Metal Prices spur market rally

Stronger base metal prices over the Jan. 2-8 report period translated into a broad-based rally among the U.S.-listed base metal producers.

BHP Billiton rose 89 to US$11.60; Phelps Dodge jumped $1.32 to US$33.72; Rio Tinto rose $2.20 to US$80.50; Anglo American soared $1.37 to US$16.48; Southern Peru Copper was up 30 to US$12.25; Alcoa ended the week up $1.79 to US$37.34; and WMC rose 68 to reach US$20.18.

Closing down $1.40 to US64.79, OM Group announced it had shut the nickel refinery at its newly acquired Cawse nickel-laterite mine in Australia. Cawse’s nickel-hydroxide feedstock will now be delivered to OM’s nickel refineries in Finland.

The battle continued to rage between Newmont Mining and AngloGold for control of Aussie gold miner Normandy Mining, with both companies’ share-based bids in a virtual dead heat, as Newmont’s shares tumbled 41 to US$18.70 and AngloGold’s gained 66 to hit US$18.72.

Responding to AngloGold’s inclusion of Barrick Gold in its Normandy plans, Newmont Chairman Wayne Murdy said his company intends “to be a leader in the rationalization of various property interests. . . . However, unlike AngloGold, we will be disciplined in this process, and we will not be required to confront the disposition of important assets.”

AngloGold’s Bobby Godsell countered that his company “will not overpay for acquisitions,” adding: “This is an important character of our company and one that will benefit shareholders in the future.”