Ore and More

A Venue Change for the Daily Top Ten

Starting tomorrow, the Top Ten will no longer be posted here at benjamincox.com. The Top Ten will move to a new site hosted by Roche Bay: topten.rochebay.com. We’re making the change because of an exciting new development: Mr. Cox recently began to work part-time with a hedge fund, and this new position requires him to no longer post editorials about the market. An archive of all previous postings and past Top Tens will be maintained here on the Ore and More website and will be available for future viewing.

Thank you for your understanding and your continued support. See you at the new site!

Top Tener,
Kristin

1. Bloomberg.com: Fortescue cuts iron-ore shipment target on closure
Fortescue Metals Group advances to the next round in iron ore limbo; company warns of further export cuts. After announcing the temporary shutdown of its port and mine processing plant, the miner said shipments may drop as low as 16 million tonnes this year. Analysts remain hesitant of the company’s ability to meet its short-term ramp up targets.

2. Reuters: Canada TVI Pacific in deal for Philippine mine copper
Canadian mining firm TVI Pacific signs five-year agreement to allow MRI Trading AG to purchase copper concentrate from TVI’s Philippine mine. TVI announced the start-up of mining and processing activities should being in the middle of November. The mine is expected to generate $3 million in monthly revenue in the first four years.

3. IC Publications: Liberia halts rebidding for iron ore riches
Liberia’s Public Procurement and Concessions Commission stalls the rebidding for the country’s Western Cluster iron ore deposits following the complaint from original bid winner South Africa’s Delta Mining. The $1.6 billion contract was cancelled by the commission following allegations of corruption. The rebidding process will be halted for at least two weeks.

4. Bloomberg.com: Teck falls most in 20 years on coal price concern
Coal speculation drags Teck Cominco to biggest fall in 20 years. The company’s stock slid 20% in Toronto trading. The miner gained control of Fording, the world’s second-largest exporter of coal, for $8.64 billion on October 30.

5. Reuters: Indonesia to pass mining law mid-December
Long-delayed Indonesia mining law expected to pass by mid-December. The law has been delayed for years while parties debate whether the regulation should only apply to new contracts or established contracts as well. Parliament has agreed that existing contracts must follow the new law, but there will be a generous transitional period. Regulation includes an initial 20-year contract cap and the mandatory processing of all mining products.

6. Reuters: China Minmetals cuts iron imports on low price
Iron ore supply-side confirmed cuts. Chinese trading firm Minmetals has cut imports of the commodity by 3% this year. Minmetals imports iron ore on term contract and at spot rates to sell to smaller steel mills. The company’s president estimates that Minmetals will import 10 million tonnes to China in 2008, a slight drop from its 2007 imports.

7. The Salt Lake Tribune: Mining company loses on appeal
Ruling upheld: C.W. Mining forced to pay up for contractual breach. An October 2007 court ruled the coal miner owed Aquila, a Midwest utility company, compensation for failing to supply 1.5 million tonnes of coal. The ruling forced C.W. Mining into involuntary bankruptcy.

8. The Australian: Flexible on iron ore volumes, no discounts: Vale
Iron ore giant Vale refuses to markdown product, agrees to adjusted shipments based on volume needs of clients. The company denied claims that it had offered clients discounts to contract prices agreed to earlier this year. Vale said it understood not all its clients could receive the quantities agreed in contracts.

9. Merco Press: Venezuela and Russia strengthen links in mining and finance
Venezuela and Russia celebrate budding friendship: the two countries have signed 15 co-operative agreements. One of the agreements is a joint venture to build an aluminum production facility between with Russian miner RusAl. A major focus of the cooperation is to develop Venezuela’s large natural gas deposits to provide reliable power to new projects.

10. Bloomberg.com: Sumitomo Metal postpones Philippine nickel plant, Nikkei reports
An unnamed source tattles on a pending delay on construction of Sumitomo Metal Mining Company’s nickel ore processing plant. The global economic slowdown and higher-than-expected construction costs are being blamed for the one-year delay. The Philippine plant may start production in 2013.

