Zinc price gains in July were more than wiped out in early August as worries intensified about global economic prospects, and further price declines could trigger mine production cuts in China, and help reduce surplus supply. "If prices fall below $2,000 then we would expect a lot of Chinese mine production to stop," said Giles Lloyd of industry consultants CRU Group. In 2010, China mined 3.7 million tonnes of zinc, accounting for 30 percent of world mine output.

Mongolia's state-owned miner Erdenes Tavan Tolgoi (TT) has agreed to sell $250 million worth of coal from the east Tsankhi deposit to Aluminium Corp of China Ltd (Chalco) , a move insiders said was aimed at raising cash to help fund its impending listing fees. Under the agreement, Chalco would resell 30 percent of the coal to Japanese trading houses Itochu Corp and Mitsui as well as state-owned Korea Resources Corp (KORES), Erdenes TT LLC said in a statement seen on Wednesday.

South African coal workers went on strike on Monday seeking inflation-busting 14 percent wage increases, but power utility Eskom said the stoppage would not have an immediate impact on plants providing electricity to Africa's largest economy.

Gold prices hit record highs above $1,575 an ounce on Wednesday, buoyed by investors seeking a safer place for their cash while European leaders raced to prevent Greece from defaulting on its bond obligations and other indebted euro zone members from getting sucked into the crisis. Reuters speaks to seven prominent analysts.

Gold prices hit record highs above $1,575 an ounce on Wednesday, buoyed by investors seeking a safer place for their cash while European leaders raced to prevent Greece from defaulting on its bond obligations and other indebted euro zone members from getting sucked into the crisis.

Workers at Chile's state-owned Codelco returned to the job on Tuesday after a 24-hour strike, threatening more labor unrest if they are not included in the restructuring of the world's top copper miner.

Gold's performance has eclipsed that of gold mining stocks this year, but gold equities now are likely to take the upper hand as the flow of cheap U.S. cash slows and miners boast juicy margins and good growth prospects. Gold's status as a quasi-currency and safe haven has helped pushed the price of the metal up about 20 percent since the start of the year to above $1,520 an ounce, making it one of the top performing asset classes of 2011.

11:45am BST LONDON, July 6 (Reuters) - Gold prices erased early gains to fall as low as $1,512.29 an ounce on Wednesday after China said it was raising interest rates by 25 basis points, with the dollar rising to session highs against a basket of