Mining Journal > Finance > Stockpile: Vedanta tops London miners

Encouraging news regarding Vedanta Resources plc’s move to take control of Cairn Energy plc Indian unit has helped it to be the top gainer of the miners on the London market this week.

In a largely positive week for resources stocks, Vedanta added 13.5% after conditions for its acquisition of shares of the Cairn unit were released.

Vedanta won approval from India’s cabinet provided that Cairn India withdraws its arbitration against the government over a tax on crude oil sales.

If Vedanta’s purchase does continue as proposed it would be the company’s first venture into oil or natural gas.

Copper miner Antofagasta plc was almost 11% higher after the company chief executive officer made comments about the high demand from China for the base metal.

CEO Jean Paul Luksic told Bloomber this week that his company, which operates four copper mines in Chile, expects “huge demand” from the Asian nation and other emerging economies.

Xstrata was the top performing major miner with a 9% advance. The Swiss-based company this week completed the acquisition of copper properties in northwest Queensland from Exco Resources Ltd for A$175 million.
The remaining majors all finished in positive territory, with Anglo American plc adding 8%, BHP Billiton plc 6.5% and Rio Tinto 5.5%.

BHPB’s forward movement came despite the company announcing a cost blowout of more than US$1 billion at its Worsley alumina expansion project in Western Australia.

The only main market miner that finished down this week was UK Coal, which suffered a 7% drop despite not releasing any major news.

On AIM, African Eagles Resources plc (AER) surged almost 50% to be the week’s top mover. Last week the company, which is also listed in Johannesburg, said it would spin out its Zambian copper assets into a new company, Cobra Copper.

The move is part of AER’s strategy to spin-out its noncore legacy projects, while keeping a focus on the Dutwa nickel project in Tanzania.

Solomon Gold plc was the next best of the junior stocks, rising more than 30% after reporting encouraging early results from the Mbetilonga project on the Solomon Islands.

Others to make significant gains included Baobab Resources plc and Arian Silver Corp, which moved 25% and 20% higher respectively.

Beowulf Mining plc fell 15% after releasing an update on progress at its Kallak iron ore project. The company said 90% of the company’s Kallak South drilling programme has now been completed.

Beowulf added that the latest assay results received for seven drill holes completed in the deposit’s southern half showed high grade iron mineralisation extending over significant widths.

Other companies to make notable losses included African Copper plc and Mariana Resources Ltd, which fell 22% and 13% respectively.