Guess which big 3 ASX 200 mining share led the charge in September

September delivered another month of outperformance for the big ASX 200 miners. Here's why.

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Key points

  • In September, the ASX 200 Index dropped by 1.4%, yet major ASX 200 mining shares, including BHP, Fortescue, and Rio Tinto, performed better than the benchmark.
  • BHP and Fortescue reflected minimal losses post-dividend adjustments, while Rio Tinto emerged as the top performer with a 5.7% increase.
  • The miners benefited from rising iron ore and copper prices, though challenges like pressure from China Mineral Resources Group emerged.

The S&P/ASX 200 Index (ASX: XJO) slid 1.4% in September, with all the big three ASX 200 mining shares outperforming the benchmark.

Can you guess which one led the charge?

How did the ASX 200 mining shares perform in September?

BHP Group Ltd (ASX: BHP) shares closed out August trading for $43.19. At the closing bell on 30 September, shares were changing hands for $42.53. This saw the BHP share price down 1.5% in September.

But that doesn't tell the whole story.

BHP shares traded ex-dividend on 4 September. So, we need to add the fully franked 91.9 cent per share final dividend back into September's closing price. That brings the accumulated value of BHP shares at the end of September to (a rounded) $43.45 each.

Which means that BHP shares actually gained 0.6% over the month just past, beating the benchmark.

Investors who held the stock at market close on 3 September will have received that passive income payout on 25 September.

Turning to Fortescue Ltd (ASX: FMG), the ASX 200 mining share closed at $19.30 on 29 August. On 30 September, shares closed trading for $18.68 each. This saw Fortescue shares down 3.2% over the month.

But, as with BHP, Fortescue shares also traded ex-dividend, in this case on 1 September. If we add the fully franked 60-cent per share final dividend back into September's closing price, then the accumulated value of Fortescue shares on 30 September comes out to $19.28.

This sees Fortescue shares down a slender 0.1% over the month, outpacing the 1.4% loss posted by the benchmark index.

Which brings us to the top-performing big three ASX 200 mining share in September, Rio Tinto Ltd (ASX: RIO).

Rio Tinto shares closed out August trading for $115.47. When the closing bell sounded on 30 September, shares were swapping hands for $122.03 apiece. This puts the Rio Tinto share price up 5.7% in September.

Eligible investors will also have seen the fully franked $2.22 per share interim Rio Tinto dividend hit their bank accounts on 25 September. But as the stock traded ex-dividend on 14 August, that won't have impacted the share performance.

Tailwinds and headwinds for the big Aussie miners

All three of the ASX 200 mining shares enjoyed a boost in the iron ore price in September.

The industrial metal kicked off last month trading for around US$102 per tonne. But prices lifted during the first week, and iron ore then traded above US$105 per tonne for much of the month.

BHP and Rio Tinto will also have caught tailwinds from the rising copper price, with both miners working to increase their copper exposure.

Copper closed August at US$9,884 per tonne and finished out September at US$10,269 per tonne, putting the red metal up 3.9% over the month.

As for headwinds, later in September, news began to circulate that China Mineral Resources Group (CMRG) – created three years ago with the intent to give the world's top iron ore importer more bargaining power over pricing – was pressuring BHP and potentially other ASX 200 mining shares in order to bring prices down.

That story remains in play into October.

Stay tuned.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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