Gold Fields, the world's No. 4 gold producer, said recently it plans to spend 8.5 billion rand ($1.10 billion) to develop its South Deep mine in South Africa by 2014.

The mine, near Johannesburg, will produce around 62,000 ounces of gold per quarter this year, and 180,000 ounces of gold per quarter in 2014, Vishnu Pillay, head of Gold Fields' South Africa operations said during a visit to the mine.

"We will use debt financing and bonds, those are facilities available to the company," he said when asked how the company would fund the mine's expansion.

Pillay also said a feasibility study for producing uranium at the mine was underway and a report would be ready before the end of this year. "We have defined a resource base of 51 million tonnes of uranium but the feasibility will give us exactly how much we can exploit," he said.

Pillay said the new developments at the mine, which employs around 4,500 people, would create more jobs despite using highly modernized methods of mining.

Andy Brown the head of operations at the South Deep mine, told reporters the company will upgrade some mine shafts, expand the mining area and reduce production costs by using new technology and improve efficiency to ramp up production.

Brown said the 2014 project expansion forecast will include vent shaft deepening at the mine, grade control drilling to maximize output and construction of an ice plant.

He said some contracting companies had already been engaged to carry out expansions and upgrades to meet the 2014 target of raising output and that the company would consider expanding mining at the old South Deep mine.

"There is potential to mine 1.1 million ounces from the old mine. We have four independent project areas defined based on accessibility (and) full feasibility is underway and expected completion is 2012," Brown said.

Baobab Resources Launches New Exploration Program in Mozambique

A new exploration program will be undertaken by Baobab Resources PLC on the Tete iron-vanadium and titanium project in Mozambique to expand on the established resource of 47.7 million tonnes of magnetite.

The resource statement and a statement from global consultant Coffey Mining on potential for between 400 to 700 million tonnes of magnetite-ilmenite mineralization injected some life in share trading in Baobab on the London AIM board.

The project is immediately north of the provincial capital of Tete and takes in five known vanadiferous-titano-magnetite deposits in what is known as the Massamba Group where there was the assessment for a major system by the mining consultant.

Drilling over about 500 metres of an established strike length of 8 kilometres at Tete has shown magnetite resource grades of 25 percent iron and can be upgraded to 64 percent Fe and 0.7 percent vanadium pentoxide, Mineweb reports.

Conceptual studies show that with a growth of resources, Baobab may have a resource that could produce a ferrovanadium product grading up to 68-69 percent Fe and 0.8 percent vanadium pentoxide, as well as a ferro titanium product.

Baobab has a strategic partnership with International Finance Corporation which has taken a 15 percent direct stake in Tete.

In logistical terms, the company is well placed. The licenses adjoin the substantial coal deposits being developed at Moatize and Benga by Vale and Riversdale. There is also a railway at the regional capital of Tete linking to the port of Beira, while hydro-power is available from the Cahora Bassa dam.

Nigeria to Start Granting New Mining Licenses

Nigeria will soon start granting a backlog of new mining licenses and will complete a review of existing licenses aimed at weeding out speculators by the end of October, officials said recently.

Boosting confidence in mining titles is a key plank of Nigeria's campaign to revive its mining industry, which had taken a back seat to its oil industry.

Once the world's sixth largest tin exporter and a colonial gold producer, Nigeria is focusing on developing its mineral wealth with special focus on gold, iron ore and coal.

The review will open up new areas for qualified mining companies once titles are cancelled for those who did not submit documents showing, for example, that they have the technical and financial ability to develop mines, the minister said.

"Up until now the sector was actually very rife with speculative interest -- people holding licenses and titles without actual intent to develop them," said Alison-Madueke, who formerly worked for Royal Dutch Shell and became mining minister last December.

"I think that this is actually very good news for all those who are really true operators and not just speculative prospectors in the area. That means that serious operators have more areas and more blocks open to them."

A backlog of about 5,000 applications for new licenses will be processed starting in a matter of days now that legal issues have been resolved.

Nigeria revamped its mining laws in 2007 as it launched a campaign to attract foreign investment and once the current backlog is cleared the ministry pledges to process applications within 45 days.

Nigeria has proven reserves of 639 million tonnes of coal and total resources of 2.7 billion tonnes.

