21/11/08
Mining groups must be ready for consolidation
RESOURCE companies should prepare for increased merger activity in early 2009, according to a London lawyer. Tom Nicholls, partner at Lawrence Graham LLP, said greater consolidation in the sector, which has been expected for the past two years, will materialise in upcoming months.
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Kittila prepares for production
AGNICO-Eagle Mines Ltd is preparing to pour the first gold from its Kittila gold mine in northern Finland, after processing the first concentrate through the plant's autoclave.Diamond sales hit by financial crisis
THE jewellery market is beginning to be hit by the global financial downturn, and its impact is being felt by diamond producers and retailers.BHPB moves to unlock Yeelirrie
BHP Billiton has restarted work on the Yeelirrie uranium project, one day after Australia's Liberal-National government formally overturned the six-year ban on uranium mining in Western Australia. BHPB said it was assembling a team to evaluate mining and processing options and to prepare an environmental impact statement. A spokesman for the company told Mining JournalProduction and Markets
Diamond producers scale back output on price decline
LEADING players in the diamond industry have vowed to cut back production to lend support for falling prices as grim economic conditions weaken demand for gems.
Record demand for gold
GLOBAL demand for gold rose by 18% year-on-year to an all-time high of 1,133.4t in the three months to September 30, reversing a weaker trend earlier this year as investors sought refuge from the global financial turmoil, and as jewellery buyers returned to the market to take advantage of a weaker gold price, the World Gold Council (WGC), said.Kittila prepares for production
AGNICO-Eagle Mines Ltd is preparing to pour the first gold from its Kittila gold mine in northern Finland, after processing the first concentrate through the plant's autoclave.Diamond sales hit by financial crisis
THE jewellery market is beginning to be hit by the global financial downturn, and its impact is being felt by diamond producers and retailers.BHPB moves to unlock Yeelirrie
BHP Billiton has restarted work on the Yeelirrie uranium project, one day after Australia's Liberal-National government formally overturned the six-year ban on uranium mining in Western Australia. BHPB said it was assembling a team to evaluate mining and processing options and to prepare an environmental impact statement. A spokesman for the company told Mining JournalVEDANTA CUTS OUTPUT
Vedanta Resources plc has temporarily reduced production by 60% at its 40,000t/y Madras Aluminium Co unit in India because of falling aluminium prices and high raw material costs.IRON ORE DEMAND
Fortescue Metals Group Ltd said a Chinese steel mill agreed to almost triple the amount of iron ore it would buy under an existing long-term contract.CAMEC HALTS DRC MINES
Central African Mining & Exploration Co (CAMEC) has temporarily suspended copper and cobalt mining operations in the Democratic Republic of the Congo.Cambrian digs in on market turmoil
CAMBRIAN Mining plc said it was well positioned to withstand the bleak uncertainty in the market, and was upbeat about the operational performance of its coal mines, despite the recent drop in coal prices. These are challenging times but we have the platform to survive in the current climate, the company's chief executive, Mark Burridge, said.Zinc producers continue to grapple with slumping prices
PLUNGING zinc prices continued to frustrate producers this week, with very few zinc mines and smelters left operating profitably.Platinum mines to close on price drop
LONMIN plc revealed plans to suspend open-pit mining at its Marikana platinum mine in South Africa by the end of 2008 and may close the Limpopo Baobab mine shaft, cutting more than 50,000oz of annual output. Lonmin said it would halt expansion plans and reduce its work force after the price of platinum fell 64% from its record of US$2,301/oz in March.Uranium price buoyed by production cut-backs
DEMAND for uranium emerged with renewed vigour this week after some of the world's biggest producers warned they would scale back funding for expansions on the economic slowdown.FREEPORT WORK FORCE
Freeport-McMoRan Copper & Gold Inc laid off 691 workers from its North American operations this week in line with plans to conserve cash by limiting higher-cost production and delaying expansion projects.MINE DISASTERS
In the third coal mine accident in China's central Henan province in three weeks, 33 miners were trapped at the 60,000t/y Gaomendong coal mine after a flood occurred earlier this week.ANZ CUTS FORECAST
The benchmark Australian iron-ore price for the year starting April 1 may drop 50% to US$46/t from US$93/t this year as demand from China slows, according to ANZ bank.ERPM SUSPENDED
DRDGold Ltd said it would place the underground operations of its ERPM mine in South Africa on a careand- maintenance programme and reduce its work force owing to water problems.Exploration & Development
Gippsland plans value addition at Abu Dabbab
GIPPSLAND Ltd plans to produce a part-refined tantalum product from the 50%-owned Abu Dabbab tantalum-tin project in Egypt, but the capital costs have increased.
