Asia Gold-Bullish price outlook stirs moderate demand

Mongolia wants to bring forward the raising of its stake in the Oyu Tolgoi copper project that’s being developed by Rio Tinto Group and Ivanhoe Mines Ltd. to 50 percent from 34 percent, according to the minerals minister. “We have sent the proposal to Ivanhoe to renegotiate the timeframe for us to increase the government stake,” Dashdorj Zorigt told reporters at Oyu Tolgoi yesterday. Such an increase is permitted after only 30 years, according to a summary of the $16 billion project agreement from London-based Rio Tinto.

Griffin Coal, which was acquired by Lanco Group early this year, may generate revenues of up to USD 160 million this fiscal, according to a senior company official. The miner may produce coal up to 4 million tonnes during the March, 2011-March, 2012, period, the Lanco Group official said, requesting anonymity.

India's top iron ore miner NMDC Limited is close to acquiring a coking coal mine in Russia with an estimated reserve of about 70 million tonnes. The company will seek board approval for the acquisition within a few days.

Long stretches of fertile paddy fields in villages of Navelim-Kudnem-Sankhalim in North Goa, have turned into big dusty grounds with piles of iron ore stocked on it. Locals here claim that illegal mining industry is rapidly gulping landmasses, which were earlier fertile territories.

A Norwegian mining company aiming to develop one of the world's largest nickel mines is taking extra measures to convince local populations the mine "is not what people perceive it to be," says a report in mb.com.ph.

GVK group, of which GVK Power & Infra is a part, is in talks with Indonesia's PT Kideco Jaya Agung for divesting part of its stake in the coal mines that it bought last week from Australia's Hancock Group for $1.26 billion, business daily Mint said citing two sources. On September 17, GVK agreed to pay $1.26 billion for a majority stake in three Australian coal mines and a port and rail project owned by Hancock Group to secure long-term coal supplies for the Indian group's power projects.

News that the Mongolian government is rethinking a 2009 deal that gave Ivanhoe Mines and Rio Tinto a 66% stake in the massive Oyu Tolgoi gold and copper project has sent the shares of Ivanhoe down more than 9.5% in Toronto on Wednesday afternoon, while Rio's ADRs gave up over 6% in New York trade. The bad news appears to have led to a bust-up between the two companies, with Ivanhoe founder and CEO Robert Friedland saying on Wednesday Rio's senior management has been making "unauthorized and incomplete" statements about Oyu Tolgoi and that he will take the matter up with the world's number three miner. Ivanhoe is closely tied to Mongolia where it also controls SouthGobi, a producing coal mine. SouthGobi plummeted 10% on Wednesday.

Mercator Lines has acquired 50 per cent stake in a coal mine in Indonesia's Kalimanthan province for about USD 30 million (Rs 145 crore), a top company official said today.

Without international agreements to limit greenhouse gas emissions, a new energy report sees world coal consumption taking off, rising from 139 quadrillion Btu in 2008 to 209 quadrillion Btu in 2035. The U.S. Energy Information Administration released its International Energy Outlook 2011 on Monday. While OECD countries, like the U.S., Canada, Australia and Japan, show a flat to declining consumption in coal, the non-OECD countries, namely China and India, show the demand for coal-powered energy exploding.