If you're looking to add some mining sector exposure to your portfolio, then it could be worth checking out the two ASX 200 mining shares listed below.
Here's why these could be top options in the sector right now:
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Chalice Mining Ltd (ASX: CHN)
The first ASX 200 mining share that could be a buy is Chalice Mining.
It is the mineral exploration company behind the 100%-owned, globally significant Julimar project in Western Australia. This project is on course to become one of the largest PGE-NiCu deposits in the world based on recent drilling. This is a huge positive given how important these metals will be for the decarbonisation of the planet.
Bell Potter is a big fan of the company. It recently said:
CHN's 100%-owned Julimar project is a globally significant PGE-NiCu deposit. Located 70km north of Perth in WA, it represents a unique opportunity to establish new strategic PGE and base metals supply in a top mining jurisdiction.
The broker has a speculative buy rating and $11.73 price target on its shares.
Rio Tinto Ltd (ASX: RIO)
Another ASX 200 mining share that has been named as a buy is Rio Tinto.
It is of course one of the world's largest miners with a diverse portfolio of operations and projects across a number of commodities and geographies.
The team at Goldman Sachs is very positive on the mining giant at the moment. This is due partly to its attractive valuation, strong free cash flow generation, and production growth outlook. It explains:
We are Buy rated (on CL) on RIO due to: (1) compelling relative valuation vs. peers, (2) Strong FCF and dividend yield with our bullish view on iron ore, aluminium and copper prices, (3) Strong production growth in 2023 & 2024, (4) Pilbara turnaround (~50% of group NAV), (5) Compelling high margin low emission aluminium exposure.
Goldman has a buy rating and $136.20 price target on its shares.
