Frik Els , Editor

Australian junior miner Alcyone Resources has poured its first silver bullion from its 100%-owned Texas silver and polymetallic project in Queensland it acquired 18 months ago, after starting in early April this year to re-irrigate the existing silver-rich heaps at the Twin Hills mine. Alcyone says its forecast cash operating cost is around A$15/ounce which provides strong margins with the silver price hovering above A$30/ounce. It expects to start full-scale operations by the September 2011 quarter at an initial annualised rate of 1.5-2.0m ounces. The ASX-listed penny stock is up some 120% so far this year.

A report released this week suggests that US federal regulation of coal combustion residuals, or coal ash, currently being considered by the Environmental Protection Agency would result in as many as 316,000 lost jobs and as much as $110bn in lost economic activity over a 20-year period. Power-generating coal is coming under fire from many quarters including Australia where a proposed carbon tax in 2012 could see coal mining profits fall and lead to thousands of job losses. This despite a new report showing that worldwide coal consumption is at its highest relative to other sources in 40 years.

With a new government-backed CEO, a capex budget and acquisition war chest that dwarfs others, record net profits, a very generous dividend policy, strong fundamentals in its core business, aggressive expansion into high-growth areas and regions – notably potash and Africa – and a stock that looks downright cheap next to its peers, what is not to like about Vale? After slumping to an 8-month low less than a month ago it now seems investors are finally beginning to warm to the the diversified Brazilian miner. In the month since Murilo Ferreira has been head, the planet's third most valuable mining company has risen against the other supermajors and outperformed the broader market by 7%.

SW Radio Africa news reports India has raised concerns as Russia is set to join China in moves to control diamond mining in Zimbabwe, with the Federation’s state diamond group Gokhran seeking a license to mine at the controversial Chiadzwa fields. China already has two companies operating there in partnership with Zimbabwe’s state diamond firm. Zimbabwe is set to become the world's leading producer, with an expected volume of 40m carats per year worth some $2bn annually from the rich deposits in Chiadzwa and Marange. The troubled country, emerging from years of hyperinflation and political turmoil, is however barred from selling diamonds because of alleged human rights violations and has built up a stockpile worth $4bn–$5bn.

Lithium One Inc. announced on Wednesday the commencement of a pumping test program at its flagship Sal de Vida lithium-potash brine project in Argentina (pictured), one of the largest and the highest-grade lithium and potash brine projects in the world. The TSX Venture-listed company traded little changed on the news and like shares in other juniors in the sector is very volatile. Lithium One is down over 10% so far this year and has not been able to reach the record high it hit back in August 2009 when the Argentina project was first acquired.

Vaaldiam Mining net loss more than tripled in the first quarter to $7.6m after suspending operations at the Duas Barras diamond mine in Brazil. By close of trade on Wednesday shares in the company had fallen 21%, close to an all-time low leaving it with a market capitalization of a paltry $12m, a far cry from the $150m-plus valuation it commanded a decade ago. Vaaldiam said it will now focus on the development of the Brauna mine in Brazil after it paid $6.5m to increase its stake in the project to 51% in March. It has two other diamond mines in the country that are on care and maintenance.

Brazilian miner Vale SA plans to spend over $12 billion on investments in Africa over the next five years, a mining conference heard on Wednesday. Brazilian companies, like their Chinese counterparts, are keen on African resources to fuel their growth and the sum involved underscores the continent's growing importance as an investment destination.

Shares of giant Russian steel and coking coal producer Mechel OAO fell over 4% in midday trade in New York on Wednesday on news it has halted operations at its Sibirginskaya mine due to high gas levels in a mined-out area. Mining works at the site were halted and all miners returned to the surface.

Shares in Vancouver-based Great Panther Silver on Wednesday continued to soar after the company reported record revenues and profits a day earlier. Shortly before the close the company which owns 100% of two silver mines in Mexico was up 8.5% in a broadly weaker market and on a tough day for other silver counters. Tuesday's results showed net income up $6m to $7m for the first quarter and a 95% increase in revenues to $15.5m. The company listed in February this year and raised $24.2m in April in a closed equity offering. A day before the results announcement investor site Motley Fool said the counter was "poised to pop."

Buying in China and India, central banks increasing reserves and particularly dwindling gold production could potentially drive the gold price to US$5,000/oz says a new report by investment bank Standard Chartered. The report, which studied 375 mines around the world, also shows that while exploration budgets have steadily risen since 2002 (with the exception of 2009) in response to rising prices, the rate of new gold discoveries have continued to decline.