A mining industry consultant says the high processing costs and level of expertise required in bringing rare earth mines into production means most of them will fail. In an interview with Reuters, Jack Lifton, founder of Technology Metals Research, said of the 244 companies hoping to extract REEs, less than 4% will be profitable: "The choke point for all the companies is the question of what they can do with the concentrated REM ore once it's above ground. You can extract the rare earths together, but then you have to separate them...the world's REM separation capacity is 99 percent Chinese and they have unused capacity," Lifton said. "The Chinese overwhelmingly control this and that is the key to the rare earth industry. Without separation capacity, all you have is a loss-making ore concentrate company."

Swedish engineering firm Sandvik AB (STO:SAND) announced today that 365 employees will lose their jobs as a result of company restructuring. The firm said the cuts resulted from a policy implemented in September at its Materials Technology division whose main objective is to "sustainably reduce the overall cost structure by approximately 500 MSEK over a two to three year period, through such measures as reducing costs for staff and administration..." The layoffs will affect 500 Sandvik employees worldwide including 365 in Sandviken and Hallstahammar, Sweden.

A mining watchdog agency created to hold Canadian mining companies accountable is being called toothless. The Office of the Extractive Sector Corporate Social Responsibility Counsellor was formed in 2009 to probe complaints about Canadian companies abroad, but the Toronto-based agency has so far only received two complaints, one of which was dropped because the mining company chose voluntarily not to be investigated, CBC reported: "The whole counsellor position is toothless," said Toronto-based lawyer Murray Klippenstein who is involved in a case against a Canadian mining company. "It's basically a whitewash .… It's a bogus PR job, as a cover for business as usual."

A centuries-old Chinese gold coin has been unearthed in the Yukon. The Vancouver Sun reports that the coin, which dates back to the Qing Dynasty (1662 to 1722), was discovered by archeologists near the proposed Casino mine being developed by Western Copper and Gold Corp. (TSE:WRN).

Australian copper and zinc miner Kagara Ltd. (ASX:KZL) is selling its Lounge Lizard nickel mine. "Kagara and its adviser Goldman Sachs & Partners Australia have commenced discussions with potential purchasers of Kagara’s nickel assets. Kagara expects to finalise the sale process during the first quarter of 2012," Kagara said in a statement on Monday. Reuters reported that Kagara's mining partner, Western Areas, is not interested.

Australia's new mining tax is being held up in the legislature by independents who want more controls on coal seam gas. Sydney Morning Herald reports that two independents MPs, Tony Windsor and Roy Oakeshott, are demanding curbs on coal seam gas exploration, and that hundreds of millions of environmental research dollars be spent, in return for their support for the bill: Mr Windsor, who holds the NSW seat of New England, told the Herald he had had enough of the methods of coal seam gas companies, which were expanding operations dramatically in NSW and Queensland. Mr Windsor's key demand is for $200 million to $400 million to be allocated each year from the tax revenue to fund bio-regional assessments, an idea he raised last week.

A Chinese government policy that purports to make coal mines safer is triggering local supply disruptions. China's dismal, and tragic, accident record at coal mines led the Chinese government to consolidate thousands of small, often-dangerous coal mines to boost safety. As the largest user and producer of coal, the country became a net importer in 2009 for the first time, as the consolidations led to a drop in domestic coal output. (Read an indepth article on China's place in the global coal market in MINING.com Magazine)

The takeover of Anvil Mining (TSE:AVM), an African copper producer, by Chinese company Minmetals Resources Ltd, could be in jeopardy. Anvil warned on Monday that the $1.3 billion deal may not be completed if the company fails to come to an agreement with partner Gecamines over contractual arrangements. According to the news release, La Générale des Carrières et des Mines Sarl (“Gécamines”) told Anvil that the takeover offer would trigger a review of the lease agreements with Anvil over the Kinsevere project in the DRC. State-owned Gécamines holds the leases to the mineral tenures.

The recent softening of iron ore prices will likely be short-lived, says the world's largest exporter of the steelmaking ingredient. In releasing its third-quarter results, Brazil-based Vale SA (NYSE:VALE) is forecasting high prices "for a long period ahead" because of growing demand from developing countries and constraints to supply growth. The iron ore giant therefore indicated it needs to stay ahead of the game for when the price rise demands a quick reponse:

A massive gold mine proposed for near Kershaw, South Carolina, is enjoying broad community support. A public meeting on Thursday "drew enthusiastic support" for a plan by Romarco Minerals (TSE:R) to revitalize the historic Haile Gold Mine, which closed over 20 years ago, reported local media The State: Most who spoke at a hearing said the Canadian mining company is a good neighbor that will protect the landscape. The U.S. Army Corps of Engineers hearing drew about 200 people to a local recreation center. “We really do need jobs,’’ lifelong Kershaw resident Mildred Payne said. “We really trust Romarco and everything they’ve done here in Kershaw. We feel they are really working … to make sure they are doing everything right for the people.’’

An Australia-based coal-mining junior has struck a bargain to ship coal through Prince Rupert, BC. Coalspur Mines (TSE:CPT, ASX:CPL) said Thursday it has reached a 14-year agreement to export thermal coal from its Vista project in Alberta through Ridley Terminals in Prince Rupert. The news spiked the shares 5% on the Australian exchange Friday but caused less of a stir on the Toronto bourse, where Coalspur was down about half a percent as the trading day closed.

Ongoing labour unrest at Freeport-McMorran's Grasberg mine in Indonesia has forced the American company to declare force majeure. The announcement made Wednesday effectively allows Freeport to stop shipments from its gold and copper mine so that it can avoid liability on existing customer orders. About 8,000 workers — a third of the mine's workforce — have been on strike since September 15th and earlier this month vowed to shut down the mine if hourly wages of $1.50 are not upped 8-fold. The strike recently turned ugly with reports of sabotage and injuries.