Palladium skyrockets on Russia tensions, hits 13-year high

Harry Winston Diamond shares fell 11 cents on Friday despite a successful Q3 production report. The company (TSX:HW, NYSE:HWD) said it processed 3% more ore at its 40%-owned Diavik Diamond Mine in the Canadian north, producing 1.9 million carats from 0.6 million tonnes of ore. That translates to an 8% increase in recovered carats from the same period in 2010 due to higher processed ore grades, says Harry Winston.

Bloomberg reports that three environmental groups have filed a lawsuit seeking to halt the proposed Highland Reylas mountaintop removal mine in Logan County, West Virginia. The West Virginia Highlands Conservancy, the Ohio Valley Environmental Coalition and the Sierra Club filed the lawsuit Thursday in U.S. District Court in Huntington challenging a permit issued by the U.S. Army Corps of Engineers. The groups claim the corps failed to consider scientific studies that say mountaintop removal mines pose health threats to residents.

Despite bans on export of iron ore from India, the price of the steelmaking ingredient has fallen in China. Business Standard reports that the price of iron ore originating from India has dropped 12% in Chinese markets to $168 a tonne, compared to $191 a tonne two weeks ago. The website quotes the chairman of Maya Iron Ores, a commodities brokerage, saying that Chinese steelmakers and traders expect the market to drop even further due to global financial turmoil and reduced demand:

The price of gold rose sharply this week, adding over US$40 to end Friday’s session at US$1,679 per ounce. Demand for the yellow metal was driven by weakness in the US dollar, which fell against the euro as positive developments in the European debt crisis boosted Europe’s single currency.

Europe's biggest mining project may be approaching the finish line after a dozen years of opposition and delays, and could enter its final stage late next year, a Rosia Montana Gold Corp executive told Reuters on Friday. Rosia Montana is majority-owned by Gabriel Resources which have spent more than $500 million under no fewer than seven different CEOs advancing the project since the Canadian firm first obtained the concession in 1999. It is believed the be one of the richest deposits in Europe with 314 tonnes of gold and 1,500 tonnes of silver and where mining activity dates back to the 1st Century.

After launching its eBay bullion center in May, the online retailer published a handy infographic this summer to look at buying trends. Looking at absolute number of items sold, California leads the way, probably due to the size of the state, but on a per capita basis, Alaska comes first. The study also found that silver items were the most popular, followed by gold. Platinum was a distant third.

In play Walter Energy (NYSE: WLT) jumped higher by more than 7% in pre-market trading to over $80/share after the UK's Independent newspaper reported that Anglo American (LON:AAL) and BHP Billiton (NYSE: BHP) may bid for the company. By mid-afternoon the volatile stock – over the past 12 months shares in Walter Energy have traded as low as $56 and as high as $143 – had settled back to trade up around 2%. Global miners are scrambling for coal assets as metallurgical coal trades at record levels above $330/tonne. Walter Energy, which also produces coal seam gas, would follow BHP's August $12 billion buy of US shale gas company Petrohawk.

In the world of mining, so called open mining is the most visible form of delving natural resources. Typically, open mining means that large excavations are made in order to expose the desired resources, e.g. coal. After the deposits have been exposed, they are quarried and transported into plants for further processing. The mines cover surfaces of multiple square miles and can be as deep as200 meters, creating a surreal landscape in and around the mine sites.

Chad Venzke, who was profiled by Bloomberg, has posted some how-to videos on how to bury gold in your backyard. "If you don't own it physically, in your hand and easily accessible, it's a high percentage chance that you don't own it," says Venzke in his YouTube video. The recent market turbulence and the general fear regarding the economic outlook is causing some people to cling to gold more tightly. Venzke's video has had over 8,000 views.