Mining Journal > Finance > Stockpile: Rio Tinto higher in London on Riversdale move

Rio Tinto stood out amongst the major miners on the London market this week after moving to almost total ownership of coal company Riversdale Mining Ltd.

The final stumbling block in Rio Tinto’s takeover pursuit was convincing Tata Steel to part with its 26.3% interest in the Australian company.

In the end it took a decision to de-list Riversdale from the ASX that led Tata to sell the stake for A$1.06 billion (US$1.12 billion).

Tata said it did not want to keep hold of the interest without a joint-venture agreement with Rio Tinto.

To close the week, Rio Tinto also announced that Eric Finlayson would move from his current role as head of exploration at the company to be the new chief executive officer of Riversdale.

Each of the majors finished the period in positive ground, with Xstrata plc the next best by gaining 3%, while BHP Billiton and Anglo American plc each rose by about 2%.

Xstrata and Anglo American reported they had agreed to investigate a near doubling of production capacity at their Collahuasi copper joint venture in Chile.

Irish miner Kenmare Resources plc continues to benefit from rising zircon and ilmenite prices as it finished 17% higher, making it the week’s top mover. Indeed, Kenmare has been the top-performing miner on the main market this year with a 71% advance.

As we move into the final week of the first half, only one other London-listed miner is in positive territory this year; Ferrexpo plc, which is almost 6% ahead.

Gold miners Randgold Resources Ltd and Centamin Egypt Ltd were also significant gainers this week, both rising about 7%.

Gem Diamonds Ltd was the week’s biggest faller, dropping 7% after making an announcement it has established a partnership with VOX United to drill four boreholes in the Central Kalahari Game Reserve to provide water for residents.

New World Resources NV fell by 5% following a board decision to approve the Debiensko coal project. Work is expected to commence at the site by the end of this year.

On AIM, African Copper plc was the top performing stock this week with a 23% advance. The company’s value received a major jolt on June 24 after it announced that four prospecting licences held by subsidiary Matsitama Minerals Ltd had been extended by Botswana’s resources minister.

The licences total close to 2,000km2 and are located on the Matsitama Schist Belt in the northeast of the country.

Karelian Diamond Resources plc recorded a gain of over 8% on news it has resumed drilling on its Seitaper kimberlite pipe in the Kuhmo region of Finland. Five or more holes will be drilled at the project to further test the extent of the kimberlite faces.

Other companies to make notable gains included Goldplat plc and Highland Gold Mining Ltd, which both added about 7%.

GMA Resources plc’s shares plummeted 32% following the release of an independent review of its Tirek-Amesmessa property in Algeria. The review said that exploration for a gold resource of more than 10Mt should be considered a high-risk venture.

Kefi Minerals plc fell 30% despite being awarded its long-awaited first exploration licence in Saudi Arabia for the Selib North project.

Other companies whose shares recorded significant reversals included Palamaris Capital plc and Afferro Mining Inc, which were 26% and 19% lower, respectively.