Australia's top 25 ASX listed mining companies experienced an increase in their collective value of USD 4.4 billion in the September quarter increasing to approximately USD 367 billion up from USD 362 billion at the end of June.

However, the increase was dampened by the sharp decline in iron ore prices during that period.

Mr Stephen Reid leader of Deloitte's National Mining said that iron ore accounted for approximately 65% of the combined reported earnings of the top 25 miners last year, followed by copper and gold (20%) and coal (10%).

Mr Reid said that "Given how heavily weighted the industry is towards iron ore production, it's not surprising that the recent impact of uncertainty surrounding China's future demand on the value of Australia's iron ore producers has had such a significant impact on the overall value of top 25. If pure iron ore producers were removed from the top 25, the collective value of the remaining companies increased by around USD 9 billion."

However, he said that there were other commodities that had fared well during the period.

He added that "Benchmark hard coking coal prices improved during the quarter, but gold was the standout commodity, with gold miners adding over USD 8 billion to the top 25 during the quarter.”

He further added that "Gold producer St Barbara was the best performer during this period, moving up 15 places to join the top 25 by the end of September, while Newcrest's market capitalization grew by as much as Fortescue's fell during the quarter. Investors' appetite for gold was seen in the other new entrants to the top 25, West and East African based Resolute Mining and the Philippines-based Medusa Mining."

Source - www.deloitte.com

(www.steelguru.com)