1. Reuters UK: Rio, Fortescue cut iron ore output as China weakens
Major players plan to slash global iron ore output by as much as 6%. BHP Billiton continues to steer clear of cuts. Rio Tinto’s new end-of-year target means the company may cut production by as much as a third for the rest of the year. Brazilian miner Vale was the first major to announce significant production cuts, scaling output by 30 million tonnes. Analysts show that even without production cuts from BHP, iron ore shipments to China will be down 20-25% in November and December.

2. Guardian: Freeport cuts molybdenum output, may cut copper
Freeport McMoRan’s shares rally despite sharing plans for production cuts. The miner announced it would cut molybdenum production at its Henderson mine in Colorado. Furthermore, Freeport is curtailing spending at its global copper mines and preparing revised production plans in case of closures. The miner’s stock jumped as much as 11% on Monday with the announcement of China’s stimulus plan.

3. China View: Brazilian Development Bank approves $645 million in financing for mining giant
Anglo American passes credit check. The Brazilian Development Bank approved $645 million in financing for Anglo to boost nickel production. The funds will be used in the construction of a processing center and mine expansion in Barro Alto. The project is expected to start operation in 2010.

4. The Seattle Times: EPA says mine owners must treat water
Newmont USA and subsidiary Dawn Mining Company ordered to continue treating contaminated water at the Midnite Mine Superfund Site. The uranium mine was operated from the mid-1950s to 1981. The Environmental Protection Agency requires the companies to find a licensed facility to accept the treated water as the state no longer allows them to keep it at the mill site.

5. Reuters: China to extend mining consolidation into 2009
China re-commits to consolidation, continues pushing for mergers into 2009. The government has dedicated nearly two years to resolving overlapping claims within the mining industry. Strong prices, particularly for coal, have led to opposition from smaller miners who are unwilling to relinquish their stakes. China hopes a consolidated industry will improve safety and lead to more efficient production.

6. Business Standard: NMDC gets 102% hike in export prices of iron ore
Indian state-run NMDC finds negotiation gold; miner wins a 102% hike in export prices for iron ore from Japanese and South Korean steel mills during global downturn. The increase will raise the country’s largest iron ore producer from earning $65 per tonne to $129 per tonne. Out of its annual 30 million tonne production, 3.5 million tonnes of iron ore are earmarked for export.

7. International Herald Tribune: Brazilian miner MMX cutting production
MMX announces plan to suspend production at its iron ore mine in Corumba by the end of November. The cut will decrease the Brazilian miners output by 30%. The move is reportedly a temporary measure to cut cost.

8. The Sydney Morning Herald: BHP’s iron ore output falls to low point
BHP Billiton’s output falls to lowest amount since February; company claims production cuts are still not in the cards. The Port Hedland Port Authority tracked 10.2 million tonnes of iron ore shipped in October compared with 11 million tonnes in September. BHP has continued to sell ore on the spot market, which is running at a 40% discount to the benchmark price.

9. Bloomberg.com: Australia’s New South Wales to raise coal royalties
Coal royalty increase to add jingle to state coffers; increases expected to boost revenue by $806 million over the next three years. New South Wales has increased royalties on surface mined coal to 8.2% from a previous 7%. Royalties on coal produced underground have also been raised.

10. Reuters: Anglo wants out of Philippine mine venture
Anglo American breaks up with current gold and copper venture due to local government and resident resistance; it is unknown if the miner is courting other projects in the Philippines. Joint venture partner Manila Mining confirmed that Anglo was terminating their 2007 agreement to fund a pre-feasibility study on the Kalayaan copper-gold project. Philex Mining is buying out Anglo’s 50% stake in the project.

1. Herald News: Fortescue brings forward port and plant shutdown
Fortescue Metals Group admits planned shutdown of its Pilbara port and mine processing plant facilities. The company began mining mid-May, mere months before the global financial crisis and its aftereffect on iron ore demand. The company had previously planned to expand to 80 million tonnes per year by 2009, but has delayed that target production until the 2009-10 financial year. Rival Rio Tinto announced it would cut its annual production by 10%.

