Brazil mining trade group slams Senate royalty proposals

Reuters reports Anglo American on Wednesday sold a 24.5% stake in its southern Chilean properties to Japan's Mitsubishi Corp. for $5.39 billion, undermining plans by Chile's state-owned Codelco to exercise an option to buy half of it. Chile decided at the end of October, barely a week after Anglo American announced that the $2.8 billion they splashed on expanding their flagship Los Bronces mine will start to bear fruit before year end, to exercise the 33-year old option that has lapsed before, blindsiding Anglo. Anglo said the transaction values its Chile properties at $22 billion. Codelco was offering $6 billion for 50%.

In the last month Bear Creek's stock (CVE:BCM) has gained 23% to $5.06 a share in anticipation of the company's feasibility study for the Corani silver-lead-zinc deposit. The company says that the study will be released in early November. The pre-feasibility study said that the Corani project could produced up to 10 million ounces of silver per year. "Additionally, the Corani project is well endowed with both lead and zinc, so by-product credits will result in low or negative cash costs per ounce of silver," stated the company.

Bloomberg reports Rio de Janeiro-based Vale SA, the world’s largest iron-ore producer, said prices for the raw material have stabilized and are recovering from “rock bottom” levels as a result of lower-than-expected production and strong demand from China, India and South America. Iron ore for immediate delivery has gained 8% to $126.30 a tonne since reaching its lowest level in almost two years at the end of October. During the month iron ore prices crashed almost 30% forcing the big three – BHP, Vale and Rio Tinto control nearly 70% of the 1 billion tonne annual iron ore seaborne trade – to renegotiate quarterly contracts with Chinese buyers to bring values more in line with the spot price.

Stock in White Tiger Gold received another 6.6% bump on Tuesday, bringing its gains over the past week to 38.5% after the company announced it has secured a $15 million loan to ramp up production at its Lamaque project in Val d'Or, Quebec. White Tiger has experienced a flurry of corporate activity recently, installing new senior management and expanding the Lamaque project after sealing the takeover of Century Mining after months of delays due to action from unhappy minority shareholders.

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).

Peru can remain competitive with neighbouring Chile despite a recent decision to hike mining taxes. Peru, the world's third largest copper producer, is able to offset its higher tax on mining companies (which is 3.8 percentage points higher than Chile's) recently imposed by new President Ollanta Humala, because it has cheaper labour and electricity costs, reports Bloomberg:

Sulliden Gold Corporation Ltd. ("Sulliden", the "Company") (TSX:SUE)(OTCQX:SDDDF)(BVLAC:SUE) is pleased to announce that it has entered into an agreement with National Bank Financial Inc. and Cormark Securities Inc. as co-lead underwriters on behalf of a syndicate of underwriters to be formed (the "Underwriters"), for the issuance of 43,353,000 common shares (the "Shares") of the Company, on a bought deal basis, at a price of $1.73 per Share for gross proceeds of $75,000,690 (the "Offering").

Reuters reports leaders in Peru's Cajamarca region demanded on Wednesday that Newmont Mining and partner Buenaventura abandon their $4.8 billion Conga project after talks with the central government broke down. The president of Cajamarca said massive protests will be held next week. In October, Newmont was forced to briefly shut down adjacent Yanacocha, South America's largest gold mine over the protests. Conga would be the biggest investment ever in Peru mining and is a crucial test for the country's new president Ollanta Humala, who campaigned on ending conflicts over natural resources.

South America-focused Yamana Gold (TSE:YRI) increased production and revenue targets for the third quarter, and rewarded shareholders with a 63% dividend increase. Toronto-based Yamana boosted production 4% to 279,274 gold-equivalent ounces (GEO) and brought in $555 million for the quarter — a 22% increase. Operating cash flow rose 57% to $330 million. The higher output came despite lower production at some of Yamana's mines in Brazil, Chile and Argentina. The best production figures came out of the El Peñón mine in Chile, which posted a 15% increase in GEO, and the Gualcamayo mine in Argentina, which marked a 17% improvement.