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Friday, February 13, 2009.

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

Making headlines today:

On Thursday, Statistics South Africa reported that South Africa's mining output fell to its lowest levels in eight years. This was as platinum group metals, gold and diamond production dropped.

The index of total mining production was 7,5% lower in 2008 when compared with 2007.

The most significant contributors to the 7,5% decrease in yearly production were the PGMs, gold and diamond output, which declined by 3,8%, 2,2%, and 1,7% respectively.

Angola, the world's fifth diamond producer, is considering buying diamonds from firms operating in the country to help them overcome a sharp drop in market prices.

Demand for rough diamonds has plunged in recent months and is expected to drop by some 60% this year. This is as the global recession hits demand for luxury goods in vital markets such as the United States and Europe.

Spokesperson for state-run diamond firm Endiama Sebastiao Panzo said that the purchase of diamonds by the state is a measure that is being considered to help companies in the sector weather the crisis.

Also making headlines:

Aim-listed Ridge Mining confirms that it's in discussions with larger rival Aquarius Platinum that could lead to a takeover offer.
China's Chinalco says it would've liked a stake in the Alcan assets.
NYSE-listed Freeport-McMoRan Copper & Gold raises 750-million-dollars in a share sale.
And, the South Africa-Canada Chamber of Commerce launches an African mining network.

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