While there are more than 2,000 companies listed on the ASX, smaller companies are considered to be riskier investments. This is due to having smaller resources than large cap companies, making them vulnerable to negative events and bearish sentiments.
In contrast, large cap companies are more established and have a much bigger balance sheet that can ride through market downturns. In effect, this provides investors with peace of mind when investing, delivering safe and reliable return over the long term.
Below, we take a look at which are the top 10 ASX mining companies by market capitalisation.
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Who are the ASX's biggest mining companies?
According to the ASX, the largest mining company in Australia, and the world for that matter, is none other than BHP Group Ltd (ASX: BHP).
The mining giant boasts a market capitalisation of $261.62 billion and is by far the biggest player on the ASX.
Next up, which may surprise you, is rags to riches business Fortescue Metals Group Ltd (ASX: FMG). The company was listed for just three cents per share (split adjusted) in 1989 and has surged to $21.17 as of yesterday's close. That represents an astonishing increase of over 70,400%.
Fortescue commands a market capitalisation of around $65.24 billion.
Third on the list is Rio Tinto Ltd (ASX: RIO), valued at $43.62 billion.
As you can see, the top three spots are taken up by companies that are predominately involved with the mining and export of iron ore. This is undoubtedly Australia's largest revenue source, accounting for $153 billion last financial year.
The following three places on the largest mining companies list are Newcrest Mining Ltd (ASX: NCM), South32 Ltd (ASX: S32), and Northern Star Resources Ltd (ASX: NST).
They preside a market capitalisation of $25.17 billion, $23.50 billion, and $12.43 billion, respectively.
Newcrest and Northern Star mine gold assets while South32 is focused on producing aluminium, coal, nickel, silver, and other metals.
The last four spots are covered by Mineral Resources Ltd (ASX: MIN), IGO Ltd (ASX: IGO), Oz Minerals Limited (ASX: OZL), and Pilbara Minerals Ltd (ASX: PLS).
The above companies have a market capitalisation of $11.20 billion, $10.60 billion, $10.07 billion, and $8.98 billion, respectively.
Foolish takeaway
In summary, selecting any of these ASX mining companies from 12 months ago would have increased your wealth.
Depending on which company you bought into, you would have achieved a gain of between 2% to 150% on your investment. Also bear in mind, that this does not include the juicy dividends the miners pay out to shareholders.
