Copper price below $3 as mines add a million tonnes

A temporary production stoppage by China's largest rare earth exporter makes the creation of an American rare earth stockpile more likely, according to a report by dealReporter that appeared in yesterday's FT. The stoppage was a "wake-up call" for the US Department of Defense because the rare earth elements are needed for a variety of defense applications, writes dealReporter, citing a congressional source. The article quotes congressional sources and three rare earth companies saying that "the creation of a US rare earth strategic reserve is more likely to get the go-ahead after (Inner Mongolia Baotou Steel Rare-Earth (SHA:600111)) halted production. Such a move would create another source of demand for the metals, likely aiding a rebirth of the US rare earths industry."

The Guardian reports the U.S.-based Carter Center has launched a website to shine a light on the corrupt mining industry in the Democratic Republic of the Congo:

Minmetals is not finished acquiring companies to add to its stable of base metal mines, according to Bloomberg. The state-run Chinese miner, with operations in Australia and Laos, a month ago snapped up Anvil Mining for $1.3 billion, thus expanding its reach into Africa. Anvil’s key asset is the Kinsevere mine, located in the Democratic Republic of Congo. Bloomberg reports the firm is planning more takeovers because it needs to extend the life of its mines and boost valuations. Minmetals' stock is undervalued compared to other comparable raw materials producers and consummating more deals would help raise its valuation, says the story, quoting a manager at First Asset Investment Management Inc.:

A proposed uranium mine in Virginia is attracting its share of proponents and detractors. The state has upheld a ban on uranium mining since 1982, but the ban is being reconsidered in light of a proposal by Virginia Uranium Mining to extract 119 million pounds of the nuclear fuel from what would be the world's seventh-largest uranium deposit. On Thursday a day-long forum was held to weigh arguments on either side of whether the private company should be allowed to (mostly underground) mine the Coles Hills deposit.

Junior zinc producer Canadian Zinc (TSE:CZN) reported a $5.3 million loss in the third quarter, which it attributed to higher exploration expenses and losses in the value of its shares in a Fijian mine.

Mid-tier gold producer IAMGOLD (TSE:IMG) has purchased a 14% stake in Colombia Crest Gold Corp. (CVE:CLB) for $3.4 million. Stock in Colombia Crest Gold shot up 9.43% on the news. The private placement follows IAMGOLD's earlier investments in Tolima Gold Corp., a junior miner, and Bellhaven Copper & Gold (CVE:BHV).

The cash at the world's top six mining companies is estimated to top out at $144 billion by end 2013 and M&A activity this year is already up 67% over 2010. The gold sector has been leading the frenzy and the stock market is where they will be looking to find additional ounces.

It seems that Guatemala's poor will go to extreme lengths for the chance to find valuable precious metals. The Associated Press reports that hundreds of people regularly search for jewelry and scraps of metal among the trash that spills from a drainage tunnel into Guatemala City's main landfill: Every day, about 300 hike to the bottom of the ravine and wade into the water in search of rings and bracelets made of silver or gold. The water sifts and carries away the lighter garbage, leaving heavy metals on the stream bed.

India's largest business group is considering making a bid for New Hope Corp. (ASX:NHC) in what could be the largest coal deal since Alpha Natural Resources (NYSE:ANR) bought Massey Energy in January for around $7 billion. According to Bloomberg, citing sources familiar with the plan, the acquisition would involve a joint bid between Tata Steel and Tata Power for Queensland-based New Hope which is valued at $A4.9 billion. Indian steelmakers and power plants are struggling to secure coal to run their plants in the face of supply shortages.