2. Reuters Canada: Guinea cancels Aredor diamond mining license
Country, company conflict brings about diamond mining license cancellation. West African Guinea canceled a mining license held by Toronto-listed Aredor, accused the miner of having stopped activities for three years despite promises of a restart. The country is in the process of reviewing its mining contracts in an effort to maximize state revenue.

3. Reuters India: Mines close as Indian iron ore exports slump
India’s iron ore exports plunge, leaving unemployed workers and closed mines in its free-fall. October’s ore exports dropped nearly 60% from the same time a year ago. A trade body chief anticipates the drop in demand could send the country’s 2008-09 sales to below 60 million tonnes, a 45% drop. China traditionally buys nearly 75% of India’s iron ore exports.

4. Economic Times: Government levies 8% export tax on iron ore fines
In an effort to aid India’s struggling iron ore industry, the government changed the export structure to an 8% duty. The previous structure included a fixed levy of Rs 200 per tonne of iron ore fines and a 15% tax on iron ore lumps. The 15% tax was aimed to increase domestic availability and to ease input cost for the country’s steel producers.

5. Bloomberg.com: Nippon Steel says ‘chaos’ delaying iron ore talks with Rio, BHP
BHP Billiton and Rio Tinto take to twiddling thumbs as iron ore suppliers are expected to delay price talks until market outlook improves. Nippon Steel anticipates the delays as the future of the global steel market is in current chaos. An analyst at UBS anticipates a 8.3% drop in Japan’s crude steel output.

6. The Australian: Manganese price to be resilient after under-investment
High-grade manganese ore insulated from slowdown. While information out of China reports 50% of its manganese capacity has been closed, the market has mainly affected smaller producers with lower grade mines. Compared to other steel-input commodities manganese is protected by an industry under-investment and relative few high-grade mines.

7. Bloomberg.com: Orica sees eighth year of profit growth on mining demand
Orica expects more bang from the mining industry, forecasts eighth year of profit growth. The world’s largest explosives maker believes the global slowdown will not cut its demand from mining companies. Orica’s earnings from its mining services unit rose 11% in fiscal 2008. A substantial portion of the company’s demand comes from coal. Orica has limited exposure to iron ore production.

8. Reuters India: India to offer discount for iron ore export
Winter rail discount aimed to ease scrapped iron ore producers. Indian railways are offering discount of 10-50% on freight charges for long-haul iron ore exporters. The discount is effective from November 8 to December 31.

9. Associated Press: Three men found dead in Philippine gold mine
Illegal miners die in northern Philippine gold mine from an apparent lack of oxygen. The three men were likely impoverished villagers who illegally enter gold mining tunnels abandoned by larger mining companies.

10. Reuters: Ecuador says to present mining bill this week
Ecuador’s President Rafael Correa strong-arms mining bill to legislature, looks to overhaul sector. The proposed bill will lift a ban on mining activity approved in April and diversify the country’s revenue sources. Correa warned the legislature that if the bill suffers any deep changes he would veto it and put it up for popular referendum.

1. Reuters: Brazil’s Vale may drag out 2009 iron ore price talks
Vale tries stall for time, wishes to hold out on contract talks until demand returns to normal level. Chief Executive Roger Agnelli confirmed the company was delaying its annual sit-downs to discuss next year’s term prices. Traditionally, Vale’s first major deal with a steelmaker sets the benchmark for the rest of the industry.

2. Bloomberg.com: Anglo American plans to boost its output of iron ore fourfold
Anglo American hopes long-term goals will fill in short-term holes. The iron ore producer plans to boost iron ore fourfold by 2016, up to 150 million tonnes. Anglo’s chief said the company’s 2016 target production will capture 13% of the seaborne iron ore export market.

3. International Herald Tribune: South African tribe profits from platinum reserves
Platinum’s riches support South Africa’s Bafokeng people. Deals make the tribe one of the richest in Africa. The tribe’s homeland lies on the world’s richest platinum reserves, which produce nearly 55% of global output. Bafokeng leaders signed a $1.6 billion joint venture deal with Anglo-Platinum on Thursday to more than double output at the local mine.

