PotashCorp mine closure put off for now

AUSTRALIAN miner Cockatoo Coal has put its Taabinga thermal coal project in Queensland up for sale, an informed source said today, in the latest sign that deal-flow in the coal sector is accelerating. Sydney-based Cockatoo - one of a handful of listed Australian companies with producing coal mines - has appointed advisory firm RFC Corporate Finance to handle the sale of the Taabinga project, which has an estimated 252 million tonnes of undeveloped coal resources.

Gold hit $1,800/oz on Tuesday and closed the day at $1,743/oz due to ongoing turbulence in the financial markets According to MarketWatch, gold has gained 23% this year and has risen 5.5% alone this week. The Federal Reserve, which met Tuesday morning, issued a statement expressing surprise at the slow economic growth.

The ban on iron ore exported from the state of Karnataka is having downstream effects on the supply of Indian steel, according to a story today in The Hindu Business Line. Quoting sources in the Bellary-Hospet region, the website says before the export of iron ore was banned in Karnataka in 2009, the state was producing about 42 million tonnes of iron ore and exporting 28 million tonnes. The following year, after the ban was implemented, 33.6 mt was produced, of which only 7.4 million tonnes was exported. But if all the iron ore pellets were used for sponge iron, pig iron and steelmaking, 41 million tonnes or iron ore would be required, or 33 million tonnes if the mills run at 80% capacity, leaving a significant supply shortfall, Hindu Business Line explains.

Mining companies in Peru invested $2.95 billion in the first half of 2011, up 70% compared to the same period last year, the government said.

Economic jitters continue to drive gold higher, which hit $1,782.50/oz on Tuesday. Stock markets bounced back after yesterday's gut wrenching fall. The S&P/TSX Composite index was up nearly 3% from yesterday. The S&P/ASX 200 did not perform as well and rose 1.22%, making most of the gains later in the day. The oil and gas sector, which suffered some of the worst losses on Monday, rebounded strongly. The Dow Jones U.S. Oil & Gas Index was up 3%.

India Globalization Capital, Inc. (NYSE Amex: IGC), a company competing in the rapidly growing materials and infrastructure industry in India, announced that it has closed on a strategic partnership agreement to provide iron ore to Chinese steel mills.

First Quantum announced a 51% increase in gross profit as the 41% higher net realized copper price more than offset the lower sales volume. There was a 3% decrease in copper production from the Kansanshi and Guelb Moghrein mines due to maintenance-related downtime at both operations and the processing of low-grade, high acid consuming oxide ore at Kansanshi.

Leighton Holdings has sold mining services provider HWE Mining to BHP Billiton. 9News reports that Leighton has signed a heads of agreement for the sale of HWE, which accounts for close to 70% of BHP's iron ore mining in Western Australia. The sale is worth $1.1 billion, along with $1.4 billion worth of contracts in hand.

Brazilian mining titan Vale SA (VALE) said Tuesday the first coal train arrived Monday at the Mozambican port of Beira. The first train carried 2,200 metric tons of coal from Vale's Moatize coal mine in the northwest province of Tete.