The country, Africa's most populous, also is estimated to have 3 billion tonnes of iron ore and bitumen deposits of around 27 billion barrels of oil equivalent.

507 carat Diamond Found at Petra

AIM-listed Petra Diamonds (PDL.L) said recently it had recovered one of the world's 20 largest, high-quality white diamonds at the Cullinan mine in South Africa.

The massive 507.55 carat diamond, found on Sept. 24, could be worth about $20 million, and is expected to cover costs at the mine for two years, Finance Director David Abery said.

"Initial examinations indicate that it is of exceptional colour and clarity," Petra Diamonds said, adding it was found alongside other large white diamonds of 168 carats, 58.50 carats and 53.30 carats.

"The Cullinan mine has again given the world a spectacularly beautiful and important diamond," said Chief Executive Johan Dippenaar, noting Cullinan was the source of the world's largest gem diamond ever recovered, at 3,106 carats rough.

Petra Diamonds, which also announced its full-year results, said mining profit had fallen, but it was geared for growth as the diamond market showed signs of recovery.

Earlier this year diamond prices dropped by up to 65 percent from highs in mid-2008 but are now about 35 percent off those highs, Abery said in an interview.

Petra posted mining profit of $7.8 million for the year ending June 30, compared with $38.8 million the previous year. It posted a net loss of $88.9 million, $75 million of which was due to a one-off asset writedown at the half year.

The company is speaking with global development banks in Tanzania about expansion of the Williamson mine there, which could cost $40-$45 million, half of it from project financing loans, though Abery said the company would only raise money for the upgrade if market conditions were right.

Seven African Countries to join joint Africa-South America Mining Firm

Venezuela said recently that seven African nations would join it in forming a cross-continental mining corporation intended to give poor nations greater control of developing their resources.

Venezuela's President Hugo Chavez proposed the "multi-state" corporation at a summit of South American and African (ASA) nations.

State media said Mauritania, Mali, Niger, Sierra Leone, South Africa, Angola and Tanzania had signed letters of intent to create the "ASA Mining Corporation" with an initial focus on iron.

"This alliance ... foresees the forming of joint ventures for exploration, geological prospecting, production and installation of small plants to process iron into steel," Venezuela's official news agency ABN said.

The goal is "to prevent industrial countries from continuing to suck the undersoil of those nations," said Sanz, whose socialist government pursues an aggressively "anti-imperialist" line in international affairs.

The weekend summit was dominated by grand proposals for South America-Africa cooperation, and calls for poor nations to unite against the economic dominance of the West.

Analysts say, however, that the Venezuelan government has a track record of failing to carry through some of the international initiatives that it enthusiastically announces across many sectors.

Eritrea Grants Gippsland Three Prospecting Licenses

Australian mining company Gippsland Limited (GIPq.L) said recently its subsidiary Nubian Resources Plc had been granted three new prospecting licenses in northwestern Eritrea.

More than a dozen companies are now exploring or about to explore in the Red Sea state, which is seen on the cusp of a minerals boom that could kickstart its needy economy. Gold, copper, zinc and potash are the main interests.

"The company now holds licences totalling 300 km2 in a region that has had minimal previous exploration but has the potential to host high grade gold and base metal deposits," Gippsland said in a statement. "The licenses of 100 km2 each are located between 203 km and 247 km north of the Eritrea capital Asmara."

The company will begin sampling in the next two months in the remote Adobha region, near the border with Sudan. Much hope is pinned on the potential of the mineral sector in Eritrea, whose agriculture-based economy has suffered from irregular rainfall and the global economic crisis.

Apart from small-scale artisan mining and some minor extraction by Italians during the colonial era, Eritrea's mining potential is unexploited. Some bigger miners were scared off by the 1998-2000 border war with Ethiopia.

Eritrea's most advanced project, run by Canada's Nevsun Resources Ltd with a 40 percent stake for the state, is Bisha. Its 27 million tonnes of ore are believed to contain 1 million ounces of gold, 700-800 million lb of copper and 1 billion lb of zinc. Production is expected by late 2010.

ASIA

Mongolia Considering Splitting Tavan Tolgoi Coal Deposit

Mongolia's government may divide up its contested Tavan Tolgoi coal deposit for political reasons, two sources said, complicating a competitive deal that is attracting interest from global mining giants, Mineweb reports.

