Freeport profit pops higher; miner makes progress in Indonesia

Sesa Goa, a Vedanta Group company, has stopped iron ore mining at Chitradurga in Karnataka. The Supreme Court on Friday had banned mining activities at Chitradurga and Tumkur districts. A similar ban on mining is already in force at Bellary in the State.

Workers at Freeport-McMoRan Copper & Gold's (FCX.N: Quote) Grasberg mine in Indonesia plan to stage a strike in coming days after talks with the company failed to resolve a pay dispute, a move that could tighten global copper supplies and lift prices. A strike would be the second in two months at Grasberg, the world's third biggest copper mine that also has the biggest gold reserves, after an eight-day stoppage in July caused production losses and helped push copper prices to three-month highs

Mining company Rio Tinto PLC (RIO) Wednesday raised its ownership stake in Canada-based Ivanhoe Mines Ltd (IVN.T) by 2% to 48.5% as it sought to cement its commitment to the massive Mongolian Oyu Tolgoi copper-gold project. Rio Tinto paid C$18.98 a share and exercised its subscription right to the tune of C$529.5 million in order to increase its take in Ivanhoe Mines, the majority owner of the Oyu Tolgoi project.

As gold prices near $2,000 an ounce, some bulls say it's time to take money off the table after the safe-haven rally extended too far too fast in recent weeks. Gold investors at several firms said gold prices could correct sharply, citing overvaluation. While that does not mean prominent bulls are now bears, they recommended investors take profit on gold holdings, after the precious metal traded briefly above $1,900 on Tuesday for the first time.

The economic consequences of the Supreme Court ban on mining in Bellary are beginning to be felt in thousands of homes in Karnataka as their primary bread winner is facing an axe or has already been pink-slipped. More than 30,000 people working for mining and steel companies are jobless. Another 15,000 workers employed in over half-a-dozen steel companies and 77 other related-industrial units face layoff threat as their companies face an acute shortage of raw materials (iron ore).

World crude steel production for the 64 countries reporting to the World Steel Association was 127 million tonnes in July 2011. This is 11.5% YoY higher than July 2010.

Ivanhoe Mines (TSE:IVN,NYSE:IVN,NASDAW:IVN) announced an update to the production potential of its Oyu Tolgoi project.

Four of the five trade unions of mining major have placed their wage demand with the management.

The young miners descend on rickety ladders made of branches into the makeshift coal mines dotting Jaintia Hills in northeast India, scrambling sideways into “rat hole” shafts so small that even kneeling becomes impossible. Lying horizontally, they hack away with picks and their bare hands: Human labor here is far cheaper than machines. Many wear flip-flops and shorts, their faces and lungs blackened by coal. None has a helmet. Two hours of grinding work fills a cart half the size of a coffin that they drag back, crouching, to the mine mouth, where a clerk credits their work. Most earn a dollar or two an hour.