We continue to like the investment thesis underpinning the mining sector and its clear and direct link to the long-term secular change underway in the emerging markets. But like all things it will not be a smooth ride.

In recent months I’ve changed tack a bit and switched out of industry heavyweights Rio Tinto and Xstrata and into a couple of smaller specialist operators, which is something UK Opportunities is able to do.  As such, I have added African Barrick Gold to the portfolio as a shorter-term trading opportunity.  They stand to benefit from the upward trend in gold prices, both fundamentally and as investors look to gold as a store of value in an uncertain world.

I’ve also added iron ore specialist London Mining as a long-term hold.  I know the company well and their first mine ‘Marampa’ in Sierra Leone is set to start producing ore in the second half of 2011 and they aim to move from producing 1.5m tonnes per annum to 25m tonnes per annum by 2015.  The management are also significant shareholders.

Au revoir rather than good bye
I’ve recently said au revoir to an old friend with the sale of Scottish & Southern Energy a backbone position since the launch of the Fund.  But currently I see better opportunity in National Grid and with similar ‘defensive’ characteristics in an uncertain world.

One for the future
One other point to note was the Fosters’ announcement in Australia of the separate listing of its beer and wine operations.  While a little way off, the beer business could be of interest to SABMiller.