La Mancha plans to expand its African footprint, buy Barrick gold mines

Gem Diamonds' Letšeng mine continued to polish its reputation as the world's richest source of large diamonds, the London-listed company reported in a management statement covering July to October. 15 diamonds were found that were sold for more than $1 million and 50 roughs fetched prices greater than $20,000/ct;  one fancy pink went for $156,000 /ct.  Letšeng also recovered 171 diamonds greater than 10.8 ct in size. Excluding the 550ct Letšeng Star sold for $16.5 million last month, the mine averages sales of $2,425/ct. No wonder then that the board will meet this month on a feasibility study expanding capacity 75%.

Chinese-run copper mines in Zambia are routinely mistreating workers and breaking the law by imposing up to 18-hour shifts and flouting international health and safety standards, according to a report from Human Rights Watch. The 122-page report draws on interviews with miners from the country's four Chinese copper operations and the 48 other mines operated my multinational companies. The Chinese companies are subsidiaries of China Non-Ferrous Metals Mining Corporation (CNMC), a state-run firm.

Coal of Africa raised US$106 million after placing 130 million ordinary shares representing 24.4% of CoAL's issued share capital prior to the placing. Coal of Africa operates coalfields in the Mpumalanga Province in South Africa. It runs two collieries and is advancing other projects. John Wallington, chief excecutive officer of the company was pleased with the placement.

Ripples of the Fukushima nuclear disaster are still being felt in the uranium sector. French nuclear power company Areva (AREVA:PA) said on Wednesday it is suspending a uranium project in the Central African Republic due to slumping uranium prices, which are down about 30% since the disaster in March. The accident at the Fukushima Daiichi plant following the Japanese earthquake and tsunami has taken the steam out of uranium mining and nuclear power which prior to the accident had been touted as a safe and economic alternative to fossil fuels.

Perseus Mining (TSE:PRU), a West African gold explorer and miner, completed a Can$81.25 million equity offering. The offering, 25 million ordinary shares at Can$3.25 each, was underwritten by a syndicate of underwriters co-led by Clarus Securities Inc., Dundee Securities Ltd. and CIBC World Markets Inc. Funds will be used to develop the Sissingue gold deposit at the Tengréla Gold project, as well as for general corporate purposes.

South Africa's National Union of Mineworkers (NUM) called off a strike on Wednesday after reaching a deal with Xstrata over the coal giant's voluntary employee share ownership plan. Xstrata agreed to allocate shares to workers equally and not based on employment grade, NUM's one gripe. Mine ownership and nationalization are once again fiercely debated topics in the country 17 years after the end of white rule and observers believe SA’s allure as an investment destination has been tarnished by the heavy weather accompanying the Xstrata deal. The plan gives workers 3% of the company and is over and above the company’s 26% local ownership obligations which it already meets.

Shares of Randgold Resources, a pure-play gold mining company focused on west and central Africa, soared 7.4% Wednesday after announcing third quarter production increased 80% and sales jumped to $309.6 million from only $116.3 a year ago. Despite a once-off drop in gold sales from the previous quarter following instability at its Tongon mine in the Ivory Coast where it has been producing for one year and what it described as once in a century rainfall at its Loulo/Gounkoto operations in Mali, third-quarter income increased more than four-fold to $106.8 million.

Freeport-McMoRan Copper & Gold Inc. has approved a US$850 million expansion to the Tenke Fungurume mining operations in the Democratic Republic of Congo. Lundin Mining, a partner at the mine with FCX, made the announcement in a press release on Tuesday night. The phase two expansion, targeted for completion in 2013, will increase copper production by 50% to about 195,000 tonnes of copper cathode and 15,000 tonnes of cobalt in hydroxide. Funding will be split 70:30 between the mines two partners, FCX and Lundin Mining. The companies expect that capital costs will be funded by surplus cash from Tenke Fungurume operations.

As controversy continues to rage over mining in Zimbabwe's Marange alluvial diamond fields, Voice of America reports a deal has been reached to sell Marange diamonds. According to the World Diamond Council, the agreement allows two Marange operations to sell diamonds on the international market and a third, run by a Chinese miner, will be allowed to resume sales following third-party verification. The agreement, reached in Kinshasa, Congo, was ratified by members of the Kimberley Process, which is a system to prevent the sale of so-called "blood diamonds". The United States opposed the decision by abstaining from the vote.