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

Is this dragging on the materials sector today?

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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.

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