Mining Shares To Buy

There are a multitude of mining shares to buy on the ASX, but we will narrow our focus to the biggest and best performing blue chips.

It is a tried and tested method to pick the ‘top dogs’ in any particular sector and diversify in those companies. 

Buying mining shares is not a complex task, and we have provided detailed company profiles and analysis of the top 5 mining shares to buy.

BHP Billiton (BHP)

BHP is the grand daddy of the Australian market, carrying the heaviest weighting in the ASX200. It is also the largest diversified resources company in the world, with operations spanning the globe.

BHP’s core activities include the mining, production and distribution of minerals. BHP has also developed considerable interests in petroleum, with operations in six countries, becoming a key player in the oil and gas industry.

The company endeavours to remain at the forefront of the industry as a well managed global resource leader, through a low cost operating position and a strong capital structure.

The company has a balanced portfolio, comprising quality, world class, long life assets covering major commodity groupings including petroleum, alumina, copper, gold, iron ore, metallurgical coal, energy coal, nickel, and diamonds.

Rio Tinto (RIO)

Rio Tinto is another market behemoth on the Aussie bourse. As a diversified mining company, Rio holds a portfolio of world class assets covering commodities such as aluminium, copper, diamonds, gold, coal, iron ore, and industrial minerals.

Rio is the third largest mining company in the world, with operations spanning across six continents.

Rio’s management is focused on developing its operations around the world via acquisitions and organic growth.

Newcrest Mining (NCM)

Newcrest is one of the leading gold mining producers in Australia. The company has mining projects in Australia, Indonesia and the USA, including its world class Telfer mine located in Western Australia.

The company focuses its exploration on both greenfields sites globally and near mine areas in Australia and Indonesia.

NCM’s core focus is on quality, low cost gold production, with one of the company’s stated aims to be in the lowest cost quartile.

Exploration led production increases are preferred to acquisitions, with the company’s strategy since 1991 targeting deposits containing both gold and copper.

Fortescue Metals Group (FMG)

Fortescue is the new kid on the block in the Australian mining space, muscling in on the big boys in BHP and Rio Tinto.

Formerly Allied Mining and Processing, FMG is a minerals exploration company whose primary focus is the development of the Pilbara Iron Ore Project in Western Australia.

Amongst Fortescue’s key deposits are the Cloud Break and Christmas Creek deposits.

Fortescue already has proven reserves of 121 million tonnes, which will underpin the first phase of production.

Alumina Limited (AWC)

Alumina’s primary business concerns the mining, refining, and smelting of aluminium.

The company’s primary asset is its 40% interest in Alcoa World Alumina and Chemicals (AWAC). AWAC produces smelter grade alumina feedstock for the production of aluminium.

AWAC’s stated goal is to grow its alumina business via low-cost and low-risk brown fields expansion.