Rio Tinto logs first annual gain since 2013 on iron ore rally

Botswana aims to transform itself into an international hub of the world diamond industry, boosted by a deal in which the De Beers mining and sales empire will transfer the sorting, valuing and selling of rough diamonds from London to Gaborone by the end of 2013. The agreement also provides for Botswana to sell 10 percent of its diamonds independently of De Beers, rising to 15 percent in five years' time. Gaborone's Mmegi newspaper reported Tuesday that all 66 of De Beers' sightholders from around the world are expected to travel to Gaborone at least ten times a year. Africa's failure to add value to resources within their countries of production has long been identified as a major hindrance to the continent's growth.

BHP Billiton chief executive Marius Kloppers’s annual pay grew by 8.5 per cent in the last financial year, to $US11.6 million ($11.37 million). The pay rise (in US dollars) came in a financial year in which the company posted a record Australian corporate profit, growing 86 per cent from the previous year to $US23.6 billion.

Despite order books that are full and robust commodity prices, Rio Tinto says that customer sentiment is now more cautious and physical markets are softer than they were six months ago. Executives from Rio Tinto, one of the world's largest diversified miners, voiced their concerns at an investor seminar in London and New York on Tuesday. The company is finding that customers are concerned over the health of the OECD economies and persistent volatility in financial markets.

Diamond producer De Beers expects global demand growth for rough diamonds to set a new record this year on the exceptionally strong performance of its key US market and robust demand in China and India, the head of the company’s distribution arm said. Despite global volatility and concerns that the global economy is sliding towards another financial crisis, demand for diamonds was unlikely to be badly impacted because of its safe-haven appeal, Diamond Trading Co (DTC) Chief Executive Varda Shine told Reuters in an interview on Monday.

Research firm Metals Economics Group reports gold continues to be top exploration target accounting for more than 50% of global exploration of non-ferrous metals for the second consecutive year in 2011. Latin America is set continue to be the industry's favorite regional exploration destination in 2011, while Canada will remain the top overall country. Copper will account for roughly a fifth of 2011 nonferrous exploration budgets that is expected to exceed US$17 billion for expenditures related to precious and base metals, diamonds, uranium, and some industrial minerals. It represents an increase of about 50% from the 2010 total and a new all time high.

The Daily Mercury reports Rio Tinto executive director Sam Walsh says the mining industry has to live with the new resources tax as the best deal that could be done with the current government. The final tax rate had been reduced from 40% to an effective 22.5% rate in the minerals resource rent tax (MRRT), he told the meeting organised by the American Chamber of Commerce in Australia. At a breakfast meeting in Perth on Tuesday, Mr Walsh defended his company's role in closing the tax deal, saying junior miners left out of final negotiations now have a chance to have their concerns heard. On top of the MMRT, Australian miners also have to contend with a proposed carbon tax set to kick in mid-2012.

Mbada Mines (Pvt) Ltd, which operates in Zimbabwe's Marange diamond area, is producing more than 150,000 carats a month, surpassing Rio Tinto's Murowa mine as the country's largest diamond producer, according to the firm's chairman, Robert Mhlanga. Rio Tinto's Murowa diamond mine produced 178,000 carats in 2010 and 125,000 in the first half of 2011.

Preliminary estimates from Metals Economics Group’s (MEG) Corporate Exploration Strategies (CES) study indicate that 2011 nonferrous exploration budgets will exceed $17 billion for expenditures related to precious and base metals, diamonds, uranium, and some industrial minerals.

Nine months overdue, the diamond marketing contract between the Government of Botswana and De Beers will finally be signed tomorrow in Gaborone, Mmegi reported on Thursday.