South African unions sign wage deal with AngloGold Ashanti

London-listed Gem Diamonds announced Tuesday it has sold the world’s 14th largest white diamond discovered at its Letšeng Mine in Lesotho two months ago for $16.5 million in cash. Gem will also share in the profit of any polished diamond cut from the 550 carat Letšeng Star. Letšeng is fast-becoming the richest source of large diamonds in the world and without the occasional large diamond find, the Letšeng pipe would probably be a marginal deposit, but the mine, 30% owned by the King of Lesotho, has also yielded the the 478 carat Light of Letšeng that went for $18.4 million in 2008 and two other big rocks.

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.

It is vital for the South African government to step up and take a bigger stake in the mining industry, a top economic advisor told those attending a Mining for Change conference in Johannesburg on Friday. The comments come one week ahead of so-called Economic Freedom Youth Mass Action marches on the Chamber of Mines and stock exchange organized by Julius Malema (pictured), populist leader of the influential youth wing of the ruling African National Congress with the support of the 260,000 member Metalworkers Union. Malema recently told crowds that the nationalization debate within the ANC is a question of how not if, and an August industry-led investigation said the ruling party is closest to seizing mines since the end of white rule in 1994.

Zambia has stopped issuing and renewing mining licences as part of a shake-up of the mining sector by President-elect Michael Sata and his new government. Mining Minister Wilbur Simusa said in a statement that his "ministry has with immediate effect and until further notice suspended the issuance of new applications, renewal and transfer of mining and non-mining rights."

A small South African community 300km north of Cape Town is taking on De Beers over the diamond giant's plans to sell its 970 square km Namaqualand properties to a much smaller outfit already operating in the area. Locals say Trans Hex, which will assume responsibility for rehabilitation, has a poor track record in the area, lacks financial clout and the environmental management programme put together by De Beers already falls far short of what is needed to clean up almost a century of opencast mining in the biodiversity hotspot. In a video (after the jump) community spokesperson David Markus says a diamond may be forever for De Beers, but for his people, "it’s the suffering that’s forever."

A dispute between investment banker Euro Pacific Canada Inc. and Midlands Minerals Corp. (CVE:MEX) is drawing in two of the biggest names in the gold investing industry. The Globe and Mail is reporting that Euro Pacific Canada is seeking damages of $10 million from Midlands over a breach of contract — an amount that is actually larger than the tiny explorer's market cap of $7.21 million based on today's counter.

Eastern Platinum (TSE:ELR), xxx, said that stike action by one of its mining contractors at the company's flagship Crocodile River Mine is reducing mine output by 50%, which amounts to about 210 ounces of lost platinum group metal production each working day. JIC Mining Services, one of the largest mining contractors in South Africa, and the National Union of Mineworkers have not yet reached an agreement. About 756 JIC employees working at CRM have joined the strike. Eastern Platinum says it is not involved in this dispute.

Rio Tinto said it expects its Simandou iron ore project in Guinea to begin producing by mid-2015. The company has approved $211 million in continuing studies and $1.12 billion to purchase equipment and fund early earthworks. The Australian reports Rio saying the $9.8-billion project is gaining momentum with construction works well underway: Work has started on the marine offload facility near the preferred port site of Ile Kabak, 50km southeast of the capital Conakry, which enables the introduction of heavy equipment for construction.

2Merkato reports the Ethiopian Ministry of Mines announced that five international companies have invested $6.5 billion in the Ethiopia potash mining industry which is centred in the Dalol area, part of the Danakil Depression (pictured). The five companies are G&B Central Africa Resource, Saynic Potash, Nova Potash, BHP Billiton and Toronto-listed Allana Potash. Allana has the backing of the World Bank and on Monday the company announced the latest in a string of high-grade discoveries at its 160 square km land position at Dalol.