OZ Minerals, Fortescue Lead Rebound in Mining Stocks

By Jesse Riseborough and Rebecca Keenan

Aug. 14 (Bloomberg) -- OZ Minerals Ltd., the world's second- largest zinc mining company, and Fortescue Metals Group Ltd. led a rebound in Australian mining stocks in Sydney trading after the biggest commodity rally since June.

OZ Minerals rose 8.5 percent to A$1.79 at the 4:10 p.m. Sydney time close on the Australian stock exchange. Fortescue, the iron ore producer controlled by Australia's richest man Andrew Forrest, added 7.5 percent to A$7.71.

Australian mining and materials stocks rose the most in seven months after buyers returned to commodities markets yesterday on speculation that slumping raw-materials prices, which sent copper, oil and corn into bear markets, were excessive. Before today, the S&P/ASX 200 Materials Index had dropped 15 percent since July 1 on concern metals demand from China slowed.

``Everyone's acting like the resources sector just bottomed and have been quick to jump on board the big fallers like OZ Minerals and Fortescue,'' Marcus Padley, author of Marcus Today, said today in the newsletter. ``After the size of the recent falls, you can see how tempting it is to get back on board.''

Surging prices for nickel, wheat, corn and crude oil yesterday sent the Reuters/Jefferies CRB Index of 19 commodities rebounding to its biggest one-day gain since June.

``There were a lot of commodities stronger overnight,'' James Foulsham, head of trading for Asia Pacific at CMC Markets, said by phone. ``A lot of those stocks had been sold off pretty heavily recently. Some people are buying back into them.''

Centennial Coal Co. gained 10 percent, Minara Resources Ltd. rose 10 percent and Panaust Ltd. jumped 20 percent. BHP Billiton Ltd., the world's biggest mining company, rose by 5.3 percent and Rio Tinto Group 5.7 percent.

To contact the reporters on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net; Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net.