After turning in a robust performance through June, most mining companies stumbled as automobile, housing and other manufacturers who use their metals cut back amid a global recession.

The European Commission opened an in-depth investigation on Friday into BHP Billiton's $170 billion unsolicited bid for rival miner Rio Tinto, with prices of iron ore already soaring.

Global steel giants ArcelorMittal and POSCO have separately bought stakes in Macarthur Coal, raising the possibility of a bidding war for the Australian mining company as steelmakers rush to secure stable coal supplies.

Miner BHP Billiton may be forced to scrap its plan to rewrite the way billions of dollars of iron ore are sold every year after rival Rio Tinto struck a benchmark deal with China, analysts said on Tuesday.

Chinese steelmakers narrowly averted a showdown with Australian iron ore suppliers, when they agreed to a higher-than-expected rise in term iron ore prices a week before they would have had to start paying much higher spot prices.