Asian gold strategy clarifiying

Mexico massively ramped up its gold reserves in the first quarter of this year, buying over $4 billion of bullion as emerging economies move away from the ailing U.S. dollar, which has dipped to 2-1/2-year lows.

The chief minister of a southern Indian state who is accused of being at the centre of a $3.6 billion mining fraud resigned on Sunday, AFP reported. B.S. Yeddyurappa, 68, head of the Hindu nationalist Bharatiya Janata Party government in Karnataka, was named earlier this month in a report into corrupt mining practices by the Karnataka state ombudsman. The minister was accused of enabling illicit iron ore mining.

Putting Galore Creek into production would cost a whopping $5.2 billion in capex, NovaGold Resources said this week in announcing their prefeasibility study of the substantial copper--gold- silver project in northern British Columbia. The proposed mine, located 200 kilometres north of Stuart, BC, is 50%-owned by NovaGold and 50% by Teck Resources. Image of the proposed pit design for Galore Creek, courtesy of NovaGold Resources Resources Inc.

The Tanzanian government has planned a USD 400 million uranium mining project by Australian based Mantra Resources in the Selous Game Reserve, a project that will greatly boost the country’s economy.

Gold mining in Tanzania and other East African sites is making headway with work in progress on prospecting and resource development at eight sites.

The most toxic air pollution from coal- and oil-fired power plants can be found in Ohio, Pennsylvania and Florida, according to a new study released by the nonprofit Natural Resources Defense Council and Physicians for Social Responsibility.

Toronto-listed Scorpio Mining Corp reported a quarterly profit helped by production ramp-up at its Nuestra Señora mine in Mexico, but missed market estimates compiled by Reuters, sending its shares to close just under 4% down. Vancouver-based Scorpio reported a net income of C$3.3 million and strong cash flow from operating activities in Q2 2011 of $11,9 million as recovered silver equivalent ounces reached 1,548,174, an increase of 79% from 2010 and contained metals produced in concentrates jumped 92% to of 734,558 ounces.

Finnish mineral processing company Outotec more than doubled its profits for the first half of 2011.

The Zimbabwe Independent quotes finance minister Tendai Biti (pictured) on Friday as saying the reality of Zimbabwe's situation is that there is no connection between Zimbabwe’s income from diamonds, its output and international prices adding the country's resources are in danger of turning into curse rather than a blessing. Zimbabwe exported 716 958,50 carats from its alluvial diamond mines but only $103,9 million of diamond export shipments was accounted for in the first half of the year. The military seized control of the rich diamond fields in Chiadzwa in 2006 and most observers believe an international ban on these gems are being widely flouted.