Joy Global surprises with quarterly profit, shares jump

Hot on the heels of a lacklustre listing by Swiss commodities and mining behemoth Glencore, news comes of another multi-billion dollar natural resources IPO going awry. Resourcehouse planned to raise $3.6bn on the Hong Kong market on Thursday but has now postponed the listing to at least the end of the month. The Australian iron ore and coal miner has made three previous attempts to go public in 2009 and 2010.

Thelon Capital Ltd. (TSX VENTURE:THC)(FRANKFURT:TFHC) is pleased to announce that it has, through its wholly-owned subsidiary, Clear Fork Mining, signed a second lease agreement with a private contractor to mine a second 600-acre section of its Jellico Coal Project, known as Miller Mt. It is scheduled to start production in calendar 2012. This mine site is projected to produce an average of 20,000 tons per month for approximately 7-10 years. Under the terms of the lease, Thelon Capital Ltd. will receive the greater of $7 per ton royalty or ~9% of gross sales price of the Coal. Thermal Coal is currently selling for $90 per ton and Blue Gem Coal is currently selling for $185 per ton.

China's Baoshan Iron & Steel Co Ltd expects to receive regulatory approval for its coastal Zhanjiang project this year, Chairman He Wenbo said on Tuesday, despite government resolve to extend a fight against overcapacity. "We will try to obtain approval this year, and are starting to build a raw materials dock," He, also president of parent Baosteel Group, told reporters on the sidelines of a company event.

The Charleston Gazette reports on Tuesday that the families of seven miners who died in the Upper Big Branch Mine Disaster in West Virginia have filed a new lawsuit against owners Massey Energy, challenging Massey's proposed acquisition by Alpha Natural Resources. The suit alleges that the CEO and other Massey insiders "will receive tremendous financial benefit" – estimated at some $196m – from the $8.5bn deal, while victims of the disaster "will be subject to great risk and uncertainty." Massey has put its estimated losses from any suits or settlements with the disaster's victims at $78m, or $3m per victim.

South African coal miner Exxaro Resources has agreed to pay AUD$123 million for Territory Resources with the goal of producing 10 million metric tonnes of iron ore a year, Bloomberg reported Monday: Exxaro offered A$0.46 a share for the iron-ore miner based in Perth, Western Australia, the companies said in a statement today. The bid, at a 64 percent premium to the closing price on May 20, was recommended by Territory’s board, they said.

Bloomberg reported that a drop in coal exports following Australia’s floods pushed up exports from the US. The market news is quoted as saying: Queensland Resources Council, representing miners in the Australian state, said in January 85 percent of mines were “impaired by excess water.” Further rains delayed a production recovery, RBS Morgans Ltd. said last month.

Mining Weekly reported that Hunnu Coal (ASX:HUN) bought a majority stake in the Altai Nuurs coal project from Rio Tinto (ASX:RIO). The market news is quoted as saying: Hunnu said in a statement that it would now start Jorc modelling at the Altai Nuurs project, with a major drilling programme planned for the remainder of 2011.

South Africa's National Union of Mineworkers (NUM) said on Monday it would seek a 14 percent rise in salaries from the country's gold and coal miners in upcoming wage talks. "We are asking for a 14 percent (increase) across the board for companies in gold mining and coal mining," said spokesman Lesiba Seshoka, adding that more details would be provided later.

Indonesia will audit over 8,000 existing mining permits to make sure they are in line with mining and environmental laws, the country's finance minister said on Monday, days after the country passed new regulations on environmental protection. President Susilo Bambang Yudhoyono last week signed a two-year moratorium on permits for logging and another decree allowing underground mining in protected forests if conditions such as an environmental assessment had been met.