The S&P/ASX 200 index lost 1.6% to close at 4924 points while the All Ordinaries was down 1.6% to 4911 points.

Basic materials was the worst performing sector on the market, falling 4.8% over the course of the session.

Rio Tinto fell 4.6% to $A52.07 while BHP Billiton lost 4.4% to $30.65, as the world’s largest miner hinted at tough times in the industry by confirming its incoming chief executive officer Andrew Mackenzie would be paid less than his predecessor.

In a statement released today, BHP said Mackenzie would receive a base salary of $1.7 million – a bold comparison to the $2.2 million CEO salary listed in the company’s 2012 annual report.

Trading also coincided with a report from SQM Research that suggested rental vacancies in mining towns were climbing faster than the national average.

“Property investors over the past 10 years have done extraordinarily well if they held real estate in mining towns,”Bloomberg quoted SQM managing director Louis Christopher as saying.

“However, there is always a risk that when a downturn arrives these markets could have a very rapid and severe correction.”

Mineral sands heavyweight Iluka Resources stood out again with a 6.2% slide to $8.71 after it announced it would continue to slash production due to inconsistent demand.

Sirius Resources also extended losses with an 11.3% plummet to $2.68.

Iron ore companies were not immune to the investor backlash either as Fortescue Metals Group fell 7.8% to $3.43 despite offering an upbeat quarterly that tracked increased shipments and lower costs.

Atlas Iron lost 9.9% to 86c while Arrium fell 6.6% to 77c.

Resource companies requesting trading halts pending an announcement by Monday included Tiger Resources, Reed Resources, Cape Lambert Resources, Korab Resources and Gold West Resources.