Xstrata, Rio Tinto and Vedanta Resources continue down as miners weigh on FTSE 100

The miners were in decline as falling base metal prices continued to pressure share prices into late afternoon.

At 2:56pm, Rio Tinto plc was down 1.33 pct, Xstrata 3.02 pct and Vedanta 1.57 pct.

"The growing speculation of a rise in interest rates in China has got resource stocks on the move," said Jimmy Yates, head of equities at CMC Markets, commenting on the downward trend.

Vedanta Resources - which mines in India - was also in the news today regarding its potential demerger of its aluminium business, its worst performing business - and a drag on profits.

If it decides to go ahead, the new aluminium business would be quite substantial, fourth largest in the world, and advisers - Morgan Stanley, Credit Suisse and JP Morgan Cazenove – believe a demerger would create shareholder value by simplifying the group's structure.

If successful, Vedanta could spin-off as many as five or six businesses including zinc, iron ore and copper.

Market watchers believe an announcement could come as early as this week.