The results showed a meek, but sustained improvement over the previous quarter, with confidence levels in the sector on the rise.

More than 65% of the companies studied believed global deal volumes would soar in coming months.

The optimism within the industry has stemmed from increasingly stable global economics, particularly in mature markets, where GDP growth has largely returned, said the report.

An EY analysis said companies pursuing transactions are looking for lower risk deals that strengthen their positions in existing markets.

The report shows currently only 24% of global mining and metals companies have short-term plans to undertake transformational mergers and acquisitions, as cost management is still top of mind.

36% of survey respondents considered productivity and cost reduction their primary focus.

EY said managers had the tricky task of striking a balance between risk and reward which only gets more difficult in today’s uncertain economy.

EY’s analysts anticipate deal volumes will build gradually through the rest of 2014 and into 2015.

They expect to see portfolio optimisation among larger miners, financial buyers, and consolidation among juniors and mid-tier companies driving transactions.