Gold mining stocks fall on slide in metal's price

Gold mining company stocks fell on Monday as the price of the metal dropped below $600 per ounce for the first time in more than two months.

In mid-morning trade on the New York Stock Exchange, Freeport McMoRan Copper and Gold (NYSE:FCX - news) stock was down 5.16 percent at $55.30, while Newmont Mining (NYSE:NEM - news) slipped 4 percent to $46.25 and Barrick Gold (NYSE:ABX - news) (Toronto:ABX.TO - news) fell 4.6 percent to $29.92.

The Philadelphia gold and silver index (XAU - news) was down 5.76 percent, the Gold Bugs index (HUI - news) of unhedged gold companies fell 6.4 percent and the U.S. gold ETF street tracks fund(NYSE:GLD - news) was down 4 percent.

In New York, gold futures plummeted 3.6 percent by midmorning, extending losses below the $600 per ounce mark, as aggressive speculative and technical selling pounded the market, traders said.

At the New York Mercantile Exchange's COMEX division, December delivery gold was down $22.30 at $595 an ounce, trading from $619.00 to $592.60, which marked its weakest price since June 28.

Spot gold dropped to $588.20/589.70 an ounce, from its previous New York quote at $610.80/1.80.

Govt, Asia Energy refuse to comment on fate of Phulbari open-pit mining

Both the government and the coal miner Asia Energy Thursday refused to comment on the fate of the open-pit mining in northern Phulbari.(The Financial Express)

An agreement was reached Wednesday between Rajshahi City Corporation Mayor Mizanur Rahman Minu and leaders of anti-mining protesters. That led to ending of the agitation following an assurance about cancellation of open-pit mining deal with the company.

There was a declaration on Wednesday that Asia Energy would wrap up its Bangladesh operations and that no open cast mining would be allowed.

Energy adviser and executive chairman of the Board of Investment (BOI) Mahmudur Rahman, when asked, told journalists, "Don't ask me anything, I can't tell you."

Asia Energy sources, when contacted Thursday, said that the company had been directed by the government high-ups to say nothing to the media.

Mining banned in Hogarekhangiri

Environmental Department of Karnataka has turned down the proposal for mining at Hogarekhangiri area on July 31, 2006, according to Vriksha Laksha Andolan.

The decision has come almost one year after the VLA filed its objection in Aug 2005 to the Director of Environment Department. Shortly a team of officials from the department would visit Hogarekhangiri, VLA said. They informed this development to the VLA in a letter.

Chikmagalur Deputy Commissioner had, on December 12, 2005, recommended to the Government not to permit mining activity in Hogarekhangiri area. Mines and Geology Department too asked the concerned to withdraw mining permit in that area. In another letter, DC had requested the Environment Department not to permit mining in that area.


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Worldwide gold mining picture in trouble

When Doug Silver speaks about exploration, gold prices, mergers and acquisitions, political risk, hedge fund ruination of the mining industry, soaring mining costs, and "pigs at the trough," his fellow geologists and mining companies throughout North America listen, closely.

The Chairman and CEO of International Royalty Corporation Thursday did not disappoint the enthusiastic crowd of his peers as he warned the "worldwide gold picture is in trouble." Developing nations want considerably more than companies who mine and run, and the lack of new discoveries is accelerating the mining merger frenzy.

In his other role as founder of Balfour Holdings, Colorado-based Silver has earned a reputation for being one of the foremost U.S. experts in international mineral appraisals, and strategic planning research for mining companies.

The good news, Silver declared to his fellow geos, is "that it’s a great time to be running a junior" as junior miners and explorationists are easily raising $1 billion-plus in funding and $30 million to $40 million in cash from financial markets. As a lot of new gold bugs put their money into the markets, Silver remarked that it provides "a wonderful opportunity to grow your company."

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ECU Makes Major New Gold and Silver Discovery Over 40 Meters in Length and 5.88 Meters in Width

ECU Silver Mining Inc. (TSX VENTURE: ECU)(the "Company") is pleased to announce that it has made a materially significant new discovery at its Velardena property in Mexico. As a result of its continuing 2006 exploration program at the property, which is now only approximately 1/3 completed, the Company is very pleased to report drilling results from four new cross-cuts, spaced evenly 10 meters apart, testing a structure containing parallel veins beside the Santa Juana vein on level 15.

As was recently stated (See the Company's press release 2006-08-17), following the initial discovery of the stockwork zone, the Company began sampling other areas of the Santa Juana mine to look for geological environments similar to those exhibited by the stockwork zone. That is, to look for areas that had closely spaced parallel continuous veins with good grades between and close to the Santa Juana and A4 veins. This investigation has directly led to our latest discovery on level 15 adjacent to the Santa Juana vein.

JSW Steel enters into MoU for mining licence in Mozambique

JSW Steel Ltd today said it has entered into a Memorandum of Understanding (MoU) with a Mozambican party to obtain mining licence and operations in the country.

As per the terms of the MoU, JSW Steel can conduct legal and technical (geological) due diligence studies within 28 weeks to conclude the availability of coal, quality of coal and reserve potential, the domestic steel utility informed the Bombay Stock Exchange.

Aussie mining ventures in Mindanao needs $2B

AUSTRALIA'S mining companies will need at least US$2 billion more for their business ventures in Mindanao, an Australian official said.

Australian Ambassador Anthony John Hely noted that the island's full economic potentials could be harnessed with the development of the area's hidden mineral resources.

Two of the biggest Australian projects in Mindanao will require an investment of US$1 billion each to be fully put into operation, he said.

These are BHP Billiton/QNI Pujada Nickel Project in Davao Oriental and Indophil Resources NL's copper and gold project in Tampakan, South Cotabato.