LONDON (Reuters) – Mining group Xstrata <XTA.L> reinstated dividends on Monday, reflecting confidence about commodities demand and its finances after posting an expected 41 percent fall in 2009 profit reflecting weaker metals prices.

The head of the acquisitive company also told Reuters he had not discussed a possible merger with its biggest shareholder, commodities trader Glencore <GLEN.UL>, but said such a tie-up could create value.

Analysts said the decision to restart dividends after suspending them during the downturn to save cash was a surprise and helped push the shares higher.

“The group’s decision to reinstate the dividend is evidence of the board’s increasing confidence of the business outlook,” Liberium Capital said in a note, repeating a “buy” rating.

LONDON (Reuters) – Mining group Xstrata was holding no talks with its biggest shareholder — trading house Glencore — about a possible merger, but said such a combination had potential to create value.

Glencore said in December when it raised $2.2 billion that there was potential for a listing and possible combination with another group.

Chief Executive Mick Davis told Reuters on Monday he did not know what group Glencore was referring to since there has been no discussions about a possible merger.

“Clearly, when one puts together a great trading house and a great mining house, you have the potential for value creation,” he said in an interview.

LONDON, Feb 1 (Reuters) – Mining group Xstrata Plc <XTA.L> posted higher 2009 output on Monday of its most profitable product, coal, but weaker prices and currency effects will crimp profits when it releases financial results next week.

Analysts said the production results — which included a 5 percent drop in mined copper production — were in line or slightly higher than forecasts. Coal is expected to account for 40 percent of core earnings this year while copper is due to make up 36 percent and zinc 10 percent, according to Morgan Stanley.

“Overall we believe these represent solid production numbers from Xstrata with copper the only weak area of note and more than offset by strong performances from the nickel, zinc and coal divisions,” Cazenove said in a note.

Cazenove reiterated its “outperform” rating, saying Xstrata was the second cheapest of the diversified mining groups.

LONDON, Jan 28 (Reuters) – Commodity trader Glencore [GLEN.UL] is determined to buy back the prized Prodeco coal operations in Colombia from mining group Xstrata <XTA.L>, but may chose to bring in a partner to do so.

Swiss-based Glencore was forced to give up the Prodeco operations last year when it was short of cash, but it has an option to repurchase them which expires in coming weeks — an option which sources close to the situation say Glencore is keen to exercise.

Yet a need to avoid undue pressure on its balance sheet may lead the group to sacrifice a share of the spoils, opening an opportunity for someone else keen to get involved in the high-grade, low-cost operations that include two open pit mines, port facilities and part ownership of a railway in the South American country.

After a rebound in commodity prices, Glencore could manage by itself to pay the $2.5 billion required without a credit ratings downgrade, but it may prefer to spread the risk.

LONDON, Jan 28 (Reuters) – Kazakh copper producer Kazakhmys <KAZ.L> forecast no output growth this year after shutting mines to save cash in 2009 and seeing fourth-quarter production slide by 25 percent.

Investors will have to wait until at least 2011 for the company’s growth projects to lift output. It sealed a deal last year for $2.7 billion in financing for expansion projects. [ID:nLDE5BT0RN]

The London-listed company said in a production report on Thursday it slightly exceeded its 2009 output target of 315,000 tonnes of copper cathode, coming in with 320,400 tonnes, but this was a 6.6 percent fall from the previous year.

Analysts said the production data was largely in line with expectations. The shares were up 1.4 percent at 1283 pence at 1128 GMT, outperforming a 0.4 percent rise in the UK mining index <.FTNMX1770>.

LONDON/BRUSSELS, Jan 19 (Reuters) – ArcelorMittal <ISPA.AS>, the world’s largest steelmaker, and No. 1 miner BHP Billiton <BHP.AX> <BTL.L> hope to combine their iron ore assets in West Africa to cut costs on infrastructure.

This could be the second such iron ore joint venture for BHP, the world’s third biggest iron ore producer, after it agreed with rival Rio Tinto <RIO.L> last year to merge their Australian iron ore assets.

ArcelorMittal and BHP said on Tuesday they were in talks about a possible joint venture since their deposits in neighbouring Guinea and Liberia were near each other’s. They would discuss the plan with the governments in coming months.

Analysts said BHP would benefit by allowing it to ship ore from Guinea through the Liberian coast, cutting hundreds of kilometres from the access route, and ArcelorMittal would benefit from BHP’s mining expertise.

LONDON, Jan 14 (Reuters) – Mexico’s Fresnillo Plc <FRES.L>, the world’s largest primary silver producer, posted strong production figures and launched a new mine ahead of schedule as it focuses on internally-generated growth rather than takeovers.

The London-listed group — which aims to double output by 2018 — recently lost out in a bidding battle for a junior miner after its joint venture Minera Penmont refused to boost its offer. [ID:nN08143338]

“We will continue to look for interesting projects, mainly those that would make us to consolidate districts in which we already operate or have exploration claims,” Octavio Alvidrez, head of investor relations, told a conference call on Thursday.

“We are always open to new opportunities for growth … (but) now we don’t have anything in sight.

LONDON (Reuters) – Shares in uranium producers offer prospects of long-term gains as China ramps up ambitious growth in its nuclear industry, but the ride may be rough due to excess near-term supplies from expanding mines and inventories.

After decades of scant growth of new reactors due to safety and storage concerns, nuclear energy is enjoying growing acceptance as a carbon-free alternative for nations seeking to meet commitments about global warming.

Some 53 reactors are under construction worldwide and another 136 are planned, adding to the 435 now operating, according to the World Nuclear Association (WNA).

Supplies of the silvery metallic element used to fuel reactors are currently abundant, however, and uranium’s spot price is likely to underperform in coming months.

LONDON, Dec 10 (Reuters) – Uranium, the silvery-white mineral that powers nuclear reactors, is capturing growing attention amid burgeoning demand for power from emerging nations and a scramble to curtail carbon emissions.

As leaders gather in Copenhagen to hammer out a deal on global warming, many nations have seized on uranium and nuclear power as a carbon-free energy solution despite opposition by environmentalists on safety grounds.

The case for uranium is bolstered by estimates that electricity demand is due to surge by up to two-thirds by 2030, driven by emerging nations like China and India.

“A gap of almost 12 trillion kilowatt hours needs to be filled by 2030,” said CIBC analyst Ian Parkinson in a research note. “We expect nuclear energy to play a major role in this growth.”

LONDON (Reuters) – Uranium, the silvery-white mineral that powers nuclear reactors, is capturing growing attention amid burgeoning demand for power from emerging nations and a scramble to curtail carbon emissions.

As leaders gather in Copenhagen to hammer out a deal on global warming, many nations have seized on uranium and nuclear power as a carbon-free energy solution despite opposition by environmentalists on safety grounds.

The case for uranium is bolstered by estimates that electricity demand is due to surge by up to two-thirds by 2030, driven by emerging nations like China and India.

“A gap of almost 12 trillion kilowatt hours needs to be filled by 2030,” said CIBC analyst Ian Parkinson in a research note. “We expect nuclear energy to play a major role in this growth.”