Mining stocks are some of the biggest hitters on the ASX
You can buy individual mining stocks or use an ETF to diversify
Mining is one of Australia's biggest exports but is still subject to global economic trends
Australia is known as the lucky country, blessed with an abundance of natural resources.
Predictably, this means there's also an abundance of mining stocks on the Australian Securities Exchange (ASX), including some of Australia's indisputable blue chip companies like BHP, Fortescue and RIO Tinto.
The best ASX mining stocks
This is a list of some of the top mining stocks in Australia, based on market capitalisation, performance and liquidity:
Company summary
BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. The company is also involved in the mining, smelting, and refining of nickel, as well as potash development activities. In addition, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. The company was founded in 1851 and is headquartered in Melbourne, Australia.
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum segment is involved in bauxite mining; alumina refining; and aluminium smelting. The Copper segment engages in mining and refining of copper, gold, silver, molybdenum, and other by-products and exploration activities. The Minerals segment is involved in mining and processing of borates, titanium dioxide feedstock, and iron concentrate and pellets; diamond mining, sorting, and marketing; and development projects for battery materials, such as lithium. It also owns and operates open pit and underground mines; and refineries, smelters, processing plants and power, and shipping facilities. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.
Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. The company provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in East Perth, Australia.
Newcrest Mining Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and gold/copper concentrates. The company is involved in the exploration and production of silver deposits. It primarily owns and operates mines and projects located in Cadia, Telfer, and Havieron, Australia; Lihir and Wafi-Golpu, Papua New Guinea; and Brucejack and Red Chris, Canada. Newcrest Mining Limited was founded in 1966 and is headquartered in Melbourne, Australia. As of October 18, 2023, Newcrest Mining Limited operates as subsidiary of Newmont Corporation.
Northern Star Resources Limited engages in the exploration, development, mining, and processing of gold deposits. The company also sells refined gold. It operates in Western Australia, the Northern Territory, and Alaska. The company was incorporated in 2000 and is headquartered in Subiaco, Australia.
South32 Limited operates as a diversified metals and mining company. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Cerro Matoso, Australia Manganese, and South Africa Manganese segments. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, and ferronickel products. The company has operations in Australia, India, China, Japan, the Middle East, Italy, the Netherlands, Brazil, South Africa, South Korea, the United States, rest of Africa, rest of Asia, rest of Europe, rest of North America, and rest of Oceania. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.
Mineral Resources Limited, together with subsidiaries, operates as a mining services company in Australia, Asia, and internationally. It operates through five segments: Mining Services, Iron Ore, Lithium, Energy, and Other Commodities. The company offers contract crushing, screening, and processing; transport and logistics; site services; rehabilitation services; and design, engineering, and construction services for resources sector. It has a portfolio of iron ore assets; and holds interests in the Wodgina lithium project, the Mount Marion project, and the Bald Hill project located in Western Australia, as well as focuses on the natural gas and energy solutions. Mineral Resources Limited was founded in 1993 and is based in Osborne Park, Australia.
OZ Minerals Limited engages in the exploration, development, mining, and processing of mining projects in Australia. It primarily explores for copper, gold, silver, and nickel deposits. The company owns and operates the Prominent Hill mine located in South Australia; the Carrapateena project located in South Australia; the Carajás in the state of Pará in the North of Brazil; and the West Musgrave copper-nickel project located in the Musgrave Province, Western Australia. It also holds interests in Mt Woods and the Stuart Shelf in South Australia; and the CentroGold project in the state of Maranhão in northern Brazil. The company was incorporated in 1932 and is headquartered in Adelaide, Australia. As of May 2, 2023, OZ Minerals Limited operates as a subsidiary of BHP Lonsdale Investments Pty Ltd.
IGO Limited operates as an exploration and mining company that engages in discovering, developing, and operating assets focused on metals to enable clean energy in Australia. It explores for nickel, lithium, copper, and cobalt. The company was formerly known as Independence Group NL and changed its name to IGO Limited in January 2020. The company was incorporated in 2000 and is headquartered in Perth, Australia.