Mongolia has hired JP Morgan and Deutsche Bank to sell up to a 49 percent stake in the mine, which is drawing bids from China Shenhua, Peabod, Severstal and BHP Billiton among others.

Tavan Tolgoi, which holds estimated coal reserves of 6.5 billion tonnes of coking coal, may be split between bidders from China, Russia, and a leading international miner such as BHP, one of the sources said.

ENRC Bids to Buy CAMEC for $950m

Kazakh mining group ENRC may use some of its cash pile to buy junior miner CAMEC for about $950 million and expand into mineral-rich Africa, ENRC said recently.

The move by ENRC, one of the world's biggest ferrochrome producers, might spark a bidding battle with Chinese parties seeking to lock in supplies of cobalt, analysts said.

ENRC said it was in advanced discussions with AIM-listed Central African Mining and Exploration Co. (CAMEC), which said on July 16 it had been approached about a possible takeover from unnamed parties.

ENRC said in a statement it was considering a cash bid of around 20 pence per share for CAMEC, whose chairman is former England cricketer Phil Edmonds. That would value the firm at about $950 million.

"However, whilst ENRC is engaged in such discussions and is assessing the merits of a potential transaction, there can be no certainty that any such transaction will proceed," it said in a statement, declining to comment further.

Buying CAMEC would allow ENRC to expand into mineral rich Africa, where CAMEC has cobalt and coal operations in the Democratic Republic of Congo (DRC), a stake in the Bokia platinum project in Zimbabwe, a bauxite operation in Mali, and a stake in a flourspar operation in South Africa.

CAMEC's flagship mine is the majority owned Mukondo Mountain cobalt operation in the DRC, billed as the world's richest cobalt mine.

ENRC's main products are ferrochrome, a key component of stainless steel, and iron ore, the raw material for steel, but the group also produces aluminium and has an energy division.

BHP Looks to Create Coal JV in Indonesia

BHP Billiton Ltd. may opt to sell part of its stake in its Indonesian coal project on Borneo island and form a joint-venture with other investors to run the project, officials said.

In June, BHP Billiton said it would not go ahead with the Haju trial coal mine in Central Kalimantan because it did not fit with its long-term investment strategy.

"BHP is looking at a joint-venture with other investors. They are interested in holding a majority shareholding in the joint-venture," said Bambang Setiawan, director general of mining, coal and geothermal at the energy and mines ministry. Setiawan said the firm had informally notified the government on the possible joint-venture option.

The global financial crisis and sharp falls in metals as well as coal prices have forced some companies to abandon or put on hold their plans to bring new mines on stream.

Haju was stage one of the Maruwai coal project, the 100 percent BHP Billiton owned metallurgical coal deposit, in Central Kalimantan which was expected to produce 1 million tonnes of metallurgical coal per year used for steel-making.

In June last year, the firm announced it would invest $100 million to develop the project which was expected to start producing in the middle of this year.

Some companies have shown an interest in buying BHP Billiton's coal project, including Indonesian private equity fund Saratoga capital.

AUSTRALIA

Australia Approves Eldorado's Sino Gold Buy-out

Australia has given foreign-investment approval for Eldorado Gold Corp's A$1.58 billion ($1.36 billion) buy-out of Australia-listed Sino Gold Mining Ltd, Sino Gold said recently. The deal is at a 2.7 percent premium.

The Canadian group already owns 19.8 percent of Sino Gold after buying Gold Fields' stake in the group in July, as it lined up the move to double its gold production in China.

Magellan Hoping to Restart Lead Mine Early Next Year

The Magellan lead mine in Australia is rehiring staff and performing ground work to resume operations early in 2010, a mine official said recently, citing improving prices and environmental clearance to ship ore from an Australian port.

The first shipment of 450 tonnes of lead concentrate, out of 21,000 tonnes stockpiled after the mine closed more than two years ago, left Fremantle recently bound for Yunnan Metallurgical Group smelter in China.

Lead prices MPB3 have more than doubled this year to more than $2,465 a tonne

The mine was halted and placed on care and maintenance in April 2007 after health officials banned Magellan exports from the port of Esperance due to concerns hazardous ore dust was contaminating the local community.

