening…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australian mining sector has been booming again this week following the release of strong economic data out of China.

If you're wanting to gain exposure to the sector, then you may want to check out the three ASX 200 mining shares listed below. Here's why they have been named as buys:

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

Image source: Getty Images

Allkem Ltd (ASX: AKE)

The first ASX 200 mining share to consider is Allkem. It is one of the world's largest lithium miners with projects in Argentina, Australia, and North America that provide it with significant production growth potential. It is because of this that Goldman Sachs is bullish on Allkem even though it is very bearish on lithium prices. It notes that "Allkem has the best LCE growth outlook with production growing >4x to FY27E with further downstream optionality on carbonate production."

Goldman has a buy rating and $15.40 price target on Allkem's shares.

Pilbara Minerals Ltd (ASX: PLS)

Another ASX 200 mining share to look is Pilbara Minerals. It could be a top option if you're bullish on lithium and expect demand for the battery making ingredient to outstrip supply and keep prices higher for longer. Morgans believes that will be the case and suspects that "demand in the Chinese market could increase from March onwards."

Morgans currently has an add rating and $5.30 price target on this lithium miner's shares.

South32 Ltd (ASX: S32)

A final ASX 200 mining share to consider is South32. It is a diversified mining and metals company that produces a range of commodities including aluminium, copper, manganese, and nickel. As these metals will play a key role in the decarbonisation of the planet, South32 looks well-placed for the long term. Morgans is also a fan of South32 and believes its portfolio transformation is "substantially boosting group earnings quality, as well as S32's risk and ESG profile."

Morgans currently has an add rating and $5.60 price target on the miner's shares.

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

A hand points to a salt crust at a salt mining operation in Australia.
Resources Shares

BHP shares sink as investors react to $2.8 billion cost blowout

BHP’s potash project has hit another cost hurdle.

Read more »

Lithium mine drilling machines.
Resources Shares

Buy, hold, sell: Liontown, Wildcat Resources, PLS Group shares

Let's check out some new ratings on 3 ASX lithium shares this week.

Read more »

Two cheerful miners shake hands.
Resources Shares

2 ASX mining stocks to sell after strong runs: expert

Far East Capital says investors should take their profits and run on these 2 ASX mining stocks.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Resources Shares

Rio Tinto share price rallies 75% in 12 months: Is the mining stock still a buy or have the shares now peaked?

Find out what brokers tip for the Rio Tinto share price over the next 12 months.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

Up 38% in a year, ASX All Ords mining stock reports rare earths progress

The ASX mining stock is targeting rare earths on the United States critical minerals list.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

These 2 ASX resources companies could deliver better than 60% returns, Macquarie says

Both of these companies are in the critical minerals space.

Read more »

Suncorp share price Businessman cheering and smiling on smartphone
Resources Shares

I bought 682 BHP shares in 2020. Here's how they've performed

The surprising payoff from buying BHP during uncertainty.

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Resources Shares

Is the Fortescue share price a buy for its 8% dividend yield?

Fortescue could be a contender for significant dividend income from a blue-chip.

Read more »