The current economic slow down and market response over the past month (Dow has been down 8.9%), has forced investors to look at creative and stable solutions to save their investments and possibly squeeze some profits. The key is to look global and towards the emerging markets. Vedanta (VED.L), a diversified mining company has a focus on copper, zinc, aluminum, and iron ore with a reach in India, Zambia, and Australia. Vedanta has controlling shares in Konkola Copper Mines in Zambia and owns Sesa Goa (SESAGOA) the largest exporter of iron ore in India. It also owns Madras Aluminum Company and Bharat Aluminum Company as well as Hindustan Zinc.
Copper Mining in Zambia a Big Business
Copper mining in Zambia has been a huge catalyst to this African countries move towards economic stability and growth as opposed to its southern neighbor Zimbabwe. Many multinationals have investments in Zambian copper mines and this is ultimately the point of interest to those investors looking at a stock to buy. Vedanta may be an expensive stock to buy into (last trade 1416) but its well off its highest point of 2100 back in the end of May. The reason why Vedanta will trend higher is that it is both a multinational and a diversified mining company. The areas of the world it involves itself in are those which are growing. The stability of Vedanta and its operations are clear and so if investors are looking for safety and to play it long, this is one stock that should be of interest.
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