Base metals and precious metal miners rose
On November 3, the stocks related to base metals and precious metal miners moved higher. The PowerShares DB Base Metals (DBB) and the SPDR S&P Metals & Mining ETF (XME) rose 1.5% and 2.7%. The SPDR Gold Shares (GLD) rose 0.52%.
Rio Tinto will divest its Simandou asset in Guinea
According to the latest reports, Rio Tinto (RIO), the British-Australian multinational miner, is selling its stake in the Simandou iron ore mine to Chinalco. Rio Tinto has 46.6% ownership in Simandou, while Chinaco owns 41.3%. The Guinea government owns the rest of the stake. After the deal is complete, Chinalco will own 87.9% of the mine. Even though Rio Tinto spent $3 billion on the Simandou iron ore project, the political instability and lawsuit pushed the company to divest from the asset. The deal is worth between $1.1 billion and ~1.3 billion.
Since the beginning of 2016, Rio Tinto rose~13.7%. At 10:40 AM EST on November 3, Rio Tinto was trading at $34.81—a gain of ~1%.