Chinese rare earth alliance sues Hitachi Metals over patents

Speaking in Arequipa at Peru's premier mining conference industry executives said on Friday a drive by Peru's leftist president to raise mining royalties should not derail multibillion-dollar investments, but added that the viability of smaller, less efficient operations will be affected. Peru's Buenaventura and US-based Newmont said their $4.8 billion Conga mine, the most expensive mine in Peru's history, was on track to come on line in 2014 while others including Barrick Gold, Xstrata, Anglo American and Gold Fields reiterated their commitment to the country.

Mbada Mines (Pvt) Ltd, which operates in Zimbabwe's Marange diamond area, is producing more than 150,000 carats a month, surpassing Rio Tinto's Murowa mine as the country's largest diamond producer, according to the firm's chairman, Robert Mhlanga. Rio Tinto's Murowa diamond mine produced 178,000 carats in 2010 and 125,000 in the first half of 2011.

IMX Resources Limited (ASX:IXR) is pleased to announce that initial metallurgical testwork has confirmed that high grade nickel concentrates with high recoveries can be produced from the multiple Ntaka Hill ore zones at the Nachingwea Ni-Cu joint venture in Tanzania. The Project is a joint venture between IMX Resources Limited (25%) and Continental Nickel Limited (75%).

Gold futures returned to above $1,800 an ounce Friday as investors sought the perceived safety of the precious metal ahead of the weekend and news emanating from Europe injected a dose of uncertainty back into markets. Gold for December delivery added $33, or just under 2%, to settle at $1,815 an ounce in afternoon trade. Reuters reports between gold’s highs and lows this year, there is a more than $600 gap, the largest since the 1960s, though its 32% range is below the 42% range seen in 1980.

Kentucky power companies Louisville Gas and Electric and Kentucky Utilities said on Friday new, stricter, federal environmental regulations will force them to retire three older, coal-fired power plants and recoup the $4 billion in EPA compliance costs through future price hikes for customers. A recent industry-sponsored study showed the US coal ash industry could suffer $110bn in lost economic activity and cut 300,000 jobs over the next 20 years under the new rules and between 50,000Mw and 70,000Mw of coal-fired power generation throughout US could be retired. The three Kentucky plants being shut down supplied less than 800Mw of power. One megawatt powers about 1,000 homes.

Euroenews reports that two bodies were found by rescuers who are trying to reach trapped miners in an underground coal mine in south Wales. On Thursday morning, water flooded the hillside colliery near Cilybebyll where seven miners were working. Three miners managed to escape while four remained underground. Divers have been trying to reach the workers but debris in the water is making progress difficult.

Silvercorp Metals Inc. says the anonymous fraud allegations that have hammered its share price are completely false, and the company is backing that view up by buying back its shares at low prices.

Rio Tinto PLC (RIO) plans to sell "a lot" of the output from the Oyu Tolgoi copper and gold project in Mongolia to China, and is in discussions with smelters in China, Rio Tinto's U.S. Copper Chief Financial Officer said Friday at an industry event."Talks are still underway, and there's no definite plan right now," Kay Priestly told a Metal Bulletin conference in China. With the Oyu Tolgoi mine strategically located close to China where demand is high, so "it's certainly our plan to transport a lot of the products to China," Priestly added.

Western Australia’s manufacturing sector is losing nearly 150 jobs per day as workers chase high wages in mining.