Liqhobong Main resource rises
THE Main Pipe at Kopane Diamond Developments plc's 75%-owned Liqhobong diamond mine in Lesotho contains more diamonds that previously estimated, according to an interim resource update from consultant ACA Howe.Miners and investors head to london
THE world's mining community will be homing in on London next week for one of the most significant events of the year - Mines and Money London.NIBLACK DRILLING
Committee Bay Resources Ltd has completed its 2008 underground drill campaign at the Niblack goldcopper- silver-zinc project on Prince of Wales Island in south east Alaska.STRIKE EXTENDED
Step-out drilling at Fronteer Development Group Inc's 51%- owned Long Canyon project in Nevada has extended known gold mineralisation by 100m.QEQERTAA STONES
Avannaa Resources Ltd has received results from a sample of lamprophyre dyke recovered from its Qeqertaa diamond property in west Greenland.NEW BRITTANIA ASSAYS
Diamond drilling at Garson Gold Corp's historical New Britannia Mine property in Manitoba has intersected gold mineralisation in two zones.Argentine president vetos glacier law, opening door to development
ARGENTINA'S president, Cristina Fernandez, has vetoed a law protecting the country's glaciers.Rovina Valley resource doubled
THE recent discovery of a third porphyry gold-copper deposit at Carpathian Gold Inc's Rovina Valley project in Romania has contributed to a doubling on resources.Ironbark outlines Citronen boost
IRONBARK Gold Ltd has upgraded the resource at its Citronen zinc-lead deposit in Greenland, following a drilling programme this year.Augusta raises Rosemont reserves
AUGUSTA Resource Corp's Rosemont coppermolybdenum project in Arizona has been estimated to contain additional reserves.Anglo Platinum signs up consultants
ANGLO Platinum Ltd has signed alliance agreements with three mining industry consultancies to ensure its projects have experienced personnel. The world's largest platinum producer has partnered Hatch Africa, TWP Holdings and Read Swartman & Voigt (RSV) in order for all groups to plan their workload and utilisation over three years.Division Mountain study shows potential
A PREFEASIBILITY study by consultant Norwest Corp has found coalmarket conditions assumed in the report would support development of Cash Minerals Ltd's Division Mountain coal project in Canada's Yukon.Minefinders succeeds at Dolores
MINEFINDERS Corp has poured the first gold-silver dore at its Dolores mine in Chihuahua, Mexico, after months of delays caused by protests against the mine.Projects continue to suffer
MORE companies this week announced delays, slow-downs or suspensions of their development project as a result of the global financial turmoil and commodity price falls.SOUTH CLAIMS RESULTS
Kirkland Lake Gold Inc and Queenston Mining Inc have released the latest results from diamond drilling at the South Claims gold joint venture.Finance
Mining groups must be ready for consolidation
RESOURCE companies should prepare for increased merger activity in early 2009, according to a London lawyer. Tom Nicholls, partner at Lawrence Graham LLP, said greater consolidation in the sector, which has been expected for the past two years, will materialise in upcoming months.
