NEW YORK (TheStreet) -- Steel Dynamics (STLD - Get Report), James River Coal (JRCC), Ternium (TX - Get Report), Walter Energy (WLT), Teck Resources (TCK), Freeport-McMoRan Copper & Gold (FCX - Get Report), POSCO (PKX - Get Report), Cliffs Natural Resources (CLF), Rio Tinto (RIO) and Vale (VALE) are a few mining-related stocks trading at deep discounts. The stocks have upside potential of 21%-50%, based on analysts' consensus estimates of 12-month price targets.

A sharp demand for commodities, underpinned by the economic recovery, has sparked off a rally in metal prices, which augurs well for mining stocks. The SPDR S&P Metals and Mining ETF ( XME) outperformed broader markets, surging 26% during the last one year, while the S&P 500 Index gained 15% in the same period.

The following 10 mining stocks are trading at price-to-projected earnings of less than 11 and received average analysts' buy ratings of 81%. The selected stocks have potential to deliver up to 50% return over the next one year.

Even though Metalico ( MEA), Eldorado Gold ( EGO), Royal Gold ( RGLD) and Kinross Gold ( KGC) are expected to return in excess of 30% in the next one year, we did not consider them as they are trading at an average price-to-projected earnings of around 26.

The stocks are stacked from cheap to cheapest based on forward earnings multiples.

10. Steel Dynamics ( STLD - Get Report) is the fifth-largest producer of carbon steel products.

During 2010 fourth quarter, Steel Dynamics reported net profit of $8 million on net revenue of $1.5 billion. In comparison, fourth quarter 2009 net profit stood at $27 million on net revenue of $1.2 billion. A non-cash asset impairment charge of $13 million related to the company's fabrication operations lowered fourth quarter earnings.

Fourth quarter steel shipments were 1.3 million tonnes, up 13% from the year-ago quarter. For 2010, shipments increased 32.5% to 5.3 million tonnes.

On the probable segments that could see enhanced demand, Keith Busse, Steel Dynamics CEO, said in a press statement, "Our current expectation is that steel consumption should grow in 2011 in the automotive, transportation, energy, industrial, and the agricultural and construction equipment sectors."

The stock is trading at 11 times its estimated 2011 earnings and received 82% buy ratings.

9. James River Coal ( JRCC) mines, processes and markets multiple coal varieties. The company operates through six subsidiaries located across eastern Kentucky and southern Indiana.

Net income reported for 2010 was $78.2 million, compared with $51 million in 2009. Net revenue improved to $701 million in 2010 from $682 million in the earlier year. Gross profit for 2010 was $122 million, up from $111 million in 2009.

Commenting on the profitable year, Peter Socha, JRCC chairman and CEO, said, "This was another very profitable year for James River Coal Company. We are now seeing clear signs of an improving coal market and an improving economy. We have invested in our Company during the downturn, and are looking forward to seeing the benefit of these investments during the months and years to come."

Net revenue for 2010 fourth quarter increased by around 8% year-over-year to $162 million, while gross profit was $19.7 million, compared to $13.2 million during the same period last year. The stock is trading at 10.9 times its estimated 2011 earnings.

8. Ternium ( TX - Get Report) is a leading steel company in Latin America, manufacturing and processing a wide range of flat- and long-steel products for varied industries.

During 2010 fourth quarter, shipments improved 27% year-over-year to 2.1 million tonnes. Net sales for the same period grew 41% to $1.9 billion from 1.36 billion in the fourth quarter of 2009. Net income for 2010 fourth quarter was $102.8 million, a decline of $98 million compared to the third quarter 2010, largely attributable to increased raw material costs.

Going forward, the management expects business operations to strengthen in 2011 first quarter on the back of improved operating margins in North America, resulting from higher prices and shipments. The stock is trading at 10 times its estimated 2011 earnings with 100% buy ratings.

7. Walter Energy ( WLT) is a leading producer and exporter of premium hard coking coal for the global steel industry.

Net revenue reported for 2010 was $1.6 billion, up 63% year-over-year, or $621 million, compared to 2009. Earnings before interest, tax, depreciation, and amortization increased to $692.8 million, rising 150% from the earlier year.

Revenue for 2010 final quarter stood at $401 million, compared to $236 million for the same period last year. Operating income quadrupled to $145 million from $37 million in the year-earlier period.

On strategic acquisitions, Joe Leonard, Walter Energy Interim CEO, said in a press statement, "Strategically, we continue to make excellent progress on our transformative acquisition of Western Coal, which, when completed, will make Walter Energy the leading, publicly traded 'pure play' coking coal producer in the world. We also recently completed the acquisition of a river terminal facility at the Port of Mobile to ensure unconstrained shipping capacity for our long-term coking coal production plans from our mines in Alabama, to maintain low mine-to-vessel costs and to make us less reliant on third parties." The stock is trading at 9.5 times its estimated 2011 earnings.

6. Teck Resources ( TCK) engages in mining and related activities including exploration, smelting and refining. The company's main products are metallurgical coal, copper, and zinc.

Net revenue reported for 2010 fourth quarter was $2.8 billion, compared to $2.1 billion for the same quarter last year. For full-year 2010, revenue was $9.3 billion as against $7.6 billion in 2009.

