Zambian president threatens Glencore, Vedanta with ‘divorce’

Nautilus Minerals announced on Thursday that they were granted offshore exploration licences in Fiji. The Fijian Government has granted the company 14 special prospecting licences, covering a total of approximately 60,000 km2. The territory is considered highly prospective, having been the subject of marine research by Japanese, French and other scientific cruises in the late 1980s and early 1990s. The licences each have an initial term of two years.

Xstrata has approved the commencement of an AUD47 million (USD50 million) pre-feasibility study into the development of a large multi-commodity open pit mine on the existing Xstrata Mount Isa Mines footprint. In a joint statement, Xstrata Zinc Australia Chief Operating Officer Brian Hearne and Xstrata Copper North Queensland Chief Operating Officer Steve de Kruijff said the development of a large scale zinc-lead-copper pit has the potential to extend the life of the combined operations to beyond 2060.

Radio Free Europe reports an increase in world prices for base metals has made a 60-year old German-owned mining company the largest corporate taxpayer in Armenia. Data from the positively Soviet-sound State Revenue Committee released on Tuesday show the Zangezur Copper and Molybdenum Combine paying more than 15 billion drams ($41 million) in various taxes and duties in the first half of this year, compared to just 5.5 billion drams the same period last year.

Despite a report on Wednesday showing a surge in July, China's copper imports were still down 22% in the first seven months, suggesting slowing demand in the world's top copper consumer is adding to concerns that shaky western economies will knock prices further. However, according to a new study by Canaccord the copper mining industry is operating under 'a high degree of stress' and called robust copper prices the 'new normal' thanks to supply shortages. More than 500,000 tonnes of production have been lost this year due to weather delays, poor deposit grades, worker strikes and mill problems, mostly in Chile, the world's number one producer.

Quadra FNX Mining announced second quarter 2011 profits up 75% at $63.8 million and revenues up 76% to $298 million on Wednesday, but was not spared the stock market mayhem and was trading down over 2% by midday on Wednesday bringing its losses for the month to 18%. The results of the Vancouver-based copper miner with operations in Ontario, the US and Chile were only marred by a jump in cash costs to $2.33 per pound of copper, but after raising $500 million during the quarter now sits on a healthy $1 billion in cash.

Lundin Mining is once again the target of takeover speculation, after the Daily Telegraph fed the rumour mill with talk of JP Morgan advising BHP Billiton and Belgian zinc miner Nyrstar on a joint bid for Lundin. The market reacted favourably to the speculation on Tuesday, bidding up the stock by 14.5% on the TSX, but seasoned investors in Australia say a takeover by BHP is likely not in the cards.

Mining companies in Peru invested $2.95 billion in the first half of 2011, up 70% compared to the same period last year, the government said.

First Quantum announced a 51% increase in gross profit as the 41% higher net realized copper price more than offset the lower sales volume. There was a 3% decrease in copper production from the Kansanshi and Guelb Moghrein mines due to maintenance-related downtime at both operations and the processing of low-grade, high acid consuming oxide ore at Kansanshi.

As the country marked Heroes Day, Robert Mugabe used the occasion to make fresh threats to punish foreign owned companies from Western countries that have imposed targeted sanctions on him and his key ZANU PF officials. The US and European Union slapped the sanctions on Mugabe and his cronies because of human rights abuses.