What's going on with ASX 200 mining shares on Thursday?

Is this dragging on the materials sector today?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The mining sector is underperforming the ASX 200 today, falling 0.9% at the time of writing
  • Some of the market's most iconic mining stocks are falling alongside it
  • Meanwhile, concerns about a tax on miners currently under consideration by the federal government are continuing, with industry bodies reportedly joining forces to launch a campaign against the mooted move

It's a rough day on the market for many S&P/ASX 200 Index (ASX: XJO) mining shares.

The S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.9% right now, making it one of the market's worst performing sectors. That's reflected in the share prices of some of the ASX 200's most iconic miners:

  • The BHP Group Ltd (ASX: BHP) share price is down 1.4%, trading at $43.83
  • That of Rio Tinto Limited (ASX: RIO) is posting a greater tumble. It's fallen 1.7% to $106.23
  • Finally, shares in Fortescue Metals Group Limited (ASX: FMG) are defying the downturn, lifting 0.25% to $19.90

For comparison, the ASX 200 has lifted 0.3% at the time of writing.

So, what might be going on with ASX 200 mining shares today? Let's take a look.

A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

Image source: Getty Images

Is this weighing on ASX 200 mining shares today?

The materials sector is falling on Thursday, weighed down by some of the ASX 200's biggest mining shares.

Interestingly, there's been no news from the mining goliaths to explain today's moves. Though, it's widely speculated that OZ Minerals Limited (ASX: OZL)'s continued freeze is related to another BHP takeover bid.

Iron ore futures were relatively stable overnight, lifting 0.1% to US$92.34 a tonne. It was a worse story for some base metals, with nickel tumbling 9.1% and copper slipping 0.4%.

Looking more broadly, today's slump comes amid continued concerns regarding a mining tax under consideration by the federal government.

The mooted tax would relate to earnings from thermal coal and gas exports. It is being considered as a bid to reduce energy costs.

NSW Minerals Council CEO Stephen Galilee previously said, if implemented, its "unlikely" the tax would be temporary. He also said it could be extended to other sections of the mining industry over time.

Though, treasurer Jim Chalmers has said the government's preferred solution would be regulatory, rather than tax-based.

Any move to tax energy commodities would likely impact BHP more than Rio Tinto or Fortescue. The former operates seven coal mines in Queensland.

NSW Minerals Council, the Minerals Council of Australia, and Queensland Resources Council (QRC), all of whom have slammed the mooted tax, are banding together to launch an advertising campaign against the move today, The Australian reports. QRC CEO Ian Macfarlane commented yesterday:

Introducing a new mining tax on the resources sector, on top of the billions in taxes and charges coal and gas companies already pay to state and federal governments, will kill off investor interest in future resources projects in Australia, it's as simple as that.

Such talk might be turning investors' attention to ASX 200 mining shares on Thursday.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why is this ASX rare earths share sinking 13% today?

What's going on with this share today? Let's dig deeper into things.

Read more »

A construction worker leaps high in the air on a building site.
Materials Shares

Why are James Hardie shares storming higher today?

After a steep sell-off, investors may start to see strength and long-term potential.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Which ASX rare earths company's shares are trading higher on new funding news?

Two major government finance agencies have signed on.

Read more »

A man sitting at his dining table looks at his laptop and ponders the share price.
Materials Shares

ASX lithium shares 'compelling' as top broker adjusts ratings

UBS predicts the global oil shock caused by the war in Iran will drive higher demand for electric vehicles.

Read more »

Three workers jump in the air at a steel factory.
Materials Shares

This ASX steel stock is unlocking hidden value. So why is it falling today?

BlueScope shares fall after an update on surplus land developments.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Guess which ASX mining stock is crashing 24% today

The miner is raising capital for the fourth time in as many years.

Read more »

A man wearing a suit and holding an EV charger gives the thumbs up.
Materials Shares

3 reasons to buy this high flying ASX lithium stock for the long term

World-class assets, strong balance sheet, and smart growth support long-term outlook.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Is this ASX iron ore stock a better buy than Fortescue?

Bell Potter thinks this stock could rise 90%.

Read more »