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ASX closes lower; BHP, Rio Tinto lead mining rout

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The news: The Australian stock market finished slightly lower as iron ore majors weighed on the bourse amid a fall in iron ore prices and broader losses across the exchange.

The benchmark ASX 200 fell 0.04% to end at 8,614.1 as 10 of the 11 sectors finished in the red.

The materials sector (-2.2%) was pushed lower as BHP (-2.9%), Fortescue (-1%) and Rio Tinto (-2.4%) tracked iron ore futures prices lower after China announced export controls on some products, including steel, on Friday. China’s state-backed iron ore buyer also pushed for stricter port rules regarding the storage of ore.

Fortescue announced plans to buy the remaining 64% interest it does not already own in Toronto-listed copper miner Alta Copper Corp for CAD1.40 ($1.53) each. Westgold Resources (-2.8%) fell after announcing it would demerge its non-core Reedy's and Comet assets and transfer them to a new standalone gold company Valiant Gold.

Lithium miners Liontown (-6.4%) and Pilbara Minerals (-3.9%) as well as Ramelius Resources (-6.8%) and Genesis Minerals (-5.4%) were also among the biggest losers on the ASX 200.

The discretionary sector (+0.5%) was the only sectoral index to finish higher as Wesfarmers (+0.8%), JB Hi-Fi (+2.3%) and Breville Group (+2.4%) finished higher.

Biggest movers:

  • Uranium miners – Boss Energy (-8.2%), Deep Yellow (-8.5%) and Paladin Energy (-4.7%) were among the biggest losers on the ASX 200.
  • ASX Limited (-5.7%) – Announced that its dividend payout ratio policy is now expected to be at the bottom of its 75% to 85% of underlying net profit after tax range, and has lowered its return on equity target range following a $150 million capital charge following an ASIC review.
  • DroneShield (+10.6%) – The biggest gainer on the ASX 200 despite there being no company specific news.
  • 4DMedical (+9.9%) – Rallied after announcing it had secured regulatory approval for its CT:VQ software in Canada.

Other news:

  • IperionX (-0.6%) – Announced a partnership with US pump manufacturer Carver Pump to produce titanium impellers for US navy ships, with an initial order worth USD1,000 ($1,503) set to be completed by May 2026.
  • Woolworths (-0.4%) – Acknowledged that class action proceedings have commenced in the Federal Court of Australia against a subsidiary of Woolworths Group Limited brought by Shine Lawyers.
  • Neuren Pharmaceuticals (+1.4%) – Announced that its US distributor, Acadia Pharmaceuticals, has received US Food and Drug Administration (FDA) approval of its 'Daybue Stix' oral solution.
  • MFF Capital Investments (+1%) – Former Magellan Asset Management head of investments Gerald Stack has been appointed as chief executive and managing director of MFF Group, effective from 1 January 2026.

What’s ahead:

  • S&P Global will release flash purchasing managers’ index data for manufacturing and services on Tuesday at 9:00am AEDT.
  • RBA assistant governor (financial system) Brad Jones will speak at the AusPayNet Summit in Sydney on Tuesday at 9:15am AEDT.
  • Westpac will release consumer sentiment data for December on Tuesday at 10:30am AEDT.

By Brandon How