The mine is in the Ili Valley in the Xinjiang region near the Kazakh border.

The region's geology and mineral resources bureau said it holds at least 53 tonnes of gold worth about $3.2 billion. It also holds about 31,200 tonnes of copper worth $230 million.

By the end of 2015, the mine is expected to start production and is projected to put out 3 tonnes of gold annually.

Although it is the second mine discovered in the valley, it is the largest one found in the region's Tianshan Mountains.

The area falls within the Narat-Hongliu River metallogenic belt suggesting more precious metals will be discovered.

Image: Shutterstock.com

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In the last twelve months it dropped 55%, with activity reported from just 172 prospects in March, compared to 382 in March 2012.

This significant decline was due to growth of economic uncertainties, slumping metals prices and falling equity valuations.

However, as indicated by IntierraRMG, gold is still priced at well above the cash extraction cost of a large part of the world’s production.

Even at the recent two-year low, fewer than 9% of the 235 gold mines monitored by IntierraRMG had average cash operating costs higher than the metal’s price.

The figures for the next few months are unlikely to be better following the precious-metals price collapse in mid-April and a significant drop in recent exploration funding.

Image:  albund / Shutterstock.com

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The document, released to the media a couple of hours ahead of his testimony in front of Congress, indicates the Fed’s monetary stimulus is helping the U.S. economy recover, as the high costs of unemployment and inflation continue to run below the central bank's target.

"Monetary policy is providing significant benefits," Bernanke says in his testimony, reiterating that the Fed was prepared to either increase or reduce the pace of its bond buys based on economic conditions.

“In particular,” he says, “the expiration of the payroll tax cut, the enactment of tax increases, the effects of the budget caps on discretionary spending, the onset of sequestration, and the declines in defense spending for overseas military operations are expected, collectively, to exert a substantial drag on the economy this year.”

Gold investors reacted positevely to the news, with the precious metal extending earlier gains after Bernanke's opening remarks. This, as concerns the bank would soon reduce its bond-buying scheme dropped, while Chinese physical demand lent support to prices.

Bernanke adds the Congress and the Administration could consider replacing some of the near-term fiscal restraint now in law with policies that reduce the federal deficit more gradually in the near term but more substantially in the longer run.

However he hints that savers will be in a better position if low rates stay in place for now.

While the Fed policymaking committee “actively seeks economic conditions consistent with sustainably higher interest rates,” Bernanke says, “withdrawing policy accommodation at this juncture would be highly unlikely to produce such conditions.”

He warns that a premature tightening of monetary policy could lead interest rates to rise temporarily, but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further.

The outcome, he believes, would extend the period of low interest rates and generate “poor returns on other assets.”

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Three-month copper on the London Metal Exchange, untraded in official rings, was bid at $7,505 per tonne, after reaching $7,525, its highest level since April 12. Yesterday the red metal closed at $7,375.

US-based Freeport McMoRan Copper and Gold Inc (NYSE:FCX) said it would not restart production at its mine at least until after an investigation into the accident is completed.

The mine has been halted since May 14 at a cost estimated at about $15 million a day in lost production.

The Indonesian government has ordered an independent investigation into the accident as well as a review of all underground mining facilities in the country, reports The New York Times.

“We had no concerns or fears about its safety, so that’s why we need to understand why this happened.” Freeport’s CEO Richard C. Adkerson was quoted as saying. “We’re undertaking a review of all of our underground activities right now. It’s our responsibility. There will be an independent review, and we will cooperate with it.”

Analyst believe the accident, one of the country's worst mining disasters, could further strain relations between Freeport — the largest taxpayer to the Indonesian government— and nationalist politicians who have called on it to pay higher royalties.

The company has also had a series of labour disputes in recent years, including a three-month strike in late 2011 and smaller problems since.

Grasberg’s suspension comes after a landslide last month at Rio Tinto Group’s Bingham Canyon copper mine in Utah forced operations to halt.

Image: Tunnel collapse at Grasberg. Screenshot from WLN News

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With immense negative pressure on the gold price, producers – now more than ever – need to get the job done cheaply.

This week has brought fresh predictions that gold will continue its current phase of decline before eventually hitting bottom.

Factors that have plagued metals miners for years – including ever-rising taxes and wages, resource nationalism, stringent environmental and safety regulations, political and community activism – show few signs of abating, and continue to drive total production costs to new heights.

For the producers, finding properties with potential for low cost production is the name of the game. Check out this great infographic to see which continents are currently home to the cheapest gold production:

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Finau says that two deep sea exploration licenses have been issued by Fiji, including one to the Korea Ocean Research and Development Institute (KORDI).

KORDI has reported findings of several potentially high-grade mineral locations in the western waters of Fiji's exclusive economic zone.

The announcement comes shortly after the first UN report outlining a plan for deep sea mining.

