The Australian share market is losing ground, following a weak lead from Wall Street on Friday.
The All Ordinaries index was down 0.7 per cent at 4,170 just before 1:00pm (AEST), and the ASX 200 index also is down 0.7 per cent to 4,127.
Major mining stocks are weighing on the market after a fall in commodity prices - BHP Billiton was down 1.7 per cent and Rio Tinto was 2 per cent lower.
However, Fortescue Metals was up 0.1 per cent after Queensland said it would join Fortescue's court challenge to the Federal Government's mining tax.
Shares in the world's largest zircon producer Iluka Resources were down 22.5 per cent to a 17-month low of $9.07 after it cut its sales outlook.
Iluka now expects to sell up to 300,000 tonnes of zircon for the 2012 calendar year, largely for ceramics.
The company blames a weak property market in China and economic problems in the eurozone for falling demand for zircon.
Telstra was one of the major stocks bucking the downward trend, rising 5 cents to $3.79 as investors seek safer havens in defensive stocks.
If it stays at that level to the end of trade, it will be Telstra's highest close since February 2009.
The Australian dollar was worth 102.02 US cents.