Broker snap: UK miners still have the edge

8th Jan 2010 09:19

With an insatiable appetite for commodities that has scarcely been dulled by the global economic crisis, it is unsurprising that China should seek to have a hand in their production.However, while the east Asian economic powerhouse is stepping up its investment in mining projects, UK miners are still setting the pace in copper and iron ore, according to RBS, which has upped target prices across the sector.China is investing heavily in coal, but will need to accelerate investments in 2010 to gain market influence in key commodities, the broker notes.RBS's top picks in the sector are Vedanta and Rio Tinto, whose price targets it has raised to 3,500p from 2,500p and to 4,000p from 3,300p respectively.Close behind are Xstrata and ENRC, whose price targets are raised to 1,450p and 1,200p and 1,100p from 850p respectively.It has 'buy' stances on all stocks, including ENRC on which it used to have a 'hold' stance.It keeps its 'buy' stance on BHP Billiton and lifts its target price to 2,300p from 2,000p.The target price of Antofagasta, on which it keeps its 'hold' recommendation, climbs to 1,050p from 900p.