Sources: English.news.cn; BBC

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According to the interim management statement issued earlier this month, Petra current mine plan at Williamson is to ramp up ROM production from ca. 2.5 million tonnes (Mt) in its 2013 financial year to ca. 3.6 Mt by 2016 financial year, following the introduction of a re-crush system into the plant circuit.

Only in the first nine months of the Petra's financial year, Williamson mine production improved significantly thanks to major rehabilitation to the treatment plant.

The mine, a historic source of high value Type II diamonds and fancy pinks, is Tanzania's only important diamond producer.

Tanzania's mineral wealth is not limited to diamonds. The country has vast resources of coal, cobalt, nickel, uranium, and is Africa's fourth-largest producer of gold.

(Image of truck transporting ore at the Williamson open pit mine in Tanzania. Courtesy of Petra Diamonds)

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In today’s research note, Citi’s head of commodities research, Ed Morse, said it expects 2013 to be year in which “the death bells ring for the commodity supercycle after its duly noted sunset.”

This view is in open contradiction to JP Morgan’s, which said in March this year, the longer-than-average period of rising prices was set to last another 15 years. The basic idea behind that statement was that emerging countries, such as India and China, still had a lot of commodity intensive growth ahead.

However, Citi points out that the slower-growing Chinese economy, a lack of correlation between equities and commodities, and a stronger US dollar are all but clear signs of the end of an era, with gold serving as the lynchpin for understanding the “new regime.”

Morse said gold has lost “investment glitter” as investors seek higher returns in other investments and inflation fears are further postponed. “As fears of inflation driven by global QE (quantitative easing) recede, for the time being, so should the gold price. Our current projections are for gold price to average $1,555/oz in 2013 and $1,435/oz in 2014,” he said in Tuesday’s note.

The group concludes change is “ushering in a new decade of opportunities based on how individual commodities will perform against one another and against broader market indicators such as equities or currencies.”

Image Shutterstock/ ivosar

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Yesterday, gold prices fell to $1,336.30, the lowest since April 18, before recovering to close nearer the session high.

US Federal Reserve Bank Chairman, Ben Bernanke, is set to discuss the economic outlook in congressional testimony and the central bank will publish minutes of its latest meeting on Wednesday.

Traders and investors will follow each and every of Bernanke’s remarks and the FOMC minutes, looking for clues on the US central bank’s potential course of monetary policy in the coming weeks and months.

There is a growing belief among investors that the Fed is planning to wind down its quantitative easing program (QE3) sooner rather than later. However, there is no clear consensus.

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After a technical study by the International Seabed Authority, the UN body managing the new industry, said companies could apply for mining licences as soon as 2016.

To date, ISA has issued 17 exploration permits and another seven are in the works. A spokesman told the BBC there has been an unprecedented surge in interest from both private and state-owned companies.

ISA also said that deep sea mining is on the threshold of a new era. It is in the process of deciding how to handle the licencing for actual mining as well as how to share the proceeds, a portion of which are to go to developing countries.

Previous testing by companies has shown large numbers of small rocks on the ocean's floor that are rich in gold, copper, nickel, cobalt and rare earths.

An assessment of the Clarion-Clipperton zone in the Pacific Ocean suggests more than 27 billion tonnes of rocks could be lying on its floor, including 290 million tonnes of copper and 340 million tonnes of nickel.

Related: Britain plunges into deep sea mining with American company

Image: littlesam / Shutterstock.com

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The president blamed the illegitimate practice for costing the country millions of dollars in lost revenue due to the environmental degradation, reports the Africa Review.

As well, in recent months, the situation has gotten worse with miners taking the law into their own hands. Two Chinese citizens were arrested for shooting at two Ghanaians and another 80 are in immigration custody waiting to be deported. 

The president also vowed to pursue local citizens and ministers who are involved with illegal activities.

Additionally, the government said it would support sustainable small-scale mining and improve infrastructure.

The task force will also close legal loopholes allowing gold exporters to trade in secret. Further, it will encourage the local purchase and export of minerals — right now only privately owned  foreign companies are licenced to export independently.

Image: file photo

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In a submission to the industry's Chamber of Mines, which negotiates for employers, NUM said it wants an entry-level wage of $750 (7,000 rand) per month minimum for surface workers and $850 (8,000 rand) for men underground.

Currently, those on the surface earn $500 monthly (4,700 rand) and those underground  earn $530 (5,000 rand). That's a 60% increase for workers in the shafts.

For more experienced and skilled workers, as well as for other wage categories, NUM said it wanted a 15% increase.

Impala Platinum said Friday the country's mining industry cannot afford wage increases and new strikes are likely in the coming weeks of negotiations, according to another report by Reuters.

In 2012, South Africa mining firms lost billions in revenue due to job action and more than 50 people were killed during the strikes.

Related

Labour strife continues at South African mines

Workers strike at Lonmin's South African mine

Image: GovernmentZA, Creative Commons, Flickr

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Frontpage image courtesy World Gold Council

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