MinRex Resources Limited engages in the exploration and development of mineral properties. It focuses on the exploration of gold, silver, copper, lithium, tin, tantalum, and other base metal projects in New South Wales (NSW) and Western Australia. The company holds 70% interests in the Marble Bar North, Marble Bar South, Daltons, and Bamboo Creek gold projects in the East Pilbara region of Western Australia; and 100% interests in the Deflector Extended Gold project located at Gullewa in Western Australia. It also holds 7 exploration licenses in Mt Pleasant, Sofala, and Sunny Corner projects located in the Lachlan Fold Belt in NSW; and exploration licenses in lithium and tantalum deposits, as well as holds farm-in rights for 80% interest in EL7974 and EL7423 projects, and 90% interest in the exploration area of EL5964 project. The company was formerly known as MinRex Resources NL and changed its name to MinRex Resources Limited in January 2016. MinRex Resources Limited was incorporated in 2011 and is based in Perth, Australia.
Historical performance
Stock information
Market capitalization: $9763830
PEG ratio: 0
Company summary
Grange Resources Limited owns and operates integrated iron ore mining and pellet production business in Australia and internationally. The company is involved in the mining, processing, and sale of iron ore; and exploration, evaluation, and development of mineral resources. It owns interests in the Savage River project located in 100km southwest of the city of Burnie; the Pellet Plant project situated in Port Latta located to the 70Km northwest of Burnie; and the Southdown magnetite project located 90km from Albany Western Australia. The company was incorporated in 1985 and is headquartered in Burnie, Australia.
Historical performance
Stock information
Market capitalization: $289335008
P/E ratio: 2.7778
PEG ratio: 0
Dividend yield: 0.04%
Company summary
Jervois Global Limited engages in the exploration, development, and production of mineral properties. It explores for cobalt, nickel, copper, and gold deposits. The company holds 100% interest in the Idaho Cobalt Operations project located in the state of Idaho, the United States; the São Miguel Paulista nickel cobalt refinery in São Paulo, Brazil; and the Nico Young nickel-cobalt deposits in New South Wales, Australia. It is also involved in the mine construction, refining, and chemical and powder production activities. The company was formerly known as Jervois Mining Limited and changed its name to Jervois Global Limited in August 2021. Jervois Global Limited was incorporated in 1962 and is based in Cremorne, Australia.
Historical performance
Stock information
Market capitalization: $32433120
PEG ratio: 0
Company summary
Core Lithium Ltd engages in the development of lithium and various metal deposits in Northern Territory and South Australia. The company primarily explores for copper, gold, silver, uranium, lead, zinc, rare earth elements, and base metals. Its flagship project is the Finniss Lithium project located to the south of Darwin port in the Northern Territory; and Shoobridge Lithium, Anningie and Barrow Creek Lithium, Blueys and Inkheart Lead/Silver, the Bynoe Gold, and Napperby uranium projects located in the Northern Territory. It also holds an 100% interest in the Yerelina Zinc project that covering a totaling area of 500 square kilometers in northern South Australia; Jervois Domain project, which covers three exploration licenses located in the central Northern Territory; and Fitton project located in South Australia. Core Lithium Ltd was incorporated in 2010 and is based in Perth, Australia.
Historical performance
Stock information
Market capitalization: $177366016
PEG ratio: 0
Company summary
Cobalt Blue Holdings Limited engages in the exploration and evaluation of early-stage cobalt resources in Australia. The company primarily explores for cobalt. It holds 100% interest in the Broken Hill Cobalt project comprising five exploration licenses and two mining leases covering an area of approximately 220 square kilometers located in the Broken Hill, New South Wales. The company's projects also include the Kwinana Refinery Project and the Cobalt in Waste Stream Projects. The company was incorporated in 2016 and is based in North Sydney, Australia.
For our top picks, we compared our Finder partners using a proprietary algorithm beginning in 2023. We update the list every 3 months. Keep in mind our top picks may not be the best for your individual circumstances and we encourage you to compare for yourself. Read our full methodology here to find out more.
What are the best mining ETFs in Australia?
