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Thursday, May 21, 2009.

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

Making headlines today:

Junior miner Pan African Resources has exercised its option to buy Phoenix Platinum from JSE-listed Metorex a month ahead of schedule.

Pan African acquired the UK-based Phoenix for R71,25-million in cash. Phoenix owns rights to platinum group metals from tailings dumps and from some operating mines in South Africa's Bushveld Complex.

By exercising the option earlier and paying an upfront cash amount of 44,8-million-rand, Pan African received a 5% discount on the original purchase price of 75-million-rand as well as credit terms to pay the balance of 14,5-million-rand on a pro-rata basis over 12 months.

The world's biggest steelmaker ArcelorMittal has delayed the launch of a planned 1,5-billion-dollar iron-ore mine in Liberia as a result of falling demand.

ArcelorMittal said it expects world steel demand to fall by 15 to 20% this year, and that it will lay off nearly 1 000 workers in the US. The company reported slightly worse than expected first-quarter results in April.

Earlier this year chairman and chief executive Lakshmi Mittal said he expected prices for iron ore to fall substantially in 2009. Iron ore is the main steelmaking raw material.

Also making headlines:

Top Australian shareholders in Rio Tinto call for changes to the miner's planned 19,5-billion-dollar tie-up with China's state-owned Chinalco.
Diversified miner Xstrata resumes mining at its George Fisher zinc mine.
International Ferro Metals says that the ferrochrome down cycle seems to be bottoming out.
And, Coal of Africa submits an environmental study for its Vele colliery.

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