China’s steelmaking raw materials extend gains on firm demand outlook

Perth Mint announced that it minted a one-tonne gold bullion coin that is worth over $55 million. It is the world's largest gold bullion coin. The previous record holder was a coin produced by the Royal Canadian Mint. Dimensions of the coin are 80 centimetres wide and over 12 centimetres thick. Watch the video on how the coin was made.

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.

Australian uranium producer, Paladin Energy, announced that its U3O8 production was 15% lower due to planned shutdowns and unscheduled remediation work. The company's stock declined 4.15% to $1.50 after Paladin announced on Monday its quarterly report for the three-month period ended September 30, 2011 The company did have record sales of 2,001,673lb U3O8, which generated revenue of US$102.74M. The average sales price for U3O8 was US$51.33/lb.

Rural communities in Queensland Australia are more than a little unhappy about state politicians and government agencies allowing mining firms like BHP to set up self-contained separate mining towns cut off from local communities or simply letting miners fly in and out without ever becoming part of local life.

Perilya Limited, an Australian base metal miner, plans to raise $110 million to delever the company's balance sheet and fund the company's ongoing activities. The company said on Wednesday that it plans to issue 263,037,782 ordinary share at 42 cents per share. UBS AG is the underwriter. Perilya Limited has a zinc, lead and silver mine in Broken Hill, New South Wales. Perilya's operations also include the Flinders Project in South Australia and the Mount Oxide Project in Queensland.

Legislation introduced in the Queensland state parliament could have a negative impact on mining. The bill, the first of its kind to be introduced in Australia, bans mines that would make land unusable for farming, the Courier-Mail reported Wednesday: "The resources sector is growing in Queensland, but our government's commitment is to sustainable growth supporting mining in the right places, while ensuring best agriculture land is protected for future generations," (Environment Minister Rachel) Nolan said in a statement.

Reuters reports ArcelorMittal has pulled out of its joint $5 billion bid with US giant Peabody Energy for Australian coking coal miner Macarthur, just days after the target's top shareholder accepted the offer and left the Indian steelmaker with a higher than expected cost. Some observers were skeptical when Peabody and Arcelor raised their bid at at time coking coal prices have been falling and according to a new report could pull back to $240/tonne towards the end of next year. Now that it is flying solo Peabody may have to raise cash to fund the transaction. The deal also comes amid the planned introduction of an onerous carbon tax next year and rising labour costs in Australia thanks to the strong Aussie dollar.

FairStar Resources (ASX:FAS) will spend $300 million to build a a mining operation at its Steeple Hill iron ore project in Western Australia. The company, which made the announcement on Monday, plans to recover alluvial iron ore deposits in phase one of the project, followed by a drill and blast operation for hard rock hematite in phase two and the recovery of magnetite in phase three. The company says it will not seek joint venture partners.