Shares in Anglo American rose on the FTSE 100 index after the diamond arm signed a deal with Botswana.
De Beers, which extracts gemstones from four mines in the South African country, reached a ten-year sales deal until 2033 for the production of rough diamonds in Debswana.
This will lead to Botswana gradually increasing the share of raw stones it receives from the joint venture from 30 percent to 50 percent over the next decade.
The Botswana government had indicated that it could end the talks if De Beers failed to increase its share of 25 percent. A 25-year extension was also granted for Debswana’s mining licenses until 2054.
Anglo American owns 85 percent of De Beers, with the rest controlled by the Botswana government.
Ten-year deal: Debswana Diamond Company’s opencast mine in Jwaneng, Botswana, is a joint venture between De Beers and the government of Botswana
The pair have an equal interest in Debswana. De Beers also mines the gems in Canada, Namibia and South Africa.
Shares in Anglo American gained 4.3 percent, or 96.5p, to 2329.5p.
The miner led an industry rally with Glencore up 3.3 percent, or 14.45p, to 458.95p, Antofagasta gaining 2.5 percent, or 36p, to 1497p and Rio Tinto up 2.1 percent, or 105, 5p, up to 5091p.
The London stock market began its first trading session of July with mixed feelings, with the FTSE 100 falling 0.06 percent or 4.27 points to 7527.26 and the FTSE 250 gaining 0.5 percent or 91.01 points to 18507.77.
Oil prices fell somewhat even as Saudi Arabia and Russia announced further supply restrictions.
The Saudi energy ministry said the voluntary cut of 1 million barrels per day, which began this month, will be extended through August.
Russia also plans to cut half a million barrels a day next month, according to Deputy Prime Minister Alexander Novak.
Major oil companies held on to their gains, with BP up 2.7 percent or 12.45 pence to 470.8 pence and Shell up 1.6 percent or 37 pence to 2379.5 pence.
Mondi completed the sale of its three Russian packaging processing operations to a Moscow-based producer nearly seven months after the pair first struck a deal.
The paper and packaging giant said it had received net proceeds of £26 million from the Gotek Group following the sale.
And the blue-chip company said it remains committed to unloading its largest facility in the city of Syktyvkar, and will split the funds from all sales when it leaves Russia. Stocks added 2 percent or 24.5p to 1223.5p.
There were also sector wide gains with DS Smith rising 2.4 percent or 6.6 pence to 278.4 pence and Smurfit Kappa gaining 1.8 percent or 46 pence to 2674 pence.
Easyjet soared after investment bank JP Morgan raised its target price from 550p to 570p and reiterated a ‘neutral’ rating.
The broker said the budget jet’s revenue outlook looks positive, while the company should also benefit from lower non-fuel and interest costs. Shares rose 2.7 percent, or 12.8 pence, to 495.4 pence.
But Smith & Nephew traded lower after Credit Suisse lowered the medical technology company’s price target from 1385 pence to 1330 pence. Shares fell 5.8 percent, or 73p, to 1195p.
The CEO of trading company IG Group is taking a short period of medical leave from the company. June Felix, who has been in charge since 2018, has temporarily handed over the reins to financial boss Charlie Rozes. Shares fell 0.4 percent, or 3 pence, to 674 pence.
ME Group has set its sights on cashing in on-demand photo ID in Japan after agreeing to acquire Fujifilm’s automated photobooth business for around £5.5 million.
The AIM-listed company, which also provides laundries and food services, already operates 10,500 photo booths in the country and said the deal should close by the end of September. Shares gained 4 percent, or 6.6 pence, to 170.2 pence.
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