Bargain hunters moved in to take a slice of companies that had suffered sharp losses yesterday in what was the biggest percentage fall for the S&P/ASX200, and the overall market, since March 14.
As a result, the index closed up 1.32% to 6265.5 points, not quite enough to wind back yesterday’s 2% fall.
Copper and nickel prices were firmer on the London Metal Exchange, with copper up 0.36% to $7469 per tonne and nickel closing at $37,775/t, a gain of 0.31%.
Zinc was slightly weaker, down 1.63% to $3346.5/t.
Analysts at JP Morgan said the threat of further strike action in South America at the Chilean Dona Ines de Collahuasi mine could affect up to 2.5% of world copper supply
However, as a Hong Kong trader told Dow Jones Newswires, “people seem desensitised to strikes in South America. It seems generally accepted that there’s potential for disruption as contracts come up for renewal and workers want their share of the high copper price.”
Certainly the last round of strikes did not hit the price of the red metal, nor have the prices of copper plays in Australia reacted perceptibly to the threat of industrial action overseas.
Rio Tinto gained back $2.73 to $98.36.
The miner may have been given a push by the news that the Mongolian Government had approved the draft agreement over Ivanhoe Mines’ Oyu Tolgoi copper-gold project, which Rio is funding to the tune of $US1.5 billion.
BHP Billiton was also up 69c to $34.89, 9c above its close on Tuesday before yesterday’s drop.
The other big news story of the day was Territory Resources’ play for Consolidated Minerals.
ConsMin received the incomplete, $A849 million offer last night, and after announcing the possible deal this morning its shares gained 17c to $3.19.
Territory Resources remained in a trading halt. It last traded at $1.485.
Pilbara aspirant Fortescue Metals Group recovered $1.10 to $33.50, while Mid-West iron ore play Murchison Metals shot up 83c, almost 18%, to $5.45.
Among the juniors, Dart Mining had a positive session, its share price rising 5.5c to 24c, a gain of 29.7%, on the back of solid gold grades from its Victorian project.
Alloy Resources gained 2.5c or 20% after announcing it had acquired a new copper-gold project in Laos.
Niagara Mining firmed 19.5c, or a smidge over 23%, to $1.025.
Kagara Zinc, meanwhile, shed 12c to $6.40 despite announcing that production from its Mt Garnet operation had restarted after a six day halt, and Western Areas’ share price dipped 15c (3%) to $4.70 despite being admitted to the S&P/ASX200 index.
Talisman Mining shed 4c or 22% to 14c on the back of no news.
