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With commodity prices at depressed levels and continuing to fall, mining companies have increasingly been relying on mergers and joint ventures to reduce risk and lower costs.
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Investors have been concerned about the exposure of investment groups and banks to the commodities sector after the tumbling oil price and falling mining shares.
The main contributor to the monthly fall in industrial output came from falling mining and quarrying output, of which oil and gas played a big part, the ONS said.
The declines were part of a broad fall in mining stocks as commodity prices slipped.
Some worry that investment in infrastructure will fall as mining companies retrench.Even so, there is reason to think the "resource curse" is losing its power.
Nevertheless, they expect the gap to narrow, although they disagree on whether gold will fall or mining stocks will rise — or whether there will be some of both.
A fall in mining shares, poor US data and a denial from America's Verizon that it currently planned a bid for Vodafone helped leading shares record their biggest percentage fall since the end of February.
The Office for National Statistics (ONS) said monthly output was hit by a 1.4% fall in mining and quarrying output.
See articleAs metal prices continued to recover from their recent falls, the mining industry announced a huge deal.
By the close on London, there were widespread falls, with mining stocks, oil shares and banks leading the losers.
CommSec economist Savanth Sebastian expects the local market will remain under pressure on Monday due to falls among mining and energy stocks.
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