Oil-sands project investment delayed
A FINAL investment decision on the Fort Hills oil-sands mining and upgrading project has been delayed until 2009. The Fort Hills Energy partnership, made up of Petro-Canada (60%), UTS Energy Corp (20%) and Teck Cominco Ltd (20%), said the investment had been deferred until a cost estimate consistent with the current market environment can be established.First round of drinks at LME
HISTORY was made this week when the London Metal Exchange hosted a drinks reception on the floor of the exchange for the first time.CAPITAL REVIEW
Silver and gold producer Hochschild Mining plc will cut 150 corporate jobs, delay its San Felipe project and review capital spending in light of economic turmoil.KIERNAN INVESTS
Australian mining identity Michael Kiernan has returned to investing in junior resources stock with his partowned Crawley Investments claiming a 19.88% stake in Redbank Mines Ltd and providing the company with a A$6 million (US$3.8 million) funding dealDEAL IN DOUBT
mpala Platinum Holdings Ltd said its R21.2 billion (US$2 billion) offer for Mvelaphanda Resources Ltd and Northam Platinum Holdings Ltd is in doubt due to falling metals prices and volatile market conditions.VALE FUNDING
The world's largest iron ore producer, Cia Vale do Rio Doce (Vale), has signed a memorandum of understanding with the Export-Import Bank of Korea (KEXIM), the Korean official credit agency, for financing.Interview: Seeing through the gloom
The mining industry is full of entrepreneurs who are looking for financial partners, such as Barclays Capital, and when they come together it is a match made in heaven, according to Mark Brown, managing director of Commodity Principal Investing at the bank.Coal producer raises funds during tough times
SINGAPORE-listed coal producer Straits Asia Resources Ltd has finalised a US$300 million loan agreement with Standard Chartered Bank.Namibian merger abandoned
THE proposed merger of Namibia focused explorers Kalahari Minerals plc and Extract Resources Ltd has been called off by Kalahari, which had concerns over Rio Tinto's intentions for the companies.Cliffs and Alpha settle litigation, cancel merger
CLIFFS Natural Resources Inc has called off a merger with Alpha Natural Resources Inc and litigation proceedings, initiated by Alpha, have been settled.Forsys in favour of GFI takeover
NAMIBIAN uranium interest Forsys Metals Corp has signed an acquisition agreement with private group George Forrest International (GFI).OZ downgrades profit guidance
OZ MINERALS Ltd expects its net profit for 2008 to be lower than the pre-merger profits of former entities Oxiana Ltd and Zinifex Ltd.Fifth Column
Trying to fend off disaster
SO, ROY Pitchford has rushed back to take over as chief executive of Central African Gold (CAG), a company he helped to set up but now seems to be teetering on the brink of financial disaster.INSIDE THE WORLD OF INSIDER TRADING
Richard Ralph was chairman of AIM-listed Monterrico Metals plc at the time it received a takeover offer from a Chinese consortium lead by the Zijin Mining Group. On January 26 last year the Monterrico board agreed to recommend the bid of 350p a share.SHARE AND SHARE ALIKE
More than a few executives have been taking the opportunity to snap up shares in the junior mining and exploration companies they run as prices have come crashing down. But so far no one has made a gesture as extravagant as that of European Goldfields Limited's (EGL) non-executive chairman, Dimitrios Koutros.Reports
Fund Fundamentals: Looking up
Mining Journal presents the third in a series of fortnightly interviews with professional investors in resource stocks
Sweden: feeling the chill
MINERAL exploration spending rose by 70% in 2007, to SK625 million (US$92 million). The first half of 2008 followed the same track. As in 2007, the drilling companies were fully booked and it was difficult to get enough drilling done at times, and the supply of drilling equipment was tight. By the end of the summer, the economic turbulence following the financial crisis started to make itself felt on exploration, too.Finland: reform ahead
The reform of the country's Mining Act of 1965 is almost complete. A working group has proposed legislation ensuring mining and prospecting are conducted in a socially, economically and ecologically sustainable manner.Focus
Fund Fundamentals: Looking up
Mining Journal presents the third in a series of fortnightly interviews with professional investors in resource stocks
MINING UNEARTHED: The availability of minerals
ONE of the main concerns expressed about the use of mineral products is that their resources are strictly finite, whereas demand continues to expand. It is claimed in many quarters that their supplies will soon run out, and that it will be necessary to switch to alternatives.New Mining Journal website launched!
This week, we are proud to announce the launch of the new Mining Journal website. Developed specifically to meet your needs, we hope that you find it makes reading each issue of the Journal easier and more convenient.Sweden: feeling the chill
MINERAL exploration spending rose by 70% in 2007, to SK625 million (US$92 million). The first half of 2008 followed the same track. As in 2007, the drilling companies were fully booked and it was difficult to get enough drilling done at times, and the supply of drilling equipment was tight. By the end of the summer, the economic turbulence following the financial crisis started to make itself felt on exploration, too.Finland: reform ahead
The reform of the country's Mining Act of 1965 is almost complete. A working group has proposed legislation ensuring mining and prospecting are conducted in a socially, economically and ecologically sustainable manner.People and Appointments
