Globally, mining and metals deals in 2012 decreased 7% by volume to 941 and 36% by value to $US104 billion ($A100.3 billion) compared to 2011.

The volume of mergers and acquisitions (M&As) in Australia reached its lowest level since 2006, down 4% year-on-year to 233 mining and metals deals.

Despite being the most targeted destination for M&As in the sector globally during 2012, Australia marked a 59% year-on-year decrease in total value of mining and metals deals to $15.7 billion.

For the first year since 2009, there was an overall decline in the amount of capital raised by the sector globally, despite an all-time record $113 billion raised from corporate bonds - 35% more than in 2011.

The figures come as part of Ernst&Young’s annual M&A report, which suggests the global financial crisis (GFC) has fundamentally changed the mining and metals financing game and introduced a new class of investor.

“Our analysis shows that the share of deal value by ‘non-traditional’ acquirers has grown year-on-year to account for 31% of total deal value in 2012, compared with 21% in 2011,” Ernst&Young’s Australia and Asia-Pacific mining and metals transactions leader Paul Murphy said.

“State-backed and financial investors account for 69% and 15% of this proportion, respectively.”

Investors such as private equity and sovereign wealth funds are establishing “toehold” investments of 10-15%, while state-owned companies are commonly adopting a larger, commercially focused investment strategy

Murphy said that as access to capital via debt and equity markets became increasingly constrained post-GFC these types of non-traditional financing would play a greater role in metals and mining deal making.

“We will see the continued rise of strategic and financial buyers in the sector throughout this year, motivated by the need to secure long-term sources of mineral supply and the prospect of quick returns, respectively,” he said.

The change is expected to benefit Australia in particular after it bucked last year’s global trend of subdued capital raising.

Total capital raised for the year by Australian mining and metals companies increased 39% on 2011 to $35.9 billion, driven by a more than three-fold increase in corporate bonds from $5.4 billion to $17.2 billion.

Murphy said BHP Billiton’s $1 billion issue – the largest ever Australian dollar bond issue by any company outside the banking sector – might be followed by other larger miners in 2013 seeking to mitigate the risk through diversifying US dollar-dominated funding.

Loan proceeds for Australian mining and metals companies increased 10% year-on-year to $12 billion, while, globally, loan proceeds fell to $106 billion as banks continued to reduce their exposure to riskier assets to manage their reserve capital requirements.