This podcast is brought to you by Sarens South Africa - nothing too heavy, nothing too high.

Wednesday, March 4, 2009.

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

Making headlines today:

De Beers Canada CEO Jim Gowans said that diamond giant De Beers is running its Snap Lake diamond mine, in Canada's Northwest Territories, at about 30% to 40% of design.

He said that a second operation, Victor, in Ontario, is operating at some 90%.

Gowans said that the first six months of the year would be a challenge. This was as the financial crisis and slowing economic activity results in depressed sales for the precious gems.

The De Beers group has announced production cutbacks and job cuts at its operations around the world. It said last week that it would lay off 128 employees and cut 90 contractor positions at Snap Lake, as part of the restructuring.

Nickel producer Vale Inco will eliminate about 900 full-time jobs at its global operations. This is in response to ongoing challenges in the world nickel market.

The layoffs will mainly affect corporate management and business support employees, and will include 423 job cuts in Canada.

The company has already cut production and spending at its mines in Canada and elsewhere, as it struggles to turn a profit and conserve cash amid slumping nickel prices.

Vale Inco president and CEO Tito Martins said the lay offs were "necessary in these exceptional times."

Also making headlines:

The China Investment Corporation sees opportunities in natural resources.
A PricewaterhouseCoopers survey shows that junior miners suffered in 2008.
Metorex's new CEO Terence Goodlace says debt reduction is key.
And, Cuba considers a reduction in its nickel output.

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