4. The Australian: Rio to hit iron ore capacity target by 2009
Rio Tinto nearly reaches its target capacity in its Pilbara region iron ore operations. The company expects its current capacity of 195 million tonnes per year to be lifted to its target output of 220 million tonnes per year late 2008 or early in the first quarter 2009. The final output levels hinge on Rio’s port capacity. An expansion at its Cape Lambert port is underway.

5. The West: Jupiter signs agreement with major shareholders
Shareholder switch leaves Jupiter’s control with majority stakeholders Pallinghurst and RRR. Jupiter Mines announced it has signed an agreement allowing shareholders to buy a portfolio of assets in exchange for an issue of shares. The company hopes the deal will diversify its asset base to complement its existing steel feed materials focus.

6. The Telegraph: Iron ore prices set to take a tumble
Iron ore spot prices 30% lower than contract prices have it in a Fe fall. Iron ore expected to drop 10-25% in international benchmark prices. The financial crisis has pushed spot prices 30% lower than contract prices won before the market downturn. Indian iron ore exports have been markedly lower than usual, but some suppliers expect at least a partial rebound in the next three to four weeks.

7. Reuters Africa: Mauritania central banker quits to head iron miner
Banker makes a move to head miner after military junta suggests career change. Mauritania’s central bank governor Ousmane Kane will replace Mohamed Ali Ould Sidi Mohamed as head of the country’s biggest company, Societe Nationale Industrielle et Miniere. The military coup, which took place on August 6, has decreased investor confidence in the country’s mining and oil sectors.

8. Guardian: East Congo violence may spook mining investors
Recent outbreaks of violence in the Democratic Republic of Congo expected to turn mining investors cautious. Mining investment into the resource-rich country soared after 2006 democratic elections. Mining firms dependent on international markets are struggling to raise capital as general funding dries up and the perception of violence adds investment risk.

9. The Age: Mining India’s growing demand for resources
The Australian Trade Commission hopes India’s demand for resource and mining expertise could cushion the fall of Australian mining-related companies. A recent survey placed India second only to China as a destination for commodities exports. India’s investment into Australian resource reserves and assets is also expected to increase.

10. Associated Press: Depripaska’s Rusal pays off $4.5 billion loan
Norilsk Nickel minority shareholder Rusal pays back $4.5 billion of loans with help from the Russian government. He maintains influence in return for a government seat on the Norilsk board. Rusal, an aluminum giant, acquired a 25% stake in Norilsk earlier this year. Rusal hopes the government’s entry to the board will weaken its chairman’s position; the company has expressed its wish to merge the two companies.

1. Bloomberg.com: Venezuela to take control of Crystallex’s gold mine
Nationalization of the Las Cristinas gold mine sends Crystallex International share price into a tailspin. Venezuela’s government has confirmed it will take over the mine in 2009 to assure state control of the metals industry. Crystallex was given a 20-year contract to operate the mine in 2002.

2. Australian Broadcasting Corporation: Miners reassess iron ore operations
Western Australia’s junior iron ore miners struggle in financial crisis, reduce, reuse, and recycle what they can to stay afloat. BC Iron considers opening smaller operations for its Nullagine Iron Ore Project. Fellow miner Brockman forgoes stage one of its current Marillana project to focus on the more promising second stage development. Mount Gibson and Newcrest Mining have laid off employees.

3. Economic Times: Coal SPV eyes 10% in Australian miner
International Coal Ventures prepares for its first Australian acquisition. It is in talks with Gloucester Resources to acquire 10% minority holding for close to $1 billion. The Indian special purpose vehicle was formed by five large public sector units to acquire coal assets abroad. The coking coal assets at Gloucester would likely help feed the raw material needs of the involved partners.

4. Reuters: Peru’s PM says no talks until mining protests stop
Peru’s prime minister demands that mining protests end before discussing demands to change a new mining law. The provinces of Tacna and Moquegua are locked into dispute over how to share tax revenue paid by Southern Copper. The prime minister was forced to declare a state of emergency after protesters blocked roads, cut water supplies, and burned a mayor’s office.

