BHP-Mitsubishi axing 700 coal mining jobs

The Globe & Mail reports this week, British Columbia premier Christy Clark announced during her China trade mission that she has secured $860 million in financing to build a coal mine in northeast BC near Hudson’s Hope which will eventually create 4,800 jobs. What Clark didn’t mention is the hitch: The proposed Gething mine would be built in the West Moberly First Nation’s territory. The province knows full well that the native band – one of a small number with a treaty in BC – opposes the plan.

Xinhua reports the chief of China's work safety watchdog on Saturday decried the poor safety standards at a coal mine where rescuers had pulled out 30 bodies and are still searching for 13 others following a gas outburst three days ago. Director of the State Administration of Work Safety Luo Lin, who led a investigation of the Sizhuang Coal Mine, located in the county of Shizong in southwestern Yunnan province, described the mine's safety measures as "very poor." The mine was found to be operating illegally, having had its license revoked a year ago, according to a statement from the provincial coal safety supervision bureau. Latest official data shows that more than 2,600 people died in mining accidents in 2009.

The Telegraph reports Anglo American CEO Cynthia Carroll took a last-minute flight to Santiago on Thursday to calm tempers over the sale of a 24.5% stake to Mitsubishi Corporation but neither Chile's president Sebastian Pinera, finance minister Felipe Larrain or mining minister Hernan de Solminihac would see her. She is understood to have contacted all three before announcing the $5.39 billion deal that undermines state-owned copper giant Codelco's plan to exercise the 33-year old option to buy half of Anglo's Sur copper complex. The Mitsubishi transaction values Anglo Sur at $22 billion and Anglo's stock is up 4.8% since the deal. Codelco was offering $6 billion for 50% and is now putting together a team of top New York and Chile litigation firms and financial advisor Rothchild.

Nautilus, the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits, announced on Friday it has completed the quarter with a cash balance of $155.1 million, after successfully raising $70.5 million in the first tranche of a $98.1 million capital raising. The final tranche of C$27.6 million was received in October. The capital raising involved the issue of approximately 39 million shares at C$2.52 per share. Nautilus is developing its first project at Solwara 1, in the territorial waters of Papua New Guinea, where it is aiming to produce gold, copper and silver. The company has been granted all necessary environmental and mining permits. Nautilus also holds approximately 600,000 square kilometers of highly prospective exploration acreage in the western Pacific, in PNG, the Solomon Islands, Fiji, Vanuatu and Tonga, as well as in international waters in the eastern Pacific.

Toronto-based Crocodile Gold Corp swung into a quarterly loss of over $6 million on flat revenues of $30 million and lowered its gold production forecast for 2011 on expectations of much lower-than-expected grades at its open pit mines in Australia's Northern Territory. Crocodile cut its gold production outlook for the year to 66,000 – 69,000 ounces at a cash cost of $1,400 – $1,500 per ounce in 2011, from its earlier forecast of 85,000 – 100,000 ounces, with a cash cost of $875 – $975 per ounce. The bad news sent the company's stock down 25% at 40.5c by Friday's close on the Toronto Stock Exchange bringing its year to date losses to a whopping 73%.

Katanga Mining announced on Friday it has secured $635.5 million in new loan facilities from parent Glencore International to fund the expansion of its Democratic Republic of Congo copper-cobalt mine. The Toronto-listed firm wants to bump copper production to 270,000 tonnes per annum and thereafter bump it up to 310,000 tonnes from cash flow. The company is already ramping up copper production with financials results also out on Friday showing year to date copper in ore mined was 157,658 tonnes, a 96% increase over 2010. Cobalt produced fell 30% to 593 tonnes, but that was in line with expectations. Katanga says with the expansion the DRC complex it could become Africa's largest producer of copper and the world's number one cobalt mine.

According to a new report by MarketWatch, gold's allure is shifting to a new generation. Many people in their 20s and 30s have little faith in equities and, unlike older investors, are more inclined to consider alternative investments. Others seek tangible, hard assets as a counterweight to stocks, bonds and cash in the aftermath of the 2008 US financial crisis. And these new investors are not just gold hoarders of the doomsday variety.

Reuters reports Canadian gold miner IAMGold is on the look-out for acquisitions and while it is not itself up for sale, its chief executive said on Friday the company represents good value right now. IAMGold has in the past said interested in various stage projects, from exploration through to production and just over the last fortnight has put money into three South American juniors. IAMGold produces roughly 1 million ounces per year from operations in Africa and North and South America and sees bullion topping out at $2,000 an ounce this year or next from current levels around $1,790.

Rainy River Resources' received a 3.2% bump on Friday after the Toronto-based company released a highly positive preliminary economic assessment of its property in Western Ontario. Friday's move also came after Canaccord Genuity upgraded the stock to speculative buy. Rainy River is up more than 9% over the last two days and is worth some $600 million on the Toronto big board. The study envisions an open pit and underground operation that would have life-of-mine average annual production of 329,000 oz of gold and 497,000 oz of silver. In the first four years of the 13-year mine-life, the average cash cost net of silver credits is estimated at $417/oz of gold generating over $1.6 billion free cash flow at current metal prices.