The S&P/ASX 200 Index (ASX: XJO) materials sector, which includes all mining shares, is in the lead today amid a new market high.
Materials stocks are up 1% today while the benchmark ASX 200 has risen 0.4%.
ASX 200 shares rose to an all-time peak of 9,296.7 points in earlier trading, and are up 6.2% in the calendar year to date (YTD).
But that ain't nothin' compared to the 16% YTD surge for the materials sector, which follows 32% growth in 2025.
For the record, materials is not the best performer of the 11 ASX 200 market sectors YTD.
Energy takes that title, boosted by higher oil and gas prices due to the US-Iran conflict, which has dragged on for five months.
ASX 200 energy shares are up 22.2% YTD, followed by consumer staples at 16.2%, then materials at 15.8%.
What's significant, though, is mining's above-average performance for a second consecutive year, indicating the start of a long-term trend.
Image source: Getty Images
There's ASX mining stocks and then the rest, says expert
CommSec Equity Market Strategist James Gruber says the ASX 200 is a two-tiered market in 2026.
In an article, Gruber said: "Australia seems a bifurcated market: there are miners and then the rest."
Gruber said several factors were pushing ASX mining shares higher in 2026:
The Iran war has … significantly restricted supplies in other commodities, leading to higher prices in the likes of copper and aluminium.
Another factor is the rise of AI and data centres, which has benefited downstream suppliers to these centres, including commodities producers.
The final factor may be a rotation into miners away from other sectors deemed more vulnerable to a potential slowdown in the domestic economy, including some financials and consumer discretionary stocks.
Commodities super cycle
Experts say a new commodities super cycle is underway, and ASX miners are well-placed to meet higher global demand for certain metals and minerals.
In FY26, the lithium spodumene price soared 278%, pushing several ASX 200 lithium shares to new record highs.
That included PLS Group Ltd (ASX: PLS) shares, which streaked 275% higher over the year and hit a record $6.81 in June.
Copper also rallied strongly, up 18% in FY26, largely due to the worldwide AI infrastructure buildout and data centre construction.
The copper price hit a record of US$6.71 per pound this week.
The red metal's rally has directly benefited major producers listed on the ASX 200.
In May, the world's biggest copper producer, BHP Group Ltd (ASX: BHP), reclaimed its crown as the market's No. 1 share by market cap.
The BHP share price hit a new record of $65.98 in June.
Rio Tinto Ltd (ASX: RIO) shares also reset their historical high at $195.84 in June.
The market's largest pure-play copper miner, Sandfire Resources Ltd (ASX: SFR), hit a record $21.75 on 30 January.
The long-term outlook for ASX mining shares remains bright despite the global oil shock, which has lifted fuel costs for the miners.
ASX mining shares represent artificial intelligence thematic: experts
The Australian share market has a fairly small tech sector by global standards.
That's why Blackwattle Equity Income Fund portfolio managers Rudi Minbatiwala and Marlon Chan view the AI thematic as increasingly playing out on the ASX via mining shares.
Minbatiwala and Chan said market gains in recent months "appeared more thematic than broad-based, with index returns concentrated in a narrow group of sectors".
They commented:
The standout driver was continued momentum in the global AI trade, which in the Australian market is being expressed primarily through the Resources sector's exposure to copper.
As an example, BHP, in our view increasingly valued for its copper exposure rather than its iron ore earnings, rose +13% during [May], contributing a meaningful share of the overall index return and illustrating just how narrow market leadership has been.
A global trend in central banks purchasing gold to diversify their reserves away from the US dollar is also contributing to the super cycle.
The gold price rose 18% in FY26.
Blackwattle's Mid Cap Quality Fund has a position in ASX 200 gold mining share, Capricorn Metals Ltd (ASX: CMM).
Mid Cap portfolio managers, Tim Riordan and Michael Teran, commented:
We continue to see material upside for CMM as an 'Enduring Quality' business and view CMM as one of the highest quality gold producers on the ASX, with a low-cost operating base, a strong balance sheet and a management team with a proven track record of disciplined capital allocation.
The imminent approval of Mt Gibson underpins a significant production growth profile, transforming CMM into a 300,000+ ounce per annum producer at costs well below the current gold price.
We remain highly convicted in CMM's ability to compound value through disciplined project execution at structurally elevated gold prices.
The Capricorn Metals share price reached a record high of $16.48 in January.
