BHP Billiton (NYSE:BHP) says it plans to spend about $4.5 billion on developing shale gas assets in 2012. Earlier this year, BHP, the world's largest mining company, spent nearly $17 billion buying Petrohawk Energy and Chesapeake Energy with the aim of doubling petroleum production over the next five years. The Financial Post reports: “This is going to be a gamechanger around the world and for BHP Billiton not to be part of it would be irresponsible,” BHP petroleum chief executive Michael Yeager said in slides prepared for an investor presentation to allay concerns about the company’s push into shale gas. BHP said it plans to spend around $5.5 billion a year by 2015, about a billion more than previous estimates, and around $6.5 billion a year in 2020 on U.S. shale.

Yesterday's announcement by Australian PM Julia Gillard to consider lifting the ban on uranium sales to India is raising eyebrows at one of the country's largest iron ore producers. News.com.au reports Fortescue Metals (ASX:FMG) chief executive Neville Power questioning whether the proposed sales would benefit BHP's Olympic Dam uranium mine in South Australia: "You would wonder," Power said yesterday at Fortescue's Port Headlands wharf in Western Australia.

TransCanada Corp. (TSE:TRP), the company behind the $7 billion Keystone XL pipeline project, has reached a deal with the state of Nebraska to reroute the proposed pipeline around an environmentally sensitive aquifer. The decision was announced late Monday at a news conference from the Nebraska state legislature. A bill was earlier introduced that would divert the pipeline away from the ecologically sensitive Sandhills area. Under the deal reached today, and to be voted on Tuesday, the state will pay for studies to find a new route to avoid the Ogallala aquifer which provides water for millions of people in the area.

The Australian uranium mining industry has a sympathetic ear in Prime Minister Julia Gillard. Gillard announced she will push for the ALP to dump its ban on uranium sales to India, at its national conference next month, Adelaide Now reports: Ms Gillard will ask the ALP's national conference to overturn long-standing party policy that allows uranium to be sold only to nations who have signed up to the nuclear non-proliferation treaty.

A Chinese mine manager who smeared coal on his face to appear to be trapped in a mine where 34 workers died has been detained by police, MailOnline reported: "After the accident, Qi (Guming) 'rushed down the shaft and smeared coal on his face to pretend he had escaped from underground,' the newspaper said. 'On Sunday the public security authority confirmed that Qi did not go down the shaft on that day, and made false claims to the rescue command office.'"

The price of iron ore spiked to a one-month high today, with benchmark Australian iron ore rising to $140 a tonne. FT (sub required) reports that Chinese steelmakers, which halted purchases last month amid concerns about an economic slowdown and tight credit conditions, are able to obtain import financing. That, combined with higher steel prices, is boosting iron ore prices.

Japan's top nickel producer, Sumitomo Metal Mining Co., is predicting a glut in the supply of the metal. Bloomberg reports a global nickel surplus may soar in 2012 to the highest in four years as Europe’s debt crisis and a sluggish U.S. economy cuts demand: Supply will likely exceed demand by 54,000 metric tons in 2012, the biggest surplus since 2008, said Toru Higo, Sumitomo Metal Mining Co.’s general manager of nickel sales and raw materials. Demand outstripped supply by 63,000 tons last year, the first deficit since 2006, before moving to a surplus of 11,000 tons this year, Higo said.

Mining companies in Zambia may have to scale down their operations to cope with higher mining taxes recently imposed by President Michael Sata's new government. Reuters quotes the general manager of the country’s chamber of mines, Frederick Bantubonse:

While peace in Afghanistan still looks to be a utopian dream, AFP reports that developing nations like China and India are eager to make resource deals in the troubled country even before the guns fall silent: While an end to the fighting seems remote for now, mining lots are being quickly parcelled out among Afghanistan's resource-hungry neighbours, potentially sparking a new "Great Game" for control of its battle-worn ground. According to mining ministry documents seen by AFP, Afghanistan is planning to sell extraction rights for up to five mines every year until the departure of the last foreign combat troops in 2014 -- a rattling pace, say experts.

Treasury Metals (TSE:TML) failed to generate excitement this week from news that it has doubled the resource estimate at its Goliath gold project near Dryden, Ontario. The stock barely moved on Wednesday, opening and closing at $1.05. It was down around 5 cents in mid-day trading on Thursday.

The Alberta oilsands has a new kid in town. Calgary Herald reports that Grizzly Oil Sands, a privately-owned company, has been approved for an 11,300 barrel-per-day, in-situ oilsands project southwest of Fort McMurrray: Cabinet approval for the project was given this week after approval was sought last year but chief executive John Pearce said the process of engineering and ordering equipment is already well underway. The company expects first production by early 2013, and to grow production at its other property to 60,000 bopd by 2020 reports The Herald.

Mega-miners BHP Billiton and Rio Tinto on Thursday learned the price of their planned expansions in the Australian Pilbara: increased iron ore royalties to the West Australian government. Sydney Morning Herald reports the WA government will reap $1.9 billion more in mining royalties over three years after deals were reached with BHP Billiton and Rio Tinto: Premier Colin Barnett said the royalty rate for fines iron ore - grains smaller than 10 millimetres - would increase from 5.625 per cent of sale revenue to 6.5 per cent from July 1, next year and to 7.5 per cent from July 1, 2013. In return, mining giants BHP Billiton and Rio Tinto would be able to expand their projects in the Pilbara, worth an estimated $30 billion.