ASX mining sector sees growth amid shifting commodity price forecasts

The Australian mining sector has seen significant growth, with the S&P/ASX 200 Materials Index rising 9% in 2026 following a 32% increase in 2025. While commodity prices have remained resilient, government forecasts from the Federal Department of Industry, Science, and Resources suggest many prices may peak in FY27 before declining through FY31.

Specific mining stocks are seeing notable movement. Bell Potter has upgraded PLS Group Ltd to a ‘buy’ rating, citing potential upside from lithium demand and the restart of its Ngungaju processing plant. Meanwhile, Minerals 260 Ltd shares rose over 7% following a rally in gold prices. The company is currently developing the Bullabulling gold project in Western Australia, which features a projected 6.2 million ounce gold resource.