Stockpile: London main market improves

Finance

Mining stocks were primarily in positive territory this week on the London market, rebounding from recent falls caused by European economic uncertainty and shaky commodity values.

The global diversified miners all enjoyed gains with BHP Billiton leading the way with a rise of more than 7%.

BHPB chairman Jac Nasser again criticised the Australian Government over its proposed Resources Super Profits Tax (RSPT) on Friday, and is seeking further consultation about its potential impact on the industry.

Along with Rio Tinto, BHPB has also been reported to be in more iron-ore pricing talks with China, with rises of more than 20% for the forthcoming quarter and a change to monthly contracts both mooted. Rio Tinto also enjoyed a better week with an advance of almost 5%.

Of the other major miners, Xstrata plc was 6.5% higher and Anglo American plc was up 4%.

The top mover of the week was Namakwa Diamonds Ltd, which surged 15.5%. The South African company recently announced the publication of its 2010 Independent Competent Person’s Report on the Group’s mineral assets, valuing them at US$147 million with about 25.8Mct of resources.

After being the mainboard’s biggest faller last week, Central Rand Gold jumped to near the top of the list with a 12% gain on news that it planned to raise US$35 million through share placement to start production at the CMR West project in South Africa.

At the foot of this week’s list was UK Coal plc, which dropped by 4.5% after potential takeover suitor Hargreaves Services announced it would no longer pursue the company despite saying it owned many valuable assets.

On AIM, London-based Oxus Gold plc was up 14% after it announced its 50%-owned Amantaytau Goldfields project in Uzbekistan had returned to profit.

Guinea-focused iron-ore explorer Bellzone Mining plc advanced by 14% following a repeated “buy” recommendation from Canaccord following positive meetings with the Guinea minister of Mines and Energy. Bellzone is planning the development the US$4.45 billion Kalia iron ore project in the African country with help from a Chinese group.

Canadian company Western Coal Corp’s purchase of the 45% it did not already own of Energybuild Group plc had contrasting effects on the two companies. Western Coal fell 4.5% on the news, while it pushed Energybuild 7% higher.

The biggest riser on AIM was Vane Minerals, which shot more than 15% ahead after agreeing to a joint venture with Jose and Hector Ruiz Met-Sin SA de CV to explore in Mexico.

TanzaniteOne suffered this week, plummeting 15%, on news that the Tanzanian Government plans to ban Tanzanite exports larger than 1g. The Bermuda-based company now intends to expand its cutting and polishing facilities in the country to accommodate the government’s wishes.

Other notable fallers included Angel Mining plc and African Minerals Ltd with drops of 16% and 11% respectively.