Blackrock Sees Opportunity in “Oversold” Mining Equities

SYDNEY (Reuters) – BlackRock Inc, the world’s largest money manager, sees “massive opportunity” in oversold mining equities, the firm’s resources investment division chief Evy Hambro told a briefing on Tuesday.

“Valuations are at very low levels,” Hambro said.

Recent declines in global iron ore prices could lead to a drop in supply leading to a later upside rebound in prices, Hambro noted.

Hambro also said that widespread destocking of copper inventories in China had obscured underlying strong demand for the metal in the world’s top consuming nation.

As of March 31, 2011, BlackRock’s held $3.65 trillion in assets under management, according to its web site.

Investments by BlackRock in mining accounts for $35.75 billion, making it one of the world’s largest single holdings in the sector.

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