No rapid rebound for African mining

Shares in Aquarius Platinum Ltd. (LON, ASX: AQP), the fourth- largest producer of the metal, dropped 11% this morning in Johannesburg, the deepest decline since October 2008, after the company announced that Zimbabwe has rejected a joint proposal with Impala Platinum Holdings Ltd. (PINK:IMPUY) to meet local ownership rules.

The Zimbabwe Chamber of Mines says the government's hike of pre-exploration fees for the majority of minerals – by as much as 8,000% – together with increased royalty rates will cripple the industry.

Brazillian miner Vale SA said Tuesday it is gradually resuming mining at its underground nickel operations in Sudbury, Canada.

Anglo Platinum, the world's number one platinum producer, suffered more than 80 safety-related work stoppages including 12 fatalities, that resulted in lower output and a drop in profits of over 60% in 2011.

A £50-million diamond and platinum skull by the once notorious Damien Hurst will be featured in a retrospective of the artist this summer in London.

South Africa's ruling party, the African National Congress, appears to be moving away from nationalization of the mining industry to reassure foreign investors but is considering new taxes and "targeted interventions" in the sector, particularly platinum mines.

Treasure hunters are working to recover cargo on a World War II merchant ship, which was sunk by German u-boats just off Boston, that was carrying 71.4 tons of platinum, estimated to be worth $2.5 to $3 billion.

Aquarius Platinum CEO, Stuart Murray, announced frustration with the platinum industry due to strikes, regulatory hurdles and PGM oversupply.

Standard Bank maintains that while platinum prices over the long term are bolstered by a difficult supply outlook, over the short term, its prospects aren't as good.