Canada’s Gov’t gives mining explorers a full extra year of tax credit

While 2011 was a near-record year for mining mergers and acquisitions (M&A), with over 2,600 deals worth $149 billion in the global mining sector, 2012 is not looking so good, at least not for Canada. The value of mining M&A tumbled 50% in the first quarter compared to the prior three months, with only one deal over $1 billion, said KPMG in a report.

Bloomberg reports the American Coalition for Clean Coal Electricity is tapping the great American sport of NASCAR racing in a bid to win popular support for the coal industry.

Nearly 20 years ago to the day, a coal mine in Nova Scotia, Canada exploded, killing all 26 miners working underground.

Once tinted by drug cartels and civil war, Colombia is now one of Latin America’s fastest growing markets and, according to the World Bank, the most secure country in the region in which to do business. Since yesterday, the country also has a new national mining agency, which is already looking for foreign investments to expand existing production and explore areas where rich deposits of key resources are suspected.

Indonesia has decided to have its mining cake and eat it too, as the country, one of the world’s largest exporters of copper and coal, will start imposing a 20% tax on mining exports beginning next week.

Draft legislation, a copy of which was seen by the Financial Times on Wednesday, gave "the clearest sign yet that Mongolia is uncomfortable with the large foreign investments that have so far been a mainstay of economic growth."

Colombia’s leading coal producers are increasing investments dramatically to improve and expand their ports, in what is considered a key move for rising coal production in the country to 120 million tons within by 2014.

Blaming severe weakness in U.S. thermal coal markets, Arch Coal, Inc. (NYSE: ACI) today reported first quarter 2012 net income of $1.2 million, or $0.01 per diluted share, compared with net income of $55.6 million, or $0.34 per diluted share, in the prior-year period.

Anglo-Swiss Xstrata Plc. (LON:XTA) reported today mixed production results for its first quarter, with copper production declining 18%, but said operating and financial performance remains strong.