Jan. 2 (Bloomberg) -- U.K. stocks rise, led by mining companies, trimming last year’s record decline in the FTSE 100 Index.

Rio Tinto Group, the world’s third-largest mining company, increased 3.9 percent. BG Group Plc rose 2.4 percent as natural gas advanced after Russia cut supplies to Ukraine for the second time in three years.

The FTSE 100 increased 31.12, or 0.7 percent, to 4,465.29 at 9:46 a.m. in London. The broader All-Share Index rose 0.6 percent and Ireland’s ISEQ Index added 1.4 percent.

“We’re glad to see the back of 2008,” said Chris Bennett, a London-based senior trader at Choice Odds. “For most people 2009 hasn’t really started yet. We’re not going to see any major movements until next week.”

The FTSE 100 tumbled 31 percent last year, led by banks and basic resources companies, as credit-related losses and writedowns at financial firms that topped $1 trillion pushed the U.S., Europe and Japan into the first simultaneous recessions since World War II.

Rio rose 3.9 percent to 1,548 pence, a second day of gains. Rio unit ACC Rio Tinto Exploration Co. secured a permit to search for diamonds, gold, copper and zinc in India’s southern state of Andhra Pradesh.

BG gained 22.5 pence, or 2.4 percent, to 979.5 pence. February gas rose 1.7 percent to 59.50 pence a therm, according to data from the ICE Futures exchange in London at 8:50 a.m. local time. It rose as high as 60 pence earlier today, the first trading session after Russia’s supply cut.

Aggreko Plc advanced 2.4 percent to 456.25 pence. Rupert Soames, chief executive officer of the world’s largest provider of mobile generators, said the fundamentals for power-rental services remain “strong,” the Financial Times reported.

To contact the reporter on this story: Andrew Rummer in London at arummer@bloomberg.net.

Last Updated: January 2, 2009 05:16 EST