In the first quarter of 2011 South Africa's gold production increased by 3.4% to 44,682.7 kilograms, when compared to the same quarter of 2010, the Chamber of Mines said Friday. However, on a quarter-on-quarter basis when comparing the first quarter 2011 to the fourth quarter of 2010 production was down by 9.3%.
Africa Mining News
Goliath Gold, a thinly traded African exploration company this week reported a deepening loss for the year to end-March as it pushes ahead with drilling programmes at its Johannesburg East Rand assets. Gold One spun out its deeper assets into Goliath, which was formerly White Water Resources, in a R262m ($35m) deal that will give Gold One 71% of the new company.
The stock of cobalt and copper miner Metorex is up by a third this year following Brazilian giant Vale's $1.1bn bid for the mid-tier producer. With reports surfacing that Jinchuan, China's biggest nickel miner, is readying a competing offer shareholders of the Johannesburg-based company look set to extract further value ahead of a vote on July 22. Metorex has aggressive expansion plans for its central and Southern African projects and aims to more than double its current annual copper output of around 50,000 tonnes. It's a far cry from the situation in 2009 when the company was fighting for survival amid serious cost overruns in the Congo.
[miningmx.com] -- THE latest Metorex annual review – which covers the 18 months to end-December 2010 following a change to its financial year-end – is already out of date due to the pace of developments this year. But one comment from chairperson Rob
POSCO, the world's third-biggest steelmaker, is not in talks with Sundance Resources over the latter's $4.6 billion iron ore project in West Africa, a POSCO source said. "We previously met Sundance Resources (on the project) but are not currently in talks with the company on it," the source told Reuters, declining to be named as he was not authorised to talk to the media.
Abzu Gold announced Wednesday that it has entered into an agreement with Red Back Mining Ghana Limited , a wholly owned subsidiary of Kinross Gold Corporation, pursuant to which Abzu has acquired an option on 10 concessions in Ghana.
Stanbic Bank, a unit of South Africa's Standard Bank Group, Ghana said on Wednesday it had closed 3-year a $60 million senior revolving loan with Gold Fields' unit in the country.
Miningmx reports on the fortunes of the South African platinum sector, the dominant global supplier where production peaked at about 5.3 million ounces in 2006, up from just over 4 million ounces in 2001, but has fallen ever since. Regulatory and legislative uncertainty, the threat of nationalisation and the strength of the rand are preventing the mining industry from participating fully in the latest chapter of the super cycle, and if the basket price of platinum group metals does not improve, further capital expansion plans could be halted.
SW Radio Africa reports the seemingly unilateral decision by the chairman of the international diamond trade watchdog to allow Zimbabwe to resume diamond exports has been rejected by among others the United States, Canada and Israel. Some members of the industry body want to keep a ban on exports of Zimbabwe's diamonds which could potentially be worth $2bn/year and include a vast stockpile built up during international sanctions, because of ongoing smuggling out of the rich Chiadzwa fields and reports of sustained human rights abuses there.
The Dar es Salaam Citizen reports Tanzanite One Mining, the dominant miner of the rare gemstone only found in the foothills of Mount Kilimanjaro, has been ordered to increase the minimum wage for its employees from Sh180,000 to Sh350,000 per month (roughly US$215) as directed by the government. London-listed Tanzanite One has returned to profitability as prices for the gems which usually follow that of rough diamonds improve post-recession and is embarking on an expansion strategy, acquiring an Australian sapphire project earlier in June and reshuffling its board.
FLSmidth has received a contract worth approximately USD 50m (approximately DKK 260m) from Kalumbila Minerals Ltd., a wholly owned subsidiary of First Quantum Minerals Ltd. for the supply of equipment to their extensive copper development, Sentinel Project, situated in northern Zambia.
Bloomberg reports South Africa risks cutting the mine output that contributes 8.8% of the economy as calls from within the governing political party for a state takeover of the industry deter investors, Impala Platinum Holdings said. Mine operators in South Africa are compelled by law to sell 26% of their assets to black investors by 2014 and boost numbers of black managers to help make up for discrimination during apartheid. Some companies had missed targets for 2009, the mines minister said at the time, adding that the industry had “not lived up to the spirit and intent” of the law.