5. Kyiv Post: Shutting Down
Eastern Ukraine hits a roadblock with falling commodity prices. Workers and industry leaders fear for the area’s future as global demand weakens. A press officer for Makiyiwuhillya, a company operating nine coal mines in the area, confirmed the complete absence of coking coal sales since August 25. While many of the areas’ coal mines are operating and stockpiling the coal, if the demand does not pick up, some will be forced to close.

6. Reuters: UBS cuts Quadra mining to sell
Copper companies hammered thin. UBS downgraded Quarda from a neutral position to a sell position after the mining company posted weak third-quarter profits and its decision to suspend two development projects. The company announced it was not prepared for the sharp decline in copper prices, which have fallen nearly 50% since July.

7. Bloomberg.com: Rio, BHP may cut iron ore prices by 15%, analysts say
Analysts predict contract prices for benchmark Australian iron ore may fall to $78 per tonne, nearly a 15% fall from last year. The price decrease would put an end to the six years of gains won by iron ore producers. The slowdown in demand will give Chinese steel mills the upper hand in the upcoming contract-price negotiations.

8. Bloomberg.com: Anglo considers acquisitions, Chief Carroll says
Anglo American Chief Executive Cynthia Carroll announces the company’s interest in acquiring acquisitions of rival companies with reduced share prices. The diversified mining group is reviewing the timing of its current projects and is likely to prefer acquisitions to developing new mine or expanding projects. Anglo’s share price has slid 54% this year

9. The Australian: Japan wants BHP to provide details of its Rio takeover
In fear of iron Goliath, Japan starts twirling its slingshot. The Japanese government has demanded details of BHP’s proposed takeover bid, hinting of possible criminal prosecution actions if ignored. The Japanese Fair Trade Commission is acting following steelmakers’ concerns that the merger will give BHP monopolistic power to raise iron ore prices. The commission has given BHP until November 17 to supply the information.

10. Reuters: CAMEC H1 sales up 90%, won’t divest coal assets
Central African Mining & Exploration announces its revenue, sales, and cash on hand remain strong. The diversified miner with interest in copper, cobalt, coal, platinum, fluorspar and bauxite said its first-half revenue jumped 90% to $184.5 million. The company has postponed plans to divest its coal assets in light of the current market.

1. Bloomberg.com: CSN Namisa to spend $2 billion to double iron ore sales by 2015
Brazilian steelmaker set to expand iron ore position; company announces plans to invest $2 billion in its iron ore unit to more than triple production by 2015 and double sales. CSN agreed to sell a 40% stake of its iron ore unit Nacional Minerios SA to a consortium of Asian buyers for $3.12 billion last month.

2. The Sydney Morning Herald: Farmers urge mining impact statements
Queensland farmers and miners fight for same land; farmers ask government to introduce a farming impact statement requirement during mining approval process. In a manner mirroring environmental impact statements, the farming impact statement would catalogue the value of having land available for future food production.

3. Reuters Africa: Mauritania SNIM iron ore chief resigns
Mauritania’s SNIM director general gives a public two weeks’ notice. Mohamed Ali Ould Sidi Mohamed states his resignation comes after accepting other employment. SNIM’s iron ore production accounts for nearly 40% of Mauritania’s export earnings. The company has partnerships with Australia’s Sphere Investments, ArcelorMittal, and China’s Minmetals.

4. Farmington Daily Times: Economics of NM uranium mining debated
Groups divided over the prospect of reintroducing uranium mining to New Mexico. The New Mexico Environmental Law Center recently released a study attacking earlier released estimates that uranium mining would bring $30 billion and a quarter of a million jobs to the state. Two companies have exploratory drilling applications pending with state regulators.

5. The Age: Brockman delays Marillana amid crisis
Brockman Resources scraps quick start-up in favor of long-term, larger scale operations. The Australian iron ore producer envisioned opening a smaller scale mine at Marillana in late 2009 and then ramping up production by 2012. Citing the uncertainty in global markets, the company believes the delay is its most prudent strategy.

6. The Sydney Morning Herald: BHP seeks strategies to secure Rio deal
BHP starts the pacifying process; the company must decide actions to take in response to the European Commission’s formal statement of objections against the miner’s hostile Rio Tinto takeover bid. Analysts speculate BHP would prefer to sell portions of its Brazilian and Canadian iron ore assets. The commission might require the sale of Australian assets.

