Mining sector 'to see rise in IPOs'

The mining sector is set to see an increase in initial public offerings (IPOs) during 2010.

This is according to Ernst & Young, which predicted that the trend for companies in this area to raise primary equity is due to return - something that may interest those considering investment options for their private wealth.

The Big Four company noted that there were only 70 IPOs in the sector during 2009 - raising $3 billion (£1.9 billion) - compared to 280 in 2007.

Global mining and metals transactions leader at Ernst & Young Michael Lynch-Bell said that the IPO market ’will start to recover in 2010’.

’We could see a return to individual mines being floated,’ he added.

Mining firms were down during stock trading in London this morning, with Antofagasta, Fresnillo, Rio Tinto Kazakhmys and Vedanta Resources falling by as much as 1.8 per cent on the FTSE 100, Reuters reports.ADNFCR-2318-ID-19623330-ADNFCR