Standard & Poor’s has launched a new base metals index to provide investors with an investable index of global securities involved in the production or extraction of base metals.

On Thursday, the company launched the S&P/TSX Global Base Metals Index. It is a subset of the existing S&P/TSX Global Mining Index, which provides investors with a broadly representative benchmark for global mining portfolios.

Eligible securities for the Global Base Metals Index are classified under two Global Industry Classification Standard subindustries: diversified metals and mining, and aluminum. This includes companies engaged in the extraction of industrial metals such as aluminum, zinc, copper and nickel.

The Base Metals Index is calculated based on a market capitalization approach that prevents any individual constituent from having a weight in the index greater than or equal to 10%.

To be eligible, securities must be listed on the TSX, NYSE or Nasdaq, must have market capitalization of at least US$300 million, and must meet certain liquidity criteria.

The index is currently comprised of 30 stocks, including such companies as Inmet Mining Corp., Teck Resources Ltd., First Quantum Minerals Ltd. and Sherritt International Corp.

IE