Anglo American (AAL) and Lonmin (LMI) have staged the biggest share price recoverys in the sector. Slowing GDP growth in China, as well as in the broader traditional emerging markets, and weak commodity prices have been the main culprits for the dramatic and prolonged fall in stocks in the sector. For Lonmin issues, such as a suplus in platinum in the market and labour disputes around their mines, have taken their toll. Meanwhile companies like BHP Billiton (BLT) and Rio Tinto (RIO) have suffered as a result of the falling price of iron ore, as Chinese demand has fallen away. But why the share price recovery? One reason could be that the shares have simply fallen to such a point that investors have called the bottom. Recovery plans have also been put in place. Lonmin for instance has plans to mothball several mine shafts and cut jobs - cost cutting is a theme across the sector.
Commodites specialist Alex Newman will discuss the recovery potential of the mining sector in next week's magazine.
