Aussie company signs agreement with Argentinian province over lithium assets

An Australian coal company at loggerheads with a Brazilian-based partner over a central Queensland mine will seek damages in the Federal Court.

Northgate Minerals announced on Wednesday that it will acquire Primero Mining for $370 million. The new company, which will have a combined market capitalization of approximately $1.2 billion, will be a mid-tier gold producer and will tie together the San Dimas mine in Mexico; the Fosterville and Stawell gold mines in Australia; and the Young-Davidson gold development project in Ontario.

Australia's no. 2 nickel miner Minara Resources , which is resuming full production runs following repair work at its Murrin Murrin ore processing plant, trimmed its full-year production guidance on Wednesday. Minara, 71 percent-owned by commodities trader Glencore International , cut its guidance to 29,000-32,000 tonnes of nickel in 2011 from between 33,000 and 37,000 tonnes.

Australian uranium miner Energy Resources of Australia on Wednesday reported an 84 percent drop in second-quarter production from three months earlier, blaming voluntary interruptions in production due to safety concerns on flooding, but lifted its full-year production guidance.

Macarthur Coal shares soared almost 40 per cent after Peabody Energy's near $5 billion takeover bid, providing a stock price boost to others in the Australian coal sector. The shares closed up $4.06, or 36.64 per cent, at $15.14 on Tuesday, Macarthur's highest finish since late April.

Australian Prime Minister Julia Gillard has hailed a takeover bid for a Queensland coal mine as proof her carbon price package won't kill off the sector. US energy giant Peabody Energy Corp is making a second tilt for Macarthur Coal within 14 months, this time through a $5 billion bid in tandem with the world's largest steel maker, ArcelorMittal.

Chronic labour shortages in resource-rich Western Australia could put mining projects at risk, as the state struggles to plug a shortfall of skilled workers set to balloon to 150,000 by 2017.

Australia's powerful coal mining industry warned it was being unfairly singled out under the country's new carbon emissions trading scheme, predicting it will lead to job losses and fewer collieries at a time when buyers are paying top dollar for coal.

The Greens say South Australia will benefit from the $10 billion allocated to renewable energy projects as part of the federal government's carbon pricing scheme. But the party has conceded that as the state transitions to a clean energy future, towns that are largely supported by coal mining have a limited future. Image is from Billy Hathorn.