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Friday, March 13, 2009.

From Creamer Media in Johannesburg, I'm Philippa Levenberg.

Making headlines today:

Pamodzi Gold East Rand general manager, Graham Chamberlain, has sharply criticised Aflease Gold's neighbouring Sub Nigel gold mine for "free-riding" on the costs that Grootvlei was having to outlay on water pumping. The pumping is necessary to avoid what he said would be "catastrophic" water levels.

Chamberlain said that Aflease Gold had highlighted the issue of rising underground mine water in the East Rand Basin in a Stock Exchange News Service announcement. But the Sub Nigel mine had failed to do "the honourable thing" by contributing to pumping costs.

He said Pamodzi was dewatering the Sub Nigel mine that Aflease was operating, yet they didn't contribute a cent towards the pumping costs that Grootvlei was incurring.

He added that Aflease had been approached for a contribution, but the company had declined.

There were no other neighbouring mines that the cash-strapped Pamodzi Gold could call on. Meanwhile, two directors of the company have to forage overseas for funds.

South African diamond junior, the JSE-listed Kimberley Consolidated Mining, said that it had decided to scale down active mining and prospecting operations at its Bo-Karoo mine. It'll also dispose of some equipment to improve cash flow and revert to equipment hire.

This was being done in the light of the "acute and swift" global economic downturn and the reduction in the demand for rough diamonds. This was coupled with the dramatic volatility and drop off in purchase prices offered for rough diamonds.

The company would continue in downscaled mode at Bo-Karoo until such time as the volatility in the market subsided and the purchase price for uncut diamonds was restored to economically viable levels.

Also making headlines:

Peru says it has no plans for a copper cartel with Chile.
Gammon Gold announces its plans to buy fellow Canadian Capital Gold.
Vancouver-based Minefinders announces that its Dolores mine is now cash flow positive.
And, Vancouver-based Silver Wheaton makes good on its mergers and acquisition promise.

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