The Global Automotive Chip Shortage Will Spread To The Natural Resource Industry

Polymetal, a Russian gold miner, warned that the chip shortage hitting global automakers will spread to the natural resources industry, exacerbating the inflationary pressures that have plagued the industry. Supply chain issues faced by companies such as Toyota will soon impact mining vehicle and machinery manufacturers. The global mining industry is struggling to cope with the rising cost of raw materials such as diesel and steel, as well as rising wages. It is expected that company costs will rise in the second half of this year.

Polymetal said last week that capital expenditures this year will increase by a further 25%, partly due to the need to book mining equipment such as trucks, loaders and drilling rigs.