7. Reuters: Union at Freeport’s Cerro Verde delays strike plan
Cerro Verde copper miners reevaluate strike plans, delay action until the union holds talks with mine owner Freeport McMoRan. Copper prices have fallen sharply in recent weeks. The union leader claims a Nov 10 strike would be better for worker’s pay and benefits.

8. The Moscow Times: Aricom Reviews Iron Ore Projects
Aricom strapped for cash, seeks capital funding of $1 billion. The British-Russian iron ore miner is paring down its funding needs and is considering taking a partner. Aricom shares have fallen 90% since a high in mid-May. The miner’s original project plans included building two mines, a processing mill, and a plant.

9. USA Today: Zimbabwe gold mining companies owed $30 million, may collapse
Government’s stack of IOUs ready to topple. Zimbabwe’s central bank owes private gold mining companies $30 million; the bank has yet to pass through earnings since late 2007. Zimbabwe law requires all gold to be sold through the Reserve Bank. The independent Chamber of Mines calls for swift action to save the country’s gold industry from total collapse.

10. Bloomberg.com: Canada’s dollar gains to the highest in three weeks on commodities
Loonies and toonies gain a little with slight commodities bump. The Canadian dollar rose 10.9% since October 24, putting the currency at its highest level in three weeks. Commodities generated 17% of Canada’s 2007 export revenue. The price of crude oil, natural gas, aluminum, copper, and gold futures climbed.

1. Herald Sun: Rio Tinto in talks on Guinea ore
The Simandou iron ore project touted as a top priority for Rio Tinto; negotiations and talks demand face time with the iron ore miner’s top executives. A range of top representatives have traveled to Guinea for negotiations and talks after the country’s government threatened to strip the miner of its rights earlier this summer. The company remains confident that the issues surrounding the project will be resolved.

2. The Australian: Clients want iron ore delays, not price drops: Vale
Iron ore miner Vale outlays survival plans: cut cost, keep cash, and allow delays in shipments. The company hopes to buy back its shares at the depreciated prices, a tool to signal internal confidence. Chief Executive Roger Agnelli confirms his confidence in the company, plans to hold off decisions till early next year when market conditions are more apparent.

3. Reuters: Palamin sees at least flat Q4 profit if prices hold
Palabora Mining largely follows current industry expectations: flat earnings and lower profit. The copper miner, which is 58% owned by Rio Tinto and 17% by Anglo American, expects at best a small fourth quarter profit if copper prices remain at current levels. The company warns if the price of copper fell to near $1 per pound, the mine would consider closing down its copper smelter.

4. The Australian: Chinese to increase their stakes in mine companies
Chinese steelmakers see opportune time to coerce stake offers from Australian iron ore producers. Analysts predict there will be a rush of new Chinese holdings as iron ore miners become desperate to finalize offtake agreements. The smaller iron ore producers are likely to be impacted the most by these deals.

5. CNN Money: Alpha Natural asks court to order buyout vote
Alpha Natural Resources is tired of waiting, asks a Delaware court to force Cliffs Natural Resources to hold a shareholder vote on proposed takeover. The $4 billion offer for the coal producer was first proposed last summer. Cliffs’ largest shareholder, Harbinger Capital Partners, is against the deal.

6. The Sydney Morning Herald: More woe on the horizon for the major iron ore producers
Vale accuses Rio Tinto of covering freight charges for Chinese customers. The less than expected benchmark shipment prices, or subsequent freight freebies, are likely to cut the iron ore earnings forecast for the industry’s mining giants. Rio Tinto refused to confirm if it was covering freight costs.

7. USA Today: Apparent gas explosion at West Virginia coal mine hurts two
Two West Virginia coal miners were injured in an apparent gas explosion. The explosion occurred Monday afternoon at a mine operated by Alpha Natural Resources. The damage to the mine and the severity of the miners’ injuries are unknown. No miners were trapped by the accident.

8. The Associated Press: EU regulators object to Rio Tinto takeover
New concerns surface against BHP’s hostile takeover against Rio Tinto; European Union regulators send BHP formal charge sheet. BHP may take the concerns and try to defend the deal or alter its means of business to win antitrust approval by the January 15 deadline.