Here are some of the largest exchange-traded funds (ETFs) that track the Australian and global mining sectors and are available to trade on the ASX:
BetaShares Gold Bullion ETF (QAU)
BetaShares Global Gold Miners ETF (MNRS)
BetaShares Australian Resources Sector ETF (QRE)
VanEck Vectors Gold Miners ETF (GDX)
VanEck Vectors Australian Resources ETF (MVR)
What are mining stocks?
Mining stocks are companies listed on a stock exchange that extract minerals from the earth.
Mined materials vary in composition and can be divided into the following major categories:
Energy materials. Bitumen, coal and uranium.
Fertilisers. Boron, rock phosphate, potash and sulphur.
Industrial metals. Aluminium, cobalt, copper, iron ore, lithium, nickel and zinc.
Mining is a critical sector to the Australian economy, making up for a large chunk of our resources, which has helped propel our economy as a whole.
Major and juniors
There are 2 major mining categories known as the majors and the juniors.
Majors refer to mining operations that are well established, usually have decades of history, have operations around the world and have fairly steady cash flows. The majors in Australia include the likes of BHP,Rio Tinto and Fortescue Metals.
The majors have a proven history of making money. They can break down their costs into per tonnage and overall make it easier for investors to evaluate their share price.
On the other hand, juniors are small mining companies with less working capital and shorter histories than their major counterparts. Think of them as a type of growth stock specific to the mining industry.
They are rarely well funded, have short histories and are more based on higher hopes. On the upside though, given they aren't well established, they can have a higher upside should they be able to develop in their field.
Why invest in mining stocks?
The old saying goes: if you can't grow it you have to mine it. Thanks to its long history, economic viability and global demand, the mining industry holds great potential for profit, and mining stocks can pay strong dividends.
Many industries rely on mining efforts to produce the materials needed to manufacture their wares and services. Without cobalt, electric vehicle manufacturers would flounder. Without uranium, we wouldn't have nuclear energy.
Mining is a time- and energy-intensive process, but mining companies continue to expand their reach thanks to the international demand for what they source and produce.
This type of global reliance on mined materials makes this industry among the more powerful and viable investment categories.
Major mining companies offer the opportunity for steady returns and dividends while junior mining companies hold the potential for rapid growth. Before investing, you should research the mining company that interests you and what materials it yields to determine potential benefits specific to the product.
How many Australians own mining stocks?
According to Finder data, 39% of Australian investors own mining stocks1, making it one of the most popular sectors with local investors.
Risks of investing in mining stocks
The mining industry isn't immune to risk and faces several unique challenges, chief among them being economic and geopolitical shifts.
The mining industry tends to do well in an up market because the profitability of this sector is largely tied to the health of the global economy. When demand for mined metals and materials is high, mining companies are well-positioned for strong and consistent cash flow. But when demand is low in response to a down market, mining companies may suffer.
Mining companies are also vulnerable to political regulations depending on where their mines are located. Many mining stocks on the market are international companies with mine locations across the globe. A mine's location can have a big impact on a mining company's profitability as the political environment of the country the mine is located in can impact mining processes and material prices.
Mining companies are also unable to set the price at which they sell their products. The price of, say, iron ore is determined by the future markets. This limits the potential brand power of mining companies.
Compare trading platforms to trade mining stocks in Australia
You'll need a brokerage account to invest in mining stocks in Australia. Compare options by features and fees to find the account that best meets your needs.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Bottom line
Major mining stocks represent a potential long-term investment with the opportunity for steady gains. Junior mining stocks may have more growth potential but are typically riskier investments. Before you purchase either, review your platform options to find the brokerage account in Australia that's ideal for your investment goals.
Frequently asked questions
Yes. There are numerous penny stocks in the mining category, including MinRex Resources, Grange Resources, Jervois Mining and many more.
Yes. Some that do including BHP, Rio Tinto and Fortescue Metals.
Tom Stelzer is a publisher and writer for Finder, covering investing and cryptocurrency.
He previously worked for Finder as a writer in Australia and the UK, covering things like personal finance, loans, investing, insurance as well as small business and business loans.
He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio
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