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Wednesday, May 13, 2009.

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

Making headlines today:

South Africa's Chamber of Mines has confirmed that wage negotiations in the coal and gold sectors will start next week.

CoM spokesperson Jabu Maphalala said that the demands from all the unions involved in the negotiations have now been received. The key figure provided has been a 15% increase across the board.

The National Union of Mineworkers said previously that it wouldn't settle for a wage increase less than 15%.

The former two-year wage negotiation agreement will expire in June.

US metallurgical coal supplier Alpha Natural Resources, has agreed to buy Maryland-based rival Foundation Coal for about 1,4-billion-dollars in shares. This will create what will be the nation's third-biggest coal miner.

Alpha CEO Michael Quillen says that the merged company will be better able to weather the short-term challenges facing coal producers, as well as to take advantage of an anticipated rebound in demand and prices for coal.

The combined company will be 59% owned by current Alpha shareholders and 41% by Foundation. It will operate 59 coal mines and 14 preparation plants, and will own more than 2,3-billion tons of coal reserves.

Also making headlines:

North American iron-ore miner Cliffs Natural Resources will sell 12-million shares, and cuts its dividends and salaries.
Gold and base-metals mergers and acquisition activity declined 25% in 2008.
Consultancy Ernst & Young forecasts a metals shortage once demand rebounds.
And, Sentula Mining says its 1,1-billion-rand debt restructuring is an advanced stage.

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