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Wednesday, August 19, 2009.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

JSE-listed gold-mining junior Simmer & Jack Mines has reported that the strong rand has resulted in the closure of the Number 12 shaft and government safety stoppages have plunged the Buffelsfontein gold mine into a loss in the June quarter.

Simmers CEO Gordon Miller says that the unexpected strength of the local currency has impacted negatively on earnings. Also, the safety stoppages that the North West Department of Mineral Resources had brought about, had turned what would have been a profit of 3-million-rand for the marginal Buffels into a loss of 2,9-million-rand.

Simmers says that the safety stoppages had reduced gold production by 24,6 kg. At current gold prices, that quantity of gold would have been sufficient to keep Buffels in the black.

Simmers says it will take steps to buffer its gold operations from the strong rand in the coming quarter, when it will also revise down its life-of-mine plans.

Foreign mining firms in Zambia want the government to adopt mining policies that will boost investment at a time when copper prices are recovering.

Nathan Chishimba, president of the Chamber of Mines of Zambia said companies wanted stable and long term policies that would reduce risk to their investments.

Chishimba said that while mining companies weren't saying the policies shouldn't be changed, they have said that there should be consistency so that any changes to the policies shouldn't result in a fundamental shift in the direction of the industry.

In 2008, Zambia introduced a 15% profit variable tax, 25% mineral windfall tax - which it scrapped in 2009 - and raised corporate tax to 30% from 25%, upsetting foreign mining firms.

Zambia said last week it won't refund foreign mining companies millions of dollars they paid in taxes when the controversial law was in force, but it could revise existing taxes.

Also making headlines:

Rusal plans to speed up work on a new Siberian hydroelectric dam.
Base-metals consultancy GFMS forecasts a copper deficit of 88 000 tons in 2010.
Two major Anglo investors say the Xstrata deal is dead.
And, diamond junior Rockwell says that diamond prices are improving.

That's a round up of news making headlines today. For more on these and other stories please visit miningweekly.com.