Adjusted earnings stood at $1.5 billion, up 36% from $1.1 billion in 2009. Adjusted earnings for 2010 fourth quarter increased 76% to $550 million, compared to $310 million in 2009.

Reviewing 2010 financial performance, Don Lindsay, Tech Resources president and CEO, said in a press statement, "2010 was a strong year. We are reporting record revenues, record annual operating profits, and an increase in both copper and coal production. There is further growth ahead of us as each of Teck Coal, Andacollo, Antamina and Highland Valley Copper increase production. Our balance sheet was significantly strengthened as a result of a further $3.1 billion reduction in our debt and through our refinancing we significantly reduced our interest costs." The stock is trading at 9.2 times its estimated 2011 earnings.

5. Freeport-McMoRan Copper & Gold ( FCX - Get Report) is a copper, gold and molybdenum mining company with mineral assets in Indonesia, the Americas and Congo. The company operates a copper refining and smelting unit in Spain.

Net revenue for 2010 increased 26% year-over-year to $19 billion, compared to $15 billion in 2009. Operating income was up 39% to $9.9 billion from $8.5 billion in 2009. Net income grew 69% year-over-year to $4.2 billion. The management attributes the enhanced performance in 2010 to higher average realized prices for metals, partially offset by lower copper and gold sales volumes.

At the end of Dec. 2010, cash balance was $3.7 billion and $4.8 billion in long-term debt. Freeport repaid around $2.6 billion in debt in the last two years. The company is trading at 8.6 times its estimated 2011 earnings and received 76% buy ratings.

4. POSCO ( PKX - Get Report) is a Korea-based integrated steel producer.

For full-year 2010, net revenue grew 20% year-over-year. During 2010, the company achieved highest steel production volumes until date. Production volumes stood at 33.7 million tonnes, up 14% year-over-year, following capacity expansion. Through low-cost material use and byproduct recycling, operating profit increased 60% in 2010, compared to the prior year.

Going ahead, POSCO plans maximum production from its new and expanded facilities. During 2010, POSCO started to operate its newly opened or expanded facilities such as the Gwangyang steel plate factory and refurbished Pohang Furnace. Construction work has started at the company's Indonesian integrated steelworks, cold-rolled steel sheet plant in India, cold-rolled stainless steel plant in Turkey, and three overseas processing centers each in China and India.

The stock is trading at 8.2 times its estimated 2011 earnings.

3. Cliffs Natural Resources ( CLF) is an international mining and natural resources company. It is the largest producer of iron ore pellets in North America, a major supplier of direct-shipping lump and fines iron ore out of Australia, and a major producer of metallurgical coal.

Consolidated 2010 fourth quarter revenue rose 74% year-over-year to $1.4 billion, driven by higher sales volume and pricing.

Operating income for 2010 fourth quarter increased 155% year-over-year to $397 million, compared to the prior year's comparable quarter. Net income for the same quarter increased 255% year-over-year to $384 million.

The company observed ample upside in terms of operations in 2010. Cliffs purchased INR Energy's coal operations and the remaining 73% stake in Wabush Mines to augment its additional sea borne iron ore exposure. The acquisition of Freewest Resources and Spider Resources positions Cliffs Natural Resources as the leading primary chromite producer and exporter. The stock is trading at 7.4 times its estimated 2011 earnings.

2. Rio Tinto ( RIO) is a global metal and mining player dealing in aluminum, copper, coal and iron ore. Rio sources bulk production from Australia and North America and operates in more than 50 countries.

In terms of performance, Rio reports 2010 as its best year. The company announced record underlying earnings of $14 billion in 2010, up 122% from 2009. Operating profit grew 82% in 2010 to $26 billion. Net debt reduced to $4.3 billion from $19 billion in 2009.

Net earnings for 2010 consist of sale of the Group's 48% interest in Cloud Peak Energy ( CLD). Besides, the company recommended A$16 per share cash offer for Riversdale Mining, to acquire all its outstanding shares during December 2010.

On Rio's expansion plans, the company's CEO Tom Albanese said in a press statement, "We will continue to expand our tier one assets following the $12 billion of major capital project approvals since the start of 2010. We have embarked on Australia's largest fully integrated mining project through the expansion of our iron ore business in the Pilbara towards 283 million tonnes a year by 2013, and continue to finalize studies into the phase two expansion to 333 million tonnes a year by 2015." The stock is currently trading at 7.4 times its 2011 earnings.

1. Vale ( Vale) is a metal and mining giant producing iron ore and iron ore pellets.

Vale reported one of its best performing years in 2010. The company churned all-time high figures for revenue, net earnings, and operating margin. Net revenue doubled to $46.5 billion in 2010, compared to 2009. Operational margin measured at 47.9% in 2010, besting its peers. Net income tripled to $17.3 billion during 2010.

Vale launched operations at six projects in 2010: iron ore expansion at its Carajas operations; Tres Valles copper project in Chile; Onça Puma ferro-nickel property in Brazil; test production at Oman iron ore pelletizing plant; and Bayovar phosphate rock mine in Peru. Overall, Vale invested $12.7 billion towards maintenance of its existing assets and other organic growth opportunities.

Of the 24 analysts covering the stock, 19 rated a buy. The stock is trading at 6.7 times its estimated 2011 earnings.

>>To see these stocks in action, visit the 10 Mining Stocks Trading at Deep Discounts portfolio on Stockpickr.