An announced order for milling equipment for First Quantum's big Sentinel copper project in Zambia suggests a decision to go ahead with the project has already been taken. FLSmidth has received a contract worth approximately USD 50m from Kalumbila
MELBOURNE (Reuters) - Sundance Resources has shortlisted potential partners for its $4.6 billion iron ore project in West Africa, it said on Wednesday, sending its shares up as much as 6 percent.
Cassidy Gold Corp. recently received an exploitation permit covering all gold resources identified to-date at the company's 100% owned Kouroussa Gold Project located in Guinea, West Africa. This permit runs through to October 14, 2019. The permit covers an area of 16 square kilometres within the company's 949 square-kilometre exploration permits.
South African sand and aggregate producer Inde-pendent Quarries has com-missioned the first of mining equipment provider Sandvik’s DPi series surface top-hammer drill rigs at its quarry in East London. Read more
La Mancha Resources reports that a fire partially damaged two electrowinning cells at its Hassaï mine, in Northeast Sudan, over the weekend. Although the site is continuing its normal mining and crushing activities, gold production will be partially impacted over the next few weeks until the two electrowinning cells have been replaced.
Investment site Motley Fool says gold stocks such as Newmont, Goldcorp and Freeport-McMoRan are trading as though gold has lost its luster entirely and slipped back below $1,250 per ounce and that this latest bout of weakness in the gold mining shares – occurring when quality producers are awash in record cash flow and cozy profit margins – has yielded valuations remarkably depressed.
Lucara Diamond Corp.: development of AK6 diamond mine passes half way point and remains on time and within budget
Lucara Diamond provided an update on the development of its 100% owned AK6 diamond project in Botswana. The AK6 mine, to be commissioned by year end, will ramp up to full production in early 2012 to deliver over 400,000 carats of high quality diamonds in its first year of operation. As at the end of May there were over 400 construction crew members on site and a total of 326,000 hours worked. With the overall project execution at 64% the project remains on target for process plant commissioning to commence in the Q4 of this year. Engineering is now 91% complete; procurement is at 81%; fabrication and delivery at 55%; and construction at 39% complete.
The World Diamond Council has expressed its regret about the inconclusive end to the Kimberley Process Intersessional Meeting in Kinshasa last week. The main goal of the meeting was to finally resolve the issue of diamond exports from Zimbabwe. This did not happen.
The Zest WEG Group, including EnI Electrical, Shaw Controls and IMS Cape, has been awarded a contract by RB Met, a joint venture between Royal Bafokeng Holdings and Metix, to supply a complete electrical solution for a 600,000 t/y Outotec SBSTM ferrochrome pelletising and sintering plant in Rustenburg, South Africa. The plant is being constructed for the Xstrata Merafe Pooling and Sharing Venture (PSV). Construction on this energy efficient greenfields plant started on April 21, 2011.
Rio Tinto's $US10 billion-plus Simandou iron ore project in Guinea is rapidly pressing ahead, but not like a typical giant development by the Anglo-Australian mining giant. By the end of the year, Rio is expected to have spent close to $US2bn ($1.9bn) on Simandou, including a $US700 million settlement payment to the government, and to begin construction of a project it has committed to produce from in 2015.
India has decried the failure of the Kimberley Process (KP) to formulate an agreement on the export of diamonds from Zimbabwe’s Marange diamond fields. A statement from Rajiv Jain, Chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC), said, “The GJEPC is deeply disheartened by the disagreement in position between the consuming countries and African producers at the KP intersessional meeting at Kinshasa.
Platmin Limited advises that on Thursday, 23 June, certain employees of mining contractor MCC illegally disrupted operations at the Pilanesburg Platinum Mine. These disruptions comprised intimidation of supervisors, illegal industrial action and damage to property and equipment. The South African Police Services was called in to safeguard employees, prevent further damage and stabilize the situation.
Another retrenchment shock has hit Buffelsfontein, trade union Solidarity said today. This follows after the gold company Simmer & Jack (Simmers) handed another section 189 notice to trade unions on Wednesday 15 June 2011 for the retrenchment of