More than two years later, Magellan was cleared by health officials to resume shipments from the port of Fremantle as long as it put its ore in sealed bags.

Located about 900 kilometres (560 miles) northeast of Fremantle, the Magellan mine, owned by Canada's Ivernia Inc., was set to supply 100,000 tonnes of lead a year, or about 3 percent of the world's mined lead, before closing. Chinese smelting firms were its major customers.

Integra Mining Announces New Intecepts that Enhance Proposed Kalgoorlie Gold Project

Integra Mining Ltd said it believes it has a probable feeder structure at the Salt Creek deposit which is part of the company's Aldiss-Randalls gold project, 60 kilometres east of Kalgoorlie.

The latest drilling included an intercept of 7.2 metres grading 11.62 grams/tonne from a perceived feeder structure to the known Salt Creek deposit. "The grade of this intercept does not include sampling of a large 8 mm piece of visible gold in the half-core retained for reference," the company said.

Other drill hits from latest RC and diamond drilling included 17.02m @ 13.02 g/t, including 1.05m @ 164 g/t; 33.96m @ 4.34 g/t, including 4m @ 16.33 g/t; and 17.84m @ 2.73 g/t gold.

Integra's managing director Chris Cairns said a large number of RC and diamond drill holes have been completed as part of a confirmation drilling programme, designed to increase confidence in the volumes and grade of gold mineralisation.

"Additional drilling is in-progress to further confirm this (feeder) structure but it is apparent that the structure may ‘pinch and swell' as it passes through host units that are more ductile or more brittle respectively; and that the structure may host extremely high grades of gold mineralisation associated with coarse grains of visible gold," he said.

The Aldiss-Randalls project already has consolidated mineral resources of 1.8 million ounces at an average grade of 2.7 g/t gold, with 72 percent of resource ounces in the indicated resources category.

There was also a significant grassroots discovery at Salt Creek located within a new 8 kilometre-long gold trend, and high grade resources have been outlined at the adjacent Randalls project.

Integra purchased the old New Celebration gold plant near Kambalda and had it dismantled and reassembled and ready for refurbishment and installation at the Salt Creek site.

Cairns said a completed feasibility study had displayed robust project returns with an internal rate of return of 71 percent. He said the open pit production grade of 3.1 g/t gold was expected to be the highest open pit production grade of any similar scale of development in Australia.

Anglo American Increases Holdings in Western Australia's Remote Musgraves

Anglo American PLC has expanded its holdings in the Musgraves region in Western Australia's far south east through an option agreement with Perth junior Reed Resources Ltd.

Under terms of the deal on the Bell Rock prospect, Anglo American's subsidiary Anglo American Exploration (Australia) can earn 75 percent by spending A$3 million (US$2.6m).

Should Anglo American progress, then Reed Resources can either elect to contribute when required or to water down to a 2 percent net smelter return for gold and a 1.5 percent return for all other minerals. Reed Resources said the deal makes Anglo American one of the most active explorers in the Musgraves region.

Bell Rock takes in a prospective ultramafic system that has never been systematically explored. A reason for this is that access on granted and claimed Aboriginal lands was virtually impossible in the early years of Aboriginal land right grants.

The property is just west of the big Wingellina nickel-cobalt project owned by MetalsX Ltd. To the west are the large Nebo and Babel nickel-cobalt and platinum group metals discoveries made by WMC Resources Ltd before it was taken over by BHP Billiton.

SOUTH AMERICA

Zinc processor Nyrstar invests in three properties in three weeks

Vancouver-based junior miner Gold Hawk Resources said it has entered into an agreement that will allow Belgium-based zinc and lead producer Nyrstar to acquire an 85 percent interest in the junior company's Peruvian operating subsidiary for US$15 million.

As part of the transaction, Nyrstar will assume Gold Hawk's guarantee in respect to its subsidiary Compania Minera San Juan's (Peru) (CMSJ) US$13 million senior debt facility payable in February 2010. Nyrstar has also agreed to loan up to US$20 million to CMSJ to fund re-start and expansion cost for the Coricancha Mine.

Following the all-cash offering, Gold Hawk will be debt-free, have US$15 million in cash and own a 15 percent interest in the Coricancha mine, which could be in production during the first half of next year. The $20 million Nyrstar loan to CMSJ is expected to be sufficient to finance the mine restart.

The transaction is expected to be completed in November 2009.

Coricancha is expected to annually produce 20,000 dry metric tonnes (dmt) of zinc concentrate, 15,000 dmt of lead concentrate, 45,000 ounces of gold and 2.4 million ounces of silver.

The CMSJ transaction is the second investment made by Nyrstar recently. The company acquired a 19.9 percent interest in Ironbank Gold's Citronen zinc-lead deposit in Northern Greenland; and also acquired the East-Tennessee Zinc Mine complex from Glencore Group for US$126 million. The complex includes three separate mines.

Chinalco to Start Construction on $2.2bn Copper Mine Early Next Year

Chinese metals conglomerate Chinalco said recently it will start construction of its $2.2 billion Peruvian copper mine Toromocho in early 2010 and begin production in the last quarter of 2012.

"We are moving ahead as fast as possible," Gerald Wolfe, president of Chinalco in Peru, said at the Perumin mining convention in Arequipa.

The project is Chinalco's first investment in Peru, and Chinese companies -- hungry for raw resources -- have committed to spend about $6 billion in the country's mining sector.

Peru is the world's No. 2 copper producer after Chile.

Before the start of the global economic crisis, the state-owned Chinese company had said Toromocho would start production in the first quarter of 2012, while construction was initially set to start in mid-2009.

The dates were pushed back because Chinalco had wanted "to review the project, and make sure it made sense," said Wolfe, given the collapse of commodity prices last year.

Annual copper output from the open pit mine is expected to be roughly 210,000 tonnes for the first 10 years of its expected three decades of operation.

Toromocho, located in the Andean province of Junin, has reserves of 2 billion tonnes, with a copper grade of 0.08 percent.

Chinalco is the parent of Aluminum Corp of China Ltd (Chalco).

Pascua Lama Gold Project Construction to Start

Canada’s Barrick Gold should begin construction of the massive Pascua Lama gold project in South America soon, thanks to improving weather and the receipt of key permits needed to start work.

Located about 5,000 metres (16,400 feet) above sea level and straddling the border between Chile and Argentina, Pascua Lama holds some 18 million ounces of gold and should produce on average 750,000 to 800,000 ounces of gold and 35 million ounces of silver annually over its first five years.

Barrick gave a green light to the project in May after the two countries arrived at a long-awaited tax agreement on the project, and the company has since been working on nailing down financing and key permits.

The company confirmed all key permits on both sides of the border wrapped up. Some administrative permits remain, which can be acquired after the initial phase of construction begins.

Mine construction high in the Andes Mountains has a narrow window of opportunity because it needs to occur during the Southern Hemisphere's spring and summer.

Reently the company closed a $625 million financing deal for the project, under which Barrick will sell 25 percent of the silver from Pascua Lama to Silver Wheaton.

Pascua Lama is expected to cost as much as $3 billion, and Barrick is currently negotiating with bankers to raise another $1 billion. The rest will come from future cash flow, from Barrick's $1.5 billion credit facility, or its $2 billion cash hoard.

NORTH AMERICA

Apollo's Black Fox Gold Mine Gets Haywood Securities Seal of Approval

Haywood Securities has initiated coverage on Apollo Gold Corporation, emphasizing its new Black Fox mine east of Matheson, Ontario.

In analysis published recently, Haywood metals analysts Kerry Smith and Shane Nagle forecast life of mine average production of 125,000 ounces of gold at total cash cost of US$385 per ounce over 10 years.

The US$90 million Black Fox mine, which began commercial production in June, is forecast to produce 58,000 ounces of production at a cash cost of US$480/oz this year. Haywood predicted cash costs will be higher during the third quarter of this year.

Apollo Gold also owns a 50 percent interest in Montana Tunnels-a zinc, lead, gold and silver operation in Montana-which was placed on care and maintenance in April 2008 due to low zinc and lead prices.

Haywood estimated Apollo has 1.33 million ounces of gold reserves and a total resource of 2.18 million ounces at Black Fox. Current reserves at Montana Tunnels for the entire joint venture are 508,000 ounces of gold, 416 million pounds of zinc, 142 million pounds of lead, and 8.4 million ounces of silver.

Smith and Nagle suggested exploration should be a priority at Black Fox, which consists of 3,195 acres. The company has also recently secured the surface and mineral rights to 1,145 acres between Apollo's Black Fox and Grey Fox properties. "The land package is known as Pike River and lies along the strike length of the Destor-Porcupine Fault Zone," they noted.

Anti-Pebble Gold Movement Grows Among U.S. Jewelry Manufacturers

As Tiffany & Co. ran an ad urging its peers to join the boycott against the use of any future gold mined from the Pebble Gold project in their jewelry, two of the nation's largest manufacturers of class rings agreed to reject Pebble's precious metal.

Four more jewelers with nearly $1 billion in sales joined the 14 jewelry companies now opposed to Pebble's development near the sport fishery of Bristol Bay, Alaska.

Herff-Jones, Commemorative Bands, Birks and Mayors, and Hacker Jewelers have joined other retailers, including Tiffany and Helzberg Diamonds, who have vowed not to buy gold from the Pebble mine.

In an industry advertisement aimed at jewelers, Tiffany said it objects to the proposal "to build an enormous gold and copper mine in the very heart of Alaska's Bristol Bay Watershed, home of the world's most productive salmon fishery."

Tiffany contends that "there are certain places where mining cannot be done without forever destroying landscapes, wildlife and communities. Bristol Bay is one such place."

In a news release, environmental NGO Earthworks said the mine will generate "billions of tons of mine waste and using 35 billion gallons of water per year-about the same amount as the City of Anchorage."

EPA Moratorium of Appalachian Coal Project Permits Provoke Mining Outrage

Four mining associations charged that EPA's final decision to place a moratorium on all 79 pending permits for coal mining operations in Appalachia, instead putting the permits through an advanced review process, was "playing with people's livelihoods".

In a letter to Assistant Secretary of the Amy for Civil Works Jo-Ellen Darcy, EPA Assistant Administrator Peter S. Silva said the agency believes "that the majority of the permit applications recommended for further evaluation have not yet adequately demonstrated that anticipated adverse environmental and water quality impacts have been fully avoided and minimized as required under the guidelines."

Silva said that more than 80 percent of the proposals on the final list "exhibited the potential to cause or contribute to violations of applicable water quality standards."

Among the coal operations and projects which will be delayed for further review are properties belonging to Consol Energy, International Coal, Massey Energy and Elkhorn Coal as well as a number of other mining companies. The mountain top mining permits are for mine expansions and projects in four Appalachian states of Ohio, Kentucky, West Virginia, and Tennessee.

The agencies originally identified 108 permit applications that would be subject to the extended review. Since the list was originally compiled, 29 projects have dropped off the list for various reasons, the EPA said.

The extended reviews will be carried out under a joint process between EPA and the U.S. Army Corps of Engineers on surface coal mining facilitated by the Council on Environmental Quality and signed by the EPA, the Corps, and the Department of Interior. The Corps and the EPA have established a process for CWA Section 404 permit applications for surface coal mining activities that would discharge fill material into U.S. waterways.

Rio Tinto Announces Massive Molybdenum Deposit

Rio Tinto is keeping a lid on exploration spending in the near term, but will press on with prospecting at its century-old Bingham Canyon mine that is uncovering new deep-level deposits.

Eric Finlayson, head of exploration, said the group had only recently began to appreciate the huge potential that lies underneath its huge U.S. open pit copper mine in Utah.

The discoveries hold potential for finding a cluster of new large mines in the area. Up until now, prospecting around the current mine has looked for similar deposits near the surface, but recent discoveries elsewhere prompted Rio to probe deeper.

So far, a rich deposit of molybdenum -- a silvery mineral used to strengthen steel -- has been uncovered below the pit.

"We believe this may be the world's largest molybdenum discovery since Climax and Henderson... and there may be more to come," Finlayson said in a speech at the Objective Capital Mining Conference.

He was referring to the two biggest primary molybdenum mines located in the U.S. state of Colorado.

Rio currently produces the metal as a byproduct of copper, but the discovery means Rio could launch molybdenum as a new primary product and may lead to more copper discoveries.

"Recognition of the Bingham Canyon district as a potential cluster of porphyry targets, only one of which is exposed at surface, has rejuvenated our exploration effort there."

Porphyry copper mines are usually low-grade and close to the surface, but recent discoveries have uncovered deeper, high grade porphyry mines.

Another 1-Million Acres near Grand Canyon Remain Off-Limits to Uranium

Northern Arizona's Hualapai Tribe has renewed its ban on uranium mining on nearly one million acres of land near the Grand Canyon.

In an interview with the Associated Press, David Brett, president and CEO of Pacific Bay Minerals, said the company had been in negotiations to explore for uranium on the Hualapai's three-state reservation, when the tribal leaders renewed their ban.

When the ban was first enacted late last year, Sean Muller of Golden Eagle said, "The decision to ban uranium mining has come as a result of recent pressure from their attorney who also works for the Navajo Nation." In 1982, Muller, formerly the principal geologist for the Council of Energy Resources Tribes, successfully negotiated a uranium lease on the Hualapai Reservation with Energy Fuels.

The book "Quest for the Pillar of Gold" says, "Besides Western Nuclear (later Energy Fuels Nuclear), claims were made across much of the plateau region adjacent to Grand Canyon by Pathfinder Mines Corporation of St. George, Utah; UranezUSA of Denver, Colorado; and Rocky Mountain Energy (later Union Pacific Resources- Minerals) of Denver. Pathfinder Mines located two uranium ore bodies in breccia pipes west of Hacks Canyon, the EZ-1 and EZ-2. Union Pacific Resources found two breccia pipes that contain uranium ore: the Sage pipe, about ten miles south of Supai, on the Coconino Plateau, and the SBF pipe farther to the southwest, near the eastern boundary of the Hualapai Indian Reservation."

The Navajo and the Hopi have sued or threatened to sue over cleanup of uranium from the land near Tuba City, Arizona. The Hualapai, Navajo, Havasupai and Hopi tribes have all banned uranium mining on their lands.

RUSSIA

Polyus Gold to Mine More Gold in 2010

Polyus Gold expects to mine 15 percent more gold next year after launching a $400 million project in Siberia to cement its position as Russia's largest gold miner, a senior company executive said recently.

Polyus, whose main shareholders are billionaires Mikhail Prokhorov and Suleiman Kerimov, expects the Blagodatnoye mine to raise the company's output to 1.5 million ounces of gold in 2010 from the 1.3 million ounces planned this year.

Russia, with gold reserves second only to South Africa's, reversed five straight years of decline when it boosted output by 135 last year. Polyus produced 1.2 million ounces, or about one-fifth of the country's total.

Russia, ranked between Australia and Peru in fifth place among the world's gold producers last year, increased output by another 25 percent in the first six months of 2009 as new mines came on stream throughout Siberia and the Far East.

Pikhoya said the Blagodatnoye project would include a processing plant capable of treating 6 million tonnes a year of ore. It is located close to the company's largest existing mine, Olympiada.

Polyus expects gold output to rise to 1.8 million ounces in 2011 and 1.9 million ounces in 2012, before a significant jump to 2.6 million ounces in 2013 and 2.9 million ounces in 2014 as other large projects start mining, Pikhoya said.

Alrosa Gets $1bn Vow of Support from Russian Government

Russian Prime Minister Vladimir Putin recently pledged $1 billion in state support for diamond miner Alrosa this year to help it ride out a steep global decline in demand for gemstones.

"The overall level of support for the sector should total 30-35 billion roubles ($949.4 million-$1.11 billion) this year," Putin told a meeting of senior officials after visiting Alrosa's giant Mir diamond mine in eastern Siberia.

The state support, which will include more state purchases of gems, is likely to help state-controlled diamond miner Alrosa service about $3.6 billion in outstanding debt.

Two sources who declined to be identified said the $1 billion would be used by the State Precious Metals and Gems Repository (Gokhran) to buy diamonds from Alrosa.

Alrosa, the main rival to De Beers, produces one quarter of the world's rough diamonds and is one of the main sources of income for Russia's Yakutia region, home to 950,000 people.

Diamond producers across the globe have been badly hit by weak demand. The world's largest diamond producer, De Beers, which is 45 percent owned by mining group Anglo American Plc, has said demand should pick up in the second half.

Alrosa President Fyodor Andreyev said on Friday he expected diamond demand would recover by 2011 as long as there were no second wave to the financial crisis.

McIlvaine Company

Northfield, IL 60093-2743

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