Diamondcorp CEO says increased per-carat value could drop break-even grade - making Lace Diamond Mine a bigger cash generator than expected. According to miningmx.com, the South African Diamond Exchange has valued the first 561 carats of diamonds out of the 759 carats recovered from 5,515 tons of kimberlite at $205/carat – 71% higher than the company's base case of $120/carat.
Africa Mining News
Sesa Goa, a subsidiary of Vedanta Resources, on Saturday said it will buy 51% stake in an iron ore making firm in Liberia for $90 million in an all-cash deal. Located in Western part of Liberia and spread over 270 sq km area, the company has an estimated reserve of over 1.05 billion tonnes iron ore. Vedanta's investment follows iron ore giant ArcelorMittal which after five years of ground work started operations at the country's Tokadeh mine earlier this year and is spending $800 million in the first phase of the project to rehabilitate the rail link and port. ArcelorMittal exported the first iron ore from Liberia after a 20 year hiatus on June 11 from the port of Buchanan.
South Africa's Richards Bay Coal Terminal (RBCT) exported 4.36 million tonnes of coal in July compared with 4.78 million tonnes the previous month, RBCT data showed on Thursday. This compares with 5.94 million shipped during the same month last year.
Following the 53-hole first phase drilling program completion by Delta Mining Consolidated Ltd (DMC) on its 3,445 hectare Southern block of the 9,548 hectare Limpopo Coal Project, an indicated coal resource of 136 million gross tons in situ has been announced.
Research and Markets: Production and Investment Forecasts in the Namibian Mining Industry: Uranium Set to Overtake Diamonds as Namibia's Largest Foreign Currency Earner
Research and Markets (http://www.researchandmarkets.com/research/5cb789/production_and_inv) has announced the addition of Frost & Sullivan's new report "Production and Investment Forecasts in the Namibian Mining Industry" to their offering. This research
The Economic Times reports Botswana is the world’s biggest rough diamond producer by value in 2010. According to statistics release by the Kimberley Process, a UN certified scheme, despite Russia producing more rough diamonds in 2010 at 34 million carats worth around $2.38 billion, Botswana’s 22 million carats mined in 2010 were worth around $2.59 billion — $210 million dollars more than Russia.
Australian mining explorer Cape Lambert Resources is seeking to list its Marampa iron ore project in Sierra Leone by the end of 2011 to raise as much as $500 million, as Chinese backing for the larger Tonkolili development nearby supports its plans.
Essar plans to spend up to USD 4 billion in constructing a steel plant to process iron ore from Zimbabwe's Mwanesi resource within the next five years.
According to a new report by Research & Markets high uranium prices, paralleled by growing global demand for energy, will result in Namibia doubling its uranium production to approximately 12,000 tonnes by 2015 from the 5,300 tonnes the country produced in 2009. Namibia's extensive uranium deposits, coupled with the expansion of existing mines, will result in the country's uranium production increasing sharply in the short to medium term.
JSE-listed Northam Platinum said on Friday that the six-week strike in the first half its 2011 financial year would result in lower earnings.
Reuters reported that Australia's Albidon Limited has cut its 2011 nickel concentrate output forecast by 21% at Zambia's Munali mine due to lower than projected ore production and quality.
A wage agreement between De Beers Consolidated Mines and the National Union of Mineworkers (NUM) has been signed, the diamond producer said on Thursday.
AngloGold Ashanti Ltd. (ANG), which owns the world’s deepest mine, will within two years trial new mining methods in South Africa to access almost $118 billion worth of gold lying more than three miles underground as it expects gold prices to keep rising from this year’s record. The world’s third-largest gold producer wants to gain access to an estimated 70 million ounces of gold more than 3.1 miles below the surface to extend the lives of its South African mines. The metal is worth $117.6 billion at current prices.
AngloGold Ashanti reported record quarterly profits on Thursday of $342 million, up a whopping 68%, boosted by the precious metal's longest winning streak in almost a century. The world’s third-largest gold miner cut production guidance by over 4% and said it expected its cash costs to rise as much as $80/oz however. The Johannesburg-based company's CEO said the gold market is entering "a perfect storm" and that gold could “easily” break through $1,700 an ounce. December gold reversed its record setting pace by midday on Thursday to trade at $1,661.70 after touching $1,684.90 in early trade.
Up 103% since the start of the year stock in Allana Potash Corp, advancing a project in Ethiopia was trading steady on Thursday after the company announced it had intersected strong potash mineralization in an area not previously drilled at its 160 square km Dallol project in Ethopia. Listed on the TSX-Venture exchange Allana's East Africa project has the backing of the World Bank and most the latest announcement comes on the heels of a string of discoveries at its land position in Dalol, part of the Danakil Depression (pictured).
Canada's Sono Resources Inc announced on Tuesday that the final $100,000 cash payment for the year has been made and that Sono will now issue the vendors 6,500,000 common shares from treasury thus finalizing its purchase of 95 percent of the issued and outstanding shares of Bonnyridge (Pty) Ltd., which is the legal and beneficial owner of three mineral license blocks located in Northwestern Botswana.
Base metals miner Metorex is expected to delist from the JSE in early December, following the completion of a takeover by Chinese group Jinchuan which made a R9.1bn ($7.3bn) offer for Metorex last month. Jinchuan said that the acquisition of Metorex provided it with an opportunity to acquire a scalable African copper producer with a strong management team and substantial growth potential.
Ruby Creek Resources Inc., a gold exploration and mining company with operations in Tanzania, provided an update on the closing of the Gold Standard acquisition on Tuesday.
Asking whether South Africa should nationalise its mining industry was the wrong, dangerous question to ask in searching for the answer to South Africa’s “evil triplets” of poverty, inequality and unemployment, said Mineral Resources Minister Susan Shabangu.
A strike in South Africa's gold mining sector ended on Tuesday after a 2-year wage deal was clinched, unions and the Chamber of Mines said. The strike at AngloGold Ashanti , Gold Fields and Harmony began last Thursday and halted output worth up to $25 million a day at bullion's current record prices. About 100,000 gold mine workers will to return to work, starting with the Tuesday night shift. The companies' share prices extended gains on the news as gold scaled new highs over $1,635.00 an ounce on growing concerns about Europe's debt woes and anaemic U.S. growth data.
Businessweek quotes a confidential report prepared for South Africa's mining CEOs as saying South Africa’s ruling party is closer to some form of nationalization than at any other time since the end of apartheid. A government takeover of mines could choke investments in a country with metal and mineral reserves estimated at 2.5 trillion and lead to a collapse of the currency, the rand. Firebrand Julius Malema (pictured), the leader of the youth wing of the ruling African National Congress which often acts as kingmaker in the country’s politics, is spearheading the campaign to seize mines, farms and banks. Malema is never far from headlines in the country with racially charged comments but now an anti-corruption police unit is probing a trust fund owned by him allegedly being used to funnel payments in exchange for securing government tenders.
African Minerals Ltd., closed up 7.1% in London on Monday after completing an investment accord with Shandong Iron & Steel Group Co bringing the counter's gains for the year to 57% and giving it a market capitalization of some $3.6 billion. Shandong will invest $1.5 billion for a 25% stake in African Minerals' massive the Tonkolili iron-ore project in Sierra Leone. Phase I of the project will cost $1.2bn and includes railway and port reconstruction in the war torn country while phase II and III will add another $8 billion to the bill. Sierra Leone, one of the world's poorest nations, is attracting increasing investments in its natural resources which also include diamonds and bauxite.
South Africa's National Union of Mineworkers said no progress was made in talks on Monday with the Chamber of Mines to end a strike against the country's main gold producers. The talks were set to resume on Tuesday. The strike of some 100,000 workers in the world's fourth largest gold producer is costing mining companies up to $25 million a day in lost output. The workers at those mines downed tools on Thursday. (Image of 1941 postage stamp depicting mining around Johannesburg by Igor Golovniov / Shutterstock.com)
Workers in South Africa's coal sector are expected to return to their posts on Tuesday after the unions and the SA Chamber of Mines signed a two-year wage agreement, ending an eight-day strike. 150,000 workers at miners Anglo American Thermal Coal, Delmas Coal, Exxaro Coal Mpumalanga, Kangra Coal, Optimum Coal and Xstrata Coal were on strike over wages. Talks with striking workers in the country's gold sector, where 200,000 workers are on strike continued on Monday. Mineworkers are asking for a 14% wage increase – far above the inflation rate in Africa's largest economy which hovers around the 4% level.
Diamond producer Gem Diamonds has awarded a R67-million contract to Redpath South Africa for the development of a sand tunnel at the recommissioned Ghaghoo diamond mine, in Botswana.