Overall, the iron ore market is experiencing a recovery in supply and inventories, and Chinese demand so far is holding up.

The ban is aimed at making miners process minerals in Indonesia, a major exporter of nickel ore.

Ore for September closed around 7.3% lower at $95.63 a tonne in Singapore. Benchmark spot material dropped to $99.50 a tonne on Monday.

The Productivity Commission will look at best-practice examples of regulation that will remove unnecessary costs for mining companies.

The new code is intended to improve conditions for companies and increase revenue for the state.

University of Colorado scientists are investigating the possibility of biomining iron from lunar, Martian and asteroid regolith simulant

Worries about demand for steel products also weighed on iron ore.

Royalty payments are estimated to climb 70%.