2 ASX 200 mining shares to buy in October

Check out these mining shares…

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If you’re looking to diversify your portfolio with some mining shares, then the two listed below could be worth considering.

Here’s what you need to know about these ASX 200 miners:

Orocobre Limited (ASX: ORE)

The first ASX 200 mining share to consider is this lithium miner. It could be a top option for investors looking for exposure to the clean energy/electric vehicle thematic.

Orocobre recently completed its merger with Galaxy Resources. This has created a top five global lithium mining company, which will soon be rebranded as Allkem. The merged company has a collection of strong operations and equally strong growth prospects. This puts it in a great position to benefit from the increased demand and strong prices for the battery making ingredient.

The team at Macquarie are very positive on Orocobre. The broker currently has an outperform rating and $11.80 price target on its shares. This compares to the current Orocobre share price of $8.52.

South32 Ltd (ASX: S32)

Another ASX 200 mining share to consider is South32. The BHP Group (ASX: BHP) spin off could be a top option due to the diversity of its operations and positive growth outlook.

Among the commodities that the company produces are alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.

The one that is getting investors excited right now is aluminium. With the metal believed to be in the early stages of a multi-year bull market, South32 looks set to benefit from strong prices in the coming years.

Goldman Sachs certainly expects this to be the case. So much so, the broker has a conviction buy rating and $3.80 price target on its shares. Goldman is also forecasting double digit dividend yields through to at least FY 2026.

The South32 share price is currently fetching $3.39.

Should you invest $1,000 in Orocobre right now?

Before you consider Orocobre, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Orocobre wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor James Mickleboro owns shares of Orocobre Limited. 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 Bruce Jackson.

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