Prospecting for investment opportunities in Southeast Asia’s mining sector

Australia is a long-term energy security partner for Southeast Asia. With the region’s energy demand projected to double by 2050 from 2020 levels, now is the time to consider investing in the region. The International Energy Agency anticipates Southeast Asia will play a major role in clean energy supply chains, both as a consumer of low-carbon technologies and as a key supplier of resources.

Countries across Southeast Asia are actively revising policies and streamlining regulations to attract new foreign investment into their mining industry. These changes align with other fundamentals that make the region an attractive long-term investment destination, including growing, youthful populations, competitive labour and energy, and strong economic growth.

Opportunities in the region are likely to grow at a faster rate than traditional markets. Many countries have underdeveloped mining industries, untapped reserves and evolving landscapes that are becoming more friendly towards investors. These countries need and want Australian investment.

Opportunities across the region

There are solid opportunities to invest in mining projects and export METS to Southeast Asia.

Indonesia

Indonesia dominates the global nickel market, ranking far ahead of competitors for both production and reserves. The country is moving up the value chain with producers targeting the Electric Vehicle (EV) battery market and global brands such as Tesla, Ford, LG and Hyundai.

The Philippines

The Philippines is the fifth most mineralised country in the world. It has an estimated US$1 trillion in untapped reserves of copper, gold, nickel, zinc and silver. The Philippines is seeking to revitalise its mining industry, and the government has repealed various regulations that stunted mining development.

Vietnam

Vietnam’s mineral wealth is largely unexploited. It ranks third globally for bauxite reserves, with significant endowments of coal, gold, iron ore and Rare Earth Elements (REEs). Vietnam wants to position itself as an attractive destination for semiconductor and chip manufacturing. It has made significant policy and regulatory changes, including new mineral geology laws expected to take effect in July 2025, to jumpstart its mining and REE industry.

Thailand, Laos and Cambodia

Thailand recently reported over 30 trillion tonnes of mineral reserves. The Department of Mineral Resources has identified several mining zones with significant development potential. Meanwhile, governments in Laos and Cambodia are seeking to advance legislation that promotes investment and encourages sustainable development of mineral industries.

Southeast Asian countries are revising policies and streamlining regulations to attract investment in their mining industries.

Australian miners succeeding in Southeast Asia

Australia has the innovative solutions and technical expertise to help Southeast Asia develop its mining industries. There are many examples of companies succeeding through export, and others who invested in the region.

In Indonesia, PROK established a pulley refurbishment services facility in Surabaya, Indonesia in 2023 to service mining companies in Southeast Asia. The mining conveyor systems manufacturer chose Surabaya for its proximity to major mining operations. This allows for local engineering, operational and maintenance services, and emergency support.

When Austin Engineering needed to increase production capacity, it chose Batam in Indonesia. Batam is a heavy engineering island, with plenty of capability and skills that the company was looking for. The investment in Indonesia allowed Austin Engineering to expand to meet the demands of global customers. Read more about the company’s investments in Indonesia.

In Vietnam, Weir Minerals Australia and Blackstone Minerals have established local facilities. Both are demonstrating their long-term commitment, rather than approach the opportunity as a simple transaction.

Top five tips for doing business in Southeast Asia

Australian companies that have succeeded in Southeast Asia typically:

1. take a market approach and prioritise local employment in sales, business development and operations
2. demonstrate commitment and interest in building long-term relationships
3. visit regularly or have a strong local presence, either direct or indirect
4. adopt a flexible approach to get their pricing right and adjust their business model to the local context
5. address proximity issues that can turn off customers, and demonstrate a tangible commitment to ongoing aftercare.

Southeast Asia Investment Deal Teams

There is plenty of support for Australian mining and METS companies that want to invest in or export to Southeast Asia. Austrade has 7 offices in Southeast Asia: two in Vietnam (HCMC and Hanoi), Indonesia, Singapore, Malaysia, Thailand and the Philippines. The Department of Foreign Affairs and Trade (DFAT) also provides support through embassies in Cambodia and Laos.

Austrade, together with DFAT and Export Finance Australia, has established Investment Deal Teams in the region. The initiative is in support of the Australian Government’s Southeast Asia Economic Strategy to 2024. Cities in Brunei, Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam host team members.

Austrade’s local teams have a deep knowledge of the mining and METS sector in their market. The intelligence they bring can help exporters and investors overcome market entry challenges, understand regulations and government involvement, navigate cultural complexities, and connect with customers and partners.

Austrade frequently hosts outbound investment missions to Southeast Asia. These missions give delegates an opportunity to hear from industry and government leaders, network with potential customers, visit major sites, and better understand market opportunities.

A bright future for Australian miners and METS companies

If Southeast Asia’s regulatory changes genuinely impact the ability of miners to invest and operate in the region, the opportunity for Australian resources and METS organisations will be profound.

Australian miners and METS companies are well regarded in Southeast Asia. We have a solid record of working in-country with partners to improve efficiency, profitability, safety and environmental impacts. By continuing to engage with Austrade and Investment Deal Teams, there is a lot of success to be had.

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