BHP, FMG, RIO, S32: Why are these ASX mining stocks trading lower

Highlights: 

• The S&P/ASX 200 Materials sector has been marking losses on the ASX today. The sector has closed lower on Thursday.
• Declining iron ore prices have significantly impacted the share price of the stocks belonging to materials sector.
• Also, reports of ‘horrific’ incidents after an inquiry on mining industry, are likely impacting the stocks on ASX deeply.

The S&P/ASX200 Materials sector (ASX:XMJ) was spotted -0.028% lower at 15658.700 at 12:27 PM AEST on the ASX today (24 June).

Factors impacting Mining Industry

The declining prices of iron ore might have been impacting the ASX200 Materials sector today. The prices of iron ore slipped by 4.16% on 23 June to US$127.92.

Also, several reports on a landmark inquiry into the mining industry of Australia have been likely affecting the stocks on the ASX. A year-long inquiry revealed some shocking incidents on Thursday where the report documented several abuses against the staff of big mining companies in Australia.

Inquiry’s chair Libby Mettam was quoted stating that ‘the parliament, government and broader public should be aware of the magnitude of the horrific violence and abuse, that women are exposed to while working in some of the biggest mining companies of Australia.’

It should be noted that mining in Western Australia, is a multi-billion-dollar industry and is touted to be one of the biggest contributors to the economy.

Meanwhile, in this article today, we have taken up four leading Metal and Mining stocks - BHP, Fortescue, Rio Tinto, and South32 and have analysed their performance on the ASX amidst all these reports.

BHP Group Limited (ASX:BHP)

The shares of BHP Group Limited (ASX:BHP) were spotted trading 0.716% lower at AU$40.210 per share at 1:03 PM AEST on the ASX today (24 June).

With a market capitalisation of AU$205.02 billion, BHP Group Limited is a leading Australian iron ore and oil producer. The company also engages itself in the production of copper and petroleum as well.

The share price of BHP has fallen over 15% on the ASX in last one year. BHP’s year-to-date share price also fell over 5% (as of 1:02 PM AEST on the ASX today, 24 June).

Fortescue Metals Group Limited (ASX:FMG) 

The shares of Fortescue Metals Group Limited (ASX:FMG) were spotted trading 0.289% lower at AU$17.200 per share at 1:06 PM AEST on the ASX today (24 June).

With a market capitalisation of AU$53.11 billion, Fortescue Metals Group Limited is a well-known iron ore explorer, miner, developer and producer. The company owns four mining sites in the Pilbara region.

The share price of Fortescue has fallen over 24% on the ASX in last 12 months. On the other hand, Fortescue’s year-to-date share price also fell over 13% (as of 1:04 PM AEST on the ASX today, 24 June).

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 Rio Tinto Limited (ASX:RIO) 

The shares of Rio Tinto Limited (ASX:RIO) were trading 0.604% lower at AU$102.010 per share at 1:06 PM AEST on the ASX today (24 June).

With a market capitalisation of AU$38.09 billion, Rio Tinto is an ASX-listed aluminium, copper, diamonds, energy, gold, industrial minerals, and iron ore producer.

The share price of Rio Tinto has fallen over 17% on the ASX in last 12 months. On the other hand, Rio’s year-to-date share price gained almost by 2% (as of 1:05 PM AEST on the ASX today, 24 June).

South32 Limited (ASX:S32) 

The shares of South32 Limited (ASX:S32) were spotted trading 1.975% lower at AU$3.970 per share at 1:10 PM AEST on the ASX today (24 June).

The ASX-listed mineral explorer, Encounter Resources Limited (ASX:ENR), announced that it had signed two new Farm-in Agreements with South32, covering the Jessica Copper Project and the Carrara Copper-Zinc Project in the Northern Territory.

As per the agreements, South32 will be wholly funding the initial exploration of each project. Meanwhile, Encounter will carry out the scoping study of the projects.

On the other hand, South32 is also executing its share buyback program right now.

The share price of South32 has gained almost by 36.43% on the ASX over past 12 months. On the other hand, South32’s year-to-date price fell over 2% (as of 1:07 PM AEST on the ASX today, 24 June).

Also read: BHP, FMG, RIO: Why these iron ore stocks are under pressure today?