Giant miners to see record profits slip

Investors in the world’s biggest mining companies will this month be watching for signs that mounting cost pressures and the impacts of slowing Chinese growth could further erode record earnings.

Miners are likely to report a drop in profits. The topfive western diversified mining companies, including iron ore giants Rio Tinto Group, Vale SA and BHP Group Ltd., may see combined 2021 second-half earnings of $73 billion, compared to $82 billion in the first half.

Although elevated prices for metals mean profits remain robust on a historical basis, the dip is reflective of the headwinds that developed over the period.

Threats to economic growth in the world’s largest metals consumer are clouding the outlook for miners — and especially iron ore companies.