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Wednesday, May 6, 2009.

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

Making headlines today:

Chinese iron-ore imports hit a new record high for the third consecutive month in April, showing a rising reliance on imports and undermining efforts by steelmakers to force mining companies to cut prices.

China's iron ore imports rose to a new high of 53,5-million tons in April, up 24,2% from a year earlier.

Chinese steelmakers have been pushing for a 40% price cut in annual negotiations with global mining majors BHP Billiton, Rio Tinto and Vale, citing a steel glut and low demand for ore.

But a slew of data showing record iron ore imports, heavier port inventories and solid domestic steel production recently are providing miners with arguments to limit any price cuts.

DJ Carmichael & Co mining analyst James Wilson said part of the reason for the rise in imports could be linked to a drop in domestic production of magnetite-type ore in China. This is more costly to produce and buy than spot market ore ready to use and widely available from importers.

US coal producer Foundation Coal has lowered its guidance for coal shipments this year and in 2010. This is to reflect expected deferrals by customers.

Foundation now only expects to ship between 70- and 73-million tons of coal in 2009. This is down from an earlier estimate of 73- to 76-million tons. Last year, Foundation sold 70,9-million tons.

CEO James Roberts said that in the first quarter, earnings were affected by reduced shipments on a few customer contracts, which cut Foundation's earnings before interest, tax, depreciation and amortisation by some $22-million.

Also making headlines:

Canada's Kinross Gold views Chile as key to its future growth.
South Africa's Wits Gold boosts it's De Bron indicated resource by 41%.
Coal of Africa Limited issues shares to UK investment banker Blue Oar.
And, Diavik's 2009 output is now seen at 5- to 6-million carats.

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