Credit Suisse is still a fan of big mining, with the prospect of a Chinese recovery and higher than expected rates of inflation making current valuations very attractive says the broker.
Capital discipline is very high and many areas of the industry have a strong renewables angle, said the broker.
Copper in particular has appeal, especially given its high correlation to China PMIs, with half of global industrial demand emanating there.
Recent fourth quarter statistics showed Chinese infrastructure demand marginally improving, suggesting a turn in momentum, while an easing in supply chain bottlenecks also favours the mining sector.
Rio Tinto PLC (LSE:RIO) and Anglo American are its top picks with shares in both up strongly today.
Rio rose by 2.5% to 5,313p and Anglo American by 4% to 3,359p.