This podcast is brought to you by Sarens - Nothing to heavy, nothing to high.

Friday, August 7, 2009.

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

Making headlines today:

South African gold major Gold Fields may have to review its expenditure if the volatile rand continues to squeeze profit margins and the company's mines fail to achieve their production targets. Gold Fields plans to spend 8,5-billion-rand capital in its current financial year.

Gold Fields CEO Nick Holland says, however, that the company has been in a much worse position than this before, and has got through it.

Holland gave guidance that the company would produce between 3,7-million and 3,8-million ounces in its current 2010 financial year, which he described as a year of heavy capital expenditure. The company produced 3,4-million ounces of gold in the year to June 2009.

But, he admits to being nervous about the strong rand flattening margins. He says that it's imperative for Gold Fields' operations to produce optimally. If they fail to produce at targeted levels, the 8,5-billion-rand capital expenditure programme will have to be reviewed.

The Democratic Republic of the Congo has cleared four major mining deals after completing its long-delayed mining contract review. However, the government says that the massive Tenke project has yet to be fully approved.

The mine review was launched in early 2007 in an effort to boost state revenues from agreements signed mostly during the chaos and corruption of a five-year war and the transitional government that followed. The government has examined 61 deals in the mining sector, one of the Congo's biggest foreign currency earners.

The Congo government has approved contracts with AngloGold Ashanti, Banro, Mwana Africa and Gold Fields, on condition that it completes a feasibility study at its Kisenge project.

Meanwhile, Deputy Mines Minister Victor Kasongo says that the government has given two months to Tenke Fungurume Mining, the giant copper and cobalt project backed by Freeport McMoran and Lundin Mining, to complete the review of its mining contract in the country.

Also making headlines:

Iamgold's Essakane project is within budget and on time for its August 2010 start-up.
Thompson Creek posts a second quarter loss.
HudBay reports increased profit on its Lundin stake sale.
And, General Motors offers to talk on its cancelled platinum group metals contract.

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