Alrosa recovers huge yellow diamond from Yakutia mine

Both gold and silver gained on the bullion market on Saturday as bargain hunters returned to the market. While gold surged by Rs 420 to Rs 28,160 per 10 grams, silver went up by Rs 1,100 to Rs 64,400 per kg. Trading sentiment in Mumbai improved after gold rose the most in a week on Friday in New York. However, many analysts say the gold price could continue to weaken into next week possibly going as low as $1,700/oz as indicated by technical chart patterns that have turned bearish, investors turning to riskier assets like shares, the dollar gains further and concerted efforts to shore up Europe's banks may begin to show fruit. Volatility in the gold market is increasing and the gap between gold’s highs and lows this year, have reached more than $600, the largest since the 1960s.

Speaking in Arequipa at Peru's premier mining conference industry executives said on Friday a drive by Peru's leftist president to raise mining royalties should not derail multibillion-dollar investments, but added that the viability of smaller, less efficient operations will be affected. Peru's Buenaventura and US-based Newmont said their $4.8 billion Conga mine, the most expensive mine in Peru's history, was on track to come on line in 2014 while others including Barrick Gold, Xstrata, Anglo American and Gold Fields reiterated their commitment to the country.

Gold futures returned to above $1,800 an ounce Friday as investors sought the perceived safety of the precious metal ahead of the weekend and news emanating from Europe injected a dose of uncertainty back into markets. Gold for December delivery added $33, or just under 2%, to settle at $1,815 an ounce in afternoon trade. Reuters reports between gold’s highs and lows this year, there is a more than $600 gap, the largest since the 1960s, though its 32% range is below the 42% range seen in 1980.

Rio Tinto PLC (RIO) plans to sell "a lot" of the output from the Oyu Tolgoi copper and gold project in Mongolia to China, and is in discussions with smelters in China, Rio Tinto's U.S. Copper Chief Financial Officer said Friday at an industry event."Talks are still underway, and there's no definite plan right now," Kay Priestly told a Metal Bulletin conference in China. With the Oyu Tolgoi mine strategically located close to China where demand is high, so "it's certainly our plan to transport a lot of the products to China," Priestly added.

Western Australia’s manufacturing sector is losing nearly 150 jobs per day as workers chase high wages in mining.

A Zimbabwe government official says a law forcing foreign companies to surrender 51 percent stakes to local people was "an aspiration," not a hard target, Reuters is reporting: "This is a negotiated process, it is not an issue that is dictated to companies. It is more to deal with evaluating and negotiating with each company," Prince Mupazviriho, the permanent secretary in the mines ministry, said during a mining conference on Thursday. The new position by the government is a change from the previous hard-line edict suggesting the 51% requirement was set in stone.

Shares of Paramount Gold and Silver Corp. (NYSE/TSX: PZG) hit a one-month high of $3.22 on Tuesday after the company released a new resource estimate for its Sleeper Gold Project in Nevada. The NI 43-101 resource estimate, prepared by consulting firm SRK, includes oxide and sulfide materials as well as a small amount of alluvial mineralization.

Montréal, September 15, 2011 – “The new mining royalty regime enables us to attain the objectives that we set, i.e. to obtain from mining companies fair compensation for our natural resources without discouraging investment,” Minister of Finance and Minister of Revenue Raymond Bachand said today at a technical information session held jointly with Minister of Natural Resources and Wildlife and Minister responsible for the Plan Nord Clément Gignac. Minister Bachand indicated that the mining royalties the government collected reached $304 million in 2010-2011, more than double the $133 million originally forecast in the 2011-2012 Budget.

VANCOUVER, Sept. 15, 2011 /CNW/ - In 2011, Canadian mining CEOs are enjoying high salaries on par with 2010's blockbuster year for compensation and there has been a rise in mining CEO millionaires this year, according to the 2011 Mining Industry Salary Survey by Coopers Consulting and PwC. In 2011, the average annual base salary for Canadian mining CEOs was $486,000 in 2011, similar to $480,000 in 2010. Of the 95% of CEOs who were eligible for cash bonuses, 85% reported receiving payouts averaging 76% of their base pay (compared to 88% in 2010 and 61% in 2009) with the highest cash incentive percentage totalling 300% of base pay.