BlackRock is advocating for mergers in the mining industry to attract U.S. generalist capital and address supply challenges. Olivia Markham, co-manager of BlackRock’s World Mining Trust, emphasized the need for large-scale consolidation at the Australian Financial Review conference in Perth. She argued that larger mining entities would offer better liquidity, easier capital access, and more favorable trading multiples, making them more appealing to investors. Markham highlighted the increasing demand for metals driven by electrification, AI infrastructure, and defense spending, which requires significant investment in the supply chain. She noted that the current supply is "massively underinvested," necessitating price increases to spur new production. Earlier this year, a potential $240 billion merger between Glencore and Rio Tinto was explored but ultimately abandoned due to insufficient cost synergies. BlackRock, holding stakes in both companies, supports consolidation to enable the development of complex, capital-intensive projects.