As the price of iron ore continues to tumble, Chinese buyers of the crucial steelmaking ingredient are backing away from quarterly contracts in favour of cheaper monthly contracts or spot prices. Weakness in the market is “accelerating the move to shorter pricing methods and closer to spot,” said Rio Tinto CEO Tom Albanese, speaking to analysts in Sydney today, Bloomberg reported. While most (86%) of Rio's third-quarter sales were priced quarterly, Bloomberg quoted one JP Morgan Chase & Co. analyst saying that given that spot prices are lagging below quarterly contracts, "it would not be surprising to see some contracts reneged on" and therefore more movement towards spot prices.

The Australian government has approved the $1.3B takeover of Anvil Mining (TSE:AVM) by China-based Minmetals Resources Ltd. The deal announced on September 30th required approval from the Australian Foreign Investment Review Board for the acquisition. The Minmentals offer of C$8 per Anvil share in cash represents a 38% premium on the $5.79 price the market was offering before the acquisition was announced last month. Anvil was trading at around $7.83 on Monday.

Gossan Resources Limited (TSX VENTURE:GSS)(FRANKFURT/FREIVERKEHR & XETRA:WKN 904435) has signed a Letter of Intent (LOI) with East Mining Company SA ("EMC") of Athens, Greece, to investigate and examine the possibilities of acquiring mineral projects within Europe, on a non-exclusive basis, and initially to assess three potential projects in Greece. Additional projects may be pursued.

Continued improvement in demand, a company-wide focus on effectively managing the ramp-up through the Caterpillar Production System, and focused cost management drove third-quarter sales and revenues and profit for Caterpillar Inc. The company today reported third-quarter 2011 profit per share of $1.71, up 40 percent from $1.22 per share in the third quarter of 2010. Profit was $1.141 billion, an increase of 44 percent from $792 million in the third quarter of 2010. Sales and revenues of $15.716 billion, an all-time record for the company, were up 41 percent from $11.134 billion in the third quarter of 2010.

Stock in US coal giant Peabody Energy and India's ArcelorMittal surged on Monday after their joint bidding vehicle secured a 59.85% stake in Australian metallurgical-coal miner Macarthur Coal and raised its offer for the whole of the company to $5.1 billion. The deal comes despite the planned introduction of an onerous carbon tax next year which should put further pressure on Australia's miners already dealing with rising labour costs thanks to the strong Aussie dollar. The takeover is also amid falling coking coal prices which according to a new report is set to pull back to $240/tonne towards the end of next year from historic highs of $330/tonne.

Clancy Yeates from Business Day writes that mining businesses need to take a more proactive approach, and train workers to fill their job vacancies, rather than poaching workers from other industries.

[The] rise [in] temporary migration is hardly surprising when unemployment is falling, which it did in the year to June. But it should also be kept in mind when business groups call for higher levels of migration and more public support to meet labour shortages. On top of 457 visas, miners also have access to enterprise migration agreements, a new special visa class that allows the mass importation of skilled workers for the biggest projects. So while training has gone backwards in the epicentre of the boom, miners have more and more options for using skilled workers from overseas.

Silvercorp Metals, China’s biggest silver miner, was changing hands for $9.72 in Toronto on heavy volumes shortly after the open Monday, up almost 19% after a report by the forensic accounting arm of KPMG showed no truth to allegations of $1 billion in accounting fraud at the company. Shareholders who held onto their Silvercorp stock during the rollercoaster ride that started on September 2 when the company had to go public with the accusations, believed to be the work of shortsellers that had built up a massive position in the stock, are now able to show a handsome profit for their loyalty. The company is suing two New York-based websites – Chinastockwatch.com and Alfredlittle.com – for spreading false information and is seeking punitive and compensatory damages.

Support for the favourite gold bug conspiracy theory – that a cabal of western central bankers is secretly determined to manipulate the world’s markets by rigging gold prices – has come from an unexpected quarter.

Alacer Gold (TSE:ASR) reports no injuries or damage occurred at the Çöpler Gold Project after a 7.2 magnitude earthquake struck the southern part of Turkey. Over 200 people are confirmed dead with hundreds of more casualties expected. Structural damage near the earthquake is extensive. The U.S. Geological Survey reported the epicenter was in the village of Tabani, about 410 kilometers southeast of Çöpler.