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:
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.