9. Reuters: South African union wants levy to help curb mine deaths
Africa’s Solidarity trade union has asked the government to impose a training levy on every mining accident or death. The financial punishment is expected to increase the value of the worker’s safety. Mining companies claim reducing accidents is already a priority and have set a target of cutting deaths by 20% each year.

10. Bloomberg.com: Rio boosts African exploration, spending likely to be maintained
Exploration activities find funding as Rio Tinto evaluates budget spending. A Rio exploration manager confirmed that the company’s long-term African exploration projects are proceeding without delays or cutbacks; their policy is to explore through the cycle. Rio Tinto spent $101 million on African exploration during the first half of this year.

1. Bloomberg.com: BHP says will maintain iron ore output as rival Vale makes cuts
BHP refuses to play follow the leader, maintains iron ore output as rival producer makes cuts. Vale will reduce its output by 30 million tonnes, citing the slowdown in demand and global credit crisis. BHP vows to maintain its expansion plans; the miner continues on the path to raising its 122 million tonne production in 2007 to a lofty 300 million tonnes by 2015.

2. Herald Sun: Mount Gibson to cut 190 mining jobs
Customer defaults trigger employee layoffs at iron ore producer Mount Gibson. The managing director confirmed 190 workers would be temporarily let go. The company runs two operations in Western Australia. Gibson’s largest shareholder, APAC Resources, and Shougang Concord International Enterprises have agreed to purchase the immediately available production.

3. Reuters: Atlas says sells first iron ore to Chinese buyer
Minor miner starts selling. Australian iron ore firm Atlas Iron finds its first buyer. The company confirmed it had completed the sale of its first iron ore shipment to an unnamed Chinese steel mill. The mill has expressed interest in a long-term sales arrangement.

4. The Jakarta Post: Bayan signs $300 million mining deal with Petrosea
PT Bayan Resources finds an overburden removal partner, inks deal for a five-year, $300 million mining contract. Construction firm PT Petrosea will have access to the rock and soil the lies above the coal seam at an estimated 36 million bank cubic meters per year. Bayan is the eighth largest coal producer in Indonesia.

5. The Age: Australia set to open up west to uranium mining
Western Australia’s change of heart gives Uranium mining a head start. Government figures get the ball rolling on plans to open resource-rich Western Australia up to uranium mining. The newly elected Liberal government has vowed to allow uranium mining. The federal resource minister recently visited the state to offer the capital’s endorsement.

6. The Citizen: Power crisis stalls tanzanite mining
A power blackout has suspended tanzanite mining in Mererani for the past three weeks. Eighteen mines in Block B have been without power since a transformer blew up. Mine owners are appealing for authority intervention, claiming neglect on the part of the Tanzania Electric Supply Company.

7. Sindh Today: Paswan calls for national iron ore policy
Indian minister of chemicals, fertilizers, and steel proposes a national iron ore policy to help the country compete with developed nations. The organization would reportedly ensure demand of equal distribution to the nation’s various sectors. The policy would be mirrored after India’s coal policy created in 2005.

8. The Gazette: Iron ore boom stalls
Four years of iron ore expansion comes to a screeching stop. Industry troubles travel to the top; world’s largest iron ore producer Vale cuts output and withdraws demands for a price hike from Chinese steelmakers. Iron ore producers in China and Quebec-Labrador have also cited slowdown woes.

9. Bloomberg.com: Crosby Capital drops A$182 million takeover for Medusa Mining
Takeover offer turns to stone after gold drops below $750 an ounce. Crosby Capital dropped its A$182 million bid for gold explorer Medusa Mining due to the drop in gold prices. Crosby had made its offer for the Australian company in mid-September.

10. Reuters India: Duty change to hit India’s low-grade iron ore exports
Changes to Goa’s export duty nearly double fines on low-grade iron ore. Producers voice concerns that the altered export duty could lead to closures. Last Friday, the government replaced a 15% value-based duty with a flat rate of 200 rupees per tonne. The bulk of Goa’s